International Relocations and Assignments: Best Practices and Benchmarks

Although the global economy continues to shape the fate of many Fortune 500 companies, budgeting and staff for international relocations and assignments programs has declined for many. Best Practices, LLC conducted this research to identify the best practices and performance benchmarks associated with best-in-class International Mobility functions or programs.

SAMPLE KEY FINDINGS

Several participants had fully outsourced programs. The only activities performed within the company were "vendor management" and performance/cost reporting activities. The rationale from one of the directors at a company with this model was as follows: "Focus on what you know how to do, and find external resources to do the rest."

Benchmarking research showed that the average administrative cost per international relocation was $8,668 including the cost of tax administration programs. Best-in-class companies were able to relocate employees internationally for 45% less, or on average $4,681.

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
• Tax program costs
• 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 international relocation
• Labor cost per FTE
• Administrative cost of International Mobility function per company employee
• Admin cost per $100M in company revenues
• Cost of sample international assignment
• The above metrics with the cost of tax equilization programs excluded

METHODOLOGY

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

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