Relocating employees is a critical aspect for businesses that need to grow, adapt, and thrive in the global landscape. There are two central decisions at play: partnering with an external relocation company or using in-house resources.
Each approach has advantages and disadvantages that should be carefully considered. In this article, we’ll explore the pros and cons of both methods to help businesses make informed decisions on how best to support their employees.
The Advantages of Using a Relocation Company
Cost Efficiency
While hiring a relocation company comes with a cost, their experience can outweigh those fees. Relocation companies often benefit from exclusive partner discounts and operate with refined, efficient processes. This can translate into significant cost savings when compared with handling relocations in-house. Furthermore, the outlay can be somewhat offset because internal team members who work on relocation projects are paid.
With their expertise and industry connections, relocation companies can efficiently navigate the complexities of relocation while keeping costs in check.
Relocation Company Expertise and Resources
Relocation companies specialise solely in relocation services, allowing them to amass invaluable experience and resources that surpass those available internally within most businesses. From visa applications to property support and medical registrations, these companies offer comprehensive support across all aspects of relocation and can handle every detail of the relocation process efficiently and effectively. This level of support not only benefits employees by ensuring a smooth transition but also provides peace of mind for HR teams, knowing that their employees are in good hands.
Time and Effort Savings
Outsourcing relocation to experts frees up internal resources and personnel, enabling employees and managers to focus on core business activities. By allowing a relocation company to manage the entire process, HR teams can conserve valuable time and effort that would otherwise be spent coordinating logistics and assisting employees with their move. This permits organisations to concentrate resources on strategic human capital initiatives. Ultimately, outsourcing relocation services not only benefits employees but also allows companies to prioritise their core objectives and key goals more effectively.
Enhanced Employee Experience
A relocation company enhances the employee experience during corporate relocations by providing comprehensive end-to-end support services. They handle complex logistics such as visa assistance, home finding, removals, temporary accommodation, and settling-in tasks. In order to alleviate concerns and facilitate a more seamless transition, dedicated consultants provide individualised guidance and empathetic assistance throughout the relocation process. Employees can remain focused on their job responsibilities while the relocation company handles all of the laborious relocation details. When companies focus on employee well-being by increasing satisfaction, accelerating productivity after relocation, and enhancing the retention of top talent, they create a more engaged workforce. An enhanced relocation experience creates a win-win situation that enables successful workforce mobilisation while taking into account employee needs.
The Disadvantages of Using a Relocation Company
Loss of Control
Outsourcing relocation entails relinquishing a degree of control over the process, potentially leading to miscommunication or oversight of important details. Businesses may find it difficult to hand over responsibility and be sure that external relocation providers fully take into account their unique requirements and preferences.
Additional Costs
While relocation companies offer cost-saving opportunities, businesses must account for the fees and markups associated with outsourcing relocation services. For organisations with very limited relocation requirements, managing relocations internally may prove to be a more cost-effective option in the long run.
Cultural Misalignment
External relocation companies may struggle to fully grasp the unique culture and values of a business, resulting in potential discrepancies in service delivery or cultural sensitivity. Businesses must consider how external providers can align with their corporate ethos and adequately support their employees’ relocation needs.
The Advantages of Managing Relocation In-House
Tailored Employee Support
Internal management of relocation programmes allows businesses to deliver personalised support that aligns closely with their culture and values. Direct communication and relationship-building enhance the relocation experience for employees, providing a sense of belonging and support throughout the process. In-house management of relocation also allows businesses to have more control over the process, ensuring that policies and procedures are consistently applied and that employees receive the same level of support regardless of their location.
Cost Control
For businesses with infrequent relocation needs, managing relocations internally can be a cost-effective strategy. While it requires tapping into existing resources and employee expertise, it avoids the fees associated with external relocation companies. This allows for greater control over relocation expenses, enabling businesses to direct those funds towards other areas or potentially offer more targeted relocation benefits to key hires.
Flexibility and Control
Managing relocations internally gives businesses the most flexibility to tailor processes and policies to specific employee needs and changing circumstances. This allows for quicker decision-making and adjustments compared to relying on external providers. With direct oversight of the relocation process, businesses can also swiftly address any unforeseen issues or changes that may arise, ensuring a more responsive and adaptable approach that minimises disruption for relocating employees.
The Disadvantages of Managing Relocation In-House
Heavy Workload
Managing relocations internally places a significant administrative burden on businesses, diverting resources away from core activities. From logistics coordination to compliance tasks, the workload associated with relocation management can overwhelm internal staff.
Limited Expertise
Internal teams may lack the specialised knowledge and resources available to an external relocation company, potentially compromising the quality and efficiency of relocations. Without access to industry insights, best practices, and an industry network, businesses may encounter challenges in providing comprehensive support for relocating employees.
Risk to Employee Experience
Inadequate resources and expertise increase the risk of errors or oversights during the relocation process, impacting the overall experience for employees. Businesses must balance the benefits of internal control with the potential risks of potentially inadequate relocation support.
Final Thoughts
Choosing between partnering with a relocation company or managing relocations internally requires careful evaluation of various factors, including cost considerations, organisational culture, and the volume of relocation requirements. By weighing the advantages and disadvantages of each approach, businesses can determine the most suitable strategy to support their employees’ relocation needs effectively. Whether outsourcing to a relocation company or maintaining internal control, prioritising the well-being and satisfaction of relocating employees remains paramount for providing a successful relocation experience.
Speak to one of our experts or send a message today and find out how we can add value to your relocation programme.
