RSC Relocation Policy & Program Administration 2 — Questions and Answers
Question 1: A company wants to limit policy exceptions to control relocation costs. Which governance approach is most effective?
- Allow managers to approve exceptions verbally
- Establish a formal exception approval process with a designated committee (Correct answer)
- Let employees self-approve exceptions under a set dollar amount
- Eliminate all exceptions from the policy permanently
Correct answer: Establish a formal exception approval process with a designated committee
A formal exception committee ensures consistency, accountability, and cost control when deviating from standard policy.
Question 2: Which metric is most useful for benchmarking the effectiveness of a relocation program over time?
- Number of relocation vendors used
- Average cost per relocation by job level (Correct answer)
- Total number of employees in HR
- Frequency of policy document updates
Correct answer: Average cost per relocation by job level
Tracking average cost per relocation by job level allows meaningful year-over-year comparisons and peer benchmarking.
Question 3: An employee declines a relocation offer citing family hardship. Under a flexible benefits program, what is the recommended next step?
- Cancel the transfer immediately
- Offer the employee a choice of alternative benefits or a lump sum to address specific needs (Correct answer)
- Require the employee to relocate or resign
- Automatically approve all requested exceptions
Correct answer: Offer the employee a choice of alternative benefits or a lump sum to address specific needs
Flexible programs allow tailoring benefits to individual circumstances, increasing acceptance rates while managing overall spend.
Question 4: What is the primary purpose of a relocation policy tier structure based on job level?
- To reduce paperwork for HR
- To align benefit levels with the strategic value of each employee segment (Correct answer)
- To ensure all employees receive identical benefits
- To eliminate the need for vendor negotiations
Correct answer: To align benefit levels with the strategic value of each employee segment
Tiered policies allocate resources proportionally, providing richer benefits to higher-impact roles while controlling total program cost.
Question 5: A relocation specialist discovers that a policy has not been reviewed in three years. What is the most appropriate action?
- Continue using the policy since it has been working
- Conduct an audit comparing the policy against current tax law, market rates, and benchmarks (Correct answer)
- Immediately replace the policy with a competitor's template
- Reduce all benefits by 10% as a precaution
Correct answer: Conduct an audit comparing the policy against current tax law, market rates, and benchmarks
Regular audits ensure the policy remains compliant with tax law and competitive with market standards.
Question 6: Which element is essential when drafting the repayment clause of a relocation policy?
- A list of all approved moving companies
- The specific tenure period and pro-rated repayment schedule (Correct answer)
- The employee's previous address
- The hiring manager's signature only
Correct answer: The specific tenure period and pro-rated repayment schedule
A clear tenure period and pro-rated schedule defines the employee's financial obligation if they leave before the required service period.
Question 7: When a company transitions from a reimbursement model to a lump sum program, what is a key risk to communicate to employees?
- Lump sums are always larger than reimbursements
- Employees bear the risk of cost overruns since no additional funds will be provided (Correct answer)
- The company will audit every expense regardless
- Lump sums are not taxable under any circumstances
Correct answer: Employees bear the risk of cost overruns since no additional funds will be provided
Under lump sum models, if actual relocation costs exceed the lump sum, the employee must cover the difference personally.
RSC Relocation Policy & Program Administration 2
A company wants to limit policy exceptions to control relocation costs.
Which governance approach is most effective?