Be aware, however that depending on how far a corporation is willing to take flexibility, there are challenges: Consistency: If you are hoping to achieve consistency, then most flexible policies may not be the right choice. When trying to meet the specific needs of each transferee, tiered policies and cafeteria-style programs do not offer each employee the same bene- fits. Core/flex and lump sum programs can achieve consistency provided you have a clear and standard process around how the amounts are determined. Managing budgets: The burden of administration shifts to the transferee to allocate funds, manage budgets and arrange their own services. This can negatively impact productivity and can result in the employee making poor choices due to a lack of knowledge. Negotiating: This is of particular concern around cafeteria-style programs. This type of policy tends to open up negotiations between the employer and employee which can lead to perceived inequities across your relocating population. The better negotiators are likely to receive more benefits. Productivity: In concert with managing budgets, employees may spend too much time managing their relocation and not enough time getting settled into their new location and position. This is particularly true if your organization is offering a cash-in-lieu program. Exception requests: While exception requests are traditionally reduced in flexible allowance programs, we know that transferees will continue to ask. Flexible allowance policies require firm management of requests for exceptions. RELOCATION POLICY CONSIDERATIONS Before you rush out and present this as a flexible option to your senior leaders, you should review your business object- ives and identify the priorities for your mobility program: • Does your organization already have other flexible arrangements, such as health spending accounts? Flexibility in your mobility program would likely fit nicely into this type of culture while also addressing employee expectations. • Your employee demographics are likely changing. What proportion of your demographic is millennial? Is your millennial population seeking more flexibility in their work environment? • Is there a focus on cost-containment in your organiza- tion? Can you achieve any cost savings by moving towards a flexible mobility program? • Is talent acquisition a key business objective? What are the competitive practices around talent acquisition? • Compliance and tax reporting cannot be overlooked. Regardless of the design you land on, you should ensure that you can easily meet your compliance and tax reporting objectives. INTERNATIONAL ASSIGNMENTS Most experts would raise a flag of caution when designing flexible policies for international assignments. While tiered policies can be effectively designed, core/flex, cafeteria and cash-in-lieu programs can raise many quandaries for assignees and administrators alike. Limited flexible allowances that include air fare, hotels, car rentals, etc. can work well for international assignees. Cafeteria approaches may also be successful, but negotiations between the company and the transferee as to what benefits the assignee will receive could be marred by a lack of understanding of the risks associated with international assignments. For example, neither the manager nor assignee may under- stand the implications of not including a benefit such as cross-cultural training. Such action could result in personal safety risks or the assignee’s ability may be compromised by not having the information on how to conduct business in a specific locale. Simply offering cash in lieu of a policy only heightens all of these risks. In this case, the organiza- tion’s duty of care obligation would not be met. In summary, flexibility in your mobility program can take many forms. Whether you can achieve cost savings depends on how the flexibility is designed and which approach you choose. Employee expectations, business objectives and your company culture will determine which path you choose. The workforce of today appears ready and willing to manage a good portion of their relocation. Your job is to give them the flexibility to do it. This article is based on a presentation from the CERC 2018 Conference, "How to put Flexibility in your Policy without Increasing Cost," presented by Jeff Houck, Suncor Energy; Gail Reinhart, Weichert Workforce Mobility; and Carole Savage, Bank of Canada. hallmark lind Group realty ltd., brokerage independently owned and operated Service with Professionalism HALLMARKLINDREALTY.COM 905-841-0000 DIAMOND CLUB PRODUCER FOR ALL YOUR GTA REFERRALS GREATER TORONTO AREA, ONTARIO, CANADA 22 PERSPECTIVES Summer 2019 Flexibility in your mobility program can take many forms. Whether you can achieve cost savings depends on how the flexibility is designed and which approach you take