A Services Procurement Smorgasbord: Relocation Category Management

What do aggregators engaged in relocation services focus on? They aggregate demand for most every area of addressable spend listed below in a cafeteria-style menu of services. This includes a broad range of activities, including:

  • Buying and selling houses
  • Residential moving of goods
  • Assignment Definition/Communications, ?including salary
  • Tax gross up and equalization work
  • Mortgage assistance
  • Managing child education placement
  • Spousal counseling
  • Rental and/or temporary living assistance
  • Property management, including utility activation ?and maintenance services
  • Insurance (including negative equity solutions)
  • Expense Reimbursement?
  • Job search assistance for other family members
  • Language training (for any/all family members) • Cross-cultural training
  • Immigration services
  • Legal services
  • Concierge services

Of course, the level of mobility assistance offered to employees is a matter of corporate policy, but the aggregators can play an important role here too. They not only help companies define competitive mobility policies that should be reviewed on annually; they also share best practices and benchmark service levels and the related costs.

The aggregator needs to make certain that they provide all of the various services that a corporate global mobility program requires. While this is not a one-size-fits-all area, there are some distinct similarities from company to company and program to program. One of the similarities is the "type" of transferee that many programs have.

The most common "types" are what are referred to as "lump sum candidates," renters, and homeowners. Each type requires a different level of service based on the benefits provided in the company's relocation policy. It is also necessary to make certain that the services provided within an aggregated model can service both domestic and international relocations, as well as international assignment management services.

This post is based in part on the following Spend Matters Perspective: Relocation Services or Mobility Services: What's in a Name?. We invite readers to download the full paper to explore the topic further. Our analysis includes a supplier shortlist and explores the top spend areas to address within the category.

- Jason Busch

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