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By unmasking these hidden expenses and implementing strategic measures, companies can enhance their financial efficiency and ensure their mobility initiatives are cost-effective and aligned with their overall business goals – all without sacrificing the employee experience.

Allow us, if you will, to take you on a treasure hunt, but instead of gold (or a moderately priced 2-bedroom apartment on the Manhattan subway line), we’re searching for hidden costs that are draining your mobility budget. Here are the top 10 culprits that could be sabotaging your relocation program and what you can do should you spot them on your hunt:

1. Too Many Costly Exceptions: Exceptions can be like little gremlins, multiplying and causing utter chaos. Study those patterns and require written approvals of all exceptions to keep them in check. Determine who on your team is overriding the policy and why – do they need further training, or does the policy need to change? Consider renaming your Miscellaneous Allowance an “Exception Allowance”.
2. Technology Support/Upgrades/License Fees: Managing mobility functions with outdated systems can be a money pit. Fees for licensing, customization, and routine upgrades can quickly drain your budget, and time! Purpose-built, end-to-end solutions, like Weichert Go, not only streamline your program, but dramatically enhance the experience for your internal team and your employees on the move. A customized experience on an award-winning platform with seamless upgrades at a fixed cost? Now that’s some buried treasure!
3. W2Cs Cause Re-Filing Expenses: W2Cs happen when you don’t accurately account for all forms of income…like relocation reimbursements, in-kind payments and housing allowances. An accurate, easy, and thorough system for reporting can prevent those dreaded W2Cs and save you from penalties and unhappy employees.
4. Out of Scope Fees: Every move is unique, but out-of-scope fees can add up. One audit we completed illustrated more than $1.3M in fees to manage transactions deemed out of scope. Pay extra close attention to what’s covered in your scope of work to avoid unwelcome surprises.
5. Self-Funding Equities and Expenses: Self-funding equities and expenses can strain internal accounting resources, impact cash flow, and hurt the mobile employee experience. Combine expenses for accurate total cost reporting and avoid administrative headaches.
6. Diluted Volume from Maverick Spend: On the surface local tried-and-true providers might offer a great price, but look closer and you might find buried fees or third party costs. Leverage volume discounts, referral capture fees and bundled services whenever you can. Every “move” represents multiple revenue streams and can stack up to real savings, greater transparency and better accounting of your total spend.
7. Poor Quality from Lack of Supply Chain Controls: Hiring amateurs may result in your biggest budget faux pas. Ensuring your providers meet rigorous training and performance standards and are financially stable will help you avoid expensive mistakes (and safeguard the reputation of your mobility program).
8. Too Many Cogs in the Wheel: Disjointed providers and processes can increase costs and decrease efficiency. Streamline your approach by defining clear roles and responsibilities to help strengthen your service and cost control. Explore tools that can help you maintain these systems and help your mobility ecosystem flow seamlessly.
9. Lack of Agility to Support the Business: Flexibility is key! A rigid policy can lead to costly workarounds to overcome a reluctance to relocate — like sign-on bonuses or other perks – and this can create recruiting, compliance, and equity issues. Flexible mobility models are proven to support increased mobility, and result in better service and cost control!
10. Moving the Wrong People: If you are moving the wrong people you’ll know; engagement will suffer, productivity will wane, and turnover will increase.  These hidden costs can be avoided by using pre-decision services to ensure the right fit for both the employee and the business.

By identifying and eliminating these hidden costs, you’ll not only save money but also become a trusted partner to your business. So, don your best detective hat, follow these tips, and watch your relocation program transform into a well-oiled, cost-efficient machine! Should you need some help along the way, talk to us. 

Happy hunting, my friends.