Life Before 40

Workshop I: Life Before 40 offered a close look at relocation issues that affect companies who handle fewer than 40 moves a year. It was followed by a lively question & answer discussion.

Workshops approved by ERC for CRP™ Recertification Credits.

Moderator
Ryan McConnell
Senior Director,
Sales Development
Atlas Van Lines, Inc.

Presenters
Amanda Rhoads
Benefits Planning Analyst
Midwest ISO
Tom Siergey
Physician Recruiter
The Vancouver Clinic
Kayla Soleglad
HR Consultant
Tektronix, Inc.

Sure... why not?

Amanda Rhoads with Midwest ISO focused her presentation — Sure... why not? — on how she manages policy exceptions, a critical aspect of her position as Benefits Planning Analyst. She began by explaining that her employer is an RTO (regional transmission operator), providing wholesale electric transmission service for the midwestern states. The firm, which is regulated by FERC (Federal Energy Regulatory Commission), was formed in 1996. At the end of 2000, it employed 79. Today, the company's workforce includes approximately 600 at the headquarters in Carmel, Indiana, plus 90 more at operations in St. Paul, Minnesota.

The company has grown rapidly and possesses a strong demand for a highly educated, specialized work force. There is stiff competition for qualified candidates in power systems engineering, and a shortage of them entering the work force. It is also challenging to find candidates who are willing to relocate to the Midwest. Amanda said she relies on third-party relocation agents to sell the company's locations.

"Relocation assistance is a must," said Amanda. "It is a given. It helps seal the deal. It is a negotiated benefit... flexibility is key. We rely heavily on our service partners."

Amanda explained the brief evolution in policies that began with a standard package that was rigid and closely monitored. Next, the company engaged the services of a third-party relocation provider. In recent years, the company has emphasized increased flexibility in the package and the importance of managing exceptions. Now, the company is preparing to evaluate a new program that issues credits to transferees and enables them to purchase the services they want.

The Impact of External Issues

"Concerning external issues, family is our number one impact," said Amanda. "Employing a third party to help with the transition has been key."

Amanda spoke about the roles of home sales assistance and timing, and how handling special requests has become a normal part of what she does. For instance, a recent transfer involved her visiting an apartment to take photos and then e-mail them to the transferee for approval.

"There are no magic formulas for relocation, we just try to be as flexible as we can," said Amanda. "I try to take a different point of view, put myself in the employee's shoes and think of the 'big picture.' Perhaps spending $500 on an exception will be money well spent in the long term because that employee will have better feelings toward the company and its willingness to help them out."

The Three R's

Tom Siergey is Physician Recruiter with The Vancouver Clinic, second largest clinic in the state of Washington. Starting his presentation, Tom quipped: "Every one of my relocations is from another part of the country, partly because doctors don't answer want ads in the local paper."

Tom said the Vancouver Clinic serves 35 percent of the patient base in southern Washington. Recent programs to expand the facilities and the number of patients served have surpassed expectations. During 2006, he recruited 31 physicians and 17 allied health providers. He expects these numbers to double this year.

Tom shared his system for reducing turnover, a method he calls "the three R's." He said this system took turnover from 29 percent down to 6.4 percent at his previous assignment. He said turnover is low because of the people he works with. "I demand perfection... I get perfection."

Tom's three R's are: relationship, reporting and recap. The relationship with the employee is the most important factor. The opening call demands pleasantness, understanding, and making service available to the individual at all times. In his organization, most relocations involve working closely with the spouse of a physician. The spouse relies on information and communication and expects updates on any detail. Likewise, Tom expects feedback from his service partners to get a sense of how the initial meeting went and to be made aware if there are signs that the relocation will require unusual or extraordinary considerations. "Any little thing that is noticed, I want to be involved and know about it."

The recording process is important throughout the relocation. This includes following up with the customer on estimates and revisions, if necessary. The customer should have packing and insurance options explained fully. The whole idea, says Tom, is to help them feel comfortable and know someone is taking care of them. Again, he stressed that communication is essential. "If there are problems, such as a delay due to snow, they need to be informed... they will understand."

The recap involves checking back with the customer after the move to find out about their experience and their satisfaction. Were there problems? Was it a good move? What could have been better? Tom said he expects this feedback after every move.

A Fourth R?

Tom said those who follow the three R's find themselves the beneficiary of a fourth R: the re-use of their services. Satisfied customers produce positive word-of-mouth advertising, which is the best source for additional business.

"Relocation is tough because people have a tendency to change their minds," said Tom. "The easiest way for them to change their minds is to be unhappy with any aspect of a move." He added that people who handle the move are integral to successful relocation: "You're packing people's lives and their futures and moving them from one end of the planet to the other."

The Tektronix Evolution

Tektronix is a leading supplier of testing, measurement and monitoring products, solutions and services with over $1 billion in annual sales. Kayla Soleglad, HR Consultant, said that when she joined the company in 1994 it operated 3 divisions in 28 countries and employed 8500 people. After selling the color printer and video divisions in 1999, the company returned to its core business with 4200 employees. This reorganization came with a desire for employee programs, including relocation, that were more cost-effective.

In 1994, the company adopted a customized tiered policy. Five years later, it "blew up" the policies and introduced a cafeteria-style plan that included a basic relocation benefit, 30 days of temporary housing, and federal and local tax assistance. "Optional benefits were determined by the manager, the employee's needs, and the budget," said Kayla. "This approach gave the managers much better control and helped them better budget for relocations."

Taking It Global

The next step in the evolution was to formulate the policy for global application. This involved preliminary benchmarking and an alignment of existing programs for consistency. The policy now covers the following seven scenarios:

• Travel (Business trips of 3 weeks' duration or less)
• Extended Business Trip (3 weeks to 3 months) includes housing, per diem, work permits, etc.
• Short-term Expatriate (3 months to 12 months)
• Long-term Expatriate (1-3 years)
• Domestic Assignment (primarily for Europe)
• Domestic Relocation
• International Relocation

Kayla said the global policy guidelines enable several benefits to the company. These include the consistent administration of company-initiated relocations, assurance for upholding standards of business conduct and compliance with legal and tax requirements... adequate support for employees and families, including assistance during the settling-in period... support for the company's goal of achieving value while managing cost... and minimization of financial obstacles with reasonable reimbursement.

Kayla reviewed the core policy features and options for domestic and international relocation, which vary by country to fit cultural and societal conditions. Work with the Global HR Team is ongoing to evaluate how well the policies are serving their divisions, the potential for new providers, and the need for revisions to stay current with the organization's evolving needs.