MOVE Guides came across a recent survey of 520 companies by Ernst & Young demonstrating the ongoing disjoint between the global aspirations of a company and the day-to-day reality of the global mobility function. The role of global mobility is key to ensuring effective talent acquisition, retention and global expansion, yet rarely is the team given a seat at the decision-making table.
In most companies, strategic decisions about growth and development are made by executives far removed from the day-to-day function of global mobility, with little understanding of the process, cost and administrative burden involved in making these aspirations a reality. With 45% of respondents deeming their global mobility teams understaffed, it is no surprise that they do not currently have the money, tools or influence to achieve their potential.
Many of the global mobility specialists we speak to at MOVE Guides feel their policies could be improved, and more importantly should be tailored and segmented in much the same way employee compensation is. In an ongoing era of downward cost pressures, there is concern about the lack of transparency around cost and corresponding value of employee assignment and relocation.
Many businesses are recognizing the need to refine policies in order to reduce assignment costs, with the realization that lump sum policies help to ensure clear and accurate cost projections and reconciliations, with the added benefit of transferring the administrative burden to the employee. A lump sum approach removes the variable value from employee relocations, be they domestic or international, by ensuring that any cost overrun is picked up by the employees themselves rather than creating an ever-increasing cost to the business. With such understaffed teams, this approach helps to reduce the administration burden, but mobility managers are still faced with an endless list of relocation questions related to cities they may know little about.
New lump sum mobility management tools such as MOVE Guides address both the cost and administration burdens, by ensuring that employees are managing the process and associated costs themselves within the confines of their lump sum budget, but guaranteeing that they receive the necessary support and information they require to ensure a successful transition.
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