Tw Two Ta Talent Management To Tools: Pr Pre-Decision and n and - PowerPoint PPT Presentation

Tw Two Ta Talent Management To Tools: Pr Pre-Decision and n and Cor ore-Flex P Pro rogra rams Presented by Jerry Funaro, CRP, GMS Vice President, Global Marketing, TRC Global Solutions, Inc.

Pre-Decision Programs

Pre-Decision Programs: Background Common for global assignments; relatively • new for domestic relocation Domestic relocation based on skill set • Package offered; employee decides if it works • Great Recession/real estate troubles • changed things “My house is upside down.” “I don’t know if my • spouse will be able to find a job.” “I don’t think I have any equity to buy a new home.” Is relocation a viable option? •

Pre-Decision Programs: Employee Considerations Career ramifications • Financial considerations: • Position in current home? • Cost of living at the destination? • Will my spouse/partner be able to find a job • in this economy?

Pre-Decision Programs: Company Considerations Overarching talent management objectives • Individual employee concerns: • Will the employee be able to transition successfully? • What assistance will be required? • How much will it cost? • Is it a good business decision for both sides? •

Pre-Decision Programs: How Popular? ERC: About 2/3 of companies provide one or more kinds of pre-decision assistance.

Pre-Decision Programs: Benefits/Company Manage talent more effectively • Determine if the relocation is a good business decision • Identify candidates who are unwilling/financially unable • to move Reduce the risk of failed relocations • Increase acceptance rates • Assess the financial impact and budget appropriately • Reduce exceptions • Speed cycle times (more realistic departure • home pricing)

Pre-Decision Programs: Benefits/Employee Determine if relocation makes career/financial sense • Gain a better understanding of the financial impact of • the move Become more comfortable with/invested in decision • Determine a realistic asking price for the • departure home Avoid unpleasant surprises •

Pre-Decision Programs: Potential Pitfalls Pre-decision programs add process/take time • Possibility of extra costs (3 rd party pre-decision • services ; other services required to meet uncovered needs) Qualified/willing agents needed to do BMAs • (if used), who may charge Intrusive? •

Pre-Decision Programs: What’s Included? Pre-decision benefits typically include: In-depth needs counseling • BMAs or appraisals • Mortgage pre-approval • A pre-decision trip •

Pre-Decision Programs: Needs Assessment Brief, pre-initiation call, preferably from • 3 rd party Not an initiation call, a job offer or a • promise of benefits Consultant gathers information on • departure home, spouse/partner employment, other financial details Lays groundwork for a later initiation call, • if move proceeds

Pre-Decision Programs: Real Estate Often most crucial consideration • Consultant determines equity position and • plans for destination Typically one BMA to estimate value/uncover • marketing issues Mortgage pre-approval •

Pre-Decision Programs: Data Analysis/Projection Captured information reported to client : • Equity position • Destination housing cost comparison • Spouse/partner employment situation • Other uncovered information • Company determines level of support required/available • Both sides decide if relocation is viable • Look-see trip (some companies allow earlier) •

Core-Flex Programs

Core-Flex Programs: What are they? Tiered program…but with options • within tiers Core benefit for all within tier • Flexible additions to meet • company/employee needs

Core-Flex Programs: Rationale Many obstacles to relocation: • Sinking home values • Upside-down employees • Stricter mortgage process • And now….in some markets…rapidly • increasing prices and even bidding wars! Diverse families and family needs, even within • same tier Need for flexibility to make moves happen • Millennials expect employers to address • unique needs

Core-Flex Programs: Evolution Cafeteria programs of 1980s/’90s • Today’s core-flex a variation of popular tiered policy programs • Most companies using tiered policies (60% have 3+ tiers) • BUT employees within tiers can have totally different • circumstances/needs Creates demand for exceptions: • NO: unhappy employees; can compromise overall talent • management strategy YES: Costs + and precedents set •

Core-Flex Programs: Usage ERC: 27% of companies using core-flex; another 11% considering

Core-Flex Programs: Benefits Tailor relocation benefits to employee/candidate needs • Empower hiring managers, business units, regional locations, etc. • Gain a recruiting edge • Make employees feel more valued/invested in the process • Control costs • Eliminate/reduce exceptions •

Core-Flex Programs: Cons Program/policy administration more complex • Budgeting more challenging • Must ensure employees get package that gets • the job done Employees talk/text/blog/Facebook: • entitlement issues

Core-Flex Programs: Flexibility vs. Cost Savings Flexibility: • Main motivation: many special • circumstances/exception requests Faster/more efficient than exception • process; variety already built-in Cost savings: • Offer only meaningful benefits • Option to cap (ERC: 50% of companies) • Can limit menu options •

Core-Flex Programs: Illustration • Flex • Flex options options Core Benefit Core Benefit Tier 1: Tier 2: Entry/ Professional New Hire Core Benefit Core Benefit Tier 3: Tier 4 Mid-Mgt. Sr. Mgt. • Flex • Flex options options

Core-Flex Programs: Domestic Example Core elements • Relocation counseling • Travel to the destination • Shipment of household goods • Rental or homefinding assistance • Flexible elements—match to ee requirements: • Homefinding trips • Temporary living • Home purchase assistance • Homesale assistance • Spouse career transition assistance • Mortgage assistance • Child/elder care assistance • Miscellaneous allowance •

Core-Flex Programs: Global Example Core elements • Tax equalization Visa/immigration • • services Lease services • Travel to the destination Miscellaneous allowance • • Shipment of household • goods/storage • Flexible elements Look-see trip Additional allowances • • (hardship, housing) Cross-cultural training • School search assistance Language training • • Home leave • Temporary living • Property management Spouse/partner • • career services

Core-Flex Programs: Who Selects the Benefits? Ironically, not usually the employee!

Core-Flex Programs: Administrative Headache? Keeping program fair/equitable/defensible • Selecting appropriate options/keeping updated • Maintaining detailed cost estimates • Ensuring choices/options are budget-neutral • Educating hiring managers if they’re negotiating • If done carefully, can still be worth it!

Thank You! Contact information: Jerry Funaro, CRP, GMS Vice President, Global Marketing TRC Global Solutions, Inc. www.trcgs.com jfunaro@trcgs.com 203-644-2704