A Chair and a Whip Won't Work

Here are the steps to the process of managing exceptions.

Evaluate company philosophy and culture and determine the organization’s tolerance level for exceptions. This important first step sets the stage for everything that follows. Include senior leadership in this evaluation as well as all mobility stakeholders. There is no right or wrong answer (allowed, tolerated, not allowed, etc.), but it is important for all involved to have the same philosophy. Realize that the exception philosophy may impact the employee experience and the perception of the company.

Examine mobility and recruiting goals. Recruiting top talent can be an important driver for mobility and as a result, for exceptions. Companies may tolerate or allow exceptions for key or critical hires to avoid any impediments to the relocation.

Set the relocation policy. The relocation policy should be set with clear guidelines and parameters, regardless of the company’s tolerance level for exceptions. Vague policies = more exceptions. Comprehensive policy documents = fewer exception requests. The policy should contain verbiage that discourages exceptions - again regardless of the company’s tolerance level for exceptions. In addition, some companies will list the company’s exception approvers in policy, which can also help discourage requests. Many a transferring employee has changed his/her mind about pursuing an exception when realizing the CFO is an approver.

Determine exception management guidelines and processes. This important step, executed correctly, will provide the structure needed to ensure a smooth system for dealing with exceptions. Some of the questions to ask include:

1. Who will be the internal exception approvers? Does the company have set monetary guidelines for approvals or will those need to be created?
2. What will the routing process look like? Also determine the desired response time frames, and the process for when an approver is out of the office.
3. How will cost estimates/accruals be updated if an exception is approved? Will purchase orders need to be updated? What reporting will be needed?
4. Will the relocation management company (RMC) have latitude in approving exceptions? Will there be a cap per exception or per file? Will there be a type of exception that the RMC can automatically approve?
5. Based on steps 1 and 2, how strict do you want the RMC Consultant to be with the employee? Should the Consultant automatically deny all exception requests, or should the Consultant employ a softer approach?

Tame that Beast! Part 1

Some of the steps above can seem overwhelming, especially step 4, but Cornerstone’s technology will provide the tools needed to make exception management… manageable. When an exception request is made, the request will be entered in Cornerstone’s system and will include the following:

1. The details of the exception being requested
2. Reason/rationale for the request
3. The cost and tax implications, including requests thatwill result in no additional costs or cost savings
4. Cornerstone’s recommendation.

Depending on the parameters previously set, Cornerstone may be able to approve the exception and send a notification to the client contact either as each exception is approved, or on a monthly or quarterly basis. If the request is outside Cornerstone’s approval limits, the request will be routed to the client.

Our system will follow your internal routing and approval protocols. The exception request will be routed to the first approver based on the internal routing conventions. Cornerstone’s system will forward a one-time link so company approvers don’t have to be designated system users to approve exceptions. The approver can approve, deny, defer or forward the link, as appropriate. The Cornerstone Consultant will get an automatic notification of the exception status, and will then contact the requestor to convey the answer.

Tame that Beast! Part 2

Reporting is an important element of exception management. Exceptions come in all shapes and sizes, which can make reporting a challenge. To help standardize reporting, Cornerstone develops a set list of exceptions, which enables trends to emerge. By ex-amining trends on a quarterly or annual basis, companies can then update policies as appropriate. As an example, Company X’s policy allows 30 days of temporary living, but homeowners routinely request an additional 30 days. If this exception was approved 90% of the time last year, Company X may wish to consider changing its policy.

Comprehensive reporting can also be a deterrent to exceptions.
Cornerstone’s exception reporting can be sorted by approver and can show each stakeholder’s exception approval/denial ratios. Knowing this type of reporting will be shared with senior leadership can discourage exception approvals, especially if the company exception philosophy leans toward the intolerant side.

Watch Out for Those Claws!

When it comes to relocation exception management, there are three areas where caution is needed:

Beware of exceptions that set precedent. Approving a shuttle for the household goods mover won’t set a precedent, but approving children on a home finding trip when the policy only covers employee and spouse/partner may be precedent-setting. Employees (and approving managers) talk, so saying yes to one employee may make it harder to say no to another with the same

Ensure the Big Picture is in view. Managers sometimes are very focused on getting their talent to the new location and figure what’s another $500? But they may not remember that this employee has already incurred $2,000 in exceptions. Cornerstone’s system tracks exception history by transferring employee using a simple and easy to use dashboard to allow for informed decision-making.

Watch for the "underminers." These are the leaders who relocated recently and were approved for an exception (or two) and proceed to reassure their relocating employee that he/she will receive the same exception. Similarly, the leader may have approved an exception for one employee and promises it to another without following proper protocols. Periodic internal reminders and/or training may be needed to reinforce exception management processes.

Docile and Purring

The goal is to manage exceptions and not have them manage the relocation program. This is attainable with proper preparation, policy and processes. Cornerstone partners with our clients and vendors to ensure high level customer service and provides the tools for efficient exception management.