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11/08/2004Is your relocation company meeting your needs?

Many companies turn to relocation companies for quality assistance in the expatriation process. Quality, though, requires communication from both sides, as we find out.

Relocation training programmes
could be the answer for both sides.

Over the past few years, as a result of a weakened economy, many companies cut back on relocation activity and chose to outsource to large relocation companies, where the quality of services and customer care, varied and often fell below expectations.

RoseMarie LaCoursière, president of corporate concierge company Ask Rosmarie observes, "Many companies 'just accept' the mediocre services for now, and dread the launch of an RFP (requests for proposals) to conduct bidding of services."

The RFP process is both time and cost-consuming, especially when companies have lost the expertise to carry this out effectively.

"The current trend for Multinational companies to outsource HR administrative services to expert companies ultimately affects relocation services," says LaCoursière. "Companies understand that expert firms will set higher standards of relocation services."

These expert outsourcing companies, which generally have core expertise in financial and HR rather than relocation, will not risk failure at any level. Instead, they are forming unique alliances with specialised small- to medium-size relocation firms to excel at executing services through high performance and customer care.

Golden rules for companies putting work out to tender
  • Brief suppliers properly.
  • Provide access to your people so the suppliers can get a feel for what makes your organisation tick.
  • Visit suppliers' offices and talk to the people who may be handling your business.
  • Give suppliers enough time to prepare their pitch.
  • Give feedback to those who have failed to win your business so they won't be discouraged from trying again.
  • Thank all those who have taken the time and trouble to make a pitch.
Source: Steve Halford, founder and director of Work Communications

LaCoursière explains, "These firms know first-hand there are 'no second chances' in relocation".

Wilbert Jorna, managing director of Dutch Living Services, a mid-sized, Netherlands-based relocation company, says, "We work on a customised basis and build up relocation packages tailored to suit each company and expatriate within that company.

"We look through the eyes of the expatriate. They are our clients and while doing the relocation programme we are, in effect, part of the HR team we work for.”

Measuring the quality of a relocation company can be an extremely difficult task, but it is possible.

Walter Vermeeren, Managing Director Sirva Relocation Europe and Africa, says companies should have "clear and complete relocation or mobility policies".

"Through the defining of measurable objectives, policy consulting becomes a service which brings immediate added value to all parties," says Vermeeren.

However, it's also important to keep policies flexible and make sure they include healthcare and pensions.

To ensure that a relocation company meets your requirements, Sirva Relocation Europe offers the following basic checklist:

  • Scope of services: Are they broad enough/focused enough to complete the task?
  • Geographical coverage: Own offices/partners?
  • Information technology: Does it support the services/ make reporting fast and clear?
  • Staff: Are they trained professionals with a broad knowledge of HR and expatriate needs?
  • Independence: Is the company independent of important stakeholders who could bias decision processes?
  • Stability: Will the company still be there next year? Does it have a strong financial foundation and management?
  • References: Do the company’s references confirm that they can deliver what they promise?
Vermeeren continues, "Post-service, check the level of service and quality with the expatriate client. We send the expatriates questionnaires, which are analysed for internal use and discussed with the clients."

He also recommends that HR regularly check in with the relocation company to make sure the provider stays within the agreed service packages.

"Our online reporting system checks both 'on-time delivered’ and ‘services delivered’. It gives early warning if there is a risk of not meeting requirements," says Vermeeren.

Sirva Relocation Europe is also in the process of implementing written and signed Service Level Agreements (SLAs) with its partners. SLAs define the rules governing the relationship, covering everything from performance tracking to fees to termination conditions.

Charlotte Beal, who managed relocation and expatriate needs for Chello Broadband for two years, adds this bit of advice for HR: "Remember to communicate clearly to employees what their package includes to avoid any misunderstandings."

Credentials to look out for

To improve the quality of services offered by relocation companies working throughout Europe, the European Academy for Relocation Professionals, EARP, was jointly founded by EuRA, ABRA (the Association of Belgian Relocation Agencies), ARA (the Association of Relocation Agents, United Kingdom) and SNPRM (Société Nationale des Professionels de la Rélocation et de la Mobilité).

"Increasing the level of training for EuRA members will improve the quality of relocation companies working throughout Europe," says Michele Bar-Pereg, president of EuRA, which offers training as part of the EARP accredited programme. 

"In turn this is going to benefit HR managers who are going to be working for them in the future," she says.

Getting it right from the start

Work Communications lists "brief suppliers properly," in their list of golden rules for handing out work to tender, however  Bar-Pereg, who is also president of the relocation company Foursquare group has observed that most companies simply don't know how to choose a vendor.

"Sometimes relocation companies get these huge and complicated requests for proposal which they need to have a trained staff member just to answer to," she says.

"If HR professionals involved in mobility management took part in some of the training courses offered by EuRA, then HR professionals involved in mobility management would understand better what their companies actually need,"  Bar-Pereg says.

For more information on EuRA's EARP accredited training programme visit www.eura-relocation.com.

 February 2003 (updated February 2006)

Natasha Gunn is the editor of Expatica HR.

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