Published on January 17, 2012

06012015_meeting_sq.jpgIf you're in the process of selecting a corporate relocation firm to manage your company's corporate relocation policy, you may have a lot of doubts:

  • How will I know the corporate relocation management company is acting in my best interests?
  • What can I expect from a corporate relocation firm?
  • How will I know if the company is fulfilling its agreements?
  • How can I get the best value for my money when I hire a corporate relocation management company?

It all starts with an effective SLA (Service Level Agreement) and the right KPIs (Key Performance Indicators) to ensure you're paying for the relocation management services you need and getting the high-quality services you paid for.

Learn more about developing relocation policies with our free guide.

Defining KPI and SLA

If these terms are unfamiliar to you—or you've heard of them but aren't sure what they mean, let's first define them. Many experienced businesspeople get these common business performance measurement terms confused.

Service Level Agreement

An SLA is a formal, negotiated agreement, typically part of the contract, that defines the exact services a supplier will offer to a client. More detailed than a Scope of Work, an SLA sets clear expectations for the client, which the service provider must fulfill.


KPI metrics are used to determine whether or not the supplier or service provider is fulfilling the SLA. KPIs take many forms, but the client and supplier must agree on how performance will be measured. This is accomplished by the client establishing clear, quantifiable goals and expectations (outlined in the SLA.) If a service provider is having any difficulties fulfilling the SLA for any reason, he should bring it to the attention of the client immediately. To preserve the relationship, the two parties should work together to find the deficiencies and see what should be done so the supplier can meet the SLA.

Let's look at an SLA for a very specific type of relocation: a group move. Many of the aspects of an SLA will be the same for individual relocations as with a group move, but because a group move takes place on a large scale, an SLA becomes even more important.

Some factors that may be measured based on an SLA with a corporate relocation firm for a group move are:

  • Number of key employees retained
  • Number of non-essential personnel successfully and fairly terminated
  • Remaining within budget for the move
  • Completing employee moves and corporate moves within the time frame specified
  • Relocated employees satisfaction of the moving process, based on surveys and other metrics, following the move

If your corporate relocation firm does not have KPI metrics established or a relocation process that is clearly measurable through solid facts, budget figures, retention statistics and employee surveys, you may want to consider another firm.

The best relocation firms will not only have KPI metrics in place, but will review the relocation process after every move to make refinements. 

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