The Best of Both Worlds: Core-Flex Programme Reduces Costs and Improves Employee Experiences for Multinational Tech Company

March 18, 2019

Best of Both Worlds Case Study

A multinational technology company that annually relocates approximately 250 employees internationally (typically through permanent assignments) was providing a standard international relocation benefit package regardless of destinations or other circumstances. They wanted to reduce costs by offering personalised benefits with provisions that reflect each employee’s role and personal situation.

“I applaud this company for realising that implementing Core-Flex is an ongoing process. We collaborated on a unique programme that they adopted, and then together we immediately shifted into an on” -Jonathan Langueneur, Director, Account Manager, Graebel

Designing the Core-Flex Framework

Our Consulting team benchmarked the company’s current relocation benefits programme to technology industry norms. Based on this data, we prepared alternative core and flex package options accompanied by cost and utilisation scenarios.

We presented this data to the company, along with our recommendations for technology and cost-tracking systems, and then worked with their Mobility team to finalise the Core-Flex design that best met their dual goals.

Challenge:

  • Their one-size-fits-all international assignee package was costly and inflexible
  • Managers didn’t have a consistent “roadmap” to help design individual assignee plans
  • The Mobility team needed to reduce costs

Rolling Out the Programme

The company released the new programme on schedule. Using the nimble Core-Flex structure, the Mobility managers efficiently prepared individual packages that addressed the basis for the transfer, the needs of the business and the preferences of the employee.

Solution:

  • Collaborate with company’s Mobility team to design a Core-Flex programme
  • Incorporate industry benchmark and cost data to guide selection of core and flex benefits
  • Capture data and establish analysis process to inform incremental programme improvements

Fine-Tuning the Programme

Reflecting the technology industry in general, the company made a conscious decision to continually test and refine the Core-Flex programme based on cost data and employee experience feedback.

In our Graebel GlobalConnect® system, we tracked usage data for numerous provisions and made specific recommendations to adjust certain duration or expense caps to reduce costs whilst preserving an optimal employee experience. These modifications included:

  1. Adjusting the relocation allowances from flat rates to a capped programme
  2. Modifying shipment allowances to reflect family size and the needs of employees

Results:

  • Increased efficiency in initiating customised, international relocation benefit packages
  • Reduced programme costs
  • Increased employee satisfaction – no employee experience concerns have been reported

Moving Forward

The company’s Mobility managers have immediate online access to position- and country-specific reports regarding benefit selection, usage and spending to help them maintain appropriate and cost-effective benefit packages for their international assignees.

Now that Core-Flex is in place for international assignees, we’re working with the company to adopt a similar programme for their U.S. domestic transferees.

For more information and guidance on Core-Flex, read these resources:

Four Things to Consider Before You Adopt a Core-Flex Mobility Benefit Programme

Guide to Designing a Successful Core-Flex Programme

Download the Case Study

 

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