A relocation request for proposal (RFP) is one of the most consequential decisions a mobility leader makes. The relocation management company (RMC) you choose will shape your employees’ experience, your program costs, and your team’s workload for the next three to five years. The process is lengthy. It can feel overwhelming, but it doesn’t have to.
The difference between a frustrating RFP and a productive one comes down to preparation: knowing what you need, asking focused questions, sharing complete data, and starting early. Get it right, and every RMC responds to the same clear picture of your program, giving you apples-to-apples answers you can compare with confidence.
Key takeaways:
- Define your must-have RMC attributes and objectives before you write a single question.
- Keep your RFP to fewer than 50 focused, non-repetitive questions.
- Invite a short list of qualified RMCs, using a request for information (RFI) to narrow the field.
- Share detailed program data and policies so pricing reflects your real relocation activity.
- Ideally, start engaging the RMC market about 18 months before your current contract expires
What is a relocation RFP?
A relocation RFP is a formal document a company sends to relocation management companies to compare their services, capabilities, and pricing before selecting a partner to manage its employee relocation program. A strong RFP gives every RMC the same clear picture of your program, so you can compare responses side by side.
How do you define what you need from an RMC?
Start by deciding what your program needs from a partner over the next three to five years. Without that clarity, you risk getting lost in the crowd at an RMC too large to give you personal attention, or getting stuck with one that simply can’t support your needs.
Think about what you want to improve: stronger reporting and data analytics, more consultative advice, better supporting technology, or a partner who makes your employees and your team feel genuinely valued.
Then build a list of must-have attributes. You need a firm grasp of what matters to you, your stakeholders, and your company. Common criteria include:
- Alignment with your vision, mission, values, and culture
- Financial stability and rating strength
- Global capability
- Tenure in the industry
- Independence, versus ownership by a household goods carrier or destination service provider
- Supporting technology
Distill your findings into a vision statement and a set of objectives. This gives your team clear internal direction and helps you decide which RMCs to invite.
How many questions should a relocation RFP include?
Aim for fewer than 50 questions. More questions won’t make your decision easier, and they will take longer to evaluate. The right questions tell you what you need to know to get the best service at the most effective price, without 500 pages of repetitive answers to read. To build a focused question set:
- Start with a benchmark. Use sample RFPs or industry question sets as a starting point, or to cross-check the questions your team drafts.
- Keep only what matters. Cut the list down to the questions most relevant to your program.
- Remove duplicates. Asking the same question in multiple places confuses RMCs and creates more work for your evaluators.
- Set realistic word limits. If you ask an RMC to describe an entire process, give it enough room to answer fully.
- Get specific. Ask about your program, pain points, and scope so the answers are relevant and comparable.
Which RMCs should you invite to bid?
Invite a small group of qualified RMCs rather than a long list. Only a handful will be anywhere near the right fit, and a little preparation up front saves time throughout the process.
- Ask your peers. Hearing about another mobility leader’s experience with an RMC is like getting a restaurant review from a trusted friend. It can help you narrow your list or surface RMCs you hadn’t considered.
- Use an RFI to pre-select. A request for information is a shorter, preliminary questionnaire that helps you screen RMCs before the full RFP. More invitees will not make your decision easier.
- Build your shortlist from RFI responses. Use what you learn from the RFI to narrow the field to the RMCs you will invite to bid on your RFP.
For a deeper look at building your invitation list, read Setting the Table: How to Ensure the Right RMCs Are Included in Your RFP Process.
How do you get accurate pricing and avoid hidden costs?
Accurate pricing depends on a clearly defined scope and well-constructed pricing questions. Keep these factors in mind:
- Sub-supplier pricing matters. The rates an RMC secures from its supplier network, such as household goods companies and temporary housing providers, can significantly affect your total costs. Real estate referral arrangements also factor into overall pricing, primarily for U.S. domestic programs.
- Program structure drives real savings. RMC service fees represent only a small fraction of total relocation spend. Your policy design, such as whether you offer lump sums, capped benefits, or a core-flex approach, has a far greater impact on cost than the fee itself.
- Build pricing around real scenarios. Structure your pricing sheet and questions so responses reflect the types of moves your employees actually make.
- Close the data gaps. When information is missing, RMCs must make assumptions, and those assumptions can cause pricing estimates to vary widely.
What mobility data should you include in your RFP?
Share as much detail about your program as you can. When RMCs have to guess about your activity, their pricing and capability responses will vary widely and be harder to compare. Define your scope and objectives clearly, and include your relocation policies so every RMC sees your complete program and can show how it would uniquely support you.
Mobility information to provide:
Volume information, including the number of:
- Homeowners
- Renters
- Guaranteed buyouts
- Buyer value options (BVOs)
- Direct reimbursements
- Employees with no home-related benefits
- Lump sums
- Candidates and interns
- Permanent relocations
- International moves
- Short-term assignments
- Long-term assignments
- Employees currently on assignment receiving support
Program details:
- Current average home sale value
- Current average home purchase value
- Average duration of assignments
- Program funding preference for relocation expenses
- Centralized vs. decentralized billing
- Existing supplier contracts the RMC is required to use
- Whether the RMC will select real estate agents for your employees
When should you start the relocation RFP process?
In an ideal scenario, start about 18 months before your current contract expires. Waiting until you are four to six months out will leave you scrambling for the information and input you need to make the right, and most cost-effective, decision.
- 18 months out: Engage the RMC marketplace. Take and make calls. Learn what’s changing in innovation and approach. Ask global mobility peers which RMCs are earning strong feedback and which are bringing new ideas to the table.
- 14 months out: Engage internal stakeholders. Talk with HR business partners, operational managers, and finance. Gauge satisfaction with current relocation support, gather critical feedback and a wish list of improvements, and identify future projects or organizational changes that may require different support. For example, plans to open overseas operations signal a need for an RMC with global capability, including international billing experience.
- 11 months out: Issue your RFI and build a shortlist. Use the responses to narrow the field to the RMCs you will invite to bid on your RFP.
- 9 months out: Issue the RFP. Involve stakeholders fully and include a thorough reference check. Allow time for questions throughout; RMCs will often have follow-up questions after your Q&A responses.
- 7 months out: Host best and final presentations. Invite only your top RMC contenders to present to your mobility team and key stakeholders. These sessions let you meet the RMC team, hear their capabilities and commitments firsthand, and ask any final questions. Pair them with on-site visits, or hold them in place of site visits when timing doesn’t allow.
- Final 6 months: Decide and transition. Make your decision, execute the contract, and implement your program, including the transition of files to your new RMC if needed.
Ready to start your RFP?
The right RMC partnership is built on preparation, clarity, and commitment, on both sides of the table. Whether you’re 18 months out or working with a more compact timeline, Plus Relocation is ready to help you set your RFP up for success.
Frequently Asked Questions
What is the difference between an RFI and an RFP in relocation?
An RFI is a short, preliminary questionnaire used to screen RMCs and narrow the field. An RFP is the detailed, formal request sent to a shortlist to compare services, capabilities, and pricing before selecting a partner.
How far in advance should you start a relocation RFP?
In an ideal scenario, begin engaging the RMC market about 18 months before your current contract expires. Plan to issue an RFI around 11 months out, issue the full RFP around 9 months out, and host best and final presentations around 7 months out, leaving the final six months for the decision, contracting, and implementation.
How many questions should a relocation RFP have?
Fewer than 50, if possible. Focused, non-repetitive questions are faster to evaluate and produce more useful answers.
How much do RMC service fees affect total relocation costs?
Less than you might expect. RMC service fees make up only a small fraction of total relocation spend. Program structure and sub-supplier pricing, meaning the rates an RMC secures from suppliers such as household goods companies and temporary housing providers, have a much larger effect on overall cost.
Why should you include your relocation policies in an RFP?
Your policies give RMCs a complete view of your mobility program. That context leads to more accurate pricing and lets each RMC show how it would support your employees specifically.
