Mobility industry KPIs (key performance indicators) go way back, but recent buzz may have you thinking otherwise. One long-standing metric is “overall service satisfaction” – a rating given by transferring employees to RMCs for mobility services coordination. Other traditional and continuously-used examples include appraisers’ and agents’ property evaluations compared to the selling prices.
Today more KPIs than ever are tracked. A Worldwide ERC publication lists over 30 mobility KPIs, although corporate clients usually track fewer in their individual programs. Almost all corporate mobility services are measured: program administration, policy counseling, inventory management, destination assistance and household goods services. Other areas include client satisfaction, equity payment timing, billing accuracy, counselor availability and program cost.
Real Estate Partners’ Metrics Matter
RMCs have overall process management responsibility, but the skills and efficiencies of partner-professionals who evaluate and market transferee homes are crucial to top performance in these areas. Agents’ home marketing skills are a critical element to an important RMC performance metric: the “independent sale rate” or percentage of market sales achieved.
Regardless of the type of home sale program they receive, transferees’ reliance on home marketing assistance should only grow. This is especially true because the trend is away from guaranteed buy-outs (GBOs). Employers that still offer GBO programs usually encourage or even require seller participation in the marketing program to potentially prevent higher-cost buy-outs. Some policies mandate use of the marketing program for a minimum time period to retain eligibility to home sale programs or other relocation benefits.
Maintaining “low direct costs” (expenses related to acquiring, holding and selling) of inventory properties is another key RMC performance measurement. This metric is expressed as a percentage of the guaranteed buy-out value, which is based on appraiser valuations.
Another RMC measurement of performance is the “average age of closed inventory homes” or acquired properties. Expeditious marketing and disposal of inventory home sales is essential to maintaining low average inventory age and direct costs.
Performance Measurement = Standard Practice
RMCs typically self-monitor their KPIs to define overall company service levels and identify improvement opportunities. Company KPIs are usually requested in corporate clients’ RFPs for services they wish to purchase. High-priority KPIs are often incorporated into a formalized service level agreement with RMCs, who then typically measure and report on them periodically.
KPIs are often reported without financial impact. But it’s not uncommon to attach financial consequences to the RMCs’ performance that penalizes underachievement, rewards overachievement and is without impact for average results. While mutually agreeable arrangements vary, the table below illustrates a simple example of financial impacts for “average inventory age” performance results.
|Average Age of Closed Inventory Homes||Financial Impact|
|<89 days||$150 credit – each home closed|
|90 – 120 days||None|
|>121 days||$150 debit – each home closed|
Inventory Age Definition: carrying time duration from acquisition to closing
Metrics measure RMCs’ and supply chain partners’ effectiveness, help establish benchmarks, improve quality and provide program-defining information. Today mobility data reporting and strategic use of metrics are fundamental practices within the industry.
You may already monitor individual or relocation department performance statistics similar to those used within the home valuation, marketing and sale processes. But, if your performance statistics aren’t already being collected and analyzed for your own internal use – doing so may prove valuable in various ways. Consistent superior performance results can be used to advantageously differentiate your firm from competitors or identify a specialty or niche market. Historical comparison of data may reveal improvement opportunities or enhancement areas or even offer insights into new services or product needs to provide in your market area.
Peg Guinta, CRP, is Projects Director for RIS Consulting Group. Email email@example.com with questions.