ISSUE: After corporate headquarters moved from the Midwest to the East Coast, approximately 150 employees who owned homes faced the most catastrophic real estate market in the country.
ACTION: Separate policies were designed collaboratively to counteract negative market conditions and provide incentives for these key employees to move into the higher cost area. Although the average relocation costs for this group move were going to exceed industry and past average costs (something that was necessary and fully anticipated), our mobility management recommendations still resulted in cost containment and outstanding results, particularly with respect to home sale program costs and household goods moves.
OUTCOME: The average direct home selling cost for approximately 100 homes was 17%, representing an average 8% savings below budget. We renegotiated contracts with three national van lines, achieving average savings of $783 per household goods move, equating to average annual savings exceeding $200,000.
ISSUE: We administer a tiered relocation benefit for this client who relocates on average 110 homeowners per year. Homeowners on the highest tier are afforded the Buyer Value Option home sale program. During the depressed real estate market, 40 transferees were having difficulty selling their homes. Exception spending for these transferees to cover duplicate mortgages, temporary living extensions, additional trips home, and increased costs for extended household goods storage, was straining the Company’s budget.
ACTION: TRD analyzed these costs and presented alternative solutions.
OUTCOME: Within three months of implementation of TRD’s suggested policy revisions, 39 out of the 40 properties sold and closed.
ISSUE: Our client’s dissatisfaction with previous provider’s service, excessive fees and inadequate real estate inventory disposal.
ACTION: We eliminated a monthly retainer fee that the previous provider had charged, saving $60,000 per year. Additionally, our fees were 50% less than the former provider. As well, TRD took over eight inventory properties that were sold and closed within 95 days after hire.
OUTCOME: TRD’s fee structure saved our client $2,000 per homeowner move. At engagement, TRD also established a tiered relocation benefit construct that would ideally fit the organization’s growth goals, represent a competitive cost-effective package to attract talent, and tighten home sale program parameters to address depressed market conditions.