THE COMPASS BEFORE THE COURSE: WHY EVERY SUPPLY CHAIN STARTS WITH CLEAR OBJECTIVES
Every supply chain project starts with the same kind of optimism: a team of smart people, a detailed plan, and a stack of RFPs ready to go. Then somewhere between kickoff and completion, the waters get murky. Suddenly, what began as a straightforward sourcing effort turns into a tangle of metrics, pricing models, and competing priorities. Stakeholders drift. Objectives blur. The project becomes about the process instead of the purpose. I’ve seen this pattern more times than I can count, and not because people aren’t trying. It happens because we confuse movement with progress. The RFP fills up with hundreds of questions. The dashboards multiply. The meetings pile up. But without clear, measurable objectives, even the best-run project can lose its bearings. That’s why every successful supply chain initiative I’ve worked on starts in the same place: with a shared understanding of what we’re really trying to achieve. Clear objectives are the compass that keeps everyone aligned, from procurement to mobility, from HR to finance, no matter how choppy the waters get. Because when you know your destination, the decisions along the way become a whole lot easier. Why Objectives Get Lost Every supply chain project starts with good intentions. Everyone agrees on the goal, the kickoff goes smoothly, and the project plan looks airtight. Then somewhere along the way, the original objectives quietly disappear, buried under process, politics, and PowerPoints. It’s not sabotage. It’s drift. By the time an RFP lands, teams are juggling dozens of competing priorities: cost, quality, service, technology, compliance, culture, and a dozen other “critical” factors. Somewhere between the spreadsheets and the sales demos, the purpose starts to blur. It happens everywhere, from Fortune 100 programs to boutique projects with ten people in the room. Smart, well-meaning people get caught up in the mechanics of selection and forget the “why” behind it all. The irony? The more complex the project, the easier it is to lose focus. In mobility supply chains, this drift can be subtle but expensive. Teams evaluate suppliers based on a 40-tab workbook of pricing models and service metrics, only to realize, months later, that the chosen partner doesn’t actually solve the business problem that started the project. That’s when the frustration sets in. And it’s usually the same sentence every time: “How did we end up here?” The truth is, without clear, measurable objectives, even the best-run sourcing process can look impressive on paper but fail in practice. The meetings were thorough, the analysis was robust, the vendor presentations were polished, and the outcome still missed the mark. It’s not that people don’t care. It’s that complexity quietly hijacks clarity. That’s why the most effective mobility leaders I know begin every project with a simple, old-fashioned question: “What are we actually trying to accomplish here?” Everything else, the data, the process, the RFP, should serve that answer.
GLOBAL EXPANSION USING A PEO STRATEGY TO EXPAND YOUR WORKFORCE INTERNATIONALLY
Global Expansion: Considerations for accessing a Global Talent Pool with a PEO strategy. Organizations looking to expand, test the waters, and hire internationally are faced with a basic question, how to do this quickly, efficiently, and cost-effectively. The lengthy timelines, heavy investment, and the myriad of compliance issues associated with establishing an international entity made this prohibitive. The landscape has changed,and there are options today that simply did not exist even a few years ago. The emergence of Professional Employment Organizations (PEOs) has changed the game. PEOs offer significant opportunities for businesses to employ, attract, and retain foreign talent while navigating complex employee payroll, tax benefits, and even immigration processes. The prevalence of Professional Employment Organizations (PEO), has shifted this equation and generated huge opportunities for companies looking to employ, attract and retain foreign talent while navigating complex employee benefits and immigration processes. Today’s world represents a startling dichotomy. Complexities related to employment laws, cross-border requirements, taxes, rules, and processes have become exponentially more complex, while the expectation that we will be able to travel, move and operate globally and seamlessly is taken completely for granted. PEOs represent an important resolution to this dichotomy. What is a PEO? A Professional Employer Organization (PEO) is a third-party entity that partners with businesses to manage various aspects of human resources (HR) and employment administration. In a co-employment relationship, the PEO becomes the employer of record for certain employment-related purposes, such as payroll processing, benefits administration, compliance, and risk management. While the client company maintains control over day-to-day operations and retains responsibility for the direction and supervision of its employees, the PEO takes on key HR functions, providing expertise, resources, and support to streamline HR processes and ensure compliance with employment laws and regulations. The primary goal of a PEO is to help businesses save time, reduce administrative burdens, and access comprehensive HR services, allowing them to focus on their core operations and strategic objectives.
THE RETURN-TO-OFFICE RECKONING: WHAT COMPANIES GET WRONG ABOUT RELOCATION
The return-to-office movement has triggered a quiet crisis few companies saw coming: what do you do when employees who were hired remotely, or who moved during the pandemic, are suddenly told they need to be back in Chicago, New York, or Seattle? For many organizations, the response has been awkward silence followed by a frantic scramble. The New Geography of Work Over the last few years, we’ve witnessed a reshaping of where people live and work. Between 2020 and 2022, companies threw open the doors to remote work. They closed offices, hired talent from anywhere, and promised that flexibility was the future. Now the tide is turning. But while changing a policy is easy, reversing someone’s life is not. We’re seeing a few predictable patterns emerge. Some companies, Amazon and Dell among them, are pushing for four or five days a week back in the office. Others are landing on hybrids, asking people to come in two or three days a week, often midweek, for collaboration. A smaller group is leaving it up to managers to decide what makes sense for their teams. Each of these models carries its own relocation challenges. Hybrid setups often mean longer commutes or small-radius moves. Full mandates force a binary choice: move or leave. The flexible ones can be even trickier; uncertainty can be worse than either extreme. When Relocation Becomes an Ultimatum The employees caught in the middle tend to fall into a few camps. There are those hired remotely who never lived near an office. There are those who moved away, with company approval, during the pandemic. And then there are those who just drifted farther out, assuming the flexibility would last. Now they’re being told to come back. Or else. Relocation support, when offered at all, is all over the map. At the top end—usually reserved for executives or irreplaceable talent—you still see traditional relocation packages: home sale help, purchase assistance, temporary housing, the works. That’s the exception. More commonly, companies hand out lump sums between $5,000 and $15,000. Enough to hire movers and cover a deposit, but nowhere near enough to sell a home and start over. Increasingly, some offer nothing. The message is blunt: this is where the job is— figure it out. You have 60 or 90 days. The Math That Doesn’t Add Up From a business standpoint, this is where things stop making sense. Many companies are basing decisions on real estate costs and leadership philosophy, not on talent economics. If you’re paying someone $150,000 and they’re doing great work, does it really make sense to lose them rather than spend $20,000 to help them relocate? The cost to replace that person, recruiting, onboarding, lost productivity, easily exceeds that. Yet we see this pattern again and again. Some of it is intentional. Quiet layoffs disguised as “return-to-office” policies let companies shed headcount without severance or PR risk. But for organizations that genuinely want to keep their people, the lack of relocation support is baffling. They’re losing good employees over what amounts to a rounding error in the real estate budget.
Navigating EU Pay Transparency for Global Mobility
Practical governance considerations for mobility-related benefits and pay elements under Directive (EU) 2023/970 Who this is for This paper is written for organizations that have employees working in the EU under any type of mobility arrangement, including: It is especially relevant for Mobility leaders, Total Rewards/Compensation teams, HR Operations, Payroll/HRIS, Tax, and Employee Relations professionals who must align on how mobility inputs feed broader pay transparency and pay equity processes. What this paper is and is not This is: a practical framework for making mobility outcomes explainable and defensible under a pay transparency lens, with focus on worker groupings, valuation consistency, and exception discipline. This is not: a country-by country legal interpretation guide. Member state implementation and enforcement details will vary. The objective here is to define the governance foundations that remain relevant across jurisdictions and will support compliance execution as national rules mature. Executive Summary The EU Pay Transparency Directive will require many employers to explain, and in some cases remedy, pay differences between groups of workers performing the same work or work of equal value. For global mobility programs, the central challenge is that mobility arrangements often include non-base elements, allowances and benefits-in-kind, that can materially increase total remuneration compared to locally employed peers. Where these elements are included in reporting and assessment, mobility populations can materially affect pay outcomes. Many organizations are not yet set up to explain those outcomes consistently. The highest-risk issues are rarely the existence of assignment support itself. The exposure shows up in three places: (1) worker groupings and comparability, especially where mobility types blur categories (local-plus, transfers, hybrid arrangements); (2) valuation consistency, including how mobility elements are measured and treated over time; and (3) exception governance, where individualized deals and undocumented deviations create outcomes that are difficult to justify under scrutiny. This paper lays out a practical governance model to make mobility outcomes explainable and defensible under pay transparency.
Putting the spotlight on taxable commissions and rebates
The most sweeping US tax legislation since the Tax Reform Act of 1986 was signed into law onDecember 22, 2017. The Tax Cuts & Jobs Act ushered in many changes to our tax code, some of which impacted the mobility industry directly. The most significant change for mobility was the elimination of the exclusion from taxable income of household goods (HHG) shipment and final move expense reimbursements or payments. Recognizing tax changes that affect your bottom line The elimination of the exclusion is significant in that these expenses are now subject to income taxation and, as such, increase the tax assistance (gross-up) costs for employers. A side effect of this change is the spotlight it has put on the commission or rebate portion of HHG invoicing. Traditionally, relocation management companies (RMCs) have earned a “commission” when booking HHG shipments with a carrier
The Five Myths of Relocation Pricing
Over the years, pricing within the relocation management industry has morphed from strictly fee-based to something very different. Commissions, rebates, kickbacks, and markups now dominate the landscape resulting in a complete lack of transparency, conflicts of interest for providers, and missed savings for employers. Relocation Management Companies (RMC) promote a series of myths designed to perpetuate this system. This paper will serve to dispel those myths and provide recommendations on some simple steps for a better path forward. MYTH #1. RMC SERVICES ARE FREE TO THE CLIENT SINCE RMCS RECEIVE ALL REVENUE FROM SUPPLIERS In the early days of the relocation industry, employers paid relocation management companies (RMC) a fee to run the mobility program. All costs of services were passed through with no upcharge, just fees for professional services. This is no different from what you would expect for any consultative service company, accountants, attorneys, etc. As the industry evolved, competition resulted in RMCs reducing fees. Employers saw this as a win. No fees meant less overall spending, right? Well, not always. Relocation companies needed to make up for the lost revenue. Gradually, fees were replaced by commissions, and rebates were added on top of the pass-through charges for the services managed. With every dollar that an employer spent on things like temporary lodging or household goods transportation, a percentage went to the relocation company. At first, commission rebates were limited to real estate and household goods transportation, but as fees continued to drop, the scope of these rebates expanded exponentially. Today, RMCs collect rebates on virtually every passthrough service invoice. We all know that there is no such thing as a free lunch, however, RMCs perpetuate the myth of “free” services by not disclosing the rebates and kickbacks received on services procured on behalf of clients. It would be a different story if rebates to RMCs came out of supplier profits, but such is not the case. In most cases when an RMC works with a supplier, the rebate amount is demanded and documented as part of the contract. Suppliers have no issue with the amounts, which are simply tacked on to the amount that would have been normally charged. For example, the RMC wants a $25 rebate on every appraisal. No problem. The supplier’s standard rate for an appraisal is $750, instead the supplier charges $775 and sends $25 back to the RMC for each invoice. For some services, the amount rebated is a flat dollar amount, in some cases it is based on a percentage of the invoice amount. For percentage-based arrangements, the more these services cost, the more an RMC earns! To add insult to injury, supplier rebates received by the RMC are not disclosed and difficult to identify even if a client knew where to look.
The paradox of relocation pricing
There is a paradox in the way most relocation management companies (RMC’s) earn money for their services that makes it difficult to align the RMC’s goals with their client’s goals. It’s a giant elephant in the room for the relocation industry and to understand why, we have to go back to the 1980’s. In the early days of the relocation industry, employers paid their relocation partner a fee to administer a tax protected home sale program and all costs of services were passed through with no upcharge. Very much like you would expect for a consultative service company. Fees for professional services. In the 1990’s the industry evolved. Competition grew and relocation companies were forced to drop their fees. Employers thought this was great – no fees are good, right? Well, not always. Relocation companies still had to make money. Gradually fees were replaced by commissions and rebates added to the services managed. With every dollar that an employer spent on things like furnished housing or moving household goods, a percentage went to the relocation company. The ugly news is that adding commissions and rebates to supplier costs now INCREASES your tax bill. And the more these services cost, the more an RMC earns! And that’s how we arrived where we are today. RMC’s tout zero or minimal service fees, with their actual service cost buried in pass-through invoice amounts. Supplier rebates received by the RMC are not disclosed and difficult to identify even if a client knew to look.
International Group Moves: Joining Policy and Resources for an Effective Program
International mobility programs are typically designed to help organizations and their employees manage the transfer or expatriation of employees and new hires across international boundaries. There are a variety of policy and program approaches to manage this process effectively, and a wide variety of literature is associated with developing these types of programs and how to support, compensate, and provide logistical assistance for international transfers and expats. When the transfer is not managing an individual but rather groups of people over a compressed period, the challenges multiply quickly, and the traditional approaches soon fall short. Some Common Issues Before examining the best practices and solutions for what has come to be known as “International Group Moves,” let’s look at several challenges associated with these types of moves. Issue #1 Accepting the Assignment or Transfer I once worked with a company moving its entire offices and staff from Dubai to Saudi Arabia. Dubai has a reputation for being relatively open and certainly cosmopolitan compared to Saudi Arabia. Getting employees to accept an international move rather than to leave the company required a careful crafting of the benefits and compensation strategies and an even more careful communication strategy. Not every location has the challenges associated with Saudi Arabia, but all locations have their challenges. So anticipating these and the most common concerns for employees and families is crucial to obtaining acceptance to a group move. And being strategic in how these are communicated is no less critical. Making sure that communication is carefully controlled, winning advocates who can help present the plan, and having clear solutions to possible problems are all essential elements of the plan. Issue #2 Managing Housing One challenge became quite apparent when working with a company to manage a move into a rural area in Alabama. The new factory’s location did not have the resources to support the new population moving into the small town. The arrival of several hundred new employees meant there were not enough hotels and temporary living accommodations in the town, let alone viable long-term housing options for employees. The company overcame these issues by working with suppliers, local real estate, and hospitality vendors to develop new alternatives to both issues. In the end, combining local and nearby commuter resources solved the problems. Company-provided buses allowed employees to seek family housing in a nearby community. While remote, rural, or small markets all present special challenges, sometimes solved with purpose-built housing, company-leased housing, or commuter families, even in relatively large markets, companies must be prepared to assist employees in locating temporary and long-term- accommodations. Issue #3 Immigration Hurdles In international moves of all types, complications are common due to immigration rules. As in any international transfer or assignment, immigration is critical to address a group move, with many moving parts representing special circumstances subject to roadblocks and delays. Remember, it is not just the employee’s situation that causes complications. It’s the families and dependents that create challenges. Same-sex couples moving to some locations, unmarried “common law” couples, and family members who in one culture are seen as part of the nuclear family, such as parents or grandparents, may not to allowed under dependent visas. These and other variables must be addressed in advance of the project. By working through pre-screening protocols and employee education, this process can be managed effectively to reduce hardships. Issue #4 Cultural Challenges Crossing cultures can be challenging for any employee and family. For companies attempting to move groups of people from one culture to another, it can be disastrous. While people’s cultural adaptability and aptitude will vary, most individuals seek to adapt to the new culture. With some guidance and support, individuals will try to understand the culture they are living in and attempt to become effective and happy participants in it. The dynamic for groups can often be very different. Groups of people will often retreat. A group will isolate themselves from the dominant culture and retreat into the culture they feel most comfortable in. This may be okay when the situation is an expatriate compound in a mining or oil and gas development, however, in a more typical business or manufacturing environment, it can lead to disaster. Resentment, poor working cooperation, failure of skills transfer, loss of productivity, assignment failure, and lack of engagement will all result. Proactively developing a plan for cultural adaptation and applying solid resources to the process can eliminate these problems and make an international group move an exciting experience for all employees involved. Numerous other challenges are associated with Group Moves, particularly international group moves, beyond those highlighted above. Numerous questions must be answered. How will employees and their families travel? How will children be educated, especially where there may be language issues? How will spouses adjust to a new environment where they may be displaced, unable to work, and without home resources? How will the company support the employees with all the logistical challenges, such as buying or leasing a car without credit, opening a bank account, getting a driver’s license, finding a home, finding a doctor or dentist and the thousands of other challenges international transferees face? A group move represents exceptional challenges and wonderful opportunities in these areas. Solutions working in concert Three main pillars form the solution to all these challenges: Policy, Project Resources, and Program Management. For the overall project to be successful, all three of these must work in concert, seamlessly guiding, assisting, and supporting the company and employees in this transition. Pilar #1 Policy Most companies recognize the need for a comprehensive policy. A policy provides clarity to all parties, defining the resources and boundaries for employees and managers. Some of the critical elements of any Policy include: Pilar #2 Project Resources Companies will usually identify internal resources to lead and support the Group Move. This is important, and selecting the right resources for the project is critical. Effective planning, superior communication skills, and solid decision-making skills are all essential elements. In addition to the
Global Expansion: Considerations for accessing a Global Talent Pool with a PEO strategy.
A client recently contacted me with a pressing need. They are a US-based company looking to place employees in two European countries—one through local hiring and the other by sending a US-based employee on assignment. Their question was simple: “How can they do this quickly, efficiently, and cost-effectively?” There was a time in recent memory (at least my recent memory) when this question might have generated condescending laughter and headshaking, starting with the word “immediate” and ending with “cost-effective.” But the rise of Professional Employment Organizations (PEOs) has changed the game. PEOs offer significant opportunities for businesses to employ, attract, and retain foreign talent while navigating complex employee benefits and immigration processes. The prevalence of Professional Employment Organizations (PEO), has shifted this equation and generated huge opportunities for companies looking to employ, attract and retain foreign talent while navigating complex employee benefits and immigration processes. Today’s world represents a startling dichotomy. Complexities related to employment laws, cross-border requirements, taxes, rules, and processes have become exponentially more complex, while the expectation that we will be able to travel, move and operate globally and seamlessly is taken completely for granted. PEOs represent an important resolution to this dichotomy. What is a PEO? A Professional Employer Organization (PEO) is a third-party entity that partners with businesses to manage various aspects of human resources (HR) and employment administration. In a co-employment relationship, the PEO becomes the employer of record for certain employment-related purposes, such as payroll processing, benefits administration, compliance, and risk management. While the client company maintains control over day-to-day operations and retains responsibility for the direction and supervision of its employees, the PEO takes on key HR functions, providing expertise, resources, and support to streamline HR processes and ensure compliance with employment laws and regulations. The primary goal of a PEO is to help businesses save time, reduce administrative burdens, and access comprehensive HR services, allowing them to focus on their core operations and strategic objectives. Importantly, for global expansion, PEOs also take on the work associated with immigration for employees who are being employed outside of their country of citizenship or residence. In some cases, PEOs can offer sponsorship of the employee. For small companies without international entities and infrastructure or experience with immigration and international HR process, this is a game changer. PEOs, not a Panacea Professional Employer Organizations are the solution in every case. There are a few issues with PEOs, I’ll discuss the three “Cs” below: Cost: While using a PEO can provide the best and most cost-efficient answer to business needs, there are substantial costs associated with engaging their services. PEO fees may be a percentage of payroll or a flat fee structure. But like any decision, understanding the cost is critical. Just like with international assignments, the “idea” and the “reality” may not align. It may sound like a good idea to have that employee in London or Shanghai, but is it worth the investment? Control: When partnering with a PEO, the client company shares certain employer responsibilities with the PEO, potentially leading to a perceived loss of control over HR functions. It’s important to understand what areas of control in employment-related decisions, you are losing. Likewise, there are co-employment risks. Because the PEO becomes the employer of record for certain purposes, which may introduce additional legal and contractual complexities. Additionally, while the PEO shares some employment-related risks, the client company still retains liability for certain aspects, such as employee performance, workplace safety, and hiring decisions, so make sure you understand those levers of control. Culture: PEOs typically serve a wide range of client companies and industries. Their standardized processes and procedures may not align with the culture and values of every organization. Additionally, PEOs usually operate on standardized HR systems and processes. This can limit the flexibility to tailor HR policies, procedures, and benefits programs to the specific needs of your organization. Selecting the Proper PEO When selecting a PEO, there are several important criteria to consider. These criteria will help you find the right PEO that aligns with your business needs and supports your talent acquisition and management goals. First, there are certain baseline qualities that must be met by any PEO, and most of the reputable players in the space bring these to the table: Compliance: Any PEO must offer compliance and legal expertise. After all, this is why they are there. They must ensure that the PEO has a strong understanding of labor laws, regulations, and compliance requirements. If they are helping you employ non-national employees, then immigration should not just be an afterthought but a core competence. Reputation: The PEO should have a solid reputation and track record. Check references, evaluate testimonials, and review any case studies related to your objectives to ensure performance, customer satisfaction, and reliability. Financial stability and compatibility: Make sure they have a solid financial standing. They must be able to meet their commitments. Can they scale with you if necessary? Also, review carefully the terms and conditions of the PEO’s contract, including the duration, termination clauses, and the ability to modify the agreement as your needs change. Inflexible or unreasonable terms are a red flag for financial compatibility and often an indicator of financial weakness. In addition to these and other baseline qualities, the selection of a PEO often comes down to three broad factors: Service Alignment: Do they offer the services you require, and is their service model going to meet your expectations? Assess the level of customer support and responsiveness provided by the PEO. You should have access to dedicated representatives or account managers who can address your concerns and provide timely assistance. Do they have the technology to integrate into your organization? Cultural Fit: Does the PEO have experience working within your industry and for companies with your culture? For from being a nebulous question, remember they are an extension of your People or HR organization and will have an outsize impact on how they employee feels about the company. Pricing structure: