A multi-national, multi-industrial client experienced a decline in global mobility activity over the past several years, which they assumed was a result of the spike in relocation-associated costs. This theory led them on a hunt for cost-effective solutions while they worked on increasing the flexibility of their program. But maybe it wasn’t the costs themselves, but rather how they were being presented.
Leveraging our customer insight surveys and focus groups, we captured the full story of the mobility program through the experiences of relocated employees, assignees, HR leaders, and business leaders. While the benefits were seen as generous and well-received, a lack of understanding of the cost of relocation was leading to underutilization of the mobility program.
Overly complex cost estimates were frustrating stakeholders who pointed out that they were often based on current employee compensation, which could be misleading. Or the relocation was estimated as a “worst case scenario”, meaning the calculated cost was the highest it could possibly be, and this naturally spurred some sticker shock. In essence, relocation opportunities were perceived as unattainable, both for stakeholders and the candidates themselves.
“[If the cost is too high] then people will back away from that or then try to get creative to find other solutions to make something work, which I don’t think is always a good idea.The more we can refine the cost the better, because otherwise we may choose not to do things that otherwise would have been a reasonable choice.”
- Client HR Business Partner
A more transparent and accurate cost estimate would require more information about the candidate so cost scenarios could be calculated as accurately as possible. This would require early engagement between the business and the global mobility team.
A workable solution: when presenting the cost estimate to the business for approval, an executive summary would be included, providing details on the critical elements of the move or assignment (think compliance benefits, such as immigration and tax) and the less essential components, such as loss on the sale of an automobile. This summary would help the business understand the estimated cost to make informed decisions and overcome the sticker shock of an assignment or move.
By demystifying cost estimates and clearing up potential misunderstandings, our Studio® empowered the client to overcome reluctance and make data-informed decisions with confidence. This new process not only improved the client’s ability to reach their talent goals, but helped elevate the profile of their mobility program as a valuable and viable solution to drive overall business success!
Access to the right data, paired with the right communication tools, can transform how you manage mobility. Weichert Go offers a suite of versatile cost estimation tools for instant budgeting, seamless assignment approvals, and accurate accruals.
To explore how the Weichert Advisory Studio® can transform your program, go here.