Demonstrating the quantitative value of home search assistance to lump sum assignees
Lump sum relocation packages have seen a significant resurgence in recent years, notably, through growing organisations seeking to relocate high volumes of employees on one way permanent transfers.
As a destination services provider, we have experienced first-hand that, for high volume relocations, generic relocation programmes are unlikely to cater to the needs of each assignee to a satisfactory level when taking into account differences in personal circumstances, culture of the home country, etc. Assignees are left feeling like a number – something that, at CLR, we work exceptionally hard to tackle.
The premise of a lump sum package is to ensure greater cost control and reduced administrative burdens for the company whilst offering increased flexibility for the assignee. Assignees are provided with an upfront cash payment to cover all of their mobility programme or to cover additional services that individuals may require as an extension of a basic programme.
Predictably, however, when presented with a significant amount of money to cover the relocation, the focus of an assignee can often turn to saving this money rather than paying for assistance, particularly, it seems, for rental home searches.
In personal terms, for an assignee to pay the cost of a 1 or 2 day home search is quite significant, particularly due to the ease of use of property portals and prevalence of high street lettings agents. Hence, often, an assignee will not look to engage a provider for assistance.
However, using simple terms, we feel it is worth conveying the quantitative value of home search assistance to an assignee. In 2015, CLR saved each of our assignees an average of £914* and that’s net income!
Pitch this against the upfront cost of a home search package and effectively the assistance is virtually free of charge. Add to this the insights, help and advice from our consultants, and suddenly an assignee receives a very cost effective and hassle free package…
*The figure was calculated based on rental savings against property asking prices, and reduction of agency charges over the course of a 12 month tenancy, from all of our 2015 home search cases.