It would appear that there are some consistent global relocation challenges that many HR and Mobility Managers face.
Relocation Agents and Global Relocation Challenges
The Cartus “Trends in Global Relocation: 2015 Biggest Challenges Survey” outlined some key findings in relation to common global relocation challenges. As part of their survey, they got feedback from 148 global Mobility Managers on the challenges they are facing with their relocation programs.
78% said that “controlling relocation/ assignment costs was the number 1 issue” for HR or Mobility Managers.
99% also said that the cost control issue has been a consistent issue for a number of years. They also said that the cost control issue outweighs family issues by more than 5:1. I think this is reflective of the market in which we operate. All departments have budgets that they must work towards. As the global market faces some tough times, the importance of the bottom line and accountability becomes even more critical.
“62% said “complying with laws and regulations” was an issue. Over 63% said “they were experiencing longer visa wait times”.
As a relocation agent, I often speak with international employees who are experiencing this issue. They expect to be relocating at a certain time, only to find out that their relocation has been delayed. This has a flow on effect to their spouse or children who may be transferring with them. Now their life seems to be in “limbo” until the visa is processed. This in turn, puts pressure on everyone.
Of the respondents “77% said that the lack of available spaces in desirable schools” was a big issue for them.
Relocation Agents and Global Relocation Challenges
As Relocation Agents, we have a role to play in managing some for the global relocation challenges that currently exist.
64% said that the cost of housing was an issue. In Australia, we have seen such a dramatic increase in property prices, both rental and purchased. For example, the mining boom in WA has had an impact on property prices in that state. The supply versus demand for rental properties in the other capital cities has also had a massive impact on what you can get for your dollar.
We cannot change the state of the property market, however what we can change is the transferee/employees expectations of what they think they can get. Even before a client engages our relocation services, we spend some time educating them about the market place and what this means for them. Involving them in the process for shortlisting properties also helps to start educating them about the Australian market place and what they can get for their budget.
52% said that the quality of the housing was different from what they expected. So often employees expect to have a similar type, quality and cost of housing that they had in their country of origin. Therefore, the education process with the transferee must start early with regards to educating them about what they can expect in their new country. If the opportunity exists for the transferee to undertake a pre familiarisation tour / area tour before they accept the role this is great. However, this is often not included in the budget. Therefore, one of the first conversations our relocation agents have with a new client is about their expectations. If our relocation agents understand what they are expecting, we can start to manage this expectation.
Australian Relocation Managers is a bespoke executive relocation services provider, who specialise in managing the entire relocation process of executive clients relocating to and from Melbourne, Sydney, Brisbane and Perth.