Domestic Relocations and Assignments: Best Practices and Benchmarks

As best-in-class companies prepare for the retiring baby boomers, many will try to develop existing employees to fill vacant positions from within. One of the tried and true methods for development remains rotational tracks. Part of this process requires a smooth transition as the employee jetsets around the US, potentially working on assignments or relocating 1-2 times per year. Best Practices, LLC conducted this research to identify the secrets to success for Domestic Mobility functions.

SAMPLE KEY FINDINGS

- Benchmarking research showed that the average administrative cost per domestic relocation was $513.

- The most common activities performed within the Domestic Mobility function include process management, vendor management, vendor selection and customer relationship management. Other activites include:

KEY TOPICS COVERED IN THE RESEARCH

• Program structure
• Program costs and staffing levels
• Use of assignee management systems
• Common services offered
• Benefits offered/provided
• Lump sum payments provided
• Outsourcing
• Volume of assignments and relocations handled per company
• Program performance / productivity
• FTE allocations by area
• Customer satisfaction measures used
• Quality measures used
• Cycle time measures used
• Best practices

• Administrative cost per average move
• Administrative cost per short term assignment
• Admin. cost per long-term assignment
• Admin. cost per domestic relocation
• Admin cost per new intern, new hire, or employee relocation
• Labor cost per FTE
• Administrative cost of International Mobility function per company employee
• Admin cost per $100M in company revenues
• Cost of sample domestic assignment

METHODOLOGY

This study was conducted through an online survey of selected International Mobility functions at Fortune 500 companies within ten different industries.

Industries Profiled:
Financial Services; Banking; Computers; High Tech; Chemical; Defense; Pharmaceutical; Biotech; Health Care; Academic; Consumer Products; Aerospace; Automobile; Manufacturing; Multiple


Companies Profiled:
American Express; Bank of America; EDS; ExxonMobil; Lockheed Martin; Pfizer; Proctor & Gamble; Boeing; Dow Chemical; Toyota

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