A Baby Boomer's View on Technology in Today's Business
For some Baby Boomers, technology driven processes, particularly around customer service, immediately inspire a negative head shake, as was evidenced in a lively dinner discussion I was recently engaged in with a group of friends. As we asked ourselves why that is, we came to the consensus that there seems to be an innate reluctance of our generation to surrender control to technology.
Baby boomers, who are identified with ideals of strong social change, are followed by two generations, Gen X and Gen Y, accustomed to and expectant of immediate gratification in relation to communication. Mind you, this realization caused many in our group to cringe at the thought that our minds could actually be closed off to keeping up with the times. We recognize that, in today's business environment, of which we are all active professionals, technology improvements and process streamlining are the catalysts for not just efficiency, but also consistency of service. They are also becoming more and more of a standard expectation from the end customer. And to a large extent, we all benefit from the daily joys of technology (email, web etc.), so we asked, "Where is our reluctance coming from?"
After some initial discussion, we determined that our reticence comes from simply wanting the reassurance that customer service never loses the human touch. It's the recognition that a successful customer experience is a combination of both technology and a live person at the other end of the line: to be assured that there is a 'voice' that will listen when a need or situation cannot be dissected by a link, an email, or a 'please press 3' self-service option. For the baby boomers around the table that evening, our realization was the confirmation that technology and touch need to work together, and we all would hazard a guess that even the millenials would agree.
Posted on 03/3/2010 in Domestic Relocation | Comments (0)
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The relocation home inspection was clear, how can the buyers be asking for all these repairs?
Unfortunately, this is something relocation professionals hear all too often from their clients during an inventory home sale transaction. So why is it that a buyer’s home inspection always seems to be so much more thorough than the inspection done by the relocation company? It helps to first take a look at the scope of both inspections.
A relocation home inspection, known in the industry as a Relocation Property Assessment is done primarily to provide a professional opinion of the relocating employee's main dwelling and its immediate surrounding area in its "as is" condition as of the date of assessment, limited to definitions and guidelines as established by the corporate client. It is a visual, non-invasive evaluation detailing apparent defects (not cosmetic deficiencies) that call for corrective action limited to three categories:
- Structure
- Unsafe or hazardous conditions
- Inoperative systems or appliances
A General Home Inspection performed for a potential buyer, on the other hand, contains many opinions that the Relocation Property Assessment does not, i.e., deferred maintenance, “potential” problems that may develop in the near future, code violations, and many minor, possible even cosmetic items. The scope of this inspection is so that a potential buyer can get a full and complete picture of the whole house that they may be purchasing, which is why it is sometimes referred to as a “whole house inspection”.
Since the two inspections have very different scopes and are done for very different purposes there are often many perceived “discrepancies” between the two reports. It is important for relocation professionals to understand the differences between these two, very different reports so that they may educate their corporate clients and provide professional advice to them to hopefully keep the deal together. This should be everyone’s goal in today’s real estate environment.
Posted on 02/16/2010 in Domestic Relocation | Comments (0)
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Strategies for Building a True Business Alliance: Relocation
Balanced scorecard, service level agreements (SLAs) - we have all become familiar with these terms as key drivers to successful partnerships. According to a recent study by McKinsey & Company, only half of all joint ventures are successful to both partners. Why is this?
Let’s look at relocation management companies (RMC) specifically. SLAs based on key performance indicators are traditionally incorporated to measure and define operational and contractual touch points. Metrics are agreed to between the partners where the RMC will bear monetary “penalties” for service levels below a specific percentage indicator.
So, why do half of all partnerships fail? Partnerships between corporate clients and RMCs need to become true alliances where both parties gain something from the relationship - a balanced scorecard approach. SLAs should be designed as balanced measurements to relocating employees and their companies as well as the RMC. If RMCs meet or exceed the established metrics, the reward to the RMC should be more than simply not having to pay a penalty. So the key here is building an alliance where both parties benefit from achieving operational targets - an alliance between two parties engaged and committed to developing and maintaining the relationship. The monetary metric at stake should not be the driver or definition of the relationship; rather, a symbolic measure where both parties are saying “we are invested and committed in this relationship”.
For the corporate client that could translate into a cost effective, well-run relocation program that also yields employee satisfaction. For the RMC, it is creating and maintaining a strategic engagement.
Today’s business environment presents unique challenges. Developing successful business alliances, where both parties support common goals, is the key to creating a lasting relationship; and avoiding the repetition of the up-front costs, complexity, and disruption associated with procuring and implementing that initial engagement is a win/win alliance.
Posted on 01/4/2010 in Domestic Relocation | Comments (2)
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Spouses are People Too!
They may be called “trailing” spouses, partners, or significant others; regardless of the label these individuals are an integral part of any relocation. As we continue to navigate our way out of a recession, and with predictions remaining ominous for unemployment in 2010, many spouses/partners are experiencing vast challenges in securing employment in their new destination, leading to resurgence of spouse/partner assistance services.
Spousal/partner assistance is no longer about just assisting with finding employment. Today’s requirements also include life transition coaching or career transition coaching. Whether it’s identifying internships or researching self-employment opportunities most accompanying spouses/partners want to find something meaningful to do even if it is not income producing. Activities like furthering their education, learning a new language or skill, or getting involved in volunteer work that may leverage their background and enhance their experience may also be very satisfying alternative.
According to a recent Permits Foundation Survey, almost 90% of expatriate spouse/partners were employed before the assignment, while only 35% worked while in the host country. And, of those 35%, 75% noted that they wanted to work. Also noted in the survey is that 80% of spouse/partners say that their own employment and career was an important factor in the decision to reject or accept an assignment, reinforcing the need for spousal/partner support.
While there is not much data on U.S. based relocation activity, it’s assumed that the numbers would not be too far behind. Considering that the average dollar amount to provide this service is approximately 2% of the total relocation cost for intra-U.S. relocations and less than 1% of the total relocation cost for a global assignment, spousal/partner acts as an additional layer of ‘insurance’ to ensure a successful transition.
Posted on 12/9/2009 in Domestic Relocation | Comments (4)
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Why was my bank appraisal so much higher?
Anyone involved in a relocation can tell you that a bank appraisal and a relocation appraisal result in differing values. Always a hot topic with employees and employers alike, it’s important to understand the dynamics of each.
The intended use of a relocation appraisal is to assist an employer in facilitating the employee relocation process by establishing a future anticipated sale price; whereas, the intention of a bank appraisal is to determine the present value for mortgage lending purposes. Please keep in mind that the relocation appraiser is trying to predict the future and tell us what they feel the home can sell for within 120 days. On the other hand, a bank wants to verify the present market value as collateral for a loan that could run 30 years.
The methodologies required for both appraisal types also vary widely. A relocation appraiser must consider market changes since the date a comparable sale closed in addition to determining present market trends and then forecast how those trends will affect the future sale of the property. A mortgage appraiser is not required to consider these factors. Additionally, a relocation appraisal requires a prospective analysis and a mortgage appraisal is a retrospective analysis only.
Most likely your home is your biggest asset. As an employee being relocated, our advice would be to get involved in the appraisal process; interview the appraisers up front; ask questions; and provide data to the appraisers that you feel is pertinent—your real estate agent can assist with all of this.
As a corporate relocation professional, we advise that you encourage your relocating employees to take the time to understand and insert themselves in the process.
Posted on 11/3/2009 in Domestic Relocation | Comments (0)
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Successful Relocation Relationships: It’s all About the Partnership
As relocation professionals, we all know that relationship building is a critical key to our overall success; and the layers of relationships run deep - transferee and counselor; account manager and client manager; relocation management company and ancillary service partners.
Merriam-Webster defines partnership as “legal relation existing between two or more persons contractually associated as joint principals in a business.” Working together as joint principals in a partnership is an on-going process and often presents numerous challenges. While continuous effort is required from all parties in the areas of ongoing communications, building and trust and collaboration, the rewards of this work yield a profitable partnership where all parties yield both a professional and personal return.
Relocation management companies in today’s marketplace are selected by corporate clients based on several key factors including: service model, technology platform and aptitude, price, and the overall depth of organization; however, these components, though essential, cannot and should not overshadow customer service. Without the key component of personalized and professional customer service to both the transferee and the client, the other evaluation factors, do not yield a return for the corporation.
The measure of a true partner is not what they do when things go right, but what they do when things go wrong. Working within a corporate relocation there are a multitude of moving pieces and, as such, service issues will arise. It’s what the relocation management company does or does not do in these circumstances that truly differentiation their performance and demonstrate their commitment to the overall success of the partnership and thus the corporate relocation program.
We work with client managers from the initial discussions through annual reviews to ensure that our presentation and evaluation is based on the principals of created a successful partnership. We also apply the same philosophies when working with our domestic and global service partners. Striving to convert existing client/vendor or client/supplier relationships to true partnerships is a win-win for all parties. A strong foundation built on mutual respect, trust, and extraordinary efforts toward the common goal of a well-run program will result in a true partnership where all stakeholders benefit: transferring employee, the corporate client, and the relocation management company.
Posted on 10/2/2009 in Domestic Relocation | Comments (1)
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Help, I’m a Renter!
In the world of relocation, renters can’t help but feel like second class citizens. In most cases, corporate relocation policies favor the home owner based on the notion that renters have lesser needs and a less complicated relocation.
With the resurgence of renters, in many cases former home owners, there is now more than ever a strong need for comprehensive policy benefits for this population. Some of these folks are “serial renters” wanting nothing to do with the burdens and responsibilities of home ownership. Others would love to own a home for the first time or once again, however, economic conditions may have forced them to choose a rental this time around.
Destination area counseling, paid area and rental property tours, along with an adequate lump sum benefit would benefit everyone in the long run. Relocation is one of the most stressful events in someone’s life; why not take some time now to review your company’s renter relocation benefits to ensure that these second class citizens receive a first class move experience? I think that in the long run you will find it is money well spent.
Posted on 09/15/2009 in Domestic Relocation | Comments (2)
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Is Chinese/Defective Drywall the Next Major Environmental Concern or an Isolated Issue?
You may have been wondering when the next environmental concern would hit already battered homeowners. Well, the wait is over.
During the time of building material shortages (from 2001-2006), some homes were built or renovated using defective drywall imported from or manufactured in China. Defective drywall reportedly emits levels of sulfur, methane and/or other volatile organic compounds that cause corrosion of air conditioner and refrigerator coils, copper tubing, electrical wiring, computer wiring and other household items as well as create noxious odors which may also pose health risks. The corrosion occurs rapidly, on the time scale of 6 months to two years. To date, the Consumer Product Safety Commission has received about 608 reports from residents in 21 States and the District of Columbia who believe their health symptoms or the corrosion of certain metal components in their homes are related to the presence of drywall produced in China. State and local authorities have also received similar reports. The majority of the reports to the CPSC have come from consumers residing in the State of Florida while others have come from consumers in Alabama, Arizona, California, Georgia, Indiana, Kentucky, Louisiana, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, Tennessee, Texas, Virginia, Washington, Wisconsin, Wyoming, and the District of Columbia.
Do you think this concern will become widespread throughout the U.S.? Have you had any experience with Chinese/defective drywall that you’d like to share?
Posted on 08/10/2009 in Domestic Relocation | Comments (2)
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Transferring Homeowners Faced with Unprecedented Challenges
The real estate market has significantly impacted the domestic mobility industry in the United States, creating a domino effect for transferring homeowners and their employers. Some individuals have experienced a significant loss on sale and have had to choose between accepting the financial loss and simply ‘moving on’ or keeping their origin home and finding a creative way to address the relocation challenges. Some individuals received exceptions to traditional policy in terms of dual housing or increased temporary living. Some employees were fortunate to have a guaranteed buyout offer from their employer while others had to ride the current market and remain patient while a ‘bona fide’ buyer was identified and secured. In all, most corporations have been willing to work with individuals to provide continued assistance during this unprecedented economic time.
But the challenges don’t stop there for the employee or the corporation. Selling at a loss prevents the majority of transferees from purchasing a home in their new location. Recent changes from Fannie Mae have eliminated the ability to consider spousal income for a new loan without confirmed employment at destination. The tight economic times, combined with a continually declining real estate market have forced employees to make compromises and, as such, duplicating their current lifestyle is difficult if not impossible for many transferring employees. In today’s environment, relocation becomes more than just a change in zip code; it represents a complete change in lifestyle, for both the employee and their family.
As a twenty-eight year old relocation management company, our hats go off to the mobile workforce who forge ahead and face these challenges head-on. We will continue to partner with both our clients and their employees to find new and creative solutions to meet these challenges head-on and weather these turbulent times.
Posted on 07/2/2009 in Domestic Relocation | Comments (1)
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When Will the U.S. Real Estate Market 'Turn Around'?
The real estate market is a topic turning up at dinner parties throughout the U.S. this year. Everyone loves to talk about it, from buyers to sellers, to Realtors and mortgage brokers, it impacts nearly every adult. It’s become a slight obsession in the U.S. and everyone has their own opinion. Has the market hit ‘rock bottom’? Who knows for sure?
What is the definition of a real estate ‘turn around’ and who is the expert? From a seller’s perspective, it may signify a return to double digit annual appreciation. For a buyer, it could mean easily obtainable mortgage money with little or no qualification guidelines. In a Realtor’s or mortgage broker’s mind it could mean a return to a six figure annual income and a sixty hour work week.
The National Association of Realtors (NAR) identify a successful market ‘turn around’ if the marketing conditions in the U.S. moves from the current buyer’s market with approximately 10+ months worth of unsold inventory to a seller’s market with less than 7 months worth of unsold inventory. And home builders have their own definition of a ‘turn around’. Single family home starts rose for the second consecutive month in April posting a 2.8% gain. At the same time, issuance of single family permits which can be an idicator of future building activiy rose 3.6%. Obviously, home builders feel that there is a reason to be optimistic.
NAR had previously estimated 2009 existing home sales to be 5.91M units which would be a sizeable increase over 2008 activity when only 4.91M units sold. The actual sales pace in 2009 has been much less than originally expected, so look for a revised estimate from NAR in the second half of 2009.
Everyone has an opinion and their own unique perspective. Whether an industry professional or an individual just trying to sell their existing home in order to relocate to their destination, the U.S. real estate market continues to be in the top of everyone’s mind. What’s your opinion?
Posted on 06/8/2009 in Domestic Relocation | Comments (5)
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