The Best of Both Worlds: Core-Flex Program Reduces Costs and Improves Employee Experiences for Multinational Tech Company
A multinational technology company that annually relocates approximately 250 employees internationally (typically through permanent assignments) was providing a standard international relocation benefit package regardless of destinations or other circumstances. They wanted to reduce costs by offering personalized benefits with provisions that reflect each employee’s role and personal situation.
“I applaud this company for realizing that implementing Core-Flex is an ongoing process. We collaborated on a unique program that they adopted, and then together we immediately shifted into an ongoing analysis cycle to” -Jonathan Langueneur, Director, Account Manager, Graebel
Designing the Core-Flex Framework
Our Consulting team benchmarked the company’s current relocation benefits program to technology industry norms. Based on this data, we prepared alternative core and flex package options accompanied by cost and utilization scenarios.
We presented this data to the company, along with our recommendations for technology and cost-tracking systems, and then worked with their Mobility team to finalize the Core-Flex design that best met their dual goals.
Challenge:
- Their one-size-fits-all international assignee package was costly and inflexible
- Managers didn’t have a consistent “roadmap” to help design individual assignee plans
- The Mobility team needed to reduce costs
Rolling Out the Program
The company released the new program on schedule. Using the nimble Core-Flex structure, the Mobility managers efficiently prepared individual packages that addressed the basis for the transfer, the needs of the business and the preferences of the employee.
Solution:
- Collaborate with company’s Mobility team to design a Core-Flex program
- Incorporate industry benchmark and cost data to guide selection of core and flex benefits
- Capture data and establish analysis process to inform incremental program improvements
Fine-Tuning the Program
Reflecting the technology industry in general, the company made a conscious decision to continually test and refine the Core-Flex program based on cost data and employee experience feedback.
In our Graebel GlobalConnect® system, we tracked usage data for numerous provisions and made specific recommendations to adjust certain duration or expense caps to reduce costs while preserving an optimal employee experience. These modifications included:
- Adjusting the relocation allowances from flat rates to a capped program
- Modifying shipment allowances to reflect family size and the needs of employees
Results:
- Increased efficiency in initiating customized, international relocation benefit packages
- Reduced program costs
- Increased employee satisfaction – no employee experience concerns have been reported
Moving Forward
The company’s Mobility managers have immediate online access to position- and country specific reports regarding benefit selection, usage and spending to help them maintain appropriate and cost-effective benefit packages for their international assignees.
Now that Core-Flex is in place for international assignees, we’re working with the company to adopt a similar program for their U.S. domestic transferees.
For more information and guidance on Core-Flex, read these resources:
Four Things to Consider Before You Adopt a Core-Flex Mobility Benefit Program