As the world emerges from the challenges of the past two years, many companies are experiencing growth in their relocation volume and budgets.
The 2023 Atlas Corporate Relocation Survey was recently released. The survey’s findings revealed that relocation volume and budgets increased in 2022 and are expected to increase in 2023 for around half of all companies.
In this article, we’ll explore the main factors that are impacting relocation, why employees may not want to relocate and what can motivate them to make the move. Plus, we’ll cover five simple actions your company can take to make its relocation efforts more successful.
What recent factors are impacting relocation?
While companies reported improved global economies and better financial performance than in previous years, economic conditions still had a big impact on relocation in 2022. These conditions include inflation, interest rates and whispers/fears of a recession.
Companies are dealing with an increase in supply chain and logistics constraints and changing tax policies, which are also having an effect on relocation. “The Great Resignation” continues to be a big challenge for employers, too. Attracting and retaining talent while job-hopping and high “quit rates” are trending has posed a challenge.
Why are employees declining to relocate?
Now more than ever, the average person is considering global and/or local conflict, climate threats, and inflation in their decision to relocate. The pandemic has also created several demographic trends that might make relocation harder, such as a spouse leaving the workforce to stay at home. There’s also been a rise in family needs related to multi-generational support, like caretaking for an elderly parent or having an adult child still living at home. Among those issues, inflation and the real estate market are also making the cost of living a key consideration for workers.
What are motivating drivers for employees to relocate?
Relocation volumes and budgets are increasing for most companies, driven in part by workplace policies mandating a return to in-office attendance. Fully remote work is on the decline, though employees overwhelmingly prefer remote or hybrid office models. Voluntary relocation is a growing trend for employees who prioritize work/life balance and personal fulfillment. While competitive wages do matter, workplace culture is taking precedence.
How can a workplace respond to make relocating more desirable?
The most critical support for employees is partner/spousal support, childcare, and housing. Consider taking the following actions:
- Review and update job offerings and relocation benefits to make them more attractive and competitive to employees.
- Develop workplace management policies that take into consideration the changing attitudes and desires of employees, such as remote work, work/life balance, voluntary relocation, and flexibility.
- Account for lost or reduced incentives in relocation policies and provide resources and assistance to support the relocation of employees and their families.
- Consider building more extensive policies and resources for spouses/partners, childcare, and eldercare to help address pain points and make relocating more appealing.
- Additionally, remote/virtual hires can be used as alternatives for employees who report an inability to relocate due to family ties or a desire to stay local.
Ultimately, the success of a company’s relocation program depends on its ability to adapt to the changing economy and to prioritize the well-being of its employees. The Relocation America International team is here to make your relocation efforts easier and your employees’ experience as enjoyable as possible.
Review the entire 2023 Atlas Corporate Relocation Survey by clicking here.