HOME SEARCH PROVIDERS The current rental market presents a formidable challenge to individuals and families trying to relocate from abroad, particularly when they have no detailed understanding of the practical and legal processes involved. Potentially, therefore, the trend will be to move away from providing a lump sum, do-it-yourself approach, to sourcing accommodation towards the use of home-search specialists who have more power and experience in dealing with local landlords. The use of employee support services for securing
housing provides a means of improving the employee experience as well as increasing productivity. This is essential if global talent is to be encouraged
and retained.
go within a time window specified alongside others also viewing the same property and then even bid in order to secure the rental. It is also the case that landlords have become increasingly selective, not wishing to take single individuals, preferring instead couples who are both working such that their rental incomes will be maintained should one individual lose their job. International assignee couples who may have only one working partner may not look particularly good on paper compared to those where there are two incomes. Landlords also may not wish to entertain tenants with pets or indeed even young children, such is the nature of competitiveness within the housing market. It is no doubt extremely discouraging for families
trying to source accommodation that is appropriate to their needs from abroad or even locally from a hotel when the demand clearly outstrips the supply of suitable accommodation.
TEMPORARY ACCOMMODATION IMPLICATIONS If relocating families are left to their own devices in the current climate to source rental accommodation for the duration of their assignments, it is likely that the period and cost of temporary accommodation will increase. Organisations need to factor this in to their relocation policies, ensuring sufficient flexibility to cover any extensions needed to temporary accommodation. The second point though, and this is crucial when trying to attract and retain the best talent, is that employee productivity and family happiness and welfare are likely to be negatively affected when international assignees have to live and work out of hotels and are put under extreme stress when trying to source and secure appropriate accommodation. Employers might wish to consider the option of
serviced apartments rather than hotels as these do provide a more comfortable and homely environment. Using serviced apartment providers who cater specifically to the relocation industry will be beneficial in this regard.
FINANCIAL POLICY ASPECTS Turning to the financial aspects, employers need to regularly review their relocation allowances that relate to accommodation costs, as well as support that is given financially with the payment of utilities. It is important though not to write a blank cheque here – with utilities, a sustainable approach is important. Assignees should be encouraged to use gas, electricity and water sensibly. It is therefore advisable not to reimburse all utility costs as this does not encourage any savings measures. Setting limits that the company will pay provides a sensible option, but given the rising costs of utilities, organisations will need to review any caps set carefully and regularly. With respect to rising prices of food and household
goods, organisations will also need to review their cost-of-living allowances regularly. If, for example, organisations up-rated their cost of living benefits annually or twice a year, thought should now be given to a review quarterly. If organisations use an efficient purchaser index, thought might also be given to providing additional support within the first few weeks of the assignment such that assignees have the time to get used to local spending approaches. It is worthwhile using the expertise of home-search agents who are also very familiar with local services to provide advice to families relocating into an area as to where they might find the best deals in respect of purchasing food and household goods.
THE VALUE OF EMPLOYEE SUPPORT The rapidly changing housing market and cost-of- living crisis has made international relocation into expensive city areas particularly challenging. Since the pandemic, organisations increasingly wish to move employees and families physically in order to undertake their assignments. This means that organisations must review not only the financial elements of their relocation policies, but also consider the support that is needed if individuals and families on the move are going to be both productive and settled in their new locations. This might mean moving away from a lump-sum compensation approach to more hand-held guidance, thereby giving the necessary support to ensure that employees can not only compete in exceptionally demanding rental markets, but also be able to live and work effectively once they have secured appropriate accommodation. Providing employee support will reap dividends in
terms of reducing employee and family stress, improving wellbeing and ensuring the attraction, deployment and retention of the very best talent.
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GLOBAL MOBILITY
COST- OF - LIVING CRISIS
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