Lump-Sum or Reimbursed (LSR) moves are fast becoming the program of choice for many companies. A recent survey indicating over 65% of organizations are using a lump-sum, capped or reimbursed program and many more are in the process of adding the option to their relocation offering.
This program is far from being new, in fact before relocation companies came on the scene most organizations worked directly with supplier’s particularly the movers. They would develop a “moving policy”, negotiate a discount and set standards in which to perform the moves. Corporations would move all of their employees using this model, with little or no problem. It worked then and it works now.
If you have taken the time to do a relocation strategy audit, you will see that a number of factors are pointing back to this type of (LSR) program. The program is very easy to manage, it allows you to accurately budget costs as well as providing your employee with flexibility and when supported by technology it is a perfect program for the new millennial employee.
Most organizations rely on the Human Resource department to monitor their corporate culture. Many organizations try to foster a culture of gender and age diversity in order to stimulate innovation. Today’s organizations are actively recruiting young bright employees to challenge the status quo in an effort to innovate and evolve the organization. Not only is the (LSR) program much easier to manage and less expensive for the corporation, the demographic of the new bright employee mirrors the benefits of the service.
The millennial generation will make up 75% of the work force by 2020 and they are absolutely the group that the (LSR) programs works best for. Why is that? Here is a snapshot of your new hires and our future leaders.
- They were raised with technology and are very aware that technology is the main differentiating factor between them and any other generation
- They are the most educated generation in history
- They are, for the most part, single
- Due to education loans, over 40% are still living at home and few actually own a home
- They are urban, they move to city centers into small condos or apartments.
When you look at the demographic, the only real “must have” in your (LSR) relocation program is a mover. By dealing directly with a preferred mover, as was the case in the past, you have direct control over the only consistent service needed. By going direct to a mover rather than through a third party you also eliminate an estimated eight (8) handoffs and the added cost of a built in referral fee to you or your employee.
This retro-relocation revolution is becoming so evident to industry insiders that major Global relocation companies are abandoning their business model and actually becoming movers. That’s not to say that any mover will be a good direct partner, nor does it mean that by simply calling yourself a mover you will add value. You should look for and work with a mover that is focused on corporate relocations having the people, equipment and buildings to actually provide the service. Your selected corporate moving partner should have the ability to help you set up a policy, have a proven quality ranking and has innovative services such as a small move program all supported by technology. (As per the millennial demographic).
McWilliams has designed a program specifically for this new (LSR) revival, we offer:
- Technology, we have a relocation App for all smart phones. It manages the move, helps them shop for suppliers, tracks expense and generates an expense report all from their smart phone (download App on our website) http://www.mcwilliamsmoving.com/
- Small move program, we have designed a small move program specifically to provide advice, guidance and solutions for individuals moving a small amount of goods http://www.smallmovesolutions.ca/
- No handoffs Single point of contact with real time move management direct to operations
- Policy design, we will provide you with a template and benchmark information to allow you to design a current relevant moving policy
- Service Standards, we provide you with service standards to make sure you are getting the quality services you need
- Reporting as and when needed on any aspect of the move
- No referral fees, One- stop- shop for relocation options, we provide an accredited list of suppliers, if you need more than the move, all with no referral fees http://www.coreflexalliance.com/
Everything old is new again, with technology lessoning the need for the brokering of information on simple relocations, a direct to supplier program is a much smarter way to approach this new lump- sum reality. A good moving policy, managed by a good corporate mover, supported by technology is the best possible strategy for your lump-sum or reimbursed program. For a more in-depth discussion on features, benefits, services and price comparisons please contact me direct.
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