For the fast-growing, fast-moving technology industry, relocation is necessary to talent acquisition, and talent acquisition is key to strategic growth. As a result, the COVID-19 pandemic—replete with its shutdowns, lockdowns and social distancing requirements—have greatly impacted tech companies committed to moving forward during unprecedented times.
So, how are tech employers handling relocations and related talent acquisition issues in the wake of COVID-19? What are their greatest challenges? What workarounds are they using? And how can their relocation management providers help?
In a quest for answers, UrbanBound recently hosted a virtual roundtable of tech mobility and talent acquisition professionals. It was facilitated by our Cofounder, Jeff Ellman, and attended by our Global Supply Chain Manager, Eric Vaughn, who has taken the lead on UrbanBound’s COVID-19 response.
Our roundtable guests included thought leaders from Indeed, Zillow, Remitly, Modern Technology, Android, Sinclair Broadcast Group, Microstrategy, Project 44, Northrop Grumman, Hyland Software, and Fidato Partner. We’d like to thank them for generously sharing their time and expertise to grow our collective knowledge—the highlights which we are sharing here.
Between the uncertain economy, changing revenue forecasts, and worldwide relocation challenges, many tech employers are reevaluating their talent acquisition plans—often with an eye to limiting costs for the duration of 2020, while adopting more forward-thinking technological tools.
Some tech companies have scaled back their hiring goals temporarily, electing to fill only the most critical positions. Others have rescinded or frozen recent job offers. And still others have found that new hires have withdrawn their acceptance of recent job offers, electing not to relocate at this time.
A number of our roundtable participants noted that--even before the current crisis--they were moving toward more flexible relocation policies. They are more committed to making relocations easier for transferees than micromanaging their benefits and adjudicating exceptions.
One participant, an UrbanBound client, shared that shifting to a flexible cash (miscellaneous allowance), core (travel and corporate housing) and managed budget policy under UrbanBound’s Freeway product has reduced exceptions to less than .5% and saved thousands of dollars per move.
In short, no one sees value in playing the role of “the relocation police!”
A number of roundtable participants noted that because U.S. consulates and embassies have suspended routine services, they’ve had to extend the timelines on scheduled global relocations. However, they’re continuing their preparations behind the scenes, so they’ll be ready to act as soon as travel resumes.
Those activities include attempting to book consulate appointments in advance, gathering necessary immigration documentation when possible, and encouraging relocating employees to get acquainted with their soon-to-be-city and employer from afar.
Tip: Despite the current travel freeze, UrbanBound recommends scheduling global moves, choosing a reasonable, hypothetical date. Those specific dates can always be changed, but there is benefit to securing vendor commitments in advance. For example, making arrangements with movers now—using tools like virtual household good surveys—will speed things along later.
While some roundtable participants have paused domestic relocations, others indicated that, depending on the geographic areas involved, many domestic moves are still taking place.
It was noted that household goods companies are taking extra safety precautions, such as equipping workers with Personal Protective Equipment (PPE), ramping up sanitation practices, and staggering work crews in the interest of social distancing.
In fact, UrbanBound has found that there may be financial advantages to relocating now, when domestic flights are less expensive…mortgage rates are very low…and, depending on the market, business-strapped movers and short-term housing providers may offer discounted pricing.
Because home-buying and moving a family is more challenging now, many transferees are asking for extensions on their short-term housing arrangements. A number of roundtable participants noted that they are granting these requests and making budget adjustments accordingly—at least for now—because the problem is largely beyond the transferees’ control.
However, several companies noted they might need to reconsider this if the situation continues. One raised the possibility of shifting those extended short-term housing costs under the transferees’ managed lump sum benefit.