US SPOTLIGHT
“Some of the methods most often utilised now include
lump-sum allowance programmes for greater flexibility and lower administration costs, pre-decision services with BMAs to establish home-sale values for homeowners, and domestic assignments versus permanent relocations. “To reduce household goods expenses, companies are utilising
lower-cost options such as alternative move programmes (which include self pack) and containerised moves for peak periods, short- notice moves, smaller shipments, and so on.” In terms of assignment type, a recent survey from Plus
Relocation found that the trend away from long-term assignment activity continued, with organisations more often using transfer, local-plus, and short-term assignment policies. The company, Chris Pardo says, has been active in supporting
clients in developing and managing rotational and short-term assignment programmes. He adds, “These programmes are helping our clients to test and develop their high-potential talent, and are prompting candidates to broaden their skills base, take business risks, gain experience and knowledge, and hone their individual leadership qualities. “This is an intelligent way for companies to build a solid
leadership pipeline for succession planning.” Chris Pardo adds that many clients have found that moving to
a more centralised model makes them more agile. “Companies,” he says, “are blending the proper combinations of internal resources, external outsourcing, and new and improving technologies to harness efficiencies, increase compliance (thereby reducing risk), and gain transparency and oversight. “By seeing the full picture through better data metrics and
analytics, mobility managers and their teams can work smarter and be insightfully strategic.”
Employee support Thanks to the upturn in the US economy, the real-estate
market for both purchase and rental is flourishing. On p27, relocation specialists Cartus and Graebel explain how this is affecting the country’s real-estate market, and what these effects mean for relocating employees and international assignees. “Data suggests that companies continue to implement lump-
sum booking policies,” says Sean Worker. “This ultimately changes the typical relocation or expat experience. Short- term relocating professionals are demanding experiences in lieu of points. “Assignees with short-term needs are no longer buying
homes; they are renting. This growing demand continues to drive up rents while constricting supply. We envision rents increasing and apartment supply being constricted in response to home ownership continuing to rise.” Another factor that may have implications for relocating
employees is the recent legalisation of same-sex marriage in all 50 US states, according to Lexicon Relocation’s manager of Domestic Advisory Services, Stefanie Schreck. “Companies recognised that same-sex couples were at a
professional disadvantage because their partners were not offered relocation assistance. Accordingly, same-sex couples who were unable to marry in their states of residence were offered the same relocation coverage as their opposite-sex counterparts. “We then began to see companies offer relocation assistance
to all partners, regardless of sexual orientation, to prevent claims of discrimination. However, now that marriage equality is the law in the US, will companies revert to a more traditional definition of ‘family’, to include spouses of any sexuality, but not partners? “Time will tell how this groundbreaking
decision impacts relocation policies and the coverage provided to unmarried couples.”
Aligning talent management and mobility
My interviewees are unanimous in
believing that international assignments have an important part to play in helping companies to recruit and retain top talent. Says Chris Pardo, “Mobility
programmes are helping to attract the key talent businesses need in order to be successful, both now and in the future. Return on investment is being turned around, with a paradigm shift to Invest on Return. “Whereas it used to be primarily
the company tapping the employee on the shoulder to relocate or head off on assignment, now the employee is the one tapping the company on the shoulder requesting the opportunity. “And in many cases, if the company
is not flexible and able to accommodate, they risk losing that talented employee, both now and in the future.”
28 | Re:locate | Autumn 2015
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