The world of relocation is complex, requiring strategy and careful analysis to help employees navigate a significant life change. Key to that is ensuring the relocating employee, and potentially their family, feel supported through benefits that will positively shape their experience—short-term or long-term—in their new location.
To attract and retain top talent, companies may look to core-flex benefits to offer personalized, cost-effective relocation support. But while the promise of flexibility is appealing, not all implementations succeed. Point-based and similar programs, often praised for eschewing a one-size-fits-all approach, can backfire, leading to an overwhelming and potentially negative employee experience.
We spoke with two talent mobility professionals to better understand the ins and outs of these programs: where they shine and where they fall short.
Understanding Core-Flex Benefit Programs
Core-flex programs combine a standard set of core benefits with a menu of additional options to choose from. This system provides structure for the business, as well as cost-saving opportunities, while tailoring the relocation experience to the employee’s distinct needs.
The business of relocation requires nuance and care, and benefits should reflect that priority. “Core-flex programs allow employees to select benefits that best suit their individual needs, which can lead to increased satisfaction and engagement,” says Morgan Kelly, CRP, mobility manager at Cox Automotive Inc. “They are particularly useful in diverse workforces where employees have varying [circumstances] and preferences, such as different life stages, family situations, or personal priorities.”
For the company, core flex also offers a few benefits, one being a measure of cost control. “By having a core set of non-negotiable benefits and a flex portion employees can choose from, companies can better predict and manage costs while still offering flexibility and choice,” says Carmella Elletson, vice president of client partner experience at Altair Global. Elletson notes that companies also benefit from this by having a balanced ratio of consistency and flexibility. “Companies can maintain compliance and equity across relocations, while still allowing room for flexibility based on job level, location, or family situation,” she says.
In a competitive labor market, core-flex programs can also help companies stand out. “Offering a flexible benefits package can be a significant factor in attracting and retaining top talent, as it demonstrates the organization’s commitment to employee well-being and work-life balance,” Kelly says.
What Makes Core Flex Work?
A benefits program is only as good as the processes and teams that support it. Based on their experiences, Kelly and Elletson note several key traits that make core-flex programs successful.
- Strong Core Benefits: A solid foundation of essential services ensures no employee is left without critical support. Companies should be mindful that core benefits are correctly placed and not miscategorized as flexible options, which can otherwise lead to gaps in necessary and important coverage.
- Clear Communication and Supportive Partners: Employees need individualized guidance to understand their options and make informed choices. In addition to company assistance, relocation management companies (RMCs) can play a vital role in helping employees navigate their options and stay compliant.
- Straightforward Selection: Keeping in mind that the employee is already undergoing multiple life changes, the benefits selection process should be easy to navigate. When systems are too complicated, the employee can become overwhelmed, negating the value of the program.
- Solid Tracking Systems: Core flex can be complex by nature, making the tracking systems behind the program mission-critical. When developed and used properly, these systems should reduce administrative burden, ensure compliance, and offer greater transparency.
When any of these elements are neglected, rushed, or poorly constructed, companies run the risk of the program failing, which ultimately impacts the employee experience and hurts the business.
Core Flex in Practice: Models and Motivations
A variety of core-flex models exist, each with its own set of advantages and drawbacks. In Elletson’s experience, the cash- and point-based models are the most frequently used.
In the cash-based model, employees receive a cash allowance to spend on flexible benefits. While its self-service nature seems appealing, it may burden the employee with more work. “The relocating employees may have to do more of the move process on their own by relying on friends and family. They may also hire unvetted suppliers that will have to be closely managed, versus utilizing trustworthy professionals,” Elletson says.
Yet another pitfall is perceived value. “A cash-based core-flex program directs the customer to focus on the dollar amounts. They may not agree with the amount provided and will raise concerns or questions,” Elletson says.
There’s also the added consideration of how the company must manage this model. “Companies need to determine how to administer cash left over when there is not enough to apply to another benefit, which may add administrative burdens to the process,” Elletson says.
A point-based system takes real cash out of the equation, giving employees a set number of points to spend on benefits. When built strategically, it has great potential to succeed. “There are many instances where a point-based mobility program is effective and successful, particularly when coupled with strong core benefit provisions and the ability to customize benefit choices to meet the specific needs of the relocating employee and their family,” Elletson says.
Where point-based systems can fall short is if they lack simplicity. “Point-based systems can be overwhelming if there are too many options. Employees may struggle to understand the value of different benefits,” Kelly says, pointing to the need for professional support.
Other models include the pick-one option, where employees choose one benefit from a curated list. “This simplifies the decision-making process … [but] may not offer enough flexibility to meet the diverse needs of all employees, potentially leading to dissatisfaction,” Kelly says.
Anecdotally, however, Kelly has observed a shift from a point-based approach to offering the choice of one or two flexible benefits, similar to the pick-one approach. “This change has resulted in overwhelmingly better satisfaction and experience,” Kelly says. “However, from a budgeting perspective, it can be more challenging to communicate estimated costs in advance of the relocation to businesses.”
In a tiered package system, employees select from pre-bundled benefits that can be categorized, for example, as basic, standard, and premium. This balances simplicity with some degree of choice, but Kelly offers a word of caution. “Tiered benefits can create perceived inequities among employees if the tiers are not well-structured or if the differences between them are too significant,” she says.
The motivations behind these models are consistent: cost control, personalization, and competitive advantage. Companies want to offer meaningful support without creating policies that become too rigid; they can do so successfully when keeping these caveats in mind.
When Flex Needs Fixing: Solutions for Faltering Programs
When point-based and similar systems falter, companies can respond in a few measured ways. Elletson suggests it may be a simple as going back to basics. “When a point-based system needs to be adjusted, program revisions need to include a strong set of core benefits to support the basic needs of relocating employees,” she says. “Additionally, developing clear processes and policy documentation is essential, ideally with the support and guidance of a partnering RMC.”
Kelly also recommends taking time to review what the program offers and identify whether there is a consistent trend toward exceptions. “Analyze why the point-based system is failing and determine if there are specific exceptions that could be addressed by adding those benefits back into the core section,” she says.
Kelly also recommends determining if lower-cost benefits, or those used less by most employees, could be shifted into the flexible portion of the program. This can reduce any waste or burden on the company’s ability to properly support its employees.
What It Takes to Design a Sustainable Core-Flex Program
With relocation benefit programs, balance is everything. When built strategically, they can be a win for everyone involved. “Core-flex programs are generally highly effective, offering flexibility and customization to meet the unique needs of individuals and families during relocation,” Elletson says, “They help ensure relocating customers feel their personal circumstances are valued by their company rather than being expected to conform to a one-size-fits-all policy.”
The most successful core-flex programs offer meaningful choice without overwhelming complexity, provide strong foundational support, offer avenues to communicate clearly and consistently, and evolve based on employee feedback and business needs. By focusing on these principles, companies can create mobility programs that blend practical strategies with deeply human aspects of care, supporting employees through a logistically complicated yet exciting life transition.