During this morning’s 2013 kickoff meeting, members of the Detroit Regional Relocation Council were treated to a presentation by HR industry veteran Joseph Pernaselli. Joseph is a Senior Manager in KPMG’s Global Mobility Advisory Services practice. He has a wealth of knowledge in all aspects of global relocation including programs, policies and technology. He is a frequent speaker within the International HR industry and has spoken at many events sponsored by SHRM, Worldwide ERC, NFTC and WIPA.
Our guest today was asked to provide both a relocation and economic look ahead for 2013 and offer any predictions for what might be in store for the relocation industry. In surveying his large and diverse client base, Joseph was able to determine where he thinks we’re headed both on the domestic and international mobility fronts. He offered a number of predictions:
- A increase in cafeteria style relocation benefit packages. Cafeteria style policies offer more flexibility and sometimes align better with individual transferee needs.
- Due to the rapid pace of change in the global business community the “shelf life” of relocation policies will continue to get shorter and shorter. What was attractive a couple of years ago might not work today.
- The use of “cutting edge” technology to better promote global mobility within organizations. Such technology includes the use of social media, employee portals dedicated specifically to mobility and match.com type needs analysis to better determine whether a candidate is suitable for domestic or global relocation.
- Loss on sale provisions within policies will change. Given that 71% of potential transferees list housing concerns as their top impediment to moving, loss on sale caps should continue to increase however capital improvements might not be a factor in calculating future loss benefits.
- On the global mobility side, cost containment will continue to be a top goal of most organizations. He sees a small uptick in global relocation volume and “soft programs” such as cultural and language training programs being reduced or eliminated. The number one reason for international assignments will continue to be support for business objectives and talent management.
Thank you again to our distinguished guests and to the DRRC for a wonderful kickoff meeting. We see good things ahead for 2013!