Examining the Emerging Trend of One-Day DSP Programs

Over the past two years, there has been a growing demand for standalone one-day destination services, particularly home-finding services. Driven partly by economic uncertainties and corporate strategies aimed at reducing costs, this shift has led to inconsistencies in service delivery and an overall negative experience for assignees. Recently, Bristol’s service partner, Relo Network Asia, published a white paper entitled “One Day DSP Programs: The Myths and Realities.” This paper highlights the risks and impacts of diminished one-day support packages, examines alternative solutions, and emphasizes that destination services providers (DSPs) must adapt and improve their support to assist corporate talent mobility teams in meeting their goals. Below, we will examine the key themes of the paper, emphasizing the pressing need for action on this matter.

Background

Relo Network Asia has experienced a significant increase in one-day initiation requests, with a 57% increase since 2021. Some question whether this one-day benefit trend reflects a desperate effort to remain budget-friendly or a misapplication of pricing strategies. This trend has a significant impact on the assignee experience, potentially reducing the quality and comprehensiveness of the services provided.

Traditionally, destination services provider (DSP) pricing has been based on daily rates, typically ranging from 1 to 6 days. This framework has provided a consistent comparison for supply chain managers. When the pricing tool was developed, most DSP programs averaged 3 to 5 days, allowing for comprehensive service scopes to be completed. In that established context, a one-day service was always paired with other days. However, although the situation has now changed, pricing norms remain unchanged. During current pricing evaluations, does “one day” equate to one day of service delivery? Or does it refer to the cost of providing the entire service scope within that single day? In the case of home finding, each interpretation will yield a different price.

For this reason, there is an urgent need to clarify the service scope and establish pricing for a standalone one-day program. This reevaluation should emphasize clarity in the service scope and delivery timelines, which is crucial for both service providers and recipients to encourage a transparent understanding of the offerings and expectations.

Destination services are designed to facilitate the transition for employees relocating to a new country or city. These services assist with finding a home, navigating local regulations, and ensuring employers fulfill compliance and duty-of-care obligations. Professional destination services providers have experienced teams that proactively address and mitigate challenges faced by assignees. By offering relocation support, companies can enhance employee focus and job performance, highlighting their commitment to staff well-being. This support is crucial in today’s competitive talent landscape. Additionally, providing destination service assistance can lead to significant cost savings by helping assignees settle efficiently and reducing the need for costly policy exceptions and benefit extensions.

Outlining the Services Offered and the Timeframe Available

While any assistance during relocation is helpful, some services and timelines are more efficient. For example, an area orientation or settling-in service can often be completed in a single day, while a home search often requires more time and effort. There isn't a one-size-fits-all strategy for home searches, but a comprehensive home-finding assistance program generally includes vital components, such as initial consultation, research, property shortlisting, guided viewings, offer and negotiation, lease review and signing, and move-in inspection or inventory. If a suitable property is found within a day of viewing, the destination consultant team will need at least 20 hours to finalize the process. For Bristol’s service partners, this amounts to roughly two days of service.

The DSP often lacks a clear directive when one day of service is requested. Frequently, the specific services to be offered are open to interpretation. This not only consumes valuable service time for clarifying the program with the employee, but it also leads to potential confusion and conflicting expectations. Identifying potential points of failure due to poorly defined service scope is difficult; consequently, managing the process becomes difficult.

The One-Day DSP Conundrum

How are standalone one-day home findings currently delivered? One common adjustment is to reduce or eliminate the destination consultant's accompaniment, transforming the service into a DIY program with only guidance provided. This method allows more time for essential tasks such as lease reviews and property handovers, but it comes with its own set of drawbacks.

Standalone one-day programs tend to have less apparent impact on employees, employers, and destination service providers. There is a direct connection between the fees charged, the level of support, and employee satisfaction.

Anecdotal evidence indicates a widespread sense of dissatisfaction among employees who receive only one day of support, particularly for home-finding. The chances of employee dissatisfaction are significantly greater in one-day home search or DSP programs. Assignees involved in these programs commonly face challenges such as limited time for property viewings, insufficient personalized guidance, and increased stress due to the expedited nature of the process.

Employees receiving one-day support packages may not grasp the complexities involved. The absence of face-to-face interaction and necessary backend processes can create the perception that the service is minimal. Common feedback includes remarks like, "They didn’t do much to support my situation."

Finding a Solution

Since at least the early 1990s, the global mobility industry has introduced new, cost-effective benefit programs. From cafeteria-style options to managed lump sums, these programs have been designed to provide appropriate resources for relocating employees. However, throughout this same period, the model for pricing services (and the time offered) has seen little change. The only significant adjustment has been a reduction in the number of days offered in benefit packages.

Any proposed solution must accommodate diverse relocation budgets and destinations while considering service satisfaction, global program implementation, and duty of care. What may work for a new hire on a rotational assignment in a similar destination to their home may be inadequate for an employee embarking on a short-term assignment in a distinctly different location.

In response to this need, some possible solutions are:

• Change the service scope to fit in the 1-day timeframe (a time-based approach). This solution does not require a pricing change and may be easiest to implement across locations for a global program. The defined service should have a duty-of-care focus and enhance the ability to set clear expectations and deliver on them.
• Adjust the timeframe to align with the scope of a home-finding service (task-based approach). This option prioritizes the experience based on the intricacies of the destination. Start by confirming the service scope and anticipate that each location will have a timeframe above one day or ten hours and associated costs for delivery. Again, the clearly defined service scope and right-sized support can improve the service experience.
• Offer a core/flex service. This option offers location-based programming and flexibility for assignees to choose services that are meaningful to them while ensuring core duty-of-care issues are mandatory.
• Build a new program. Customize a service scope to accomplish the goals of your program. Service scopes can leverage technology for lower cost options and focus on duty of care issues. With an increased budget, the program shifts its focus from protecting assignee and company interests to streamlining the relocation process.

Exact programs can be developed based on an employer’s goals for their mobility programs. Some variation will exist between cities and will require local interpretation, but to a much lesser extent than currently seen and against the framework of a set of services to establish proper expectations.

There are also other factors that could enhance the experience, increase success, and simplify implementation. One example is to rebrand the concepts and adjust the name to exclude any established expectations. Using terms such as “Express” or “Expedited” instead of the “One-Day” descriptor can also be beneficial. Clearly titling a benefit with a name such as “One-Day Home Search Advisor” if the limited timeframe is necessary could set expectations for the timeframe and the type of support to anticipate.

In Closing

As the global mobility landscape evolves, new challenges must be addressed regarding one-day standalone services. Innovative solutions are needed to tackle these challenges. Talent mobility professionals can redefine their service scopes, incorporate flexibility, and focus on the naming/ presentation of benefit programs to ensure a smoother relocation experience for companies and employees.

The goal is to strike a balance between cost considerations and the essential need for comprehensive support in the dynamic world of global mobility. The solution doesn't necessarily require more time or money, but it must be clearly defined. Every component of the process plays a crucial role in its success.