Cartus Industry Profiles present brief but detailed snapshots of the different ways individual industries approach key issues related to the handling of their relocation programs. Based on data gathered in the Cartus 2014 Global Mobility Policy & Practices survey, Industry Profiles examine issues of program practices and assignment policy features that are typically offered.
THE FINANCIAL SECTOR—Banking, Finance, Insurance, & Real Estate
Financial industry organizations are experiencing a dynamic market and a demanding regulatory landscape, while also maintaining or enhancing profitability and competitive positioning.
In addition, as the focus on compliance intensifies, financial institutions need to continue to enhance awareness of the issues and work to help reduce risks and cost exposure.
This profile provides a summary of responses to the Cartus 2014 Global Mobility Policy & Practices survey from individuals in the Financial industry and compares them to overall survey responses. Of the 172 responses to the survey, 12% were from individuals representing the financial sector.
INCREASED EMPHASIS ON COST CONTROL
The financial industry’s focus on cost control has expanded dramatically over the past two years, with a significant number of finance respondents indicating an increased emphasis on cost control (78% versus 57% of overall respondents).
This year, 63% of finance respondents named “policy changes” as a method of cost savings, versus 56% overall. Two years ago, only 35% of Finance respondents said policy changes were being considered (44% of respondents overall).
In the area of “administrative process improvements,” only 38% of 2014’s finance respondents named it as a cost savings. In 2012, this was the most frequently named method of cost savings (57%, versus 42% overall).
MOBILITY ACTIVITY OUTLOOK
When asked whether mobility activity will increase over the next few years, finance responses mirrored the overall industry number at 50%. There were several notable differences in assignment types: rotational (67% versus 43%), commuters (57% versus 43%), and short-term (64% versus 52% overall) were all higher for financial sector companies.
Increased use of these assignment types is often an indication that organizations are trying to meet business objectives while containing costs, or that they are responding to high growth and the need for shorter duration assignments to place talent where it’s needed for immediate or start-up purposes, and this could be the case with the Financial sector as well. The relatively high use of intra-regional assignments by this sector might also reflect that companies are trying to utilize existing talent within their market areas.
It is interesting to note, however, that permanent moves and localization, assignment types that many industries have used to try to decrease overall costs, are less frequently used by financial firms.
For our full financial sector report or to obtain a profile for a specific industry sector, please contact your Cartus representative, or email TrustedGuidance@Cartus.com.
In addition to Finance reports, Cartus also offer reporting for the following industries:
• Consumer Goods
• Oil & Gas
• Raw Materials