Is it Worth Outsourcing My Corporate Moving Services as a Small or Midsize Business?

by Ricardo Ramos on Apr 18, 2023

Relocating an employee is an investment. Whether you’re hiring a new employee from another state or transitioning an existing employee to another office location, corporate moves can cost up to $25,000 for an employee who rents and up to $80,000 for a homeowner.

On top of the hard costs of the move, you also have to consider the soft costs from lost productivity when you manage talent mobility in-house. An HR manager will likely have to serve as a liaison between the relocation vendors and the employee on top of their existing work, while procurement professionals have to negotiate and manage contracts with multiple vendors. 

These costs exist even if you only move one to two employees per year. It is worth outsourcing your corporate moving services no matter how big or small your company is for the convenience of a single point of accountability and the ability to maximize your budget.

Maintain Productivity Through a Single Point of Accountability

Whoever is responsible for managing talent mobility in-house is likely to be under a lot of stress. They have to juggle contracts, budgets, policies and timelines for multiple vendors while constantly keeping the moving employee updated. If any issues arise from one vendor, it can create a chain reaction of timelines falling apart as the HR manager or procurement leader chases down all of their contacts to readjust. This is an incredible loss of productivity for anyone involved, especially at a smaller company where each employee may already be wearing multiple hats.

If smaller businesses choose to let the employee manage their own move, whether by offering a lump sum or not providing any assistance at all, you’re stacking stress on top of the already stressful situation of moving. Having to look for a new home in an unfamiliar place, find their own movers and realtors and get their family settled with limited support does not give the employee a great first impression of their new employer. All of these stressors also distract the employee rather than enabling them to focus on their new role.

By partnering with a corporate moving partner, companies of any size benefit from gaining a single point of accountability for the entire moving process. All aspects of the move are managed by one person who oversees the timeline and all vendor relations. Operations are simplified and time-intensive tasks are removed from the plates of your HR and procurement teams. Corporate moving companies also tend to come with their own suppliers and preferred pricing. They can provide a high-touch approach to ensure the moving employee receives all the guidance they need for a positive experience from beginning to end.  

Maximize Your Moving Budget with a Connected Partner

Cost is one of the main reasons smaller companies don’t think they need to outsource their talent mobility. So, if they choose to offer support for a corporate move, most companies are likely to only offer a lump sum package with the assumption that it controls costs and reduces administrative work. However, without proper management, there are a few downsides to the lump sum approach. 

First, the whole moving process might take longer or become more frustrating as the employee has to figure out all the details of their move under a limited budget. Second, the stress and frustrations can escalate if the employee discovers that the funds aren’t enough to cover their entire move. And finally, since employees do not need to account for how the lump sum is spent, companies have no way to know if the budget is appropriate.

When managed effectively by a corporate moving service, lump sum relocation packages can work. A provider can direct the employee to trusted vendors who fit within their budget, open access to discounted rates on services the provider has connections with and keep in touch with the employee through every step to avoid confusion and frustration. 

Allied is the Right Fit for Any Corporate Moving Quota

No matter how small your organization is or how many corporate moves you anticipate in a given year, working with an experienced, reputable corporate moving partner can ensure time and cost savings for your business and a positive experience for your employees. 

Allied Van Lines has been managing corporate moves of all sizes for 95 years with the support of our parent company, SIRVA BGRS. As a single-source, direct-delivery provider with one of the largest national moving company networks, we can offer better quality control and security, greater transparency, cost savings and a more seamless experience from planning to implementation. Compared to managing all the components of a move yourself or subcontracting with multiple suppliers, our process has reduced overall program administrative costs by up to 82%. Learn more.