Recently, there has been a lot of discussion and interest around ‘core-flex’ policies as a popular choice amongst global mobility professionals. Recent statistics from Graebel Companies Inc.’s insideMOBILITY Global Mobility Summit survey, indicated that of the participants that did not already have core-flex policies in place, 27% were planning to implement them soon.
So what is a core-flex policy, and why are they growing in popularity with mobility professionals?
Core-flex might sound like a new trendy exercise class…But it is, in fact, a type of global mobility policy.
A core-flex mobility policy consists of two elements; the ‘Core’ relocation benefits that all employees receive, and the ‘Flex’ relocation benefits that can be selected depending on the needs of the individual assignee. ‘Core’ elements usually include services that every assignee needs, such as immigration and household goods shipment. ‘Flex’ benefits can include elements such as pet transportation (which would of course only be needed by assignees that have pets to relocate), or spousal support (when assignees are relocating with a partner), which would not be required for single relocators.
Does one size fit all?
There are several reasons why so many global mobility departments are considering (or have already implemented) core-flex policies. Allowing certain services to be chosen based upon the individual’s actual needs, rather than a ‘one size fits all’ policy can significantly minimise the need for exceptions, which can be expensive and time-consuming to administrate. By reducing the need for exceptions companies can significantly reduce their mobility costs, another obvious benefit. Also, allowing assignees to choose the benefits that best fit their needs can help them to feel more involved with their relocation, and more at ease with the entire process – increasing chances of assignment success.
Although core-flex policies offer great advantages over other types of mobility policy, they are not without drawbacks. Core-flex policies can be more complex and time-consuming to administer due to the flexible options, and there is a risk of employees becoming disgruntled if they find out a colleague received a benefit that they did not. The actual design and implementation of such a policy can also be a very tricky and time-consuming process and can involve a lot of research into competitor offerings.
The trend is here to stay!
Overall, it seems that the buzz around the core-flex model is not going to subside any time soon. If you have had any experience with core-flex mobility policies, either as a global mobility professional managing the assignment or as an assignee yourself we would love to hear your thoughts?
Written by Sophie Watkins – Recruitment Consultant & Special Projects at Alchemy Global Talent Solutions.