TRD has provided full domestic relocation services to Company 1 since 2003. Associate satisfaction levels rose to 98% compared to our predecessor’s historic annual ratings of 85-90%. Between May 2007 and December 2008, Company 1 moved its corporate headquarters from the Midwest to the East Coast. Approximately 150 employees who owned homes faced the most catastrophic real estate market in the country. Separate policies were designed collaboratively to counteract negative market conditions and provide incentives for these key employees to move into the higher cost area. Although the average relocation costs for this group move were going to exceed industry and Company 1 past average costs (something that was necessary and fully anticipated), our relocation management expertise still resulted in cost containment and outstanding results, particularly with respect to home sale program costs and household goods moves. For the home sale program, we recommended mandatory marketing periods, list price ceilings, and home sale bonuses paid on the higher of the appraised value or sales price to encourage Associates to accept offers below the appraised value. As a result, the average direct home selling costs for approximately 100 homes were 17%, representing an average 8% savings below budget. We renegotiated contracts with three national van lines, achieving average savings of $783 per household goods move, equating to average annual savings exceeding $200,000.
Company 2 engaged us six months after it had replaced one relocation services company with another for continued relocation management outsourcing. Service levels with the then “new” provider hovered around 75%. Company 2 requested that we begin working for them immediately if we committed to improving the satisfaction rate by at least 10% and reporting survey results quarterly. We agreed and, after the first quarter, increased satisfaction levels to 100%, a level we have maintained since engagement in 2001. Company, for whom we administer a tiered relocation benefit, relocates on average 110 homeowners per year. Homeowners on the highest tier are afforded the Buyer Value Option home sale program. Last year, 40 transferees were having difficulty selling their homes due to the depressed real estate market. Exception spending for these transferees to cover duplicate mortgages, temporary living extensions, additional trips home, and increased costs for extended household goods storage, was straining Company 2's budget. TRD analyzed these costs and presented alternative solutions. Within three months of implementation of TRD's suggested policy revisions 39 out of the 40 properties sold and closed.
Company 3A and 3B
We were introduced to Company A when it acquired Company B. Our engagement at Company B replaced a relocation company relationship that was severed due to dissatisfaction with service, excessive fees and inadequate real estate inventory disposal. We eliminated a monthly retainer fee that the previous provider had been charging, saving Company B $60,000 per year. Additionally, our fees were 50% less than the former provider. As well, TRD took over four inventory properties that were sold and closed within the first three months after Company B selected us. TRD worked with Company A and their incumbent service provider over a three-month transition period, after which TRD was engaged as the sole relocation services provider effective January 2009. While Company B was satisfied with our predecessor’s service results, they were dissatisfied with the provider’s high service fees and their performance disposing of real estate inventory. TRD’s fee structure saved Company A $2,000 per homeowner move. TRD assumed responsibility to market eight takeover properties from Company A’s former service provider that had been on market from 101-590 days prior. All properties were sold and closed within 95 average days on market from TRD takeover. At engagement, Company A also required TRD to establish a tiered relocation benefit construct that would fit the new merged organization, represent a competitive cost-effective package to attract talent, and tighten home sale program parameters to address depressed market conditions. In collaboration with Company A during a full-day brainstorming session, for which we prepared benchmarking data, we accomplished the goal.