5 tips for a cost-effective corporate relocation with AGS Netherlands

Relocating employees can put pressure on your budget, whether you're moving just one individual or an entire team to a new country. As a leader in international corporate relocation, AGS Global Solutions Netherlands takes pride in helping companies manage relocations cost-effectively, without compromising on service. Here are their five expert tips to help your company save money on corporate relocations.

Understand your relocation costs

Before getting deep into budgeting advice, it's important to take the time to understand what you're dealing with. Relocation expenses are usually split into two categories: direct costs and indirect costs.

• Direct costs: These include the obvious relocation expenses, such as moving services, travel arrangements and temporary housing. They’re the bulk of your relocation budget.
• Indirect costs: Often overlooked, these include costs like lost productivity while your employee adjusts to their new environment, cultural training, visa or legal fees, and sometimes even language training. These aren’t always visible upfront but can make a huge difference to your bottom line.

Pro tip: Always account for “hidden costs”

Whatever the type of relocation you are arranging, there will always be hidden costs. For example, if you’re relocating employees internationally, don’t forget about expenses like customs fees, international insurance, and potential tax implications. Many companies overlook these, and they can quickly break your budget. AGS Netherlands helps you account for these costs upfront, so you’re never caught off-guard.

Build a comprehensive and flexible relocation budget

The key to a cost-effective international relocation is setting a realistic and comprehensive budget. You want to make sure you’re covering all the bases but also leaving room for flexibility.

Start by getting detailed quotes from service providers, whether it's for moving companies, shipping, or temporary housing. Don’t just focus on the cheapest offer - you really want the most cost-effective option, which is one that balances quality with affordability.

Pro tip: Build a buffer into your budget

You'll thank yourself if you build a buffer into your budget for unexpected costs. Typically, 10-15 percent of your total budget is a good amount. No matter how well you plan, something unexpected can always come up, whether it's extra fees, delayed shipping, or sudden changes in housing costs.

With AGS Netherlands as your relocation partner, you’ll be able to keep unexpected costs to a minimum. You’ll gain access to a network of trusted providers who can assist you at every stage of the assignee lifecycle, saving you both time and the headache of having to source their services yourself. They can also keep you updated on changes in costs related to immigration, moving and housing, so you can make sure your budget remains realistic.

Negotiate with service providers

You’ll be surprised how much you can save simply by negotiating with service providers. By emphasising your company's potential for repeat business, you can unlock all kinds of discounts and value-added services.

Pro tip: Leverage AGS’s global network of trusted partners for additional savings

Established partnerships allow for more flexibility during the negotiation phase, saving you more time. AGS Netherlands has longstanding relationships with global relocation partners, which gives them the upper hand in negotiating rates and services on your behalf.

Whether it’s moving companies, temporary housing agencies, or shipping providers, AGS Netherlands ensures you receive the best quality at competitive rates.

Implement cost-saving measures

There are several strategies to help reduce relocation costs without cutting corners. A good relocation policy that’s designed with cost-efficiency in mind can make all the difference. Here are two simple ways to cut your costs:

Optimise your relocation policies

Make sure your relocation policies are clear but flexible. Offering a lump-sum option, where employees manage their own relocation within a set budget, can save your company money, as they are often more careful with their own spending.

In addition, you can offer tiered relocation packages based on employee level or assignment type. For instance, a senior executive may need a full-service move, while junior staff might be fine with a smaller package. AGS Netherlands can not only advise you on the services available and on industry best practice, but also help you develop a global mobility policy and packages specific to your situation and budget.

Embrace the virtual world

Make use of online relocation support whenever possible. Leverage video calls and online training programmes to cut travel costs while still providing assignee support.

Pro tip: Use automation tools

Automation tools reduce human error and save both time and money. AGS Netherlands’ intuitive IRISE app helps your HR team track employee moves and expenses, and manage all their documentation through a centralised platform. In turn, they’re able to juggle multiple relocations at once without losing control of the budget.

Monitor and control relocation costs

Staying within budget is one thing; staying on top of the budget is another. It's essential to continuously monitor and adjust your relocation plan as needed.

Keep track of your spending at every stage: initial moving expenses, housing, settling-in costs, the list can seem endless. By conducting monthly or quarterly reviews, you can identify where costs are creeping up and adjust accordingly.

Performing routine expense audits can help uncover unnecessary spending or overcharges. Sometimes, vendors add services you didn’t ask for, or miscommunication leads to duplicate charges. A simple audit can prevent these from affecting your overall budget.

Pro tip: Set up automated cost reporting

Partner with AGS Global Solutions for detailed cost control and customised reporting. By comparing actual costs with initial estimates, you’ll quickly see where you’re overspending and where adjustments can be made.

Take control of your relocation strategies now

By leveraging AGS Netherlands’ expertise to implement the right budgeting strategy, negotiate effectively with service providers, and continuously monitor expenses, you can save your company money while ensuring your employees complete their assignment successfully.

With more than 30 years’ experience in the global mobility industry, AGS Global Solutions Netherlands is your trusted partner for all your corporate relocation needs. Contact AGS Global Solutions Netherlands today to see how they can help you save on your next move.