A look at some of the biggest challenges facing companies looking to carry out an overseas relocation
Companies are being urged to think about the challenges surrounding relocating employees, to help reduce costs and smooth the transition.
Research has found that company costs, the changing expectations of employees, and emerging markets are the most significant relocation challenges.
A survey of more than 100 global corporations, carried out by a relocation research company, found that the most pressing issue for relocation managers was the costs.
Of those surveyed, 68% of corporations said this was their most challenging issue. In an effort to keep relocation costs down, many companies are now introducing strict budgeting procedures.
The research found that 32% of corporations have a formal cost estimation in place before any relocation of staff, as well as budgeting procedures on all transferees.
A further 21% of companies said they had realigned relocation benefits to more closely match employees’ level within the company.
By using a tiered system of relocation benefits, which creates different benefit packages for different levels of employees, companies can reduce their overall relocation spend.
Another significant relocation issue facing corporations is that of employee expectation. This can vary hugely depending on the age of the employee, and their level within the company.
This is more of an issue now than ever before, as expatriate packages are less attractive to employees so companies can keep relocation costs down.
And while a tiered system of benefits packages has brought down relocation costs, it has led to more opportunity for negotiation from employees.
This is especially true amongst younger employees, who have less financial responsibilities but who are more likely to be comfortable negotiating benefits.
International relocation services can help with several aspects of any relocation, from helping new families to settle into their surroundings, to explaining any differences in tax or immigration laws.
