Key Takeaways:
- Moving companies focus on the household goods logistics.
- Corporate relocation companies manage the full spectrum of employee relocation: people, policy, compliance, and experience.
- RMCs help organizations stay compliant with changing tax, payroll, and legal rules.
- A relocation company delivers end-to-end support, from planning and supplier management to employee care.
- The right partner improves satisfaction, reduces risk, and helps control relocation costs for every move.
When your company needs to relocate employees, it might seem simple to call a moving company. But relocation is about more than moving belongings. It involves people, policies, compliance, and long-term success.
That’s where a corporate relocation company, also called a relocation management company (RMC), comes in. Beyond logistics, these partners coordinate every stage of the move, including home-finding, expense management, tax reporting, and employee support.
In this article, we’ll explore the key differences between moving companies and corporate relocation companies. You’ll learn how each serves your business and how to determine which one aligns best with your mobility goals.
What Does a Corporate Relocation Company Do?
A corporate relocation company (or RMC) provides comprehensive employee relocation services that go far beyond moving furniture. These partners manage the end-to-end process of employee transfers, ensuring each move is efficient, compliant, and aligned with your organization’s mobility goals.
Common services of a corporate relocation company include:
- Policy development and administration: Creating or refining relocation policies that balance cost control, compliance, and employee satisfaction.
- Expense management: Tracking, reimbursing, and reporting relocation expenses to maintain financial accuracy.
- Housing and destination services: Assisting with home sales, temporary housing, and neighborhood orientation for employees and their families.
- Relocation tax compliance: Managing relocation-related tax reporting and gross-ups so employees aren’t left with unexpected costs.
- Supplier coordination: Overseeing movers, real estate agents, and travel partners to deliver consistent, high-quality service.
- Employee and family support: Offering counseling, cultural orientation, or settling-in assistance to promote a smooth transition.
These services work together to create a seamless experience that minimizes disruption for both your HR team and relocating employees. The goal of an RMC is to simplify complex moves while protecting both the organization and the employee from unnecessary stress or financial risk.
What Does a Moving Company Do?
While a relocation management company handles the entire mobility process, a moving company focuses on one essential part: transporting household goods. Their role is primarily logistical, centered on the physical movement of an employee’s belongings from one location to another.
Typical moving company services include:
- Packing and transportation: Safely packing, loading, shipping, and unloading personal belongings.
- Temporary storage: Offering short-term storage solutions between departure and arrival dates.
- Basic insurance coverage: Providing limited protection for damaged or lost items.
- Scheduling and coordination: Arranging pickup and delivery times for household goods.
However, moving companies do not manage broader aspects of relocation, such as tax reporting, policy design, or employee reimbursements. They also do not provide housing support, expense tracking, or destination assistance for families.
In many cases, a relocation management company partners with trusted movers as part of a larger, coordinated network. This partnership lets the RMC manage every stage of the move while the moving company focuses on what it does best.
Why Choose a Corporate Relocation Company Over a Moving Company?
Comprehensive support is essential when mobility becomes an integral business function. An RMC does much more than arrange transport; it builds and manages the entire employee experience.
Comprehensive Program Management
A relocation company structures, administers, and improves every aspect of your workforce move, including mobility policy development, cost-control measures, and employee handholding from departure through settling in. This is especially valuable for organizations with multiple moves each year, where consistency and efficiency impact both cost and experience.
Compliance Assurance
Tax, payroll, and legal rules shift rapidly at both the federal and state levels. RMCs have dedicated compliance resources to ensure relocation benefits are taxed, reported, and delivered in accordance with IRS guidelines. This shields organizations from expensive mistakes or audit penalties.
Employee Experience
Relocating employees face stress, uncertainty, and personal impact. RMCs offer responsive support, guidance on housing, and ongoing communication, improving satisfaction and reducing business disruption.
Centralized Vendor Oversight
RMCs coordinate all vendors (movers, realtors, temporary housing providers) through standardized agreements and tracking systems. Your organization benefits from consolidated contracts, performance data, and single-source accountability.
Strategic Insights
HR, talent, and mobility leaders access analytics to refine mobility policy, track spend, and benchmark performance. This data-driven approach supports smarter, more cost-effective workforce mobility.
How Does a Corporate Relocation Company Support Compliance and Risk Management?
Compliance in employee relocation is never optional, especially in regulated environments like the Northeast. The rules and pitfalls multiply when staff cross state lines, work remotely, or accept international assignments.
Tax and Payroll Expertise
Relocation benefits often include gross-up calculations (covering tax owed on company-paid moving expenses) and correct payroll treatment. An RMC ensures these tasks are handled precisely, providing accurate reporting and timely remittance to avoid later issues.
Multi-State Compliance
Relocating between states means navigating changing tax residency and employment law. RMCs have the expertise and tools to make sure your company and transferees remain compliant with each location’s unique rules. This reduces the risk of penalties or double taxation.
Vendor Compliance
A trusted RMC vetting team reviews every partner against standards for licensing, insurance, and ethics. That protects your business and relocates employees from liability or costly interruptions that can occur if a vendor is not in good standing.
Audit Preparation
RMCs maintain complete documentation of each relocation, from benefit calculation to vendor selection. This readiness allows quick, efficient responses to both internal and external audits. In a climate of frequent tax law updates, having the support of an experienced relocation company lets organizations adapt quickly and remain fully compliant.
How Do You Know Which Type of Partner Your Business Needs?
Ask these questions to clarify the right fit:
- Do you move more than a handful of employees each year?
- Do your transferees require help with buying or selling a home, or with rental agreements?
- Is managing payroll, taxes, and cost reporting important to your HR or finance team?
- Do you relocate employees across state lines, such as from Boston to Hartford, or internationally?
- Do you need a single point of accountability and vendor management?
- Is risk, compliance, or employee retention a strategic concern?
If your answer is “yes” to most of them, your business will benefit from a corporate relocation company. If relocations are rare and straightforward, and relocation assistance is limited, a moving company referral may be enough; however, scaling quickly underscores the need for a full-service partner.
What Are the Costs of Working with a Corporate Relocation Company vs. a Moving Company?
It’s natural to compare pricing, but context matters. Moving companies bill by shipment, factoring in distance, weight, and convenience extras. This model makes sense when moving only goods. But the price can fluctuate with timing and fuel prices, which have risen significantly in certain parts of the United States.
A relocation company structures pricing around services or bundled programs, often leveraging negotiated discounts across a network of vetted movers and suppliers. Cost control is achieved through:
- Transparent, real-time reporting for both HR and finance, reducing surprises or overages
- Centralized vendor management and consolidated billing, allowing for contracted discounts and performance oversight
- Reduced risk of fines or compliance missteps, which can be much costlier than any upfront expense
- Lower internal administration through outsourcing, freeing HR and support teams for higher-value work
Most organizations find that the long-term savings and risk avoidance offered by RMCs offset their service fees and reduce total mobility spend.
FAQs: Corporate Relocation Company vs. Moving Company
Many businesses have practical questions about how relocation programs and moving services differ. Here are some quick answers to clarify what to expect when partnering with each mobility service provider.
Q: What types of companies use corporate relocation services?
Corporate relocation services are used by organizations that frequently relocate employees or move them across regions/countries. Any employer that needs consistency, cost control, and compliance benefits from partnering with an RMC.
Q: Can small businesses use a corporate relocation company?
Yes. Many RMCs offer scalable programs designed for small and mid-sized businesses. Even if your relocation needs are limited, having professional management ensures compliance and a better employee experience.
Q: How do RMCs choose moving partners?
RMCs vet and contract movers based on service quality, insurance, safety standards, and performance history. This network oversight guarantees reliable service and competitive rates for clients.
Q: What should a relocation policy include?
A strong relocation policy defines eligibility, the services offered, timelines, and program rules. RMCs help employers design policies that balance cost control, compliance, and employee satisfaction.
Q: How long does a corporate relocation typically take?
Timelines vary based on factors such as distance, housing availability, and family needs. On average, domestic relocations take 60-90 days from initiation to settling in. International moves tend to take longer due to immigration processes.
Moving Forward with the Right Mobility Partner
Corporate relocation is about more than getting from point A to point B. It’s about moving people, not just possessions, and creating a framework that supports their success. A corporate relocation company builds a strategy that protects your organization, supports your employees, and drives long-term business outcomes.
Ready to move beyond just moving? Talk to TRC about building a fully compliant, people-first relocation program today!
