A global leader in appliances for household and professional use, selling more than 50 million products to customers in more than 150 countries every year decided to consolidate all North American operations into their new Charlotte, NC headquarters, necessitating a group move of over 500 employees. RELO Direct®, already as an existing long-term partner with this client, was invited to collaborate on developing cost models, employee communications, policies, programs, and services that would achieve their key objective of a successful consolidation while retaining as many employees as possible.
Once initial consultation was underway, it quickly became apparent that the typical employee retention rate for group moves of 40-60% was not acceptable to our client’s senior leadership team. The RELO Direct® team worked closely with management and selected relocation suppliers to review every component of the process and craft the most compelling policy possible. To encourage even greater success, RELO Direct® counseled the client that their renter employees were key in achieving their retention goals. As a result, renters were given considerable benefits including a rental subsidy and home purchase benefits if they wanted to buy a home in the destination location.
RELO Direct® conducted presentations and area tours for the hundreds of employees and family members impacted by the move. Participants included mortgage partners, real estate brokers, spousal support providers, school administrators, etc. To provide a heightened level of service and support the client’s goal of overall acceptance of the group move, additional group and one-on-one counseling sessions were offered to give employees and their families the information needed to make an educated decision to relocate.
Due to the size of the initiative, two providers were selected to administer each benefit (i.e. two temporary housing providers, departure brokers, destination brokers, mortgage lenders, etc.). In this way, the strength of RELO Direct’s supply base offered choice for relocating employees, but also created a better opportunity to negotiate the best possible pricing and performance standards. Specifically for property-related services, RELO Direct® worked with members of Leading Real Estate Companies of the World® in the departure cities as well as the location of the new headquarters. Offering the services of the market-leading network of real estate professionals knowledgeable of the real estate market and the challenges of impacting a small market was key to the success of the engagement.
Ultimately, the acceptance rate was near 90% – a tremendous accomplishment that speaks volumes on the partnership between RELO Direct®, our client, and the preferred relocation services providers. By creating a timely, responsive policy that put employee needs at the forefront, the company achieved its ambitious goals and now has a consolidated corporate headquarters poised for further growth.