Managing Mobility means managing the mobility needs of all relocating employees. Seems simple enough, right? When we asked mobility leaders the last time their renters had glowing service scores and key performance indicators around their home finding service, they paused. After some reflection, the consensus was they didn’t have good information regarding renters and their home finding experience.
For decades, renters have comprised over 50% of the relocating workforce.
➊ Early career new hires receiving modest lump sum payments to support the move.
➋ Renters in the origination market who are middle management and above receiving a covered home finding benefit.
➌ Homeowners in the origination market choosing to rent in the destination market receiving a covered home finding benefit.
Whenever companies are covering the cost of a benefit, as stated in scenarios 2 and 3 above, there should be KPI’s. Historically, the retail segment has a higher renter population. However, based on reports from relocation management companies, the number of relocating people who rent is as high as 70% in some cases. This population has grown significantly over the last 12 years and will remain steady for years to come. If supporting all mobility talent is important, we recommend the following KPI’s for your DSPs to ensure ROI for your relocation program.
How many of your transferees secure their rental as a result of the DSP service?
Most Mobility Professionals have an “aha moment” when they realize they don’t know how many transferees secure a lease as a result of the rental finding service. Companies should have quality data and easy access to see service outcomes. Did the service do what it was intended to do? Did it help the transferee secure a new lease? This adds accountability to the process and factual data that helps employers determine if the investment is returning successful leasing outcomes.
Cost Savings Opportunity
For years, employers asked for cost savings reports that tallied money saved for their employees through negotiation, reduced deposits, etc. The truth is, unless there’s a preferred employer discount offered at a property, apartment communities can’t negotiate. It is a fair housing violation to offer different prices to different people. Private landlords will negotiate. Quality DSPs know that and will support transferees in that effort. The real opportunity for cost savings comes from reducing temporary housing expense by effectively managing the rental search.
- With corporate housing averaging $161 per day (as reported by Corporate Housing Association) or $4830 per month, saving 10 days or $1610 is significant over 50, 100 or 200 renters.
- $1610 savings x 100 renters = $16,100 savings from corporate spend
- Helping transferees secure their lease more quickly means they settle-in and begin acclimating more quickly. Capturing days saved in lodging as a result of effective DSP service delivery is a KPI companies want to understand.
Ensure that survey questions are relevant to rental finding services and that the reports are easily accessible. Quality DSP services are measured by satisfaction scores and net promoter scores which help employers determine if the investment is returning high satisfaction.
Family dynamics can be complicated and require more time and support than the policy initially provides. Understanding how many exceptions took place, and the reasons, will help to determine underlying issues with the provider or the policy. DSP services are the lowest priced relocation benefit usually falling below $1000. An exception is not usually budget breaking but should be reviewed to avoid excessive spend or lack of accountability in the process.
For more information or consultation on Renter Analytics or service programs for renters, contact Diane Ayres at email@example.com
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