Effective cost management remains a critical challenge in international mobility programs. Our recent International Mobility Benchmark Survey reveals significant concerns around the rising costs stemming from various factors, including inflation and housing market volatility.
Challenges in Cost Management:
The survey shows that 68% of respondents are grappling with increased housing costs and budget allocation issues. These financial pressures are pushing companies to find innovative ways to manage expenses without compromising on the quality of relocation services.
Strategies for Cost Management:
Companies are employing various strategies to control costs, such as managed lump sum payments and flexible budgeting. Variations of lump sum arrangements are particularly prevalent in permanent and local-plus transfer policies, as indicated by 25% and 43% of respondents, respectively. These methods provide employees with a fixed budget to manage their relocation expenses, offering both financial predictability for employers and flexibility for employees.
The Role of Technology:
62% of participating companies affirmed interest in adopting new technology platforms to complement their cost management strategies. Real-time data insights, automated workflows, and efficient expense tracking reduce administrative burdens and errors. Further, features like automated cost estimation and payroll reporting can significantly improve financial oversight and control. These tools not only streamline the relocation process but also provide transparency and accountability in budget management.
Managing costs effectively is crucial for the success of international mobility programs. Our survey highlights the need for innovative strategies and advanced technology to address financial challenges. Benivo’s cost management tools, including automated payment processing and advanced cost estimation, provide the necessary support to manage relocation expenses efficiently and transparently. Our platform’s comprehensive financial tracking capabilities ensure that companies can maintain control over their budgets while delivering high-quality relocation experiences.
Recent client case studies and client experiences demonstrate significant cost savings through the implementation of Benivo's Relocation Services and/or Mobility Tech:
- $15.8 million overall cost reduction
- 40% reduction in management fees through automation
- 30% reduction in administration costs by eliminating hidden fees
- Over 90% drop in the number of escalations
- $millions saved on fees to the tax provider for late submissions and comp accumulation
- Streamlined payroll reporting, less vendor back and forths, less errors, instant reporting
- 40% total reduction in time spent by the internal Global Mobility team
- 50% increase in employee satisfaction NPS
- Benivo's data analytics helped identify $1.8 million in annual savings on travel costs
- By promoting more efficient travel options, one client reduced CO2 emissions by 6.4 tons, which can lead to potential cost savings through reduced carbon offsetting expenses
- Reduced payment time to employees from 2 weeks to 2 days, reducing administrative costs and improving cash flow management
These data points demonstrate how Benivo's technology-driven approach can lead to substantial cost savings across various aspects of global mobility programs, from direct expenses to operational efficiencies.
Contact us to learn more about Benivo's Relocation Services and Mobility Tech.