Three Insights On Employee Relocation Services
This article is by Move Car's Director of Sales. He answers questions about the industry's changing landscape, trends, and best practices for improving operations.
Although the pandemic reshaped almost every industry, one industry you won't hear about often is the employee relocation industry. This sector helps employees, and transferees, to make the move easier by taking care of everything, from moving household goods to moving personal or recreational vehicles and even property management.
Q: How has the pandemic impacted the entire industry?
The pandemic posed stress on both the industry of employee relocation services and the companies supporting them. Employees worked remotely, so relocations were stopped. Move Car's data on auto relocations supports this trend. Even the most popular routes such as Seattle to New York and New York to Los Angeles saw a decline in moves.
The traditional routes saw less traffic, but new destinations began to appear. Employees could work remotely if a company has a policy for permanent remote work. Move Car witnessed an increase in residential relocations from densely populated areas to more suburban or resort-like locales.
Our retail business experienced dramatic growth. Move Car saw 58% growth in 2021, and we are seeing our clients who specialize in relocation management rebounding.
Q: What trends, innovations, or changes are you seeing?
Although our industry is constantly changing, the pandemic spurred many innovations and set off several trends.
Technology has seen rapid growth due to remote work, lockdowns, and social isolation. The emphasis is on easy-to-access and automated services. Nearly all businesses have increased their tech stack. Moving and relocation also helped their customers and transferees.
It is crucial to adopt new technologies to meet customer needs. Move Car is a technology-forward company that continues to innovate in order to provide both relocation customers and retail customers with the products and services they require.
Unique remote work arrangements
People want to spend more quality time with their families so there has been an increase in companies that allow employees to work from other countries. Global relocations will increase as more countries open their borders.
According to Wakefield Research for Graebel Companies, Inc., nearly 35% of workers (59%) said they are more likely to move for work now than before the pandemic.
Increase in lump sum packages
This year, the popularity of lump-sum approaches to employee relocation is on the rise. Some people find lump sum packages for employee relocation controversial. The lump-sum is a popular option for small businesses to grow and new companies are opening up in the market.
Employers can simplify their relocation process by using lump-sum packages. However, employees might find that the lump sum payments don't adequately cover all of the costs. This can lead to frustration. Some packages offered by employers may be too generous and cost the company more than necessary. Transferees will have to pay taxes on any excess. Sometimes employees will try to save more money by using low-quality services, which can lead to terrible relocation experiences. These situations are not good for either the employer or the transferee.
Employers should reevaluate lump sum relocation plans to improve forecasting and budgeting, while also ensuring employee satisfaction.
Group moves increase
Global pandemics caused an economic downturn that led to an increase in mergers, acquisitions, and staff cuts. Many companies have moved entire departments to new areas. Relocation partners will need to be more understanding, respectful, and professional in a group move.
Q: What are your market forecasts and what best practices can you recommend to companies in order to move forward?
Move Car had its single best month of relocation moves in late summer 2021. This indicates a market rebound. Numerous forecasts predict continued growth in the market for relocation services.
Here are some best practices that I recommend to companies involved in the relocation management business.
Flexibility and patience are key.
Changes continue to occur in the workplace. The new work arrangements are being evaluated by the IT and Human Resource departments. Policies and locations are still being determined. As a partner in this change, you can support your corporate clients at every stage.
Increase understanding of claims
This is particularly important for companies that outsource auto transport. Additional items that are loaded into a vehicle for transport are not covered by insurance. It also increases the risk of theft for truck drivers. The transferee can be made to feel bad if they deny their claim. Both the transferees and employers will benefit from more education in the beginning.
Although it is rare for a vehicle to be damaged during transport, we ask customers to be patient. Our process takes 16.2 days on average, compared to 32 for the industry average.
Logistics duties can be relieved by internal resources
Move Car is a partner and can take over your internal resources. We are a third-party logistics firm and have a large and well-vetted network of carriers. This allows us to expertly handle all aspects of auto relocation, including claims, insurance, and dispatch. We strive to make every transferee's auto relocation experience positive.