Is is better to have one or multiple providers to manage your relocation program?

Employee relocation programs come in all shapes and sizes. Many companies will source preferred mobility partners to help their employees with domestic and global business needs.

I recently ready that 67% of corporations with more than 100 employee relocations use two or more providers to manage their mobility program (Worldwide ERC 2010). In fact, there are companies with as many as 400 moves annually that only rely on one preferred provider, while other companies might utilize up to 3-5 providers.

So, how many do I need? My recommendation is to make sure you have at least one preferred provider for your employee relocation program. If you advise your employee to go get bids, they often don’t know where to turn, and/or what questions to ask to determine the right mover for their relocation.

Here is a rule of thumb to consider when evaluating the number of providers in your program:

50 or less moves = one preferred provider. This will give you consistency and accountability.

51-150 moves = one or two providers. A second provider will provide metrics to compare pricing and service levels — competition often breeds success.

151 – 1,000 moves = one or two preferred providers, with a third provider as a secondary supplier. If the secondary provider starts outperforming preferred providers, then consider moving them to preferred status, and the non-performing preferred provider to secondary status.

Either way, it is important to partner with quality providers for your employees. It will give your employee and their family a direct channel to a qualified proven provider during a stressful time in their life. It’s just the right thing to do.

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