The past few years have been anything but easy, with significant shifts in economic and social factors. Global relocation teams have had to navigate newfound challenges to minimize business disruptions.
Looking forward to the new year, we can expect some trends to emerge, making it important to consider the impact on your business to properly plan and reduce risk. These include: remote work, talent acquisition and retention, work/life balance and relocation programs
Companies today face a myriad of challenges when it comes to talent acquisition and retention. A few key struggles include the current talent shortage, intense competition with other companies, and demographic and generational changes in the workforce1. To overcome these struggles, implementing effective recruitment and onboarding processes, fostering a strong employer brand, and designing competitive compensation and benefit packages are essential strategies2.
Moreover, the role of employee satisfaction and loyalty cannot be overstated. From wellness initiatives to career development opportunities, these aspects significantly contribute to retaining top talent3. In fact, talent acquisition strategies can have a significant impact on employee retention, making it crucial for talent leaders to push for the kind of talent that will stay with the company long-term4.
Another factor to consider is the changing landscape of work. With the rise of remote work and flexible schedules, companies must adapt their strategies to suit the needs and preferences of the modern workforce2. Upskilling employees is also becoming increasingly important in a post-pandemic economy, as hiring shortages highlight the need for effective talent strategies5.
In conclusion, the struggle for talent acquisition and retention continues to be a major challenge for businesses across industries. However, by adopting effective strategies and adapting to changing workforce trends, companies can overcome these hurdles and attract and retain quality talent.
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One of the biggest changes that occurred in the post-pandemic world was remote work. Before the pandemic, only around 6% of total available jobs in the U.S. were remote; however, as of 2023, the total percentage of remote workers in the U.S. alone is 27% (Flynn, 2023).
HR and talent acquisition managers are now seeing an influx of requests for permanent remote roles. Companies that fail to adapt to the flexibility required by remote work risk losing talent. To manage this shift, many organizations are implementing remote, hybrid, or flexible work policies to keep essential talent and adapt to the new normal.
In 2023, a key focus for global companies was the development of policies surrounding compensation and support for remote workers.
According to Buffer, this includes considerations for expenses like home internet and office equipment, with data suggesting that 28% of remote workers receive company compensation for home internet, and 64% receive compensation for necessary hardware items.
For companies following traditional work models, the hybrid work method, where employees split their time between the office and home, is becoming more common. This model promotes flexibility and contributes to work-life balance. However, it might pose challenges for roles that require physical presence, such as in the biotech and manufacturing sectors.
Companies are aware of this shift and are taking steps to address employee needs. Some are using work/life balance as a differentiator, offering attractive benefits and flexible work arrangements to attract and retain talent. The future of work is also expected to see some significant trends. According to Forbes, these include the use of generative AI sustainable working practices and the need for future skills.
This trend requires employers to work with global relocation management companies for effective transition into new countries, addressing challenges like cultural differences, language barriers, and finding schools for children.
Before the pandemic, financial compensation was a key consideration for overseas assignments. However, in 2023, was a shift towards seeking a stronger work-life balance. Companies must adapt to this change to provide the right support services.
Moving away from the traditional 9-5 work structure, the concept of a 4-day work week has gained popularity. 71% of employees report that working from home helps stabilize their home and work life (Beckman, 2023).
The trial of a 4-day work week found high employee productivity, reduced stress levels, and a lower likelihood of burnout.
Companies offering the option to work from home, have reported a 25% lower employee turnover and higher productivity levels (Castillo, 2023).
However, the adoption of a 4-day work week brings into question its management in the context of global relocation. Cultural differences in various countries may influence their decision to adopt such schedules, requiring HR managers to consider these aspects when implementing global company policies.
For companies following traditional work models, the hybrid work method, where employees split their time between the office and home, is becoming more common. This model promotes flexibility and contributes to work-life balance. However, it might pose challenges for roles that require physical presence, such as in the biotech and manufacturing sectors.
Managing the successful placement of employees in a global environment can be tricky for some members of HR or talent acquisition teams. From fully understanding cultural implications to serving as a strategic negotiation lever, working with a reputable relocation service might be what your business needs to improve the longevity of relocation placements. Maximizing employee experience while finding strategies for cost containment and increasing ROI can be done from a strong partnership with a dedicated Relocation Management Company.
Relocation budgets should be re-evaluated especially if they haven’t been in a while to see if they are realistic. Expecting the new employee to take on a larger financial burden from what was reality a few years ago will have a negative influence on your ability to acquire new talent or experience failed relocations.
Considering the rapid inflation, tight housing market, and ongoing global supply chain challenges, 2023 saw higher relocation costs. As per Coherent Market Insights, the corporate relocation service market was at US$ 17.66 billion, indicating a significant market size and associated costs. , Employee Relocation Packages: Costs and Benefits (businessnewsdaily.com) these costs increased further in 2023 to about, $97,116 for homeowners and $24,216 for renters.
The global shortage of natural gas and labor continues to affect almost every aspect of the mobility process, especially in the household goods area, presenting challenges such as high costs and budget constraints, and a shortage of skilled labor in destination locations.
In 2023, last-minute relocations were increasingly challenging, often requiring four to six week booking requirements due to market dynamics. Additionally, labor costs saw a shift, with the going rate for relocation service often reaching $400 a day, a steep increase from the previous hourly wages of approximately $15 - $20, reflecting the current market conditions and labor shortages.
Rising relocation costs may force organizations to be more selective in the relocation process and to focus on necessary or high-impact moves. They may also choose to reduce the number of relocations or to provide employees with only limited assistance with each relocation. As a result, businesses must be more strategic in how they approach relocating employees, according to a survey by WERC.
In summary, global companies should watch out for the following 5 trends going into 2024:
Global relocation can be complex, which is why reaching out to our team at Relocation Coordinates International can be beneficial. We have successfully placed thousands of candidates, ensuring clear communication throughout the process. Reach out today to learn more.
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