Riding the Shetland Pony
Why is it so hard to bring change to the Relocation Industry?
Firstly, people like the status quo. They like things to stay the same. Todays, employee is more risk averse than ever. It is ?In fact human nature, people will do more to avoid pain than to gain pleasure. All the talk about “disruption” is from a sellers point of view, not the buyers. All the, blue sky dreams are the dreams of the dreamers that want their product or service disrupting the buyers world. The buyer however would much rather ride the Shetland Pony (a short Scottish breed of horse). Keeping their head down and trotting along undetected. ?
With this it seems like the moving industry has surrendered to the fact that the RMC owns the corporate market. That they control the space and the only way to work with a corporation is through an intermediary, a middleman. The industry has drawn that conclusion because no one really wants change and even if they were open to change, they have no way of seeing or hearing the benefits of collaborating directly with a supplier. In that the RMC has the ear of the corporation, controls the narrative, and keeps very tight reins on their suppliers.
Why would anyone disrupt a process, besides an RFP is costly and time consuming. It usually only occurs if the organization has strict policy in place for evaluating contracts or if a VP is angry at the service. A new RFP comes with the same routine. Several months of preparation, a month of trying to figure out what differentiates free from free, a year of implementation, a year of chastising the supply chain, a year of half-ass service, excuses and promises and then another VP will start the process again or perhaps you will move on and hand the rains to someone else and the carousel spins on. ????
The interesting chink in the traditional old armor, is the new reality of todays corporation. The nuclear family is retired from the workforce and dated policies and cloistering information is fast ending. It is no wonder many organizations are washing their hands of the entire process and going with a Lump Sum or allowance program. Facilitating a COD move and a great opportunity for the Movers to stand on the back of our Shetland pony and be noticed. AI will kill the relocation management model in a few short years but AI can not lift a sofa, The Mover is verging on a massive opportunity in this new AI driven world.
The old model is breaking down in front of our eyes. A new solution for todays new employee must be addressed. They demand customized service for their personal situation. There is more remote work and self-initiated transfers. From a company perspective, many are wondering, if the cost and ROI of relocating an employee is worth the average employee loyalty of just 4.5 years? The transferees need flexibility, and the corporation needs cost restraints and less administrative burden.
The question is do you let the transferee make their own choices, or utilize a managed program with the baked in referrals from the RMC? ?The solution may not have to be a drastic change, all they need in this information age is good information. Simply augment the DIY program with information and free choice. If armed with the proper information a transferee is more than capable of making educated decisions, hitting timelines, and spending their own money on what makes most sense to them and their situation. ?
Change does not have to be dangerous. Education adds to the value of any program and an education backed DIY lump sum or preferred supplier program, makes for an interesting exit ramp from the traditional program with little risk.
Movers must start going after the lump sum market in a professional logical way. No one owns a COD move. We should be positioning ourselves in the market as a safe transition from a traditional third-party model. We must stand on the back of our pony and be visible. The solution is honest information and transparent pricing. For the information that will help your employees manage their own relocations. See links ?https://a.co/d/7KStmdB? https://customizedmoving.teachable.com/p/relocating
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