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

• re-Flex P

Pro rogra rams

Presented by Jerry Funaro, CRP, GMS Vice President, Global Marketing, TRC Global Solutions, Inc.

Pre-Decision Programs

• 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: Background

• 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: Employee 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: Company Considerations

Pre-Decision Programs: How Popular?

ERC: About 2/3 of companies provide one or more kinds of pre-decision assistance.

• 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/Company

• 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: Benefits/Employee

• Pre-decision programs add process/take time
• Possibility of extra costs (3rd 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: Potential Pitfalls

Pre-decision benefits typically include:

• In-depth needs counseling
• BMAs or appraisals
• Mortgage pre-approval
• A pre-decision trip

Pre-Decision Programs: What’s Included?

• Brief, pre-initiation call, preferably from

3rd 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: Needs Assessment

• 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: Real Estate

• 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)

Pre-Decision Programs: Data Analysis/Projection

Core-Flex Programs

• Tiered program…but with options

within tiers

• Core benefit for all within tier
• Flexible additions to meet

company/employee needs

Core-Flex Programs: What are they?

• 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: Rationale

• 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: Evolution

Core-Flex Programs: Usage

ERC: 27% of companies using core-flex; another 11% considering

• 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: Benefits

• 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: Cons

• 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: Flexibility vs. Cost Savings

Core-Flex Programs: Illustration

• Flex
• ptions
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• Flex
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Core Benefit Tier 1: Entry/ New Hire Core Benefit Tier 2: Professional Core Benefit Tier 4

• Sr. Mgt.

Core Benefit Tier 3: Mid-Mgt.

• 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: Domestic Example

Core-Flex Programs: Global Example

• Core elements
• Visa/immigration

services

• Travel to the destination
• Shipment of household

goods/storage

• Tax equalization
• Lease services
• Miscellaneous allowance
• Look-see trip
• Cross-cultural training
• Language training
• Temporary living
• Spouse/partner

career services

• Additional allowances

(hardship, housing)

• School search assistance
• Home leave
• Property management
• Flexible elements

Core-Flex Programs: Who Selects the Benefits?

Ironically, not usually the employee!

• 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!

Core-Flex Programs: Administrative Headache?

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