Is your mobility program ready for the future? Is your relocation policy limiting your ability to reach your strategic goals and support your talent?
Building an effective and scalable global mobility program is a challenge many multinational businesses are facing as they fight to attract, develop and retain the right talent around the world. Implementing a lump sum program can significantly reduce overall program costs, while positioning you to develop key talent.
Reduce Program Costs
Nearly 75% of companies expect to increase their population of mobile employees in the next 3-5 years (Deloitte 2012), yet at the same time companies cite controlling relocation costs as their number one challenge (Cartus 2013). Migrating parts of your policy to a managed lump sum can generate millions of dollars in savings for your program - with strong cost control, allowing for critical growth in the population of mobile talent.
Generation Y Preferences
85% of employees now want to take an international opportunity for career development versus just 24% for monetary gain (Cartus 2013), meaning that they no longer expect lavish expat packages. Technology-enabled lump sum moves provide companies with a scalable policy for developmental moves, and provide Gen Y valued autonomy and control, engaging them with their employers and driving real bottom line benefits.
Amid rapid globalization, employees with international experience have become a valued commodity. Providing international opportunities is critical to developing a pipeline of future leaders, and yet many relocation policies are limited to more senior staff. Implementing a managed lump sum program ensures that you can effectively develop young talent without significant cost or overhead increases.
Many multinational firms increasingly recruit talent across borders to meet growth objectives. 55% of companies have problems retaining high-potential employees (Towers Watson 2013), and the cost of losing a new hire in the first year is at least 3X their salary (The Wynhurst Group 2007). Managed lump sum policies support successful transitions for employees and protect the critical recruiting and onboarding investment.
With most mobility budgets and resources staying static or even reducing, the ability to increase the scale of global programs is constrained. 42% of companies believe that the best way to reduce costs is through process efficiencies (Santa Fe), and managed lump sum policies offer a viable way to increase move volumes without a linear increase in internal resources.
To learn more, join us at HR News in Silicon valley next week, Worldwide ERC in London in early February or Bay Area Mobility Managers in San Francisco at the end of February where our CEO Brynne Herbert will be presenting the benefits of lump sum programs. Email Frank@moveguides.com (Europe) or Kate@moveguides.com (US) to arrange a meeting with Brynne today.