Organisations need a mobile workforce for many reasons, including filling skills gaps, meeting temporary staffing needs and employee development.
In designing domestic relocation policies, major considerations include:
• What are the costs that employees and their families will face?
• How can the employer attract candidates to accept roles that involve relocation to higher cost locations?
Woodhams Relocation Centre has conducted surveys of domestic relocation policy since 2002. Over time we have observed a “less generous” approach by employers in the design of relocation policies, in particular in the area of housing costs. It should be noted that although the 26 responses (2010: 20, 2012: 25) provide valuable information about relocation practices of major corporations, changes in the composition of respondents from previous surveys and the size of the sample, mean that results should be interpreted as providing an informative snapshot rather than a statistically reliable indicator.
Long-term Housing Subsidies
In 2006, over 70% of participants provided a long-term
housing subsidy for relocations to a city with higher housing costs than in the home location (as a contribution to increased interest costs). We have seen this dramatically decrease over time to just 12% in 2014. For organisations that have sought to reduce costs this has probably been the most significant area of savings, particularly because any payments are subject to Fringe Benefits Tax.
Reimbursement of Home Selling & Buying Costs
There has been a reduction over time in organisations reimbursing selling and buying costs in comparison with previous surveys, although no significant change in the last two surveys:
The incidence of Temporary Assignments has grown compared with the 2012 survey reflecting anecdotal evidence, and consistent with wider workforce changes (e.g. increase in dual career families, pressure to reduce costs of long-term relocation etc.).
Other topics covered in the survey included policies & levels of relocation support, short-term accommodation, pre-assignment visits, household goods, relocation allowances, partner support and others.
To further discuss this report or obtain access, feel free to contact Nick Woodhams firstname.lastname@example.org