CHOOSING A CORPORATE RELOCATION SERVICES PROVIDER Insights from Decision Makers
CORPORATE RELOCATION NEEDS ARE GROWING FOR MANY COMPANIES IN THE U.S. Recent research conducted with 578 decision makers at Fortune 1000 companies by Seymour Insights, an independent third party research firm, offers insight into how mobility executives in a wide cross-section of industries define their relocation services needs and identify the best service provider to meet them. For procurement and human resources (HR) professionals who are considering corporate relocation services providers, insights from this research can illuminate and inform their decision-making process.
The survey identified that for companies across most industries, more than half indicated their budget for corporate relocation will increase in the upcoming year. Consistent with that budget outlook, over a third of respondents say moving and relocation needs at their company are increasing over the next year, especially at companies moving 51-250 employees per year and spending between $50,000 to $2 million on relocation.
RELOCATION BUDGET TRENDS 10%
23%
10%
18%
21%
13%
Our Relo Budget is
INCREASING GREATLY
28% 45%
57%
44%
39%
54% 43% 36% 27%
33%
30%
17% 2%>
8% 11-50
9% 5% 2%> 4% 1%> 4% 1%> 51-100 101-250 251-500 501-1000
13% 5% Over 1000
Our Relo Budget is
DECREASING GREATLY
NUMBER OF EMPLOYEES RELOCATED
NUMBER OF EMPLOYEES RELOCATED
GROUP IS OVER 5% GREATER THAN TOTAL GROUP IS OVER 5% LESS THAN TOTAL Q26: Using a scale of 1 to 5, where ‘1’ is decreasing greatly and ‘5’ is increasing greatly, how would you best describe the budget trends for your company’s moving and relocation services overall?
Seymour Insights Research was commissioned by northAmerican Van Lines
SURVEY RESULTS RECAP
UNDERSTANDING DECISION-MAKING DRIVERS The participants in the corporate relocation research can be better understood by examining their demographic and psychographic characteristics.
All the executives surveyed were managers or above. Thirty percent work in the procurement function, while the remaining 70 percent work in HR. Industries represented include: 1. Accommodation and Food Services 2. Construction 3. Educational Services 4. Finance and Insurance 5. Government 6. Health Care and Social Assistance 7. Information 8. Management of Companies and Enterprises 9. Manufacturing 10. Mining, Quarrying, and Oil and Gas Extraction 11. Professional, Scientific, and Technical Services 12. Retail/Wholesale Trade 13. Transportation and Warehousing 14. Utilities
RELO POINT OF CONTACT
HR 66%
PROCUREMENT 33%
OTHER 1%
TOTAL
MANAGER
DIRECTOR
V. PRESIDENT
C - LEVEL
HR
66%
69%
67%
41%
17%
PROCUREMENT
33%
31%
32%
56%
67%
OTHER
1%
0%
1%
3%
17%
GROUP IS OVER 5% GREATER THAN TOTAL GROUP IS OVER 5% LESS THAN TOTAL Q15 - Which best describes your company’s primary contact point for hiring moving and relocation services?
Seymour Insights Research was commissioned by northAmerican Van Lines
CES
UR SO
BU DG ET
RE
TIME Researchers analyzed motivational attitudes and decision-making drivers among survey respondents and found most drivers were tied to time, budget, and resources allocated to mobility services, and desired level of partners assistance; findings indicate that a preference by executives to purchase moving services directly versus as part of a bundled offering does not necessarily directly correspond to company size, budget or volume of annual relocation activities. Additionally, researchers probed several attitudes towards and perceived benefits of moving and relocation services providers among respondents. The top 15 were: 1. Capacity growth
2. Understands client company’s industry
9. Real time access to documents for transferees and reporting on relocation activities for HR
4. Proven national and international moving experience, along with local and interstate solutions
11. Accurate and competitive pricing
3. Consultative approach to moving needs
10. Background Checks drivers and crew who interact with transferees
5. Adjusts to client company’s policies
12. Integration with a relocation management company
7. Understands relocation budgets
14. Recognized, established brand and strong financial history
6. Turnkey services
13. Moving/relocation industry thought leader
8. Fits client company’s culture
15. Presence near my corporate location(s)
With this ranking, participating respondents demonstrated that, while pricing matters, the ability to understand and meet their company’s needs, and quality of service to transferees are more important qualities when choosing a relocation services partner. Additionally, brand or name recognition falls towards the bottom of these attitudes and perceived benefits, ranking 14 out of 15. Seymour Insights Research was commissioned by northAmerican Van Lines
CHOOSING A PROVIDER
When choosing a vendor partner for corporate relocation, familiarity and pricing are often prime drivers of partner selection. However, these research results show that better understanding the attitudes and experiences of procurement and HR executives across industries offers better indication of ultimate satisfaction with corporate relocation service providers. For example, Mayflower was the most familiar moving company, with 64 percent of respondents aware of the brand, whereas northAmerican Van Lines ranked towards the middle of the pack with 54 percent brand awareness. However, when
mobility executives were asked if they would use moving companies again, northAmerican was the clear winner with 95 percent of respondents saying they would use them again, and Mayflower landed near the bottom with only 79 percent of respondents interested in renewing their partnership. These findings are consistent with the more granular ranking of benefits, with capabilities and services being much more important than name recognition.
LIKELIHOOD TO RECOMMEND AFTER MOVING
84%
79%
76%
76%
76%
75%
73%
70%
69%
MOVING CO. A
MOVING CO. B
MOVING CO. C
MOVING CO. D
MOVING CO. E
MOVING CO. F
MOVING CO. G
MAYFLOWER
TOTAL
MANAGER
DIRECTOR
V. PRESIDENT
C - LEVEL
northAmerican Van Lines
84%
80%
93%
-
-
Moving Company A
79%
77%
78%
100%
-
Moving Company B
76%
84%
56%
83%
100%
Moving Company C
76%
73%
82%
-
-
Moving Company D
76%
78%
74%
50%
-
Moving Company E
75%
76%
76%
50%
-
Moving Company F
73%
71%
83%
-
-
Moving Company G
70%
63%
86%
100%
-
MAYFLOWER
69%
63%
79%
75%
67% GROUP IS OVER 5% GREATER THAN TOTAL GROUP IS OVER 5% LESS THAN TOTAL
Q8A - For the moving brands you have used, how likely is it for you to recommend them to a peer . Caution: *Small base size (n<30)
Seymour Insights Research was commissioned by northAmerican Van Lines
EVALUATING MOVING SERVICES Locally owned and operated moving company that is part of a national and / or global brand network
59%
Moving company owned by a relocation company
Locally owned and operated moving company
32%
28%
13%
41%
27%
31%
31% RANK 1
When corporate decision makers evaluate moving services, their clear priority is finding a company that is locally owned and is affiliated with a national or international van line. This indicates the importance mobility executives place on the ability of moving services providers to meet their needs as seen with the ranking of the top 20 benefit statements. Capabilities far outweigh reputation or name recognition in the process of choosing a corporate relocation partner, with 84 percent of respondents citing affiliation with a national or international network as a primary driver of consideration versus only 16 percent more interested in the local reputation of moving services companies.
10%
RANK 2
RANK 3
16%
84%
ITâ&#x20AC;&#x2122;S MORE IMPORTANT THEY ARE AFFILIATED WITH A NATIONAL OR GLOBAL VAN LINE THE REPUTATION OF THE LOCAL MOVER IS MORE IMPORTANT
Q12 - When sourcing a moving company for corporate relocations, is the local reputation of the mover more important than whether or not they are affiliated with a national or global van line?
Seymour Insights Research was commissioned by northAmerican Van Lines
ANOTHER WAY THESE RESEARCH RESULTS CAN PROVIDE GUIDANCE to HR and procurement executives tasked with selecting a corporate relocation services provider is to look at the considerations of highlyinvolved respondents with the largest budgets for relocating employees. These companies tend to be larger, with smaller companies often having smaller budgets and lower hands-on involvement with managing relocation processes. Smaller companies are less likely to perceive differences between service providers. Conversely, larger companies that move more employees are more likely to notice variations. Executives from smaller companies who seek to identify a moving services partner can benefit from the insight offered by their larger company counterparts and evaluate vendors on factors beyond bottom-line price and name recognition.
WHO DECIDES 50%
31%
HR SPECIALISTS IN RELOCATION
17%
HR GENERALISTS
1%
0%
PROCUREMENT
LEGAL
0%
OTHER
DON’T KNOW
Q16 - Which best describes the primary make-up of your company’s mobility team? Caution: *Small base size (n<30)
The role of the decision maker in a company likely influences their perspective on and attitudes towards evaluating moving services providers. This cross-industry research found that more than 75 percent of the team members tasked with employee mobility services work in HR functions. Seventeen percent are procurement executives, with the remainder spread across legal and other departments.
MOBILITY TEAM GROWTH 49%
46%
6% INCREASED IN SIZE
DECREASED IN SIZE
STAYED THE SAME
COMPANY REVENUE
NUMBER OF EMPLOYEES
OPERATING LOCATIONS
TOTAL
<$251 M
$251M $500M
$501M $1B
MORE THAN $1B
<1,000
1,0004,999
5,0009,999
10,00014,999
15,000 OR MORE
DOMESTIC
GLOBAL
INCREASED
46%
15%
41%
54%
18%
45%
55%
53%
53%
30%
53%
STAYED THE SAME
49%
76%
29%
DECREASED
6%
8%
63%
58%
40%
74%
53%
40%
40%
38%
65%
41%
8%
1%
6%
8%
2%
4%
7%
9%
4%
6%
Q17 - Over the past year, has your mobility team:
Human resources professionals are focused on achieving strong outcomes in measures such as employee satisfaction and retention, whereas procurement staff are more likely to be evaluated on cost containment results. That HR team members are the clear majority of corporate relocation services decision makers probably accounts for the emphasis on capabilities and service to transferees in choosing moving services partners. Additionally, only six percent of respondents across all industries indicated that their mobility services teams were shrinking. The remaining 94 percent were nearly evenly split between those whose teams remained the same size or were growing, indicating the increasing demand for corporate relocation services. Seymour Insights Research was commissioned by northAmerican Van Lines
GROUP IS OVER 5% GREATER THAN TOTAL GROUP IS OVER 5% LESS THAN TOTAL
By understanding who makes the decision of choosing a partner for handling their company’s relocation needs, professionals seeking to identify a moving services vendor can find valuable guidance in these results. Smaller companies in particular can benefit from the insight and experience of larger companies that handle more moves. Seeing the value large companies place on capabilities, services, and customer satisfaction ahead of price and brand familiarity can enable decision makers at small companies to make more nuanced, and ultimately better, choices when identifying a moving services partner.
HOW DECISIONS ARE MADE gathering information to inform decision makers’ choices. Two come from the service provider’s website and sales materials. The other two sources come from people— both vendor employees such as account managers or sales representatives, as well as recommendations from decision makers’ colleagues. The findings illustrate the importance of careful consideration of multiple information sources over time. This process offers better outcomes than rushed choices based on superficial indicators.
Another way to understand the process of choosing a corporate relocation services provider is to look at how the decision is made in addition to who makes it. The time spent evaluating information about partners, as well as the source of the information, offer guidance and insight into the decision-making process. Companies of all sizes give considerable time to evaluating potential partners. Virtually all firms reported spending one to six months deciding which firms to invite to the RFP (request for proposal) process to select a corporate relocation services provider. During that time, there are four primary sources of
50%
46% 4%
1-3 MONTHS
4-6 MONTHS
0%
7-12 MONTHS
COMPANY REVENUE
13-18 MONTHS
0%
19+ MONTHS
NUMBER OF EMPLOYEES
$501M $1B
MORE THAN $1B
OPERATING LOCATIONS
TOTAL
<$251 M
$251M $500M
<1,000
1,0004,999
5,0009,999
10,00014,999
15,000 OR MORE
DOMESTIC
GLOBAL
1-3 MONTHS
50%
53%
51%
55%
48%
53%
53%
45%
54%
42%
53%
48%
4-6 MONTHS
46%
43%
43%
42%
47%
44%
45%
49%
40%
51%
44%
46%
7-12 MONTHS
4%
4%
4%
3%
5%
3%
1%
6%
6%
6%
3%
5%
13-18 MONTHS
0%
-
-
-
-
-
-
-
-
-
-
-
19+ MONTHS
0%
-
2%
-
0%
-
1%
-
-
1%
-
1%
Q20 - How far in advance of the RFP process do you begin considering what providers will be invited to participate in the RFP?
Our Outlook is
14%
16%
33%
23%
12% 36%
27%
45%
3%>
10%
10%
<$251M
$251M $500M
35%
40%
20%
17%
COMPANY REVENUE
23%
18%
6% 4% 1%> 6% $501M >$1B $1B
8%
11%
38%
39%
40%
36% 34%
23%
7%
7%
18%
3%> 1%> 2%> 3% <1,000 5,000 1,000 9,999 4,999
1%> 1%> >15,000 10,000 14,999
NUMBER OF EMPLOYEES
28%
30%
9%
9%
19%
20% 1%>
6% HR
INCREASING GREATLY
20% 35%
39% 42%
39% 33%
36%
43%
41%
40%
40%
34%
31%
21%
3%> PROCUREMENT
FUNCTIONS
3%> DOMESTIC
6% 1%> GLOBAL
Our Outlook is
DECREASING GREATLY
LOCATIONS
Q27 - Using a scale of 1 to 5, where ‘1’ is ‘Decreasing Greatly’ and ‘5’ is ‘Increasing Greatly,’ compared to this year, how would you best describe your outlook for moving and / or relocation services for the next year?
GROUP IS OVER 5% GREATER THAN TOTAL GROUP IS OVER 5% LESS THAN TOTAL
Seymour Insights Research was commissioned by northAmerican Van Lines
PUTTING RESEARCH INTO PRACTICE Clearly there are many factors that go into choosing a corporate relocation services provider. Team members from different departments including HR, procurement, legal, and finance are often involved in a companyâ&#x20AC;&#x2122;s moving services process. When selecting a vendor partner, it can be tempting to take the easy path of picking a name brand that offers the lowest prices. However, this extensive research into the roles, attitudes, and processes of professionals who take part in the decision-making process offers guidance into best practices from companies in diverse industries. In a competitive business world, success depends on many factors including strong budget management, effective talent recruitment and retention, and efficient service provider partnerships that best meet company needs. Decision makers can make stronger choices when selecting their companyâ&#x20AC;&#x2122;s corporate relocation services provider when armed with a complete understanding of the decision-making process of professionals tasked with managing and delivering moving services.
LEARN MORE ABOUT northAmerican CORPORATE MOVING AND RELOCATION SERVICES. Seymour Insights Research was commissioned by northAmerican Van Lines