Relocation Services: In-house or Outsource?
Outsourcing has its benefits. Keeping your mobility operations in-house does, too. Over the years, employers have repeatedly tallied the good and bad of each approach. Some companies have tried it both ways but still question the best answer.
So… why not do both?
By combining the good with the good, you can get what you need without wasting time or money. When outsourcing relocation services to a single vendor, employers are often issued a standard solution that was established long before either party met.
However, when everything is kept in-house, you run the risk of becoming boxed in. Outside expertise, capabilities, and technology can fill gaps that you may or may not see.
By blending internal and external functions, you can create a hybrid solution that’s fashioned to meet your exact needs. It’s a simple concept that can quickly become complex if you let it. Start simple; start with your pain points.
Define Your Pain Points
What is your biggest challenge? Let’s say your transferees are relocating to places with limited real estate options. Then housing is a pain point and you should consider outsourcing that to a top-tier provider. Continue identifying pain points and then prioritize them. For example, you may also struggle with x but the directive from C-suite is to X. Now X is the number one pain point and housing is the second.
Define Your Strengths
If you’re debating the in-house vs. outsourced approach, it’s likely that your mobility department is delivering some benefits that outsourcing cannot yield. For example, one employer may find it beneficial to have their employees shepherd co-workers through the relocation process. Therefore, they decided to keep the counseling function in-house.
Leverage Technology
As technology in the global mobility space evolves, it’s easier than ever for corporate global mobility teams and vendors to share information and provide instant data access to everyone involved in the relocation process. In-house mobility teams are no longer tethered to a single system with limited capabilities, nor must log in and out of multiple programs to piece together data that is part of a larger picture. Instead, they can leverage open software platforms to support hybrid solutions.
Consider Cost-Saving Opportunities
Global mobility teams were cost-conscious pre-pandemic; now, they are hyper cost-conscious. Many are demanding that vendors unravel complex package deals and complicated billing to get a better understanding of true costs. This, in combination with technology providing better visibility, means the numbers are no longer blurry. In some cases, data clarity has led to a push for more one-on-one vendor relationships, trimming excessive fees and yielding leaner budgets through direct negotiations. Additionally, this level of insight can validate strategic outsourcing to specialty providers.
Keep the Transferee as Your Priority
As you reframe your approach, don’t lose sight of the transferee. Successful relocations are the hallmark of a strong mobility program and the best way to truly demonstrate a return on your investment. Relocating employees crave options and flexibility. A hybrid model is conducive to this approach, giving you the freedom to create something that meets each transferee’s unique needs.
Mobility professionals no longer need to choose between an in-house or outsourced program. A hybrid global mobility model offers flexibility and control – two things that usually countercheck one another.