This Workplace Wisdom article featuring Pam Cavedo, Long and Foster Mobility ran in the Richmond Times Dispatch March 16, 2015

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Pam Cavedo Business Development Manager Long and Foster Mobility

Q. What is the core/flex relocation policy program and should I consider it for my business??

A. With the demographics of the mobile workforce changing and business objectives evolving faster, companies are seeking alternatives to traditional corporate relocation policies. Upside down mortgages, diverse family needs, bidding wars in some markets and a stricter mortgage process are just some of the obstacles for an employee considering relocation. One increasingly popular option for relocation is the core/flex policy, which according to Worldwide Employee Relocation Council® (ERC) currently represents 25% of all domestic relocations.

These menu-driven relocation benefits emerged following the housing bubble and recession as a way for companies to attract and move talent while limiting expenses and eliminating a "one-size-fits-all” costly program. However, the advantages go beyond just cost savings. Instead of structured tiered policies, which may include benefits a particular employee might not need and excluding ones they do, flex policies allow companies to build customized relocation packages around a set of core benefits. As a result, they are both flexible and aligned to the employee’s needs contributing to employee satisfaction and fairness.

With a core/flex relocation policy, managers can rearrange individual benefits that meet employee needs within the budget. By clearly outlining the core benefits and menu of options within expense constraints, companies enable employees to see the rationale behind decisions and have them participate in their own relocation policy execution. This approach especially resounds with Millennials, who expect customization.

Flex Policy Overview

Advantages of core/flex programs:

• Relocation benefits tailored more closely to individual employee needs
• Empowers hiring managers and relocation program managers
• Provides a candidate recruiting edge
• Employees feel more participatory and invested in the process
• Costs are controlled by offering only those benefits that are needed by the employee
• Eliminates or significantly reduces policy exceptions

Disadvantages of core/flex programs:

• Program and policy administration is more complex than for strictly defined, tiered policies
• Budgeting is more challenging due to variable policy elements
• Continued management involvement is crucial to ensure that the package includes all of the elements essential to a successful relocation or assignment
• Because employees communicate with each other, there is the possibility that an employee will feel entitled to a benefit another employee has received

How to design a Core/Flex Policy

• First determine which benefits make up the core of its policies. These are benefits that most of its relocations would include, such as a household goods shipment or a home finding trip. It would then assemble a list of optional benefits, such as a rental car and destination services, which employees could choose as part of their packages.
• Next determine which additional benefits will be offered and allocated. This aspect will vary by company, industry and global talent need. In some companies, each business unit is responsible for developing policies that work best for it.
• Use core/flex policies to help employees efficiently use and manage their lump sums.
• Use the core/flex approach to create policy tiers with distinctive types of benefits.

For example, a tier for a homeowner could include home sale assistance as a core benefit, with temporary housing as a flex option. A tier for a renter could include a paid lease cancellation as a core benefit, with extended temporary housing as a flex option.

• Typical core benefits might include:


• Shipment of household goods
• Relocation and policy counseling
• Travel to the destination
• Rental or home finding assistance


• Flexible benefits might include:


• Home finding trips
• Home sale and home purchase assistance
• Mortgage assistance
• Spouse or partner career assistance
• Child or elder care assistance
• Miscellaneous allowance or lump sum assistance



While economic recovery is helping to overcome some of the obstacles to relocation, incorporating a flex element to an existing relocation policy will allow a more direct and personalized alignment of benefits and needs and in some cases, it allow relocations and international assignments that otherwise might not proceed.




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Long and Foster Mobility
Corporate relocations are an important part of the company's overall benefits policy. Long and Foster Mobility provides policy consultation and implementation to its clients. By aligning the company's culture, goals and cost consideration, they can assist in designating a core and optional benefits program which will be fair to transferring employees and help control overall program costs.

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