relocation policy & trends – research highlights & insights
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Relocation Policy & Trends – Research Highlights & Insights
Big Picture – Three Years Ago
Big Picture – Today
Relocation Impact: Economic Conditions, Unemployment
88 89 90 91 92 93 94 95 96 97 98 02 03 04 05 06 07 08 09 10 110%
10%
20%
30%
40%
50%
60%
70%
Unemployment Rate Economic Conditions
Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor
Relocation Impact: Economic Conditions, Unemployment
88 89 90 91 92 93 94 95 96 97 98 02 03 04 05 06 07 08 09 10 110%
10%
20%
30%
40%
50%
60%
70%Decrease Relo Volumes Moving average (Decrease Relo Volumes)Unemployment Rate Economic Conditions
Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor
Relocation Impact: Company Growth, PMI
88 89 90 91 92 93 94 95 96 97 98 02 03 04 05 06 07 08 09 10 110%
10%
20%
30%
40%
50%
60%
70%
80%
PMI Company Growth
Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER Purchasing Managers Index Data – Annual Aggregate Data from Institute of Supply Management
Relocation Impact: Company Growth, PMI
88 89 90 91 92 93 94 95 96 97 98 02 03 04 05 06 07 08 09 10 110%
10%
20%
30%
40%
50%
60%
70%
80%Increase Relo Volumes Moving average (Increase Relo Volumes) PMICompany Growth
Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER Purchasing Managers Index Data – Annual Aggregate Data from Institute of Supply Management
Session PresentersKatrina StarnesPresident & Principal ConsultantKES Research, LLC
Douglas Weed, SGMS, SCRPVice President, Global Services & Supplier SolutionsCornerstone Relocation Group
Linda Bauer DarrPresident & CEO
American Moving & Storage Association
Experience & Expectations
Stay About the Same43%
Decrease11%
Increase47%
Total
52%
10%
37%
Less than 500 Salaried Employees
44%
13%
43%
500-4999 Salaried Employees
31%
7%62%
5000+Salaried Employees
Compared to 2010, Did the Number of Employees You Relocated in 2011…
2011: Overall Relocation Experience
2002 2003 2004 2005 2006 2007 2008 2009 2010 20110%
20%
40%
60%
80%
100%
30% 32% 41% 44% 39% 36% 27%18%
34%47%
40% 40%
47% 43% 50% 50%48%
41%
49%43%
30% 28%12% 13% 12% 14%
25%42%
17% 11%
Increase Stay the Same DecreaseTotals greater than/less than 100 are due to rounding.
Historical: Overall Relocation Experience Compared to [Previous Year], Did the Number of Employees You Relocated in [Last Year]…
2011: International Relocation Experience
Stay About the Same47%
Decrease11%
Increase42%
Total
53%
16%
30%
Less than 500 Salaried Employees
47%
13%
40%
500-4999 Salaried Employees
44%
6%
50%
5000+Salaried Employees
Compared to 2010, Did the Number of Employees Your Company Relocated Internationally During 2011…
Historical: International Relo Experience
2005 2006 2007 2008 2009 2010 20110%
20%
40%
60%
80%
100%
39% 34% 32% 28% 24% 28%42%
49%49% 54%
56%47%
56%47%
12% 17% 14% 17%28%
16% 11%
Increase Stay the Same DecreaseTotals greater than/less than 100 are due to rounding.
Compared to [Previous Year], Did the Number of Employees Your Company Relocated Internationally During [Last Year]…
Stay About the Same61%
Decrease12%
Increase26%
Total
63%15%
23%Less than 500
Salaried Employees
70%
7%
23%
500-4999 Salaried Employees50%
15%
35%
5000+Salaried Employees
Compared to 2011, Do You Anticipate the Number of Employees Your Company Will Relocate During 2012 Will…
2012: Overall Relocation Expectation
2003 2004 2005 2006 2007 2008 2009 2010 2011 20120%
20%
40%
60%
80%
100%
13%33% 33% 28% 29% 25%
10% 22% 30% 26%
58%
51% 51%52% 56% 56%
38%
53%58% 61%
29%16% 16% 20% 14% 18%
52%
26%13% 12%
Increase Stay the Same DecreaseTotals greater than/less than 100 are due to rounding.
Historical: Overall Relocation ExpectationCompared to [Last Year], Do You Anticipate the Number of Employees Your
Company Will Relocate During [This Year] Will…
2012: International Relocation Expectation
Stay About the Same55%
Decrease16%
Increase29%
Total
58%19%
23%Less than 500
Salaried Employees
59%18%
23%
500-4999 Salaried Employees
50%
13%
37%
5000+Salaried Employees
Compared to 2011, Do You Anticipate the Number of Employees Your Company Will Relocate Internationally During 2012 Will…
Historical: International Relo ExpectationCompared to [Last Year], Do You Anticipate the Number of Employees Your
Company Will Relocate Internationally During [This Year] Will…
2005 2006 2007 2008 2009 2010 2011 20120%
20%
40%
60%
80%
100%
27% 30% 29% 28%15% 18%
28% 29%
57% 57% 57% 57%
46%
65%56% 55%
16% 13% 13% 15%
39%17% 16% 16%
Increase Stay the Same DecreaseTotals greater than/less than 100 are due to rounding.
Volumes & Capacity – Industry Perspective
Year Less than 500 500 – 4,999 5,000 or more
2002 1 - 9 20 - 49 200 - 399
2003 1 - 9 20 - 49 200 - 399
2004 1 - 9 20 - 49 200 - 399
2005 1 - 9 20 - 49 200 - 399
2006 1 - 9 20 - 49 200 - 399
2007 1 - 9 20 - 49 200 - 399
2008 1 - 9 10 - 19 100 - 199
2009 1 - 9 10 - 19 100 - 199
2010 1 - 9 20 - 49 100 - 199
2011 1 - 9 20 - 49 200 - 399
By Company Size (Salaried Employees)
Number of Employees Relocated Previous Year - Median RangeAtlas Corporate Relocation Survey
Note: 361 companies responding in 2011; more than 100 participants from each size firm.
Worldwide ERC 2011 U.S. Transfer Volume & Cost Survey
Note: 118 companies responding in 2011; mostly larger firms (based on transfer volumes).
Pressures & Possibilities
Audience Participation!
What external factor had the greatest impact on the number of your employee relocations in 2011?
1 - Economic conditions2 - Lack of qualified people locally3 - Real estate market4 - Growth of domestic competition5 - Growth of international competition6 - Other7 - External conditions had no impact
External Factors
2011: External Conditions
Other
Growth of Domestic Competition
Growth of International Competition
Real Estate Market
Economic Conditions
Lack of Qualified People Locally
External Conditions Had No Impact
0% 15% 30% 45% 60% 75%
1%
9%
12%
36%
37%
51%
14%
Select External Conditions Having the Most Significant Impact on the Number of Employee Relocations in 2011
2011: External Conditions
Total Less than 500 Salaried Employees
500 - 4,999 Salaried Employees
5,000+ Salaried Employees
0%
10%
20%
30%
40%
50%
60%
51% 51%54%
46%
37%34%
30%
48%
36%30%
34%
45%
Lack of Qualified People Locally Economic Conditions Real Estate Market
Historical: External Conditions
88 89 90 91 92 93 94 95 96 97 98 02 03 04 05 06 07 08 09 10 1110%
20%
30%
40%
50%
60%
31%
51%
24%
53%
37%
0.22
0.40.36
Lack of Qualified People Locally Economic Conditions
Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER
Unemployment: Educational Disparity
2010 20110.0%
5.0%
10.0%
15.0%
20.0%
25.0%
4.7% 4.3%
7.0% 6.8%
9.2% 8.7%10.3%
9.4%
14.9% 14.1%
Bachelor's Degree and HigherAssociate DegreeSome College, No DegreeHigh School Graduate, No CollegeLess than High School Diploma
Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor
13%
30%
20%
9%
28%
Less than High School DiplomaHigh School Graduate, No CollegeSome College, No DegreeAssociates DegreeBachelor's Degree and Higher
Unemployment for less educated adults, comprising 63% of the population, averages higher than 10% 2010-2011.
2011 Educational Attainment of U.S. Adults 18+*
Only 37% of US Adults 18+ have Associates Degree or Higher (Averaging less than 6% unemployment the past 2 years)
*Percentages Calculated from Population Data Breakdown from 2011 U.S. Census Bureau ReportUnemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor
88 89 90 91 92 93 94 95 96 97 98 00 01 02 03 04 05 06 07 08 09 10 11 1235%
45%
55%
65%PMI NMI
Recession Recession Recession Recovery Recovery Recovery
PMI, NMI: Index Averages
Recession Periods Source: NBER Purchasing Managers Index Data – Annual Aggregate Data from Institute of Supply ManagementNon-Manufacturing Index Data – Annual Aggregate Data from Institute of Supply Management
2008 2009 2010 2011 20120%
20%
40%
60%
80%
100%
7% 12%
40%32% 35%15%
29%
52%57% 55%78%
59%
8% 12% 10%
Better than 2011 Same as in 2011 Worse than 2011
Real Estate: Expectations
Audience Participation!
What internal company condition had the greatest impact on the number of your employee relocations in 2011? 1 - Corporate reorganization/restructuring2 - Knowledge/skills transfers3 - Expansion into new territories4 - Growth of company5 - Promotions/resignations6 - Acquisitions/mergers7 - Expansion of facility8 - Budget constraints9 - Other 10 - Internal conditions had no impact
Internal Factors
2011: Internal Conditions
Other
Budget Contraints
Expansion of Facility
Acquisitions/Mergers
Expansion into New Territories
Corporate Reorganization/Restructuring
Promotions/Resignations
Knowledge/Skills Transfers
Growth of Company
Internal Conditions Had No Impact
0% 15% 30% 45% 60%
2%
14%
16%
23%
25%
27%
34%
37%
39%
7%
Select Internal Conditions Having the Most Significant Impact on the Number of Employee Relocations in 2011
2011: Internal Conditions
Total Less than 500 Salaried Em-
ployees
500 - 4,999 Salaried Em-
ployees
5,000+ Salaried Employees
0%
10%
20%
30%
40%
50%
60%
39%36%
43%38%
14% 12% 11%
18%
Company Growth Budget Constraints
Historical: Internal Conditions
88 89 90 91 92 93 94 95 96 97 98 02 03 04 05 06 07 08 09 10 110%
10%
20%
30%
40%
50%
60%
70%
46%
24%
39%
13%
29%
14%
Company Growth Budget Constraints
Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER
2006 2007 2008 2009 2010 2011 20120%
20%
40%
60%
80%
100%
76% 74%59%
27%
63%71% 67%
20% 23%
32%
34%
32% 20% 29%
4% 2% 9%
40%
5% 9% 4%
Better than 2011 Same as in 2011 Worse than 2011
Firm Performance: Expectations
Audience Participation!
Did any employees decline the opportunity to relocate in 2011?
1 - Yes2 - No3 - Don’t know
Declined Relocations
2011: Declined Relocations
Total Less than 500 Salaried Em-
ployees
500 - 4,999 Salaried Em-
ployees
5,000+ Salaried Employees
0%
15%
30%
45%
60%
75%
90%
57%
33%
58%
83%
Declined Relocations in 2011
2011: Declined Relocations
Total Less than 500 Salaried Em-
ployees
500 - 4,999 Salaried Em-
ployees
5,000+ Salaried Employees
0%
15%
30%
45%
60%
75%
90%
57%
33%
58%
83%
18% 15% 17% 21%
Declined Relocations in 2011 Number of Declined Relocations Increased
Historical: Declined Relocations
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 110%
15%
30%
45%
60%
75%
90% 82%
65%
57%
27% 28% 29%
18%
Relocations Declined Number of Declined Relocations Increased
Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER
Other
Job Security Concerns
No Desire to Relocate
Cost of Living in New Location
Spouse's/Partner's Employment
Personal Reasons (non-disclosed)
Family Issues/Ties
Housing/Mortgage Concerns
0% 15% 30% 45% 60% 75% 90%
3%
7%
28%
28%
39%
42%
64%
71%
Reasons Employees Gave for Declining Relocation in 2011*
2011: Reasons Relocations Declined
2011: Reasons Relocation Declined
Total Less than 500 Salaried Employees
500 - 4,999 Salaried Employees
5,000+ Salaried Employees
0%
20%
40%
60%
80%
64% 64%
74%
55%
39% 42%38% 38%
71%76%
66%73%
Family Issues/Ties Spouse's/Partner's Employment Housing/Mortgage Concerns
Historical: Reasons Relocations Declined
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 110%
20%
40%
60%
80%
100%Family Issues/Ties Spouse's/Partner's Employment Housing/Mortgage Concerns
Recession Recession Recession Recession Periods Source: NBER
Shifting Sands
Relocation Remains a Balancing Act
Talent NeedsEmployee Reluctance
Company GrowthReal Estate Market
Budgets
Economic Recovery?
Knowledge Sharing
Audience Participation!
Is your company utilizing “alternative assignments” (i.e. extended business travel, cross-border commuting, localization, permanent international transfers, rotators, etc.)?
1 - Yes2 - No, but we plan to do so in the coming year3 - No, and we don’t plan to do so
Alternative Assignments
2011: Alternative Assignment Use
Total Less than 500 Salaried Em-
ployees
500 - 4,999 Salaried Em-
ployees
5,000+ Salaried Employees
0%
15%
30%
45%
60%
75%
46%
30%
47%
60%
Altenative Assignments Used or Plan to be Used
2011: Alternative Assignment Use
Other
Used in Place of Traditional Short-Term Assignments
Used in Addition to Traditional Short-Term Assignments
Used in Place of Long-Term Assignments
Used to Develop Internal Talent
Used in Addition to Long-Term Assignments
Used to Accommodate Employee Needs
Used to Maximize Budget/Corporate Resources
Used to Meet Strategic Business Goals
0% 15% 30% 45% 60% 75% 90%
2%
15%
28%
29%
34%
39%
40%
45%
57%
How Alternative Assignments Are Incorporated into Corporate Employee Mobility Strategy
Total Less than 500 Salaried Employees
500 - 4,999 Salaried Employees
5,000+ Salaried Employees
0%
20%
40%
60%
39%
12%
41%
52%
29%26%
34%
25%28%
12%
22%
42%
15%18% 19%
9%
Addition to Long-term Replace Long-termAddition to Short-termReplace Short-term
2011: Alternative Assignment Use
Audience Participation!
Which cost containment measure in relocation policy/practice was utilized most by your company over the past year?
1- Cap relocation expenses2 - Pre-decision counseling 3 - Restructuring policy tiers4 - Limit miscellaneous allowances5 - Reviewing/renegotiating contracts6 - Short-term/travel/commuter arrangements7 - Other8 - No cost containment measures beyond typical relocation policy or program utilized
Cost Containment
2011: Cost Containment Measures
Other
Offer Short-term/Extended Travel/Commuter Arrangements
Restructure Policy Tiers/Eligibility for Benefits
Limit Miscellaneous Allowances
Offer Pre-decision Counseling
Review/Renegotiate Supplier Contracts
Cap Relocation Benefit Amounts
No Cost Containment Measures Beyond Typical Pol-icy/Program
0% 15% 30% 45% 60%
1%
18%
19%
19%
23%
24%
35%
30%
Selected Cost Containment Measures Used by Firms in 2011
Total Less than 500 Salaried Employees
500 - 4,999 Salaried Employees
5,000+ Salaried Employees
0%
20%
40%
60%
35%
42%
36%
26%24%
16% 17%
40%
23%
9%
19%
42%
19%
9%
18%
29%
Cap Relocation Benefit Amounts Review/Renegotiate Supplier Contracts
Pre-Decision Counseling Restructure Tiers
2011: Cost Containment Measures
Historical: Cost Containment Measures
2009 2010 20110%
20%
40%
60%
31% 30%
35%
26%22%
24%23%20% 19%
17%
23%
Cap Relocation Benefit AmountsReview/Renegotiate Supplier ContractsPre-Decision CounselingRestructure Tiers
Historical: Cost Containment Measures
2009 2010 20110%
20%
40%
60%
31% 30%
35%
26%22%
24%23%20% 19%
17%
23%
Cap Relocation Benefit AmountsReview/Renegotiate Supplier ContractsPre-Decision CounselingRestructure Tiers
Questions?
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Katrina StarnesPresident & Principal ConsultantKES Research LLCEvansville, IN 47725Phone: 812.867.0179E-mail: katstar@insightbb.com
Douglas Weed, SGMS, SCRPVice PresidentCornerstone Relocation GroupBasking Ridge, NJ 07920Phone: 908.580.9600E-mail: DWeed@crgglobal.com
Linda Bauer DarrPresident & CEOAmerican Moving & Storage AssociationAlexandria, VA 22314Phone: 703.683.7410 E-mail: ldarr@moving.org
Ryan McConnellVice President, Corporate MarketingAtlas Van LinesEvansville, IN 47711Phone: 800.638.9797E-mail: ryamcco@atlasworldgroup.com
Session Presenter Contact Information
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