Staying Ahead of Global Mobility Challenges: Why Flexibility is Key

As we approach the end of 2024, many HR professionals are asking themselves, “How do we stay ahead of the dynamic challenges in meeting our organization’s global workforce needs?” The answer, in one word: flexibility.

Our own CapRelo studies, and countless other industry research studies, are making it clear that the mobility models of the past need a retooling to meet the mobility challenges of tomorrow. HR professionals who are searching for the secret sauce in their mobility strategy should not discount the impact of flexibility, says EY in its recent industry study. Flexibility is one of five key drivers, it says, helping HR teams meet talent shortages and deliver positive ROI.

How can you incorporate greater flexibility into your company’s mobility policies? Here are four places to start.

1. Rethink Household Goods Shipping

One of the results of the pandemic was that everything involved in relocation became very expensive. Moving household goods is no exception.  As we reported back in October, the surge in shipping demand and subsequent container shortages is affecting relocation logistics – and costs– worldwide. “These added expenses not only affect overall relocation packages but can also limit an employer’s ability to offer competitive relocation benefits. For companies managing multiple relocations, the cost increase can put a strain on their financial resources,” we noted.

Add to that the 2018 tax law changes that require household goods payments to be considered taxable income. As companies add gross up to cover that additional expense, they also are having to find ways to save money or reduce costs. One client we work with now gives its transferees the option of a household goods shipping budget or a furnishing allowance, in an effort to manage costs yet deliver flexibility.

Key takeaway: Work with your relocation management consultant to develop a flexible approach to household goods that gives employees the option to choose a furnishing allowance, a move budget or a hybrid solution.

2. Factor in Geographic Cost Variations

Housing costs and costs of living vary dramatically across the US and worldwide. Moving someone from El Paso, Texas, to New York City? Your employee is going from an average cost of living of $1,775 to one that is 110.2% higher in the Big Apple.

Perhaps nowhere is the differential more evident than in the cost of temporary housing. We’re seeing many clients adopt lump sum policies to help manage their mobility budgets, while giving the employee full flexibility over how they use those funds. One of our large healthcare providers shifted to a lump sum policy a few years ago for those reasons. Of the nearly 500 moves it managed last year, not a single one was a full-service move. Their highest lump sum: $13,000 after taxes.

Key takeaway: Align your relocation policies with the cost of living in the destinations you’re asking your employees to move to. Consider offering lump sums for greater flexibility, and regularly assess your policy to ensure it remains competitive and effective.

3. Embrace Hybrid Solutions for “Return to Office” Policies

Perhaps nowhere is flexibility more in play than in “Return to Office” policies. At CapRelo, our clients’ approach runs the gamut. Many clients went completely remote during the pandemic, and likely never will return to the office. That ranges from a large health system that moves more than 500 people annually, to a small insurance provider that is fully remote with no intention to change.

We have others who are now requiring all employees to return full time to the office. And yet others, are flexing policies based on the individual employee’s role – some jobs simply can’t be done remotely, while other functions are perhaps even more efficient when done remotely.

“Surveys reveal many employees prefer retaining some level of remote work flexibility due to personal responsibilities such as childcare, eldercare, or improved productivity when working from home,” according to our recent article. “Mental well-being is also a key driver in the demand for hybrid work option

Key takeaway: In-office mandates can frustrate employees accustomed to flexibility, leading to morale dips and turnover as workers seek opportunities offering better work-life balance. Employers face increasing pressure to address these concerns while maintaining productivity. Hybrid work models are expected to dominate, emphasizing flexibility, mental well-being, and dynamic team structures. Adaptive policies, technology integration, and a strong culture of trust are crucial for creating a sustainable work environment.

4. Rely on Mobility Experts to Craft Tailored Solutions

Crafting a mobility policy that protects budgets while delivering employees with the flexibility they demand requires expertise and experience. For most of the HR professionals we work with, relocation is only a small part of their very complex and busy jobs. Staying ahead of mobility trends, regional costs and the latest best practices is a full-time job – one that we at CapRelo do every day, day in and day out.

If your mobility policy needs a refresh, partner with our relocation management experts. We take the time and legwork off of you, so that you can do what you do best: serving your organization and your employees.

Want to Learn More?

If your company’s mobility policies need a refresh, let’s talk. Our relocation management experts can help you craft solutions that meet the evolving needs of today’s workforce. Contact us today to get started.