Relocating this summer will be one of the most challenging times to move in modern history. 2022 consumers are facing a number of difficulties from hyper-inflation to supply chain and labor shortages, to rising fuel costs, global conflict & more. While UrbanBound is working hard to minimize the impact these relocation-related challenges have on your programs, we want to ensure we are aligned on setting appropriate expectations when consulting the relocating employees as part of their relocation preparation.
Timelines
The time it takes to both coordinate and deliver services is much longer than usual (particularly household goods) and in general, availability can be limited on short notice across all service categories. Planning and close partnership are keys to success. In an effort to assist our clients with cost containment, UrbanBound leverages a variety of relocation options to cater to different needs. Making sure your relocation policies are flexible and educating employees on these challenges is imperative.
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- Set clear expectations for your employees - it may take several months* for each employee to plan their relocation needs out before they can move. Everyone has individual needs and, therefore, each situation is unique.
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- Invite employees to UrbanBound well in advance - UB’s employee setup process takes about 15 minutes for the employee, but some wait several weeks to even start. It is critical to avoid the time loss in order to efficiently secure quality services and maximize budget.
- Transit delays are the “new norm” due to multiple and complex logistic shortages across the industry.
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*Lead time delays can average up to 8 weeks in some services and markets. Please reach out to your Account Manager for any specific concerns with lead times.
Prices & Policies
Please be aware that prices are at an all time high and are continuing to increase industry-wide. While we can't control hyper-inflation or labor shortages, we are doing our best to assist our clients with cost containment. UrbanBound leverages a variety of relocation options to cater to different needs and price points. To maximize your relocation success, please be sure your employees share as much information on travel plans and important deadlines in advance.
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Top Tips
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- Advise employees to space services out to give room for delays or changes to plans.
- Last minute changes may not be possible in a timely manner and may increase costs.
- As of May 1, 2022 the average freight rate globally is 105% higher than the average global freight rate from 2021.
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- International moves experience several more variables that impact move schedules and costs. Costs are still unusually high and capacity for service is still greatly impacted.
- Once Shanghai reopens, the rebound is anticipated to cause a surge in ocean volumes that will likely increase congestion, delays, and ocean rates again.
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Supply Chain & Household Goods
The household goods relocation space is experiencing an extremely high volume of moves as many people are either moving for work or for personal reasons. However, many household goods companies are struggling to find drivers and labor, the cost for materials (particularly wood) has increased considerably, and, of course, gas prices are drastically higher.
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Top Tips
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- Encourage your employees to be as thorough as possible when completing their onboarding steps! Missing or inaccurate information can further delay the quoting and scheduling process with the moving companies.
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- Between May - September all corporate movers are in high demand (in all cities!) Therefore it is recommended that the move dates are booked proactively.
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Corporate Housing
The amount of time that employees are spending on corporate housing has increased in 2022. Employees are finding that it is taking longer to secure and move into their destination homes. As more people are moving to new markets to explore their remote work opportunities, home purchase, homesale, and renting have all gotten more expensive and it’s taking much longer on average to complete transactions. In regards to renting, summer inventory is tighter and more expensive than usual, even in markets that have historically been free of such challenges. This means employers adding flexibility and setting the proper expectations with their employees is critical.
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Top Tips
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- Major markets are harder to secure housing in, for example: NYC, Bay and Silicon Valley areas, Seattle, LA, Austin etc.
- All non-metro/rural areas are also a challenge as housing options are extremely limited.
- Between May - September Corporate Housing is in high demand (in all cities)!
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- 3+ bedroom units are rare and hard to find in any market.
- Some properties require forms to be completed for background checks and in applicable cases, pet vet records. Delays on this paperwork can affect booking.
- Employees should not book travel until move-in dates are secured.
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Real Estate & Renting
The housing and rental market throughout the US is experiencing unprecedented demand which is drastically increasing the costs of renting or owning property. There are currently several challenges to finding a home in today’s market and the goal of this overview is to provide realistic expectations to help individuals plan accordingly and make the most of their benefits.
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- Educating employees and setting expectations on housing is important - even in cities that are not traditionally "in-demand". Compromises and flexibility are important including increasing budget and loosening strict aesthetic or amenity requirements.
- Landlords are seeing as many as 10 applications per property.
- Employees should consider looking at least 6-8 weeks ahead of the scheduled arrival at rental options and months in advance when working with a supplier or those needing home buying assistance.
- In some cases landlords may require a guarantor to secure a lease, employers need to be aware of this - especially for international moves.
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- Many times, homes rent over asking price. Tenants need to be prepared to apply as soon as possible.
- The real estate market is extremely competitive and changing everyday. It is currently still a seller's market so while selling an existing home may be quick and painless for some, finding a new home will be harder. Make sure your employees who need to leverage a real estate agent do so as soon as possible.
- Working with UrbanBound during your home buying or selling process will help ensure smooth and timely real estate transactions for relocating employees.
- Holidays should be taken into account with schedule and employees may need to plan on alternate dates for securing housing.
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Travel & Car Rentals
The travel industry is still working to recover from the impacts of covid, labor shortages, etc. Airlines, rental car companies, etc. At this time, we highly recommend that reimbursement be utilized for travel related services to allow employees to book based on their unique needs and to take advantage of open market services that do not offer direct bill towards corporate accounts.
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- Rental car companies have been suffering from the chip shortage and reduction in overall travel. Major rental car companies used to increase inventory in the summer but are no longer able to do so. Rental cars need to be planned for well in advance.
- Flights are more expensive than usual due. Extra planning and budgeting is recommended.
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- Allowing employees to book their own flights and choose how they want this is highly recommended.
- Hotels have consistently been more expensive and hard to find in key markets. Even booking a hotel within a 2 week timeframe may drive up rates. If there is a concert or major event in town, rates can also be higher the closer you get to that timeframe for those particular days.
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During this time, having clear communication and setting proper expectations with your employees is imperative to the success of your program. If you haven't done so, please schedule time with your UrbanBound Account Manager to make sure you’re ready to navigate your budgets and policies.
Not sure who to reach out to? Contact us and we can help!
