Learn how using lump sums can control your relocation spend and make you procurement's best friend.
With the ongoing cost pressures that companies face, global mobility departments and their balance sheets have come under increased scrutiny over the past few years. As companies continue to expand globally, there is an increased need to transfer knowledge and skills to new geographies and business units. The requirement for companies' talent pools to be increasingly mobile often comes with a hefty price tag, but with a clear business need for assignments it can be tricky to curb the spending.
It is no secret that traditional expat relocation packages are costly, but with the rise of cross border hiring and self-initiated moves, many global mobility teams are moving away from the traditional assignment package and looking for new ways to control costs. For some teams, their mobility program is widespread and decentralized, leading to inefficient spending and productivity loss for both HR and assignees. For others, their program is largely outsourced but as each contract comes to an end they face a tougher battle to get the budget signed off by procurement.
With this in mind, many companies are moving towards a self-service model by way of lump sum packages. With employees keen to obtain valuable experience and development through an overseas posting, the justification for a lavish expat package is diminished. Lump sum payments offer a straightforward way to control costs by limiting each employee's relocation spend to a single line item on the balance sheet, with total programme spend much easier to track.
Here at MOVE Guides we work with a number of companies who offer their employees the best of both worlds with assisted lump sums moves. Employees receive a lump sum payment which helps to cover the costs of relocation, but are not left out in the wilderness to plan their move alone. Instead, they receive full support from the MOVE Guides team to search, compare and book suppliers, and get acclimated through the use of expert city guides. With support available via phone, email or live chat, employees get the benefit of full support whilst controlling their own spend, and yours too!
With an eye on the bottom line, this approach to new hires and employee transfers provides procurement with a solid business case for approving relocation spend, safe in the knowledge that cost overruns are severely mitigated and total spend can be forecast accurately. Get in touch today to find out how MOVE Guides can help you to control your relocation spend and win friends in procurement!