Last year, corporate relocation activity returned to pre-pandemic levels—but it’s not quite the same as it was before, especially when it comes to international relocations.
Like so many aspects of business, things have changed. Costs. Laws. Logistics. Not to mention the employees themselves.
So, what’s different? What’s trending? And what does it mean for employers? Let’s take a closer look.
Not surprisingly, relocation costs hit a record high in 2022 and are projected to keep rising. Nearly every component of the relocation process—labor, packing and shipping supplies, housing, transportation—is more expensive. Because inflation is a global problem, this holds true in most parts of the world.
As a result, employers are actively searching for ways to control relocation costs. Some are switching from fully-covered relocation policies to more affordable managed benefit plans. Others are transitioning from traditional relocation management companies to tech-based providers, which may cut costs by up to 66%.
Either way, employers are more mindful of relocation costs today. Fortunately, highly- effective cost-reduction strategies are available to those who seek them out.
Although housing costs have fallen since last year in many markets, mortgage rates remain high. As a result, more relocating employees are choosing to rent rather than buy and/or sell.
Naturally, this has increased demand for short-term housing in many markets, resulting in limited inventory, higher costs, and longer house-hunting trips. While employers and relocation providers are striving to please employees, in particularly tight global real-estate markets, employees may need to compromise on their housing wish-lists.
During the pandemic, a number of countries tightened their immigration rules—which weren’t exactly simple in the first place. Understandably, more employers and their employees are seeking help with immigration compliance from their relocation companies.
In particular, they seek clarity regarding the rules and processes of various host countries, help completing paperwork, and expert guidance regarding international taxes. Put it all together, and immigration-related support has become essential to keeping global moves on track.