ANNUAL STATE OF
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REPORT 2020
Diverse Thinking. Unified Mobility Goals.
Stay Informed. All Year Long.
This report shares timely information about Mobility best practices and trends, and we’ll continue to update you as news unfolds in 2020. Keep up with the latest Mobility industry intelligence and insights all year long.
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M
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Intro & Report Scope
Best Practices & Trends
Global Spotlights
Future Mobility
© 2019 Graebel Companies Inc. All rights reserved.
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What does an exceptional transferee experience look like to you?
This report provides insights and resources to help Global Mobility professionals navigate everyday challenges and opportunities to build exceptional transferee experiences.
How do we accomplish this unified goal with such diverse thinking?
By sharing outside viewpoints, hosting stakeholder forums worldwide, and providing the knowledge you need to explore Mobility programmes and services, you’re able to navigate a path to success.
Diverse Thinking. Unified Mobility Goals
As our Global Mobility industry evolves, and corporate mobility programme managers, relocation management companies (RMCs) and service providers alike try to answer that primary question, we can all partner together to deliver cost efficient, compliant and innovative experiences that meet or exceed each unique transferee’s expectations.
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UPDATES: Coronavirus Resource Center
Survey results, topics and data in this report were gathered between Jan. 2019 - Dec. 2019.
For other updates related to COVID-19, please visit the Coronavirus Resource Center.
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Report Methodology and Participant Scope
This report captures the most significant insights from recent insideMOBILITY® and service partner meetings, including information from onsite polls, workshops and keynote presentations and outside industry perspectives. We hope these findings support and inspire those in the Mobility industry who are committed to delivering exceptional employee experiences.
Contributors to this report
We held five insideMOBILITY Sessions in
Miami, Geneva, Singapore, Beijing and London.
We hosted:
Participants
280
Companies
181
Countries
20
About insideMOBILITY
At insideMOBILITY forums around the globe, Mobility professionals meet, share and connect while learning from each other and industry experts about trends and best practices. Over the past decade, insideMOBILITY has become a knowledge hub for Mobility professionals.
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Intro & Scope Report
Mobility Dynamics in an Era of Transformation
Mobility professionals are eager to share information and learn about better ways to manage their programmes and activities. We’ve identified important trending topics and best practices from session feedback at our events and from other industry analysis.
Policy Management
Designing and managing policies isn’t a static process, they should be reviewed on an ongoing basis. As policies evolve and new requirements emerge, business needs need to balance with the needs of employees by offering choices that suit their needs but also fit within defined budgets.
Policy Focus in the Next Two Years
Americas
APAC
Global Average
EMEA
Domestic relocations
International relocations
Extended business travel
International permanent relocations (localisation)
Repatriation
Lump sum arrangements
Professional gig worker programme
Core-Flex programme
Commuter programme
Self-service solution
10%
18%
16%
9%
6%
2%
13%
11%
Mobility leaders are reviewing their policies across the board with an emphasis on self-service features and elements that increase employee flexibility.
Source: 2019 insideMOBILITY survey, N=79 (Totals may not add to 100 due to rounding)
8%
3%
5%
7%
20%
17%
0%
15%
1%
More Options to Create Exceptional Experiences.
Permanent Transfers
Core-Flex Programmes
Home Leave
International Relocations
Self-Service and Lump-Sum Arrangements
Two-thirds of the companies increased their use of Permanent Transfers for international assignments between 2015-2018. expect the rate of Permanent Transfers to increase in the near future. Since these arrangements often are negotiated outside of Mobility, the policies tend to vary widely within a company. Moving forward, Permanent Transfers increasingly will be administered by Mobility teams, who will design programmes and standards for these relocations.
Core-Flex continues to grow as a preferred approach for balancing cost certainty with employee flexibility, although it’s catching on quicker in the United States than in other parts of the world. Is Core-Flex right for you? This article and guide can help you decide how to design an ideal programme.
Mobility programme leaders realise that provisions that were appropriate and valued a decade ago may not be ideal today, given a more transient workforce and less-defined family structures Is your Home Leave policy relevant to today’s employees? This article can help with that analysis.
Corporations continue to expand globally and relocate key people accordingly. As this article from the Harvard Business Review explains, in today’s relatively uncertain global economy, they’re also doing it more carefully and strategically, judiciously weighing not only where they engage but how they engage.
Organisations are increasingly using Lump Sum arrangements for self-managed moves involving entry-level hires and interns. To add a small measure of support, some offer a Managed-Cap programme – a capped dollar benefit in which funds are disbursed directly to the service providers engaged by the employee. Worldwide ERC® has a helpful summary of the pros and cons of each approach.
Collaborating with Relocation Service Partners
Diversity & Inclusion
Compliance
Budgeting
Gig Workers
Employee Experience
Mobility teams are doing more: more volume, more customised service and more strategic support within the organisation. Our survey findings indicate that many Mobility programmes and professionals have more financial resources at their fingertips than in the past.
Increased
No change
Decreased
Unsure
Source: 2019 insideMOBILITY survey, N=81 (Totals may not add to 100 due to rounding)
Of course, with added resources comes accountability to document the return on those resources – the “Return on Mobility.” 26% percent of the insideMOBILITY survey participants said their primary goal for improving their programme over the next five years was articulating the Return on Mobility. For more information on the art of quantifying the Return on Mobility, see Top Five Ways to Quantify Talent Mobility’s Impact.
Are countries unifying their tax structures? Are they creating more open borders and immigration policies? Daily news reports tell us differently. These issues are becoming more complex and the stakes are higher than ever to remain compliant. In our polling, international compliance concerns outweigh the concern over employee experience when it comes to the things that keep Mobility leaders up at night.
Tax compliance
Cost
Immigration Compliance
Flexibility of Benefits
An increase in global economic activity tends to make nations more protective of their borders, people and systems. In other words, economic development leads to enhanced immigration, taxation and privacy regulations. Mobility needs to stay on top of compliance in all three areas.
Employee Safety
Other
This analysis from McKinsey & Company documents how increased workplace diversity is directly correlated to organisational success. Mobility professionals tend to be more aware of the value of cross-cultural cooperation, having worked with assignees and offices in a variety of locations and cultures. For a number of related reasons, Mobility is ideally suited to lead organisational D&I initiatives.
Utilising the international gig, or freelance, workforce is becoming the norm. In some cases, gig employees are reframing human resource models to the point that employing people for certain jobs is a last resort, although gig worker engagement is slower to catch on in Europe due to labour laws. If companies are to successfully compete for this talent, Mobility needs to know the relocation benefits gig workers value the most. Here are findings from a survey of international gig workers.
This IBM study describes how enhanced employee experience is an important element of gaining a competitive advantage. Since a transferee’s partner and family members are often equally invested in and affected by a relocation, it’s important to consider the needs of the family as it relates to the employee experience.
Plan Transparency
Family Assistance
Pre-departure Services
Household Goods Service
Housing Arrangements
Experienced Consultant
Online Tracking Tools
Programme Flexibility
Source: 2019 insideMOBILITY survey, N=80 (Totals may not add to 100 due to rounding, participants may choose up to 3)
Mobility teams can turn a high-stress situation into a positive, even exceptional, employee experience. How do they do it? Feedback from insideMOBILITY surveys and sessions, and our Alliance Partner conference suggest it’s a combination of programme design elements, policy features and the availability of hands-on support.
As organisations expand into more corners of the world, providing an exceptional assignee experience requires exceptional service providers – from last-mile household goods shippers to housing coordinators to spouse/partner employment counselors. How do relocation service partners make a difference? We asked our partners in a poll and they told us that exceptional service comes from exceptional communication – especially between the relocation management company and the service provider.
Communication
Exception setting
Rush requests
The common challenges faced by partners when delivering exceptional customer service
Source: 2019 Graebel Relocation Alliance Conference survey (n=102 responses)
Communication technology tools can promote efficient information sharing. Responsive phone, email and chat communication play a big part too.
46%
37%
Watch: 'VIP Moves'
47%
22%
14%
43%
21%
54%
23%
27%
25%
29%
4%
28%
19%
12%
26%
Mobility budget trends over the past three years
Biggest concerns related to international policies
The features that most enhance an employee’s relocation experience
61%
Mobility professionals tend to be more aware of the value of cross-cultural cooperation, having worked with assignees and offices in a variety of locations and cultures. For a number of related reasons, Mobility is ideally suited to lead organisational D&I initiatives.
Diversity
Collaborating
Employee Expereince
The Local Side of Global Mobility
We’re one world but we’re many cultures, political systems and economic models. In this section, we identify some of the key topics, trends and unique challenges that different regions face around the world.
Brexit uncertainties continue to dominate the European political and economic scene. As a result, workforce issues like social security, taxation and immigration are in flux. This uncertain environment may be one factor driving Mobility programme change initiatives within EMEA-based organisations. To learn more about implementing these initiatives, review this report on best practices for promoting Mobility programme changes. This transformation environment is also an ideal time for EMEA companies to assess various Mobility programme models related to internal, outsourced and hybrid approaches.
At the Shanghai insideMOBILITY conference, local experts described the rapid growth of China’s Tier-2 cities and the flow of labour to these locations. Read this analysis to learn how relocation strategies should reflect the many differences across these cities. Chinese employees often don’t view relocation opportunities as favourably as their western counterparts. Mobility leaders in APAC should be mindful of this as they develop their regionally and culturally appropriate relocation programmes. Mobility is an emerging corporate function in China. As this whitepaper explains, Mobility leaders in China are able to design ideal Mobility programmes based on lessons learned over the last several decades in other parts of the world.
Because of the tight housing market in North America and in light of Millennials’ housing preferences, Mobility teams in the U.S. are reviewing their home sale benefit provisions. We explored these trends and outlined some best practices in this analysis. The U.S. has been in an extended seller’s market, but Quicken Loans® Inc., a leading mortgage lending company, suggests there are some specific housing market datapoints that could signal a future shift. In this article, they recommend keeping a close eye on median housing prices, length of time on market and several other indicators. International companies are making inroads into the 33-nation Latin America region – especially in Mexico, Peru, Chile, Panama, Columbia and Costa Rica. For insights into these trends and information about unique housing and rental challenges in the region, see this interview.
Uncertainty drives transformation in EMEA
APAC evolves: New relocation strategies and opportunities await
How do Home Sale benefits and housing shifts affect you?
Succeeding in LATAM
This uncertain environment may be one factor driving Mobility programme change initiatives within EMEA-based organisations. To learn more about implementing these initiatives, review this report on best practices for promoting Mobility programme changes. This transformation environment is also an ideal time for EMEA companies to assess various Mobility programme models related to internal, outsourced and hybrid approaches.
Chinese employees often don’t view relocation opportunities as favourably as their western counterparts. Mobility leaders in APAC should be mindful of this as they develop their regionally and culturally appropriate relocation programmes. Mobility is an emerging corporate function in China. As this whitepaper explains, Mobility leaders in China are able to design ideal Mobility programmes based on lessons learned over the last several decades in other parts of the world.
The U.S. has been in an extended seller’s market, but Quicken Loans® Inc., a leading mortgage lending company, suggests there are some specific housing market datapoints that could signal a future shift. In this article, they recommend keeping a close eye on median housing prices, length of time on market and several other indicators. International companies are making inroads into the 33-nation Latin America region – especially in Mexico, Peru, Chile, Panama, Columbia and Costa Rica. For insights into these trends and information about unique housing and rental challenges in the region, see this interview.
Innovative Thinking Pushes Mobility to New Heights
The “Future of Mobility” moves rapidly; the seeds of next-generation technology and new best practices have already been planted, and the Mobility profession itself continues to evolve. Moving forward, Mobility will increasingly serve internally as a strategic subject matter expert in addition to its continuing mission to adopt and improve operational elements that support mobile employees.
Adjust policy structure
Elevate relocation experience
Scale (up or down)
Right-size team
Address compliance
Minimise exceptions
Enhance Supplier performance
Educate recruiters
Harmonise global policies
Implement Diversity & Inclusion initiative*
Future Mobility operational priorities
From a programme operations perspective, survey findings show Mobility leaders clearly plan to focus on their people. They’ll adjust their policies to make them more relevant and generally seek to elevate the employee experience.
* This response not inlcuded in the Americas insideMobility survey
N/A
24%
Most important programme management functions of Mobility technology
On a global scale, the chart below shows that reporting, integration and system functionality are top of mind for Mobility professionals – as they certainly should be. A Mobility team’s experience with the technology—the value that comes out of the time spent in the platform and how much (or not) the interface is customised—directly impacts their ability to support the programme accordingly.
Dashboard
Reporting
Functionality
Programme tracking
Communication with primary contact
Design (look and feel)
Predictive analytics
Integration with HR systems
31%
Technology, Analytics and Business Intelligence
Mobility technology and supporting business intelligence can help support company goals. Mobility teams explore and embrace technology that supports analytics and internal integration – so knowing what’s right for the Mobility team, and programme is an important first step to activating a technology experience that maximises the return on mobility.
Blockchain
What guides strategic and programmematic Mobility initiatives? Assignee input? Experience? Expert advice? All of those are important, of course. But there is also growing demand for many types of data mining techniques that use data analytics and sophisticated business intelligence (BI) reporting tools and dashboards. However, not all analytics and BI tools are the same, and Mobility professionals are discovering distinctions between descriptive, predictive and prescriptive analytics, as described in this article. Business analytics can help an organisation predict successful relocation experiences – essentially matching candidates and assignments.
Watch: 'Evolution of Technology'
Blockchain is relatively new on the Mobility scene and, by design, is resistant to modification of data – an important element when trying to streamline business processes and connect data across multiple systems and organisations. Mobility teams will use blockchain for many types of transactions, including household goods shipments. Watch this webinar to learn more. Blockchain will also increasingly support “smart contracts” that efficiently and safely execute agreements between parties. As an expert from Rabobank described at the Geneva insideMOBILITY event, smart contracts come with an automatic “digital notary.”
Five-year vision for Mobility programmes
Within the data, we see a 2-step evolution in most Mobility teams’ future strategic interactions within their companies: 1) to integrate their services with key corporate HR and Talent Management processes, and 2) help Mobility leaders find ways to articulate Return on Investment for their Mobility programmes.
Source: 2019 insideMOBILITY survey, N=80 (Totals may not add to 100 due to rounding)
Integrated with HR
Articulate Return on Mobility
Vital to Talent Management
Optimised – requiring fewer resources
Leaders seek Mobility guidance
39%
Offering Strategic Value
Almost without exception, Mobility leaders envision a future where their programmes are integrated at the highest levels of an organisation, supporting objectives like global expansion and talent optimisation. They don’t envision doing this with fewer resources!
40%
When you’re ready to move your Mobility function past being simply transactional cost centres and contribute to the overall business strategy, alongside Finance, Operations and Sales, then you’ll see it truly transform and grow. Learn how you can get there in the Graebel Mobility PathBuilder Guidebook.
This infographic shares more stats around the questions and answers that mobility practitioners have on their minds today.
On a global scale, the chart below shows that reporting, integration and system functionality are top of mind for Mobility professionals – as they certainly should be. A Mobility team’s experience with the technology—the value that comes out of the time spent in the platform and how much (or not) the interface is customized—directly impacts their ability to support the program accordingly.
