1.
relocation
policies.

2.
They can either be
your best friend,
like this puppy

3.
Or your worst
enemy, like
this tiger.

4.
we’ll help make
sure that you’re in
the first group.

5.
we’ll help make
sure that you’re in
the first group.
(tigers aside.)

6.
“But how!?”

7.
so glad
you asked.

8.
we’re going to show you
how to build core/flex
relocation policies for
4 different types of
transferees:

9.
- entry level employees

10.
- entry level employees
- mid-level employees

11.
- entry level employees
- mid-level employees
- senior executives

12.
- entry level employees
- mid-level employees
- senior executives
- the c-suite

13.
first, how about
some background?

14.
Core/flex policies
have been around
for a while, but
it’s the
implementation
of them that’s
becoming much
more prevalent

15.
similar to the
growth we saw with
lump sum, we’ll
see that same
sort of traction
with core/flex

16.
why?

17.
because there’s
so much
to consider when
creating relocation
policies.

18.
what’s the new cost of living?

19.
what’s the new cost of living?
is there a gross-up?

20.
what’s the new cost of living?
is there a gross-up?
what benefits do they need?

21.
what’s the new cost of living?
is there a gross-up?
what benefits do they need?
what about an expense allowance?

22.
Creating relocation policies is time
consuming, even before all the
exceptions start coming into play

23.
These are the areas that
typically see the most
exceptions:

24.
they also happen to be
the cities that companies
relocate to the most

25.
Core/flex alleviates these
problems by encouraging a
build-it-yourself
approach

26.
complex
It does this by allowing transferees
to pull in the pieces of a relocation
policy that they need, and then
build upon them as those needs
become more

27.
let’s take a look at
our first tier,
shall we?

28.
this is what a
sample policy for
this level might
look like:

29.
entry-level policy

30.
“What are
flex benefits?”

31.
pet assistance
spousal support
temporary living
homefinding trip
in-transit storage

32.
pet assistance
spousal support
temporary living
homefinding trip
in-transit storage
It’s a list of anything from pet assistance, to spousal
support, to temporary living, to homefinding trips, to
storage—the options endless. A company would
have a detailed list of benefits (along with what
coverage is included in those benefits) and then
based on the level of the transferee, allow them to
choose more or fewer options.

33.
Note:
These benefits aren’t paid to
the transferee, but rather
something they use through
the tool being used to
facilitate the relocation
(such as a relocation management software)

34.
Get it?

35.
Get it?
Money goes from the
employer, through the
RMS, and is used on behalf of
the transferee

36.
Get it?
Money goes from the
employer, through the
RMS, and is used on behalf of
the transferee
This person

37.
you’re probably
wondering how you
decide on the amount
of flex benefits
you offer.

38.
well…
there are two
different ways.

39.
offer a set
numerical amount
of flex benefits (up to 3 benefits)
SET A MAX
dollar amount
of flex benefits (up to $2,500)

40.
numerical amount
it’s cut and dry

41.
numerical amount
it’s cut and dry
the transferee gets 3 flex
benefits to choose from,
and that’s it.

42.
numerical amount
benefits are not equal

43.
numerical amount
benefits are not equal
one transferee’s 3 benefits might
not equate to another
transferee’s 3 benefits.

44.
3 flex benefits =
$2,500
3 flex benefits =
$8,000

45.
This is why specific
guidelines are
so important.

46.
Here’s an example of
how detailed a flex
benefit should be:

47.
homefinding trip
Expenses related to the homefinding trip
for you and one other adult member
The trip must not exceed 3 days/2 nights
Round trip transportation
Reasonable lodging – arranged through the
company’s service provider
A per diem for meals, not to exceed $55
per day per person

48.
dollar amount
cost effective

49.
dollar amount
cost effective
ensures that everyone stays
within the allocated budget.

50.
dollar amount
requires more monitoring

51.
dollar amount
requires more monitoring
have to be much more on top of
making sure that the transferee
is staying within their budget.

52.
Here’s an example of
how that
homefinding trip
might change using
a numerical-cap:

53.
Expenses related to the homefinding trip
for 1 person
Trip duration of 2 days/1 night
Round trip transportation
Reasonable lodging – arranged through the
company’s service provider
A per diem for meals of $45 per day
homefinding trip

54.
As you can see, the
transferee can manipulate
the benefit a little bit more.

55.
Make sense?

56.
let’s dive into the
next policy!

57.
here’s an example of
what this policy
might look like:

58.
mid-level policy

59.
“How would I
incorporate lease
cancellation?”

60.
“How would I
incorporate lease
cancellation?”
Wow, really great questions today!

61.
“If you are renting a home or apartment, you
should understand the conditions for
terminating your lease. You should obtain a
copy of the lease to review your options and
understand what the transfer clause is that
you would have to break. You may be
required to pay a lease cancellation fee, which
is reimbursable for up to one month’s rent.
You should provide the employer a copy of
the lease agreement in regards to cancelling,
along with proof of payment.”

62.
see what we mean?

63.
see what we mean?
DETAILED.

64.
Another big difference
here is the van line.

65.
Going from a rental truck to a vanline might be expensive…
…but it can make a big difference

66.
having a van line
can take a way a lot
of the stresses that
come with relocation

67.
which
improves the
overall
experience

68.
Now let’s talk
about taxes.

69.
it’s the responsibility to educate employees
on tax ramifications associated with relocation

70.
it’s the responsibility to educate employees
on tax ramifications associated with relocation
non-deductible
lump sum/mea
temporary living
car rental
return trips
etc.

71.
it’s the responsibility to educate employees
on tax ramifications associated with relocation
non-deductible
lump sum/mea
temporary living
car rental
return trips
etc.
tax-deductible
shipment of household goods, vehicles, and pets
first 30 days of in-transit storage
the final move

72.
paying attention to
this can save you a
lot of money.

73.
this is why:

74.
Acme relocation policy
Lump sum = $12,000
With lump sum With core/flex
• $12,000 becomes $7,800
(Assuming a 35% tax)
• Must gross-up lump sum
to $16,200 for transferee
to receive $12,000
Loss of $4,200
• Lump sum is used for less,
so amount can be reduced
• To provide a $3,000 lump
sum, employer only has to
gross-up to $4,050
Loss of $1,050

75.
Back to those
non-deductible expenses.
Let’s see what the
final move entails.

76.
the final move includes costs incurred
between the last night in current
location to first night in new location
Requirements
- route taken must be the most direct
- must be driving 350 miles per day
- if distance is less than 500 miles,
employee must drive
- if distance is over 500 miles, flight
must be purchased 2 weeks in advance
- all mileage is reimbursed at current
mileage rate provided by the IRS

77.
on to the next!

78.
here is where it can
get a little tricky.
let’s look at a
sample policy:

79.
senior-executive policy

80.
You might be confused
with MEA, lump sum,
flex benefits, signing
bonuses, etc.

81.
Here’s the thing.

82.
You need to ask
yourself a question.

83.
“what do i intend my
transferee to use this
money for?”

84.
Once you decide, you
can then choose which
option is best for you.

85.
sum of money for untracked expenses
sum of money for tracked,
relocation-related expenses
=MEA
complete control, providing the
most structure
=lump sum
=flex benefit

86.
this will help you
decide which form
the money should
come in.

87.
believe it or
not, these
policies can
span your
highest levels
to your
Lowest levels.

88.
let’s take a look at
the final tier

89.
let’s take a look at
the final tier
yay!

90.
this is your most
complex policy.
here’s what it
looks like:

91.
c-suite policy

92.
While you should always
offer assistance with
homesale, this is where
it becomes
critical.

93.
here is how renters
and homeowners
differ in terms of
benefits:

94.
Renter
- lease cancellation
- lease acquisition
- finder’s fees
- guided tours
or: flex benefits for
renting-related costs for
up to $1,000
Homeowner
- closing costs
- home inspection
- loss-on-sale
- loan fees
or: flex benefits for
homesale-related costs for
up to $5,000

95.
you can also offer
more extensive
flexible benefits,
such as…

96.
lifestyle transition assistance
what’s included
- Career assessment and coaching
- Resume preparation and production
- Cover & reference letters preparation
- Interview training and networking strategies
- Internet job postings and community research
what it is
Lifestyle transition assistance is available to you and your
family during and after your relocation. You’ll be paired
with a consultant to assist you, along with a career
relocation service that will give help to anyone facing a
career or job change.

97.
this is expensive
and can be difficult
to administer, so it
doesn’t need to be
given to everyone.

98.
Lastly…

99.
“how do i know if
core/flex is working?”

100.
you should have
some sort of
system in place
for tracking the
effectiveness of
each policy

101.
this way, you
can be sure
you are
spending your
money in the
most useful
way possible
for your
transferees

102.
That’s it! Now you’re
an expert!

103.
Well…almost.

104.
Check out our
webinar & eBook
to complete the lesson!