7 Ways Companies Risk the Success of a Relocation

A relocation assignment can be a daunting prospect for any employee, so it’s vital that their experience be successful and as seamless a transition as possible.  When companies get it wrong, it can have a direct and long-lasting effect on employee engagement, performance and retention. An unsettled employee can mean the difference between assignment success and failure, so it’s vital not to lose sight of the importance of striking the right balance between meeting your organization’s business objectives and ensuring that your employees’ needs are met.  Some key mistakes that organizations make include:

1. Lack of Communication

Companies can sometimes neglect the basics when it comes to keeping their employees informed. While the process of managing the relocation may be in full force behind the scenes, this may not be immediately obvious to the employee during what can be an overwhelming time. If, however, they’re provided with clear channels of communication – preferably a single point of contact at their relocation management company (RMC) or within their organization’s mobility function – this helps to alleviate anxiety or additional questions.  The contact for the employee (as well as process stakeholders) should:

o Proactively seek to keep an employee up to date through each stage of their relocation: before departure, in transit and post arrival (to improve employee experience and, ultimately, save time by minimizing the need to field additional inquiries from concerned employees).
o Respond in a timely manner to all inquiries; a lack or delay in responsiveness can be a key cause of employee dissatisfaction.
o Set realistic expectations about timelines to save miscommunication down the line, such as in the case of immigration process, during which the approval process can be significant and time consuming.
o Ensure that technology is used effectively to maintain connectivity and allow employees to keep in touch through their preferred method, unhindered by the restrictions of office hours and time zones.

2. Program Inflexibility

Policy exceptions can be a tricky area, giving rise to precedent setting if mishandled, but any program should incorporate some degree of flexibility to accommodate the individual needs of both the business and the employee. It is important to recognize that everyone is different, and what may be important to one person may be insignificant to another. A flat refusal to accommodate requests can have a negative impact on employee wellbeing. Taking time to understand both the overall and individual needs of an employee population and incorporating flexible policy options into any mobility program is a key tool for success. With an adaptable approach, it’s always within the realm of possibility to structure a policy to be cost effective and scalable without compromising on quality of experience.

3. Broken Process

A relocation can potentially involve many suppliers before, during and after the lifecycle has completed. If the burden of managing these suppliers falls directly upon the employee, it can easily add stress and distract them from the job at hand. Working with an RMC as a single point of contact provides a ‘traffic cop’ as employees’ primary touch point, to field any questions or concerns they may have. An RMC can maintain relocation quality for companies navigating the intricacies of assignment management and maintain consistency due to their scope and reach within the industry.

4. Short-sighted Cost Containment

When striving to minimize costs within a mobility budget, often removing the ‘softer’ elements of policies can have a significant, negative impact on employee welfare. The perception within organizations is often that the cost of additional benefits (such as spousal support) is higher than it actually is. Family considerations (or lack thereof) are frequently ranked as the top reason for relocation failures, so ensuring that an employee’s spouse and family are given the right level of care goes a remarkably long way towards securing assignment success and maximizing employee experience.

5. Poor Spousal/Partner Support

The accompanying spouse/partner is likely to have significant involvement in communication and orientation arrangements, doing a lot of the leg work and coordination, so it makes perfect sense to allow them to participate directly in the process. While this may represent an added cost, engaging spouses/partners is a far more beneficial approach than a ‘trickle down’ communication effect between the employee and their spouse/partner. This should also extend to providing networking and support opportunities before, during and post assignment because, while many questions may seem day-to-day for mobility professionals, the experience could be unfamiliar for the employee and their spouse/partner.  Online groups or a social group in-location can be invaluable when setting realistic expectations about timelines during the process.

6. Wrong Providers

Finding an RMC that’s the right fit for an organization can be a fine balancing act when cultural differences are a concern for internal HR staff. Company culture can be as much about the industry in which the organization operates as it is about the personality of individuals, so it’s vital that when an RMC partners with an organization, they undertake a formal orientation of the company’s culture. When this isn’t achieved, it can often lead to misunderstandings, such as in the case of policy exceptions. Program controls such as the exception management process should reflect the culture of the organization to minimize the perception that the process is robotic and immune to the specific needs of each employee and accompanying family. It’s critical that any provider understands and matches the company’s expectations in order to correctly identify and meet the needs of its employee population.

7. Unsupported Lump Sum Provision

Companies can sometimes misjudge whether it’s appropriate to provide a straightforward lump sum. An employee-directed program without the benefit of support can seem like a more cost-effective alternative at the outset, but it can lead to issues further down the line if no resources are available to guide the process. Engaging an RMC will not only alleviate potential issues around expense management, it also provides useful access to the marketplace, as RMCs can offer suggestions for preferred vendors as well as FAQ documentation and best practices for lump-sum, full-expense management services.

Striking a balance between an organization’s business objectives and the unique needs of each relocating employee will always present challenges. Of course, programs need to be structured in a cost-effective and scalable way but, at the same time, take into account that no two employees are the same. When companies fail to recognize this important element, relocation quality can suffer.