NRI - THE FUTURE OF CORPORATE RELOCATION - NRI Relocation
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THE FUTURE OF
CORPORATE RELOCATION
NRI Taking
Relocation
Personallymacro-economic events in a flexible manner, while
BACKGROUND controlling costs.
The demographic changes that we see occurring
in today’s workforce have intensified the war for As we move forward, mobility strategies will need
talent. Where once one or two generations worked to evolve to meet more sophisticated deployment
together, today’s workplace may have as many as four demands, while simultaneously managing the very
generations working side-by-side. different needs and expectations of the new
multi-generational workforce.
And the future promises more challenges for today’s
organizations, particularly in the way the workforce is
sourced, organized and managed. Business growth
potential in emerging markets has already increased The best mobility strategies will be
the need for companies to move and source talent.
Talent mobility is at the forefront of emerging trends in personal, agile, and adaptable, capable
the marketplace and that means significant changes of meeting both the specific goals of the
in approaches to recruitment, mobility, and resourcing company and different demographics of
strategies to align with broader plans and strategy for
sustainable business growth. employees.
If organizations wish to ensure that their talent and
mobility strategies progress to keep pace with these
The pressure on HR departments to justify
changes, existing relocation policies for domestic and
expenditures, manage program costs, and support
international assignments should be regularly re-
mobility decisions will only increase in the future.
appraised and realigned to better serve their business
To stay ahead of this trend, HR departments should
goals. consider acting proactively and incorporating
predictive relocation models to enhance their
EXECUTIVE SUMMARY recruitment strategies.
Your relocation policies may be impacting recruitment
Shaping a corporate relocation program to fully
more than you think.
enhance and support multigenerational recruitment
In the last century, the business world has changed efforts is one of the most effective ways that
dramatically, and especially in the last decade. organizations can meet the challenges of the future.
Technology, trade, and the exchange of knowledge, The winners in 2020 and beyond will be those
capital, and goods has both increased the need for a companies that adjust their strategies now.
skilled and experienced workforce while at the same
time creating a critical shortage of talent in specific HOW MOBILITY IS CHANGING
markets and disciplines. And with people living longer, Mobility has evolved from simply transferring skills, to
healthier, and more vibrant lives, it is not unusual to an operation which seeks to maximize the deployment
have three or four generations working side-by-side. of human capital to address a far more complex set of
business needs:
Each generation brings with them their own set of
cultural expectations and needs which affect their • The need to recruit and develop well-rounded
engagement and the ways in which they engage at leaders of the future, from within the organization’s
work. This is the face of modern mobility – and it brings internal assets.
with it its own new set of challenges.
• The need to offer attractive career opportunities to
Employee relocations have increased by 25% in the the best talent as competition to attract and retain the
last ten years, and employees today have different best intensifies.
expectations for the relocation process than before.
Delivery of the relocation experience - and its • The acknowledgment that new markets may require
implications for a successful future relationship – is new ideas and/or a transfer of knowledge, skills, and
more critical than ever before. experience.
Mobility programs are now being included as a key • The recognition that in an increasingly inter-
element in attracting, recruiting, and engaging talent. connected world key roles often may still be a “boots
Mobility programs allow companies to take advantage on the ground” regional perspective for an extended
of emerging opportunities and markets and cope with period of time.
2The main mobility priority for organizations is still
to have the right skills in the right place at the right
TALENT A CONCERN FOR CEOS
time. While company growth remains the top internal Talent management has become a concern among
condition influencing relocation volumes, talent CEOs in a variety of industries. In one recent survey1,
shortfalls remain one of the most forceful drivers of only 30% of these senior executives reported that
relocation volumes overall, regardless of company they felt they had sufficient talent to meet future
size. And, as organizations evaluate their talent growth goals. In the same survey, 60% reported that
requirements in today’s business environment, they they planned to dedicate some part of their efforts
should also reevaluate their approach to mobility. This to address the talent challenge, and 78% of them
is particularly true with respect to different generations said they expected to make changes in the way
of employees, because the expectations and needs of their company handles talent acquisition and talent
each generation vary considerably. retention.
This also means that how relocation is executed has The changing composition of the workforce inevitably
become a more fluid concept. Relocations are still has consequences for assignment strategy, as does
driven by strategic goals, and also by the need to the changing concept of “family”. Today’s families have
optimize the investment in a mobility program. moved beyond the old definition of the nuclear family:
As organizations seek to maximize their investment in • Employees may have aging parents to care for
mobility, forward-thinking HR departments are utilizing
• Dual working parents form an increasing proportion
their relocation program as a recruiting tool: as a way
of the workforce
to recruit and bring the best people to work and train
together, wherever they may be. • The proportion of female assignees has doubled over
the past 10 years, from 10% to 20%2
MANAGING MODERN MOBILITY
Our projections are that these trends will continue to
Mobility programs have moved beyond the
increase, leading to a greater complexity of needs to
traditional HR concerns of logistics, compensation
be met during relocation.
and tax issues. HR has always been responsible for
developing the relocation policies and procedures of
their organization. But as the competition for talent
management has become increasingly critical for
many companies, HR and its role in relocation has
One size doesn’t fit all when it comes to
taken on a new level of importance. relocation.
This is particularly important for employers in new
or emerging markets, where mobility programs can
A new approach to mobility assignment signals to
significantly impact recruitment, succession planning,
employees that the organization understands that one
and talent resourcing. As well as serving to meet skills
size doesn’t fit all when it comes to relocation – or to
demands, relocation assignments are seen as critical
their future with that organization. The impressions
in the development of well-rounded talent, in the
gained (or lost) during relocation can have lasting and
retention of key workers and development of talent
significant impact on the future relationship between
pipelines for the next decade.
employer and employee.
The best mobility strategies will be agile, adaptable
and constantly evolving to meet the specific
Mobility is evolving, and so is the requirements of each generation and each group of
complexity of managing a mobility employees, and the business as a whole.
program.
Today, mobility means integrating a diverse selection
of approaches to meet a diverse selection of talent
demographics, in an environment where organizations
need to move talent seamlessly, while monitoring risk
and compliance, costs, and return on investment.
3as a mortgage or a spouse or partner with their own
WILL THEY DANCE WITH YOU? career. This generation will appreciate relocation offers
Hiring and recruitment have evolved into a complex that include help with home-finding or partner career
“dance,” in which both recruiters and candidates seek assistance. Similar to the silent generation, Boomers
to impress one another. prefer face-to-face contact when networking or
communicating. Although they tend to use technology
Employers try to entice desirable candidates with
in their daily lives, they also like human contact and
career opportunities, challenging projects, and
prefer to deal with a person rather than an automated
generous salaries and benefits. On the other side,
help system.
candidates pitch their competence, commitment, and
skills to potential employers. Generation X (“Gen X”)
The steps of the dance are made more complex by Generation X (“Gen X”) is a generation that, in some
the fact that no less than four distinct generational respects, overlaps Baby Boomers. Born between
identities — Traditionalists (born 1922-45), Baby 1965-1982, the almost 50 million that make up Gen X
Boomers (born 1946-64), Generation X (born 1965-80), are technologically-savvy, but they also value direct
and Generation Y (born after 1981) — make up today’s contact. This generation tends to work best with a
workforce, and that each of these four generations is combination of technology and personal interaction.
shaped by its own life-defining events and motivated Typically, Gen X’s prefer to begin by accessing online
by distinct needs and wants. resources or using technology to do research or
tracking. However, they like knowing that they can
UNDERSTANDING THE access an actual human if they cannot solve their
issue online. Although they are not afraid of career
GENERATIONS challenges or to make sacrifices for their career, Gen
The four generations in today’s workplace can be X’s are actively seeking a balance between their
broadly understood as: personal life and their career.
Traditionalists Like Baby Boomers, Gen X’s are likely to have
family commitments that present challenges during
Traditionalists (the “silent generation”); born between relocation. They appreciate relocation offers that
1925-1945. At one time, many in this age category provide flexibility to address those challenges
would have been retired, but the recession has
propelled some members of this generation back into Generation Y (Millennials)
the workforce. Others have either voluntarily returned
to work, or continue to enjoy the stimulation of work. The 72 million members of Generation Y (Millennials),
These workers possess important legacy knowledge born between 1982-2000, are the most-talked about
and skills, and they are willing to share their generation of the moment. Millennials usually have
experience and expertise. However, they are often very few, if any, personal constraints to complicate
mistakenly dismissed as “out-dated” or “irrelevant” relocation and most companies that offer these
sources of knowledge. workers relocation benefits generally offer a lump
sum. Millennials have grown up with technology and
Although these workers have decades of valuable are extremely comfortable communicating virtually
knowledge, they may also have some difficulty through text, email, or social media. They tend to
adapting to newer technologies and usually prefer to prefer less-direct methods of communication over
make personal contact to gather information. During a phone call or personal contact. Providing online
relocation, this generation will appreciate having a resources and help to this generation are essential. A
single point of contact to use as a resource. third party relocation company can assist with taking
the strain off HR departments to provide materials and
Baby Boomers information.
Baby Boomers, born between 1946-1964, represent
the majority of the existing workforce. An estimated
80 million strong, this generation brings a strong work
ethic and expectations of mutual loyalty between
company and employee. This generation also expects
to make personal sacrifices for career advancement.
Boomers are most likely to have family commitments
that may complicate their willingness to relocate, such
4PERSONAL AND LIFESTYLE CHARACTERISTICS BY GENERATION
Veterans Baby Boomers Generation X Generation Y
(1922-1945) (1946-1964) (1965-1980) (1981-2000)
Core Values Respect for Optimism Skepticism Realism
authority Involvement Fun Confidence
Conformers Informality Extreme fun
Discipline Social
Family Traditional Disintegrating Latch-key kids Merged families
Nuclear
Education A dream A birthright A way to get there An incredible
expense
Communication Rotary phones Touch-tone phones Cell phones Internet
Media One-on-one Call me anytime Call me only at Picture phones
Write a memo work E-mail
Dealing with Put it away Buy now, pay later Cautious Earn to spend
Money Pay cash Conservative
Save, save, save
moving on when a better opportunity presents itself is
WHAT THIS MEANS FOR HR higher than it has been for past generations of workers.
In one survey, 38% of Millennials said were actively
seeking new opportunities, and 43% said they were not
HR departments that use a “one-size- actively looking, but would be open to offers4.
fits-all” relocation program ignore these While this is good news for companies that wish
generational differences at their own to recruit Millennials, it’s also bad news for those
companies that do so with an eye to developing their
peril. in-house pipeline of talent.
To attract high performing employees from all four
For example, Millennials, who will form the majority of groups, organizations must develop an integrated
the workforce by 2020, have particular characteristics recruitment strategy that speaks to the requirements,
that employers can’t afford to ignore. Millennials needs, and interests of each generation. And, if
are looking for personal fulfillment, job satisfaction, relocation is required, a similar flexible approach to
and fast progression in their careers. Unlike their addressing this generational diversity can help to
predecessors, they expect to transition through a ensure smoother and more productive transitions.
number of different employers and their focus is most Here, are five steps that your organization can take
often on opportunities that meet their interests rather towards building better integrated recruitment and
than on monetary compensation. relocation strategies:
Again, this perspective is shaped by their experiences: 1 Understand the characteristics of the four
many Millennials feel they have made compromises generations
to enter the marketplace, due to the constraints of the
Each generation has experienced unique events that
past few years. This means that the chances of them
have defined and shaped their core attitudes and
5values, and which influence that generation’s attitude distinct values, motivations, and expectations shared
to seeking employment and their engagement in the by members of each generation, so that your message
workplace. speaks to the specific group you are trying to recruit.
In recruitment, these differences can be seen in Depending on the generation, relocation policies may
the types of work and organizational culture each need to address issues such as short-term housing,
generation seeks. In relocation, the differences can lump sum disbursements, home-finding trips, and
be seen in the compensation they negotiate, and the much more.
relocation benefits they find attractive.
4. Establish transparency and alignment between
Of course, there are always candidates that don’t promises and reality
fall into neat categories based on age. But the same
principle applies to designing a relocation program: All four generations are interested in challenging
it is important for HR professionals to understand work, supportive management, and a positive work
generational profiles and differences. When you environment. But the younger generations will want
understand the needs, desires, and expectations of to know whether or not your organization’s promises
each generation, it is easier to create a relocation offer to them are likely to come true. Younger candidates
that aligns with needs and expectations and which are likely to view the relocation process as an “insider’s
begins the future relationship in a positive way for both perspective” on your company culture and their
employer and employee. prospects within it. And they are much more likely to
draw conclusions during the relocation process that
2. Evaluate existing relocation policy may color their future career decisions.
Hiring managers and recruiters should evaluate It is crucial, then, that the messages your organization
their current relocation policy to identify the gaps communicates and the opportunities you promise to
in their organizations’ abilities to successfully attract candidates during the relocation process are aligned
multigenerational candidates. A well-designed with the culture and structure of your organization. If
relocation program is able to help sell the organization not, candidates will pick up on the inconsistency and
in a way that interests and excites potential candidates will question your organization’s ability to deliver on
from all four generations. the employment deal. Since the relocation process will
probably be the candidate’s first experience with your
To a relocating employee or new hire, your corporate company as an employee, a smooth relocation with no
relocation policies serve as a preview for the value surprises is the best way to begin the relationship.
your company places on its employees, as well as
providing a window into its organizational culture. 5. Understand how to incentivize each generation
Because of this, a relocation policy should include
components designed to smooth the relocation Because each generation views work and their
process for employees and their transition to the relationship to an organization differently, candidates
new location. Technology has moved from playing will not all respond the same way to an offer of
a supporting role to playing a key role in today’s relocation benefits.
relocation environment. But in spite of the necessity
For example, full reimbursement and lump sum are
for up-to-date technology as an integral part of the
the top two choices for relocation programs. Since
relocation process, technology will not replicate the
2008, full reimbursement and lump sum payments
effectiveness of “the human touch”. are nearly tied in popularity among firms that relocated
employees.5 However, the same offer may be viewed
very differently through the prisms of age and
experience.
Technology will not replicate the
effectiveness of “the human touch”. A lump sum offer may be welcomed by a new hire
Gen Y candidate who has little in the way of household
goods or family commitments, and therefore few
relocation expenses to reimburse. But the same
3. Create relocation offers that appeal to each lump sum benefit might leave a Baby Boomer
generation transferee cold. Instead, an offer that includes real
estate assistance, a home-finding trip, employment
To ensure that your organization can attract and retain
assistance for a spouse or partner, or household goods
the best and brightest from all four generations, you
shipping may be much more attractive to such a
need to tailor your relocation offer to appeal to the
candidate than just getting a check.
6HR plays an important role in attracting a high caliber
WHY RELOCATION PROGRAM workforce and maintaining motivation within it.
DESIGN MATTERS TO YOU Creating a culture of openness and trust can ensure
In short, it’s important that HR professionals appreciate that employees can be clear about their aspirations
how different generations respond to the relocation and ensure that the business can support them where
process because different generations view an possible, helping to create and maintain a happy
employer’s investment in them differently. workforce. Relocation is an excellent opportunity for
organizations to help employees understand the future
Although younger generations are more likely possibilities for their career and actively demonstrate
to relocate more willingly, their loyalty to the that the organization understands the different needs
organization cannot be assumed. Millennials and and motivations of employees.
Generation X frequently define loyalty to an employer
as opportunities to achieve results and as being In order to reap the greatest possible benefit from
supportive of their manager and colleagues, while recruitment efforts, relocation programs should be
advancing their own self-interests. In contrast, designed to support recruitment efforts for the best
Traditionalists and Baby Boomers often define loyalty candidates, regardless of generation.
as a long-term commitment to an organization.
ABOUT NRI RELOCATION
NRI Relocation is a full service corporate relocation
management company. We offer personalized, tailored
Relocation is a golden opportunity for relocation solutions for U.S. domestic and global
HR departments to lay the base for a employee transfers. Our proven relocation services
help our clients maximize their relocation investment,
solid commitment and ongoing loyalty and protect their human and intellectual capital assets,
from the relocating employee. while delivering personal care to
our customers.
We help HR departments manage talent more
A relocation policy, the benefits offered, and the way in effectively, while streamlining documentation and
which the benefits are tailored to meet the needs and processes. Our clients enjoy relocations that progress
interests of the candidate, conveys volumes about how easier and more smoothly, and transferring employees
the organization values their employees. that are happier, less stressed, and more productive.
Since most HR practices and processes are, by default, To make sure your policies are current with market
founded on Traditionalist and Baby Boomer values, trends and consistent with your recruitment and
there may be some growing pains involved in adjusting retention strategies as well as your corporate culture
to the increasing demands and straightforward contact us: 1-800-598-8887 or visit us online at:
negotiation style of younger candidates. www.nrirelocation.com
References:
THE BOTTOM LINE 1. PwC’s 15th Annual Global CEO Survey, 2012
2. Brookfield Global Relocation Trends Survey 2012
3. Graph credit: fdu.edu
4. Gina Sian, Early career change among millennial US college
New workplace and workforce trends graduates (DePaul University 2013)
5. Atlas Van Lines, 47th Annual Corporate Relocation Survey 2014
are realities that all organizations must
adapt to if they are to prosper.
Getting the right people with the right skills into
the right position at the right time is crucial talent
management for any organization. Recruiting and
developing talent from all age groups to optimize
talent pipelines is the most efficient and effective
way for organizations to meet their human capital
requirements.
7NRI Taking
Relocation
Personally
EXPERIENCE
WHY OUR CLIENTS TRUST US
SERVICES: DESTINATION:
• Policy Design • Temporary Living
• Policy Administration • Home Finding
• SNAP! Budgeting Tool • Rental Assistance
• WebView On-Line Portal • Mortgage Programs
• Expense Management & Reporting • Settling In
DEPARTURE: GLOBAL:
• Home Marketing Assistance • Assignment Services
• Home Sale Options • Global Compensation Services
• Household Goods Transportation • Language & Cultural
• Visa & Immigration
• School Assistance
• Tax Assistance
Contact NRI Relocation Today
800-598-8887
1110 W. Lake Cook Road, Suite 301
Buffalo Grove, IL 60089
www.nrirelocation.com
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