Understanding Relocation Costs: A Comprehensive Guide

Not All Customers Are Created Equal: Why Some Companies Receive Worse Rates From Relocation Vendors, And How To Make Sure You Don’t

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Not all companies receive equal treatment from their suppliers, and corporate relocation is no different. Global mobility functions and their finance teams are often surprised by how costly relocation services can be, and sometimes without clear justification. Suppliers often add hidden costs to relocation policies, embedding extra fees into daily program management after contracts are signed. These extra charges, along with non-essential services added to policies, can drain budgets intended for relocation assistance, damage Mobility’s reputation within a company, and increase the overall relocation cost.

This issue can be challenging to identify, which is why relocation assistance experts must understand the common traps that contribute to unfair pricing.

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The Cost-Creep

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A significant frustration for global mobility teams arises when they unknowingly, or sometimes knowingly, overpay for provider services compared to market rates. This issue, commonly known as “cost creep,” occurs when suppliers gradually increase their fees, attributing these changes to “market fluctuations.”

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For example, one GM leader at a sportswear company discovered that a long-time immigration partner was charging four times the market rate, a situation only revealed through a data review. Additionally, certain providers impose substantial fees for minor activities, such as data processing, which can further inflate the relocation cost.

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How Do You Overcome Unfair Pricing? Data!

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Leveraging data can make corporate relocation services more equitable. With data-driven insights, HR leaders and global mobility professionals can ensure that every employee receives the support they deserve and that companies pay fair prices for relocation services.

When Mobility teams access comprehensive data on relocation package market rates and can track provider invoices in real time, they’re better equipped to challenge suppliers, avoid unnecessary fees, and ensure fair treatment in corporate relocation pricing.

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How Can You Gather Data to Avoid Overpaying?

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• Benchmarking
  Supplier-sourced or open-sourced benchmarking surveys offer a clear view of what other companies or corporate relocation clients pay for relocation services.

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If you haven’t taken part yet, PerchPeek’s Benchmarking Survey for 2025 is here - with over 100 submissions of policy costs data, and all respondents will get access to the final report.

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• Events
  Open and candid conversations at industry events—both in-person and virtual—provide great insight into where and how other companies save on relocation costs. For an easy online option, join one of PerckPeek’s Speed Networking events.

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For an easy online event - sign up to one of PerchPeek’s next Speed Networking events here.

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• Market Research
  During the early stages of a sales process, comparing multiple corporate relocation services providers reveals available rates in the market. It’s wise to try a range of suppliers and inquire directly with service providers to understand real costs before relocation lump sum or lump sum relocation package markups are applied.

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Extra Data Requirements to Ensure Relocation Fairness

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Here’s PerckPeek’s guide to using data for fair corporate relocation services and relocation assistance:

• Ensure all relocations are initiated within the same system to enable comprehensive data tracking.
• Organize program data into categories like relocation policies, demographics, fees, allowances, and satisfaction metrics.
• Effectively track relocation lump sum expenditures, direct vendor fees, and other relocation costs.
• Integrate a Human Resource Information System (HRIS) for efficient initiation and tracking of relocators.
• Use trend data analytics to monitor supplier cost trends and ensure adherence to agreed-upon relocation package pricing.
• Market benchmarks provide essential data for communicating fair pricing to the global mobility team and prevent cost creep from being overlooked.

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Summary and Action Steps

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Data is a vital asset in building a fair and transparent corporate relocation program. Not only does it boost employee morale by providing equitable relocation assistance, but it also optimizes company budgets and enhances overall business performance. The key data metrics mentioned here are fundamental to achieving these objectives and are now readily accessible through modern corporate relocation services providers.

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We strongly recommend challenging your current relocation management company (RMC) and service network to provide these insights. This approach can help you identify areas where your company might not be receiving fair treatment.

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If you’re interested in implementing these data-driven strategies, please don’t hesitate to contact PerckPeek to learn more about our corporate relocation capabilities at perchpeek.com.

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Thank you for reading! We’ve also written about how data makes relocations fairer for both the relocators and the company—see the link below for more details.

click here!

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