Every great business knows that the movement of key employees has a substantial impact on the overall financial performance of the company. Whether you’re looking to fill a skill gap in a particular location or you’re opening a new place of business, having people in the right place is essential for the continued health and growth of every company. Larger organizations understand that the spend on global mobility management software is a smart and strategic investment for the business–but every company can benefit from the software as well.
Whether you’ve considered investing in global mobility management software for your business or not, it’s a decision you should consider carefully. As with all business investments, it’s essential to put this decision into perspective. Companies with many mobile employees typically spend hundreds of millions of dollars on their mobility programs. With the integration of GMM software, your company can reduce those costs drastically.
Today, we’re taking a deep dive into the benefits of investing in a global mobility management software, and the ROI you can expect when you invest. Bottom line: Once you realize the value of global mobility software, the question then becomes, “How can we not afford to invest in the technology?”.
Reduced relocation costs
Many elements in the relocation supply chain are variable and can lead to over- or under-estimation when calculating costs. Armed with the relevant, correct data, you can optimize your relocation supply chain and achieve savings of 5 – 10% (or more) year over year.
A savings of 10% on a $100 – 200 million mobility program can pay for the upfront cost of the technology many times over. By leveraging this type of GMM technology, you can directly influence many mobility workstreams to deliver a positive ROI in your business.
Automation leads to reduced labor costs
Cost estimation, like many mobility calculations, is a manual task which is typically outsourced and can take up to two days to deliver. GMM software, however, can perform cost estimation calculations in less than one minute. These calculations can also include unlimited revisions and recalculations at no extra cost. The per-transaction spend of outsourced labor goes away entirely with the implementation of this technology.
Eliminate missing accruals for deferred compensation
When calculating relocation costs, there are myriad factors to consider, such as host-country tax implications, stock options, and restricted stock units. All of these fluctuating factors can cause your mobility teams to rely on estimates, generalizations, and assumptions, which can cause miscalculations on a large scale.
Global mobility management software mitigates the risks of unforeseen relocation costs. By using GMM tech, your mobility teams can generate accurate, near-instantaneous calculations of tax gross-ups, post-assignment trailing costs, and more. GMM software eliminates potential budgeting miscalculations in the short- and long-term.
From a reduction in relocation costs to more precise relocation calculations, the benefits of implementing a global mobility management technology system in your business are substantial. GMM software relieves the administrative burden from your global mobility teams and allows them to focus on the more human aspects of employee relocation. With these benefits, how can you not afford to invest in GMM tech for your business? It’s a smart business decision that will bring a positive ROI for years to come.