But, if you treat this your employee's relocation as an investment opportunity it is easy to determine that outsourcing to Relocities will actually enhance everyone's experience and most importantly, have a positive effect on the transferee's productivity and state of mind!

 

Working on accepted principles, we find that:

 

Job Value - The real cost of an employee, derived from the benefits they bring to the company, their support network etc. is calculated to be at least three times the direct employment costs (salary, taxes and benefits). Factoring in the lost productivity as well increases the costs closer to four and a half times salary.

 

Hourly cost - Therefore, every hour the employee spends managing their own relocation will cost the company at least 4.5 times the job value.

 

Efficiency - Factoring in the time spent waiting on the phone for an automated system to put you through, travel, web searches, learning then dealing with new and different tasks such as visa applications, rental agreements, bank account, finding a new home, rental agreements, drivers licenses, vehicle insurance, health services etc. increases time spent (for "spent" read "wasted"!) by a minimum of 50% for simple tasks, and up to 200% for more complex ones.

 

Many tasks that are considered to be simple in the home territory become complex as lack of knowledge complicates and slows down processes.
 

Think about driving in a new city in a new country:
 

• Can you use your current drivers license?

• Do you need to take a new test?

• Is your driving record valid?

• What new paperwork will you need?

• How do you arrange vehicle insurance?

• Can you apply in advance?

• Do you need to take medical and sight tests?

• Do you have to report certain conditions and illnesses?

• Do you need a local social security number?

 

Without Relocities local knowledge it is easy to see how long it would take to find out about and organize any aspect of relocating successfully.

 

Assuming a relocating employee earns $120,000 (About £90,000) per year and it takes them just four hours to establish the driving criteria (it will take them longer), the real cost to the company based on job value is actually about $1,070 (£830).

 

If we expand this into three full weeks spent over a couple of months to deal with all the aspects of the relocation the true cost including the lump sum payment (usually around $13,000 (£10,000)) escalates to about $42,500 (£33,000).

 

. . . . . and then there are the tax issues and lost sales revenue!

 

You will be delighted to know that Relocities fees for a full "end to end" relocation including expense and tax management are considerably lower (Often less than a quarter of the above figure) and your employee remains productive throughout.

 

Please ask us for more information:

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If your corporate policy is to provide lump sum payments we also offer a Lump Sum Relocation Management Service directly to your employees at minimal cost. This will still alleviate some of the issues discussed above, but it really makes more sense for us to manage your employee mobility and relocations for you!

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Not ready to change yet? See Using your Lump Sum payment wisely for more information.