Casualties of a slow economy
It’s been more than a decade since most countries enjoyed robust economic growth. Since then, companies worldwide have laid off millions of employees; many continue to rein in spending wherever they can. In some instances, businesses and consumers have sought cheaper substitutes for their preferred products and services; in other cases, they have simply gone without.
Relocation services reflected this trend as HR departments were downsized and many supporters of a balanced cost/service approach were lost to attrition, layoffs and retirement. Given the significant amount spent on a service for a relatively small employee population, relocation spending — whether in-house or through relocation management companies (RMCs) — presented a tempting target for the corporate budget axe. Relocation services began to be treated like any other company purchase: a commodity that could be delivered by the lowest bidder.