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THE DILEMMA : SATISFACTION VERSUS COST
Let ’ s consider a common scenario : an assignee is relocating to London with a partner , two children , and a dog . Their new office is in Central London , and they are looking for a three-bedroom property with parking close to the office , a potential new school for the children , and a place of worship . They have requested a property with outside space , a lift in the building , and ideally , an onsite gym .
Credit : Radisson Hotel & Residence Riyadh Olaya
The average rate for a three-bedroom property in Central London that meets all these requirements is approximately £ 400 per night , while the London average for such accommodations is around £ 300 per night . This presents a critical question for the company managing the relocation : should they approve the more expensive property to meet the assignee ’ s requests , thereby ensuring high satisfaction , or should they opt for a more cost-effective solution that may not satisfy all the assignee ' s preferences ? What is the compromise here ?
WEIGHING THE OPTIONS : DATA INSIGHTS
To make informed decisions , RMCs and Mobility Managers must carefully weigh the benefits and drawbacks of different approaches :
1 . HIGH-COST / HIGH-SATISFACTION APPROACH
Advantages : Approving the higher-cost property that meets all the assignee ’ s requirements is likely to lead to high satisfaction . The assignee will feel valued , supported , and comfortable , reducing stress and increasing productivity . High satisfaction can also lead to better work performance and quicker adaptation to the new role and environment .
Disadvantages : The primary downside is the significant increase in costs . For a standard three-month temporary housing period , the company could spend up to £ 36,000 , compared to £ 27,000 if they opted for the average-priced accommodation . The additional £ 9,000 might be difficult to justify , especially if the relocation budget is tight .
2 . COST-EFFECTIVE / LOWER-SATISFACTION APPROACH
Advantages : Opting for a more cost-effective property saves money , potentially freeing up resources for other parts of the relocation program , such as settling-in services or cultural training . This approach can keep the overall program within budget and demonstrates fiscal responsibility .
Disadvantages : The assignee may experience dissatisfaction due to unmet needs , such as longer commutes , lack of desired amenities , or living in a less desirable area . This dissatisfaction can lead to increased stress , lower morale , and potentially even reduced productivity , which might offset the cost savings in the long run . There is also the increased risk of an unsuccessful relocation , which is the worst outcome for all concerned .
3 . A BALANCED APPROACH
Advantages : A middle-ground approach might involve finding a property that meets the most critical needs of the assignee while compromising on less essential features . For instance , the company could prioritise a shorter commute and adequate space but forego amenities like an onsite gym or a highly central location . This could lead to moderate satisfaction levels while keeping costs relatively controlled .
Disadvantages : While this approach can mitigate extreme dissatisfaction , there is still a risk that the assignee may feel unsupported if the compromises significantly impact their quality of life .
CONCLUSION : IS THERE A PERFECT FORMULA ?
Balancing cost management with assignee satisfaction in temporary housing is a complex challenge , and while there may not be a perfect formula , there are strategies to get as close as possible . The key lies in understanding both the company ’ s financial objectives and the assignee ’ s personal needs , and then finding a solution that respects both . Engaging a temporary living specialist can certainly assist and be invaluable in this process , providing the insights needed to make informed decisions that balance cost control with the well-being of the assignee . By focusing on what truly matters — both for the assignee ’ s satisfaction and the company ’ s budget — RMCs and global Mobility Managers can utilise this expertise to create a relocation experience that is as stress-free and successful as possible .