Should My Company Pay Employee Relocation Expenses?
The cost of employee relocation expenses can seem enormous, in particular when competing for top level executives. However, there are many ways of avoiding getting your company involved in a relocation package that will not recover in executive talent the amount expended. Technical employees are typically are not granted extravagant relocation packages, so there is usually very little that can be reasonably trimmed from such packages.
To begin with, there are several real estate related expenses that have proven very costly for some companies. For instance, in the 1980s it was very popular to buy a new employee's old home if it wasn't selling. These sorts of employee relocation expenses is not only very costly, but can also look a bit shady when these expenditures are scrutinized. It's almost impossible grant your employee a fair price for their home and not be faced with the accusation of paying too much. If it's your company's business to make paper envelopes, why would the company invest in an Italian Villa?
Other employee relocation expenses are less clearcut. For example, should your company provide a moving stipend, or authorize an expense account that must be clearly documented? While it may seem troublesome to begin with expense accounts right away, professional relocation firms will handle all the particulars. On the other hand, the family of an valuable executive may not use wise judgment with such an account or might be afraid to use it. After all, what happens in case where a legitimate moving expense isn't covered. Clearly, discussing such particulars of employee relocation expenses is paramount.
It would definitely be a wise decision to talk with the employee in question and find out what her or his personal circumstances are before your company makes any offers to cover over-generous employee relocation expenses. If your employee is single, even a very nice condo in a downtown area can be far less costly than a 3-bedroom home in the suburbs. By preferentially locating your employees near the work site your firm just might save you the expense of paying for and garaging a company car.
Finding the right amount to spend on employee relocation expenses is certainly a delicate balance. But if there is any sort of art to it, it is to offer little and agree to much. You do not don't want there to be any problems along the way that might ruin the relationship right off the top. Always opt for quality rather than quantity if given the choice to offer fewer benefits and use a more highly recommended relocation services company to oversee the process. Your company and your employee will greatly benefit from the attention to detail that makes relocation go smoothly.
The cost of employee relocation expenses can seem enormous, in particular when competing for top level executives. However, there are many ways of avoiding getting your company involved in a relocation package that will not recover in executive talent the amount expended. Technical employees are typically are not granted extravagant relocation packages, so there is usually very little that can be reasonably trimmed from such packages.
To begin with, there are several real estate related expenses that have proven very costly for some companies. For instance, in the 1980s it was very popular to buy a new employee's old home if it wasn't selling. These sorts of employee relocation expenses is not only very costly, but can also look a bit shady when these expenditures are scrutinized. It's almost impossible grant your employee a fair price for their home and not be faced with the accusation of paying too much. If it's your company's business to make paper envelopes, why would the company invest in an Italian Villa?
Other employee relocation expenses are less clearcut. For example, should your company provide a moving stipend, or authorize an expense account that must be clearly documented? While it may seem troublesome to begin with expense accounts right away, professional relocation firms will handle all the particulars. On the other hand, the family of an valuable executive may not use wise judgment with such an account or might be afraid to use it. After all, what happens in case where a legitimate moving expense isn't covered. Clearly, discussing such particulars of employee relocation expenses is paramount.
It would definitely be a wise decision to talk with the employee in question and find out what her or his personal circumstances are before your company makes any offers to cover over-generous employee relocation expenses. If your employee is single, even a very nice condo in a downtown area can be far less costly than a 3-bedroom home in the suburbs. By preferentially locating your employees near the work site your firm just might save you the expense of paying for and garaging a company car.
Finding the right amount to spend on employee relocation expenses is certainly a delicate balance. But if there is any sort of art to it, it is to offer little and agree to much. You do not don't want there to be any problems along the way that might ruin the relationship right off the top. Always opt for quality rather than quantity if given the choice to offer fewer benefits and use a more highly recommended relocation services company to oversee the process. Your company and your employee will greatly benefit from the attention to detail that makes relocation go smoothly.
Third Party Logistics
A third-party logistics provider (abbreviated 3PL) is a firm that provides outsourced or "third party" logistics services to companies for part or sometimes all of their supply chain management function. Third party logistics providers typically specialize in integrated warehousing and transportation services that can be scaled and customized to customer’s needs based on market conditions and the demands and delivery service requirements for their products and materials.
• Types of 3PL providers
Hertz, and Alfredsson (2003) describe four categories of 3PL providers: [1]
• Standard 3PL provider:
this is the most basic form of a 3PL provider. They would perform activities such as, pick and pack, warehousing, and distribution (business) – the most basic functions of logistics. For a majority of these firms, the 3PL function is not their main activity.
• Service developer:
this type of 3PL provider will offer their customers advanced value-added services such as: tracking and tracing, cross-docking, specific packaging, or providing a unique security system. A solid IT foundation and a focus on economies of scale and scope will enable this type of 3PL provider to perform these types of tasks.
• The customer adapter:
this type of 3PL provider comes in at the request of the customer and essentially takes over complete control of the company’s logistics activities. The 3PL provider improves the logistics dramatically, but do not develop a new service. The customer base for this type of 3PL provider is typically quite small.
• The customer developer:
this is the highest level that a 3PL provider can attain with respect to its processes and activities. This occurs when the 3PL provider integrates itself with the customer and takes over their entire logistics function. These providers will have few customers, but will perform extensive and detailed tasks for them. by greg
Non Asset-based Logistics Providers
This 3PL performs duties such as quoting, booking, routing, and auditing, but doesn't need to own warehousing facilities, vehicles, aircraft, or any other transportation assets. This type of 3PL may possess only desks, computers, and freight industry expertise.
To be useful, this type of provider must show its customers a benefit in financial and operational terms by leveraging exceptional expertise and ability in the areas of operations, negotiations, and customer service in a way that complements its customers' preexisting physical assets.
Fourth-party logistics
Fourth-party logistics (4PL), Lead-Logistics-Provider or 4th Party Logistics, is a term coined by global consulting firm Accenture:
“ A 4PL is an integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions.
Logistics services to companies for part or sometimes all of their supply chain management function. A 4PL uses a 3PL to supply service to customers, owning only computer systems and intellectual capital. [2]
A third-party logistics provider (abbreviated 3PL) is a firm that provides outsourced or "third party" logistics services to companies for part or sometimes all of their supply chain management function. Third party logistics providers typically specialize in integrated warehousing and transportation services that can be scaled and customized to customer’s needs based on market conditions and the demands and delivery service requirements for their products and materials.
• Types of 3PL providers
Hertz, and Alfredsson (2003) describe four categories of 3PL providers: [1]
• Standard 3PL provider:
this is the most basic form of a 3PL provider. They would perform activities such as, pick and pack, warehousing, and distribution (business) – the most basic functions of logistics. For a majority of these firms, the 3PL function is not their main activity.
• Service developer:
this type of 3PL provider will offer their customers advanced value-added services such as: tracking and tracing, cross-docking, specific packaging, or providing a unique security system. A solid IT foundation and a focus on economies of scale and scope will enable this type of 3PL provider to perform these types of tasks.
• The customer adapter:
this type of 3PL provider comes in at the request of the customer and essentially takes over complete control of the company’s logistics activities. The 3PL provider improves the logistics dramatically, but do not develop a new service. The customer base for this type of 3PL provider is typically quite small.
• The customer developer:
this is the highest level that a 3PL provider can attain with respect to its processes and activities. This occurs when the 3PL provider integrates itself with the customer and takes over their entire logistics function. These providers will have few customers, but will perform extensive and detailed tasks for them. by greg
Non Asset-based Logistics Providers
This 3PL performs duties such as quoting, booking, routing, and auditing, but doesn't need to own warehousing facilities, vehicles, aircraft, or any other transportation assets. This type of 3PL may possess only desks, computers, and freight industry expertise.
To be useful, this type of provider must show its customers a benefit in financial and operational terms by leveraging exceptional expertise and ability in the areas of operations, negotiations, and customer service in a way that complements its customers' preexisting physical assets.
Fourth-party logistics
Fourth-party logistics (4PL), Lead-Logistics-Provider or 4th Party Logistics, is a term coined by global consulting firm Accenture:
“ A 4PL is an integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions.
Logistics services to companies for part or sometimes all of their supply chain management function. A 4PL uses a 3PL to supply service to customers, owning only computer systems and intellectual capital. [2]
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