Accurate and timely accounting of relocation expenses has a far-reaching impact on the overall performance and success of a corporate relocation program, to both the company and the individual transferee. An expense management process should support users without being burdensome, so they can concentrate on the other aspects of their jobs. Corporate relocation managers and/ or payroll managers should consider several key issues when evaluating the effectiveness of the expense management process in their companies.
Once a company has reviewed its current process and determined that improvements are needed, the next step is to decide how to make enhancements. In today’s business environment there are not many functions within an organization that are not a target for outsourcing, including expense management. And for a relocation manager, the decision to outsource this particular function will come with new questions that need to be addressed.
Questions to determine outsourcing readiness:
Is there an overall culture of familiarity with outsourcing transactional functions (e.g. benefits processing) that already exists within the company?
If the company has previously outsourced other functions, then formulating a plan to outsource the management of relocation expenses can be evaluated not only on its own merit, but can also rely on precedent and draw on successful processes that have been followed in the past. If this is not the case, then a transition project plan needs to be developed and approved.
Is this a core competency that the company has or wishes to retain?
Expense management is a very detailed process that requires an in-depth knowledge of the ever-changing tax laws and regulations at the federal and state levels. Part of the evaluation process is to assess the current depth of knowledge of the team and determine if it is adequate and can be sustained if team members change. In the end, the evaluation process may lead to questioning whether or not this is a function that should remain in-house.
To learn more about determining outsourcing readiness click here
Powered by Compendium Blogware
Comments for Corporate Relocation Expenses: Deciding How to Manage the Process