Keeping Up With Change

Ryan McConnell, Atlas Senior Director of Sales Development, moderated a discussion focused on domestic relocation policy. Panelists brought views from two very different industry backgrounds.

Workshops approved by ERC for CRP™ Recertification Credits.

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

Presenters
Milton Shaw
Manager of Relocation
and Fleet Services
Deere & Company
Pat Marrone
Manager of Relocation
Progressive Insurance

Milton Shaw is Manager of Relocation and Fleet Services with Deere & Company. He introduced his company as a Fortune 100 firm that manufactures equipment for agriculture and construction, doing business in 130 countries with 52,000 employees.

Milton described his department as a small, efficient team that functions as the registered experts for relocation of Deere employees. The goal is ultimately for every employee to experience a smooth relocation.

Deere maintains three policies: new hires just out of college, new hires in mid-career, and transferring Deere employees. The first two tiers provide a lump sum, and the second tier adds an allowance for the van line to pack and load.

The third tier is a richer policy. It provides: grossed-up lump sum allowance for house hunting and temporary lodging; rental lease assistance (up to a "reasonable" amount); new home purchase assistance with no-closing-costs loans and reimbursements for closing costs; home-sale assistance and loss-on-sale assistance; cost-of-living adjustment for high-cost areas; household goods moving; spousal employment assistance; relocation allowance for miscellaneous expenses; and final trip reimbursement.

Milton talked about how Deere had to address the loss-on-sale of home and arrived at a benefit that covers 50 percent with a cap of $50,000 (grossed up). He emphasized the importance of developing a cost-neutral environment and managing exceptions. "Exceptions during the process are what drives the cost up."

He described the metrics used to assess business performance monthly, including evaluations of customer satisfaction, the home-sale program, mortgage lenders and household goods movers.

Pat Marrone, Manager of Relocation with Progressive Insurance, began with an overview of her employer as the number one U.S. insurer of automobiles and motorcycles with 27,000 employees across the country. Progressive is headquartered in Cleveland but operates 475 claims offices and 60 service offices.

The company performs about 600 domestic relocations a year. Pat described her department as a hybrid in-house department that does everything except the paperwork on home sales, which is outsourced to a relocation company.

Pat shared her experience in Progressive's development of a zero-closing-cost loan program. She explained that there was no value to be derived from paying closing costs, since employees transfer every couple of years. The program has been successful in helping the company control relocation costs, and it has been well received among employees. She said it has the added benefit of helping renters own a home, noting that "a home-owning employee is much more stable and productive."