For relocation programs and global assignments, cost containment or cost cutting is typically a top corporate goal. In either case, understanding costs, what’s driving them and what benefits can be preserved in the process, has become critical. At the same time, competition for top talent continues unabated and often times the relocation package can make a difference in which company a person chooses. While the best strategies to manage this dichotomy are the work of our consulting team, Paragon can provide cost estimates in multiple ways. These approaches are listed below. Paragon also offers detailed reporting to support budgeting, reconciliations of actual costs versus planned and accruing expenses during the year. Combining cost estimates and detailed reporting provides our client with the critical information they need.
Program Spend Forecasts
As part of our consulting services, Paragon provides high-level spend forecasts usually in tandem with policy design and program recommendations. Paragon combines various averages and assumptions with each client’s actual data when available. We work with our clients to develop these assumptions in order to be as accurate as possible. The context for providing this service is often times the advent of change where no relevant historical data exists. Whether our client is introducing their first relocation program, adding new international assignments or making fundamental changes in policy with an eye towards winning recruiting battles, Paragon can provide the data and information needed. Up-front forecasts also assist corporations with budgeting and planning in this year and the next.
Self-Serve Move Calculator
Sometimes, clients just need an immediate ballpark estimate. Paragon provides a static calculator for US moves that a client can easily access through their dedicated web portal at no cost. The data is based on averages that are updated annually. This is a great tool for recruiters and hiring managers to use during their search efforts, but Paragon’s more comprehensive cost estimation services would be necessary if financial budgeting and accrual reporting is required.
Paragon’s pre-decision consulting examines the details of each employee’s situation in light of the company’s policy benefits, the logistics of the move and the characteristics of the destination location. This critical due diligence can decrease the need for exceptions to policy later, lowering overall cost. The work is done in advance of implementation and can also be used to make changes in benefits offered or to whom benefits are offered to ensure the relocation program falls within budget. Interviewing employees is optional but recommended. Common components of the service include: 1) identifying basic facts about the current home, including the likely selling price and any family or timing issues that may affect selling the property; 2) establishing the likely purchase price of the new home with a Broker Market Analysis; 3) estimating the total cost for the move; 4) identifying family transition and spousal support needs; and 5) completing a cost of living comparison.
On a post-decision basis, Paragon can calculate the total cost to relocate an employee for both domestic and international scenarios. A relocation consultant will interview the employee, after the candidate has accepted the transfer, to improve the accuracy of the estimate. Critical information such as home size, original price paid for the home and the number of family members can make a significant difference in the final estimate. This work is done one person at a time and all estimates can be updated based on the actual expenses incurred, at a later point in time. In addition, all relocation costs, allowances and compensation, with changes to income and social taxes factored in, are included in the analysis. The estimates support reporting budget variances and accruing actual expenses for tighter management control. With up-to-date tax tables for 80 countries and the ability to report the results in multiple currencies, Paragon can provide estimates for any and every scenario.
Cost of Living Comparisons
Paragon provides its clients cost of living comparisons between selected cities based on our clients’ needs. The calculation can reflect client specific data or averages supplied by a third-party economic research organization. The benefit of our third-party vendor is that the data is consistent, updated regularly and prepared by experts. The comparison takes into account the cost of consumable goods, transportation, health services, rent/housing, utilities, insurance, payroll taxes and other miscellaneous items. The final report is specific to an individual’s earnings, family size, home value, whether the individual is a homeowner or renter, automobile information and the logistics of getting to and from the office each day. This information helps our clients to understand what their employees will actually experience as a result of the move and gives them the data they need to make adjustments to compensation or policy benefits as needed.
Paragon Relocation’s reporting capabilities perfectly complement our cost estimates, putting tremendous detail in the hands of decision-makers for tighter management control and quicker reactions to any unexpected occurrence or trend. We understand your reporting needs to be highly complex, unique and specialized, and we are prepared to deliver accordingly. Paragon offers regularly scheduled standard and custom reports that are tailored to the client’s needs and available when the client needs them. With the ability to capture almost any data needed, there is a seemingly infinite number of reports that can be created. Relocation management reports are not limited to, but often include: 1) active file status, 2) assignment status, 3) budget variance, 4) exceptions, 5) expense details, 6) homesale listings and 7) homesales closed. Reports are available online, on demand and in real-time. Paragon also offers ad hoc reporting, on demand, as part of its standard relocation service.