FOR IMMEDIATE RELEASE

[ Print This Page ]

Employee Relocation Functions: Keep It In-House
or Outsource It?

In New ‘Strategic Advisor,’ GMAC Global Relocation Services
Tackles This Thorny Question Confronting Mobility Managers

Oak Brook , Ill. , Sept. 5, 2006 — Ever since employees began being transferred on far-flung business assignments, executives who manage their companies’ relocation programs have wrestled with an all-too familiar question:

How much of our mobility function should we manage in-house, and how much should we outsource?

In the new issue of its Strategic Advisor newsletter, GMAC Global Relocation Services provides an in-depth look at this important question, and offers a detailed rundown of factors, concerns and questions to help companies navigate the complex issue.

“The bottom line,” says Scott Sullivan, Senior Vice President for GMAC Global Relocation Services, “is that there is no ‘one-size-fits-all’ formula or magic number for an ideal staffing level. That’s what makes the topic so interesting, and it’s why we titled this issue of Strategic Advisor ‘To Insource or to Outsource, Or Somewhere In Between… That is the Question.’ ”

In determining how much of a company’s mobility function is kept in-house vs. outsourced, several key factors come into play, not the least of which is a “philosophical decision regarding how the company operates the mobility function within the organization,” Sullivan said. If the function is more a high-level strategic one, for example, it is likely that more of the day-to-day tasks are outsourced to reduce internal administration.

Other factors include:

• Headcount costs : How many people are required to manage your mobility function? Mobility is not a core function in many companies, which in turn rely more on outsourced services to keep internal headcount costs down.
• Employee demographics : Who they are, their levels, and where they’re being relocated—all of these factors directly impact the makeup and operation of a company’s relocation program. “If the company moves many high-level employees and wants to offer them a more personalized service, there may be a desire to have functions such as the policy counseling session remain within the organization while outsourcing the administrative functions such as household goods or financial management,” Sullivan suggests.

Also in Strategic Advisor, GMAC Global Relocation Services Strategic Services notes that a recent GMAC Global Relocation Services benchmark survey of staffing operations at large domestic relocation programs are “hybrid” – neither entirely insourced nor outsourced, but rather a combination of the two. The hybrid trend is even more prevalent internationally, the survey found.

To help mobility managers find the right mix of insourcing and outsourcing for their companies, the newsletter offers several key steps they can take. They include the following:

• Identify the tasks that are part of the current program, as well as others you may want to incorporate; a matrix of tasks and who is responsible for them is helpful.
• Understand the scope of each identified task and their potential impacts on the company and affected employees.
• Analyze all factors and tasks to determine which functions should remain in-house, and which ones could best be outsourced. Thoroughly review all handoffs with the service provider you choose to ensure a seamless transition.

And above all else, Sullivan commented, remember that there are no right or wrong answers regarding staffing between internal and external resources. “Service providers, such as GMAC Global Relocation Services, will work with companies on a wide range of options to support the level of mobility management they wish to outsource or maintain internally. Ultimately, each company will evaluate their needs and answer the question of the best balance of internal and external resources” to support their unique employee base and corporate culture.

To download the newest issue of Strategic Advisor, visit http://www.gmacglobalrelocation.com/insight_support/strategic_advisor.asp.

About GMAC Global Relocation Services

GMAC Global Relocation Services, a subsidiary of GMAC Home Services, is a provider of global relocation and assignment management services. Headquartered in Oak Brook , Ill. , GMAC Global Relocation Services provides customized services and maintains an extensive worldwide reach, with service centers and partner companies in more than 200 locations across 110 countries through its Global Relocation Partnership. More information on the company can be found at www.gmacglobalrelocation.com.

# # #