What 3 Things do Mobility Managers Agree On?
More than 70% of relocation managers in Cartus’ most recent Policy & Practices survey see eye to eye on each of three key program needs: Flexibility, Cost Control, and Compliance.
As the relocation arena continues to evolve, changing demographics, expanding destinations, and the continuing need to balance cost control and talent initiatives, are forcing changes in the way companies look at their mobility programs and policies. Not too surprisingly, the need for flexible approaches is rising to the forefront as a way to respond to these numerous demands. In fact, 76% of respondents to the recent survey cited a need for increased flexibility in their programs.
Responding to the Need for Flexibility in Relocation Programs
How are companies responding? Fifty percent of responding companies are meeting flexibility needs through ad hoc approaches, which often result in exceptions – typically an approach that can satisfy employees, but can drive costs up. Flexible relocation policies, such as tiering and core-flex, are more likely to give companies the ability to be consistent, delivering benefits where they are needed most, and maximizing dollars spent while meeting employee needs.
Compliance issues, including tax, visa, and immigration, are reported to be increasing by almost 80% of companies. Many of the issues are intensifying due to new and often remote locations and governmental focus on collecting revenue. However, the use of flexible policies can, if not properly constructed, also exacerbate the issues if needed support in areas such as visa and immigration are not included as essential policy elements.
As an additional insight to companies’ approaches to current environments, long- term assignments, widely assumed to be going away, appear in fact to be holding steady, with almost 50% of survey respondents saying use will “stay the same” and 33% saying it will be higher. The reason: long-term assignments tend to remain the single best way to deliver results in areas such as leadership and career development and project startups.