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Special Report: Employee Relocation—Rolling Through the Downturn

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1. Expat Workers Face Headaches Shipping Goods
In the recent past, a corporate employee relocating to Europe could expect to get household belongings shipped to the new location in about six weeks. But because of a shortage of shipping containers, it takes twice as long these days, and the process can sometimes drag on for up to six months.

2. Employers Concerned About Workforce Relocation
Employers worldwide are worried about losing workers to more enticing locations at a time when talent in many places is in short supply, a recent survey reveals.

3. Factors In Relocation

4. Expatriates and the Expatriate Experience
The U.S. was the most frequently selected location for an expat assignment, reflecting the global nature of business today.

5. Spousal Issues in Relocation
Less than half of the companies surveyed said they offer assistance to an employee's spouse or partner in finding employment in a new location.

6. 2008 Relocation Providers
Listed in alphabetical order Published May 5, 2008

7. Dear Workforce: How Do We Persuade Our Well-Trained Workforce to Relocate?
The cost of replacing your staff could be as much as one and a half times current salaries. Strategies include helping employees sell their homes and moving or commuter allowances.

Factors In Relocation

Company growth led the list of internal factors while the top external factor cited is a lack of qualified people locally. The use of lump-sum payments grew last year, and employees who declined relocations cited family issues most often as their reason for turning down a move.
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FACTORS IN RELOCATION—1

FACTORS IN RELOCATION—1
Company growth led the list of internal factors cited. The top external factor that companies cite is a lack of qualified people locally. Large companies particularly noted that the weak real estate market affected relocation values in 2007.
What internal company conditions had the most significant impact on the number of your employee relocations in 2007? ( ) indicates results from previous year
Internal conditions had no impact		4% (6%)
Growth of company		46% (59%)
Promotions/resignations		37% (36%)
Knowledge/skills transfers		30% (30%)
Corporate reorganization		24% (22%)
Expansion into new territories		22% (22%)
Acquisitions/mergers		15% (19%)
Budget constraints		13% (9%)
Expansion of facility		11% (19%)
Use of short-term assignments		11% (not listed as an option in 2007)
International expansion		11% (10%)
Increased production		10% (15%)
Closing of facility		% (12%)
Decreased production		4% (2%)
Expansion of telecommuting/virtual teams		3% (1%)
Security issues		1% (1%)
Other		5% (5%)
What external factors had the most significant impact on the number of your employee relocations in 2007? ( ) indicates results from previous year
External conditions had no impact		19% (26%)
Lack of qualified people locally		52% (52%)
Economic conditions		24% (25%)
Real estate market		22% (not listed as an option in 2007)
Growth of domestic competition		14% (13%)
Growth of international competition		10% (13%)
Destination country regulations		3% (3%)
War in Iraq/Afghanistan		2% (1%)
Domestic natural disasters (wildfires, floods, etc.)		2% (3%)
International natural disasters (typhoons, etc.)		1% (1%)
Terrorism/political violence		1% (1%)
Other		4% (4%)
Source: Atlas World Group's 41st Annual Corporate Relocation Survey

FACTORS IN RELOCATION—II
The use of lump-sum payments grew last year, and employees who declined relocations cited family issues most often as their reason for turning down a move.
To what extent does your company reimburse relocation expenses? ( ) indicates results from previous year
	Transferees		New hires
Full reimbursement of relocation expenses	63% (55%)		54% (42%)
Lump-sum payment	44% 32%)		49% (31%)
Partial reimbursement based on salary, position, etc.	37% (30)		41% (43%)
No reimbursement of relocation expenses	6% (5%)		5% (8%)
What reasons did employees give for declining relocation? ( ) indicates results from previous year
Family issues/ties	62% (84%)
Housing/mortgage concerns	50% (30%)
Cost of living in new location	49% (49%)
Spouse/partner's employment	48% (49%)
No desire to relocate	45% (43%)
Personal reasons	41% (33%)
Could hurt career	2% (3%)
Other	2% (4%)
Source: Atlas World Group's 41st Annual Corporate Relocation Survey

Workforce Management, August 11, 2008, p. 31, 32 -- Subscribe Now!

Next Article: 4. Expatriates and the Expatriate Experience
The U.S. was the most frequently selected location for an expat assignment, reflecting the global nature of business today.

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