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This is a fully benchmarked projest for Reloacation Services

This is a fully benchmarked projest for Reloacation Services

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  • 1. Ohio University
    Strategic Procurement Review of Relocation Services and Policy
  • 2. Objectives
    Historical Review of Policies and Cost
    • Review policies and perform industry standard calibration
    • 3. Conduct an employee satisfaction survey and spend analysis to determine average costs and standard deviations for Household Goods (HHG) moves.
    • 4. Use bottom-up approach to identify all suppliers with scope and services affecting relocation, including:
    Household Goods Movement
    Temporary Housing
    Real Estate Agents for both Purchase and Sell
  • 5. Employee Satisfaction Survey
  • 6. Employee Satisfaction Survey
  • 7. Satisfaction With Procurement
  • 8. Benchmarking Policy
    In 2007 Worldwide ERC® conducted its annual survey on Transfer Volume & Cost Survey related to employee relocation services, the following points were identified:
    • Worldwide ERC® has noted a reversal trend with respondents indicating that 54 percent of transferees were homeowners and 46 percent were renters.
    • 9. More than 70 percent of the respondents reported “slowed real estate appreciation/depressed housing market at the old location” as the reason their employees are averse to moving. This is a dramatic shift from last year, when only 16 percent of the respondents mentioned it as a reason for reluctance.
    • 10. Thirty-five percent of the respondents said that their organizations had made one or more significant changes to their relocation policies in the past year. Many of the changes were put into place as a result of the current real estate market and its negative impact on program costs and/or transferee satisfaction.
  • Benchmarking Policy (con’t)
    A number of companies implemented changes to their home sale/home purchase programs, including:
    • Enhancing home sale incentives
    • 11. Requiring transferees to use agents selected by the relocation management company for home sale and home purchase
    • 12. Capping points paid and real estate agent fees
    • 13. Adding additional time for duplicate housing assistance
    • 14. Adding dual mortgage coverage
    • 15. Extending temporary living in the new location
    The two other areas of change that companies frequently cited addressed overall policy and included adding/modifying a lump-sum program and implementing a tiered policy or adding new tiers to a current program.
  • 16. Relocation Costs
    • Overall costs—homeowners. In 2006, the average cost to relocate a newly hired homeowner increased from $52,318 to $55,165 in just one year.
    • 17. Overall costs—renters. The average cost to relocate a new hired renter, from $15,922 in 2005 to $16,177 in 2006.
    Source: Worldwide ERC®
  • 18. Unexpected Findings
    • Fifty-five percent (55%) of the new hires were renting at the time of hire, while forty percent (40%) were home owners at the time of hire.
    • 19. Nineteen percent (19%) of the employees that relocated are having difficulty with the sale of their former residence.
    • 20. Sixty-four percent (64%) of the relocated. employees have not yet purchased a home. This could be a risk factor.
    • 21. The cost of relocation is more appropriately linked to home ownership than it is to the classification or salary of the employee.
    • 22. General:
    • 23. As a classification, Faculty were the most under compensated for relocation expenses by their departments
    • 24. 85% of the apartment dwellers moved their household goods for <$5,000
    • 25. 85% of the home owners needed $10,000 to move their household goods but 50% received $5,000 or less. This is the area where the relocation policy needs more refinement.
    • 26. Current policy does not address temporary housing costs but in general departments authorize >$5,000 for that purpose.
  • Types of Relocation Programs
  • 27. ERC’s National ComponentCost of Relocation
  • 28. Recommended ComponentCost of Relocation
  • 29. Recommended ComponentCost of Relocation
  • 30. Recommended Program Enhancements
    Real Estate Services
    Buying and selling homes can be one of the biggest challenges of the relocation process (not to mention the most expensive). Through CityPointe, our employees will have access to a national network of real estate professionals to assist them with their existing home sale and the purchase of a new residence. This can minimize one of the most stressful parts of relocation and allow our employees to focus on their new position.
    Destination Information
    CityPointe will turn a potentially stressful situation into a well orchestrated experience that will help our employees settle into their new homes faster and get to work quicker.
    • Enhancing home sale incentives
    • 31. Cost of Living Analysis
    • 32. Area Orientation
    • 33. New City Profiles
    • 34. City Comparison Reports
    • 35. In-depth School reports
  • Recommended Program Enhancements (con’t)
    Cash Reimbursements
    With CityPointe, employees can maximize the purchasing power of every dollar available in your relocation program. Employees using a real estate agent from the CityPointe network of real estate professionals and who use United Van Lines to transport their household goods may be eligible for a cash reimbursement of approximately $5 per $1,000 of home value (on both the origin and destination sides of the move).
    Our relocation become faster, easier and more cost-effective.
    • Provides additional resources to our new employees
    • 36. Enhances our average home owner’s relocation package by nearly $3,000
    • 37. Is provided at no additional cost to your company or your employees.
    • 38. Takes no additional time on our part to implement.
  • CityPointe Value Add Analysis
    Athens, OHNational
    $225,000 Average home sale $265,000
    $1,125 City Pointe refund $1,325
    Average Total City Pointe Refund = $2,450.00
  • 39. The End