What You Don't Know Could Cost You Millions

Reprint from Business Week, August 23, 2004.

In today’s global environment employee transfer is unavoidable. There’s no doubt about it, relocation costs money. Companies are searching for ways to provide attractive employee relocation benefits while simultaneously reducing corporate costs. Many corporations hire relocation management firms to oversee their relocation policies, as well as the logistics of the actual move.

While this one-stop shopping may seem appealing, large companies are often losing millions of dollars. Why? Because these management firms enter into contractual agreements with third-party vendors, who in turn handle different aspects of the move from real estate transactions to transportation of household goods. In doing so, these management companies negotiate the best deal for themselves—after all, that’s how they make money. In many cases, these contractual agreements are not the most cost-effective for the client—adding layers equates to adding costs.

For example, moving household goods, whether domestic or international, is an aspect of relocation laden with hidden costs that could be avoided. How then, does a company hedge against these losses?

Enter a relocation advocacy firm. Think of them as your company’s watchdog. They show you how to save money through a review of your relocation policy, its procedures, and contractual agreements with unmatched expertise in the transportation of goods—an area where big money can be saved.

A uniquely qualified firm will share their insights—knowledge gained from specializing in corporate transfers. Modifying one client’s contractual agreement for transportation of goods can result in a savings of millions of dollars in just one year.

This type of firm ensures its clients develop an astute relocation policy that procures services that best suit the needs of its employees, as well as the financial needs of the company. The question is not, “should you have a relocation advocacy firm watch over you? ” – it’s “how can you afford not to?”

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