October 9, 2014

Cost Control and Compliance Impact Relocation Programs

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Oct

09

Cost Control and Compliance Impact Relocation Programs

According to respondents of the Cartus 2014 Global Policy & Practices survey, cost control once again led the list of top global mobility challenges impacting companies with 75% of respondents naming cost control as a key challenge. The cost control mindset continues to directly impact many facets of relocation. For example, where mobility activity has decreased, 70% of respondents stated that this was directly attributable to budget constraints. Cost considerations are a primary factor in the increased popularity of assignment types such as Extended Business Travel and Localization. Policy changes and administrative process improvements were two of the leading approaches organizations were employing to drive cost savings.

Rounding out the top three challenges were Overall Compliance (at 62%, and up 12 percentage points over 2012) and Immigration (57%, up 13 percentage points over 2012).

In the area of compliance, companies indicated that early involvement of tax and immigration providers (70%), more clearly defined policies and processes (49%), and better tracking of assignees’ days in-country (47%) are the three areas in which they are planning an increased focus.

Tax compliance was the top challenge for short-term assignments (named by 57% of respondents) and also led the way in the area of biggest challenges involving commuter and extended business travel (named by 55% of respondents). Immigration was close behind, with 45% and 62% of respondents naming it the number-two challenge for Commuter and Extended Business Travel, respectively. Changing regulations, extended timeframes, and increased number of assignments to emerging market locations, which can have complex bureaucracies or regulatory environments, can complicate the picture.

To find out more about what leading companies say about their challenges and assignments trends, read the executive summary of the Cartus 2014 Global Policy and Practices survey, or email TrustedGuidance@cartus.com for more information.

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Posted By

Alison Sedney

About Alison

Alison is a director of Marketing. She has more than 20 years of experience in marketing communications, specializing in research and trend information for the relocation industry.

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