Relocation of employees may become necessary for a company for various reasons including the requirement of employee services and talent in another location, or even a shifting of office location or expansion of a business. The corporate relocation industry, valued at $28 billion in 2016, has accordingly evolved, providing end-to-end solutions to facilitate easy and effectual relocation of employees, simplifying the process for HR managers.
In a competitive market where employees have multiple job opportunities, relocating employees with ease, across vast distances plays a significant role in the retention of talent and in seamless location change. While earlier the human resources department of a company would manage the process step-by-step, now external vendors are available to streamline the process, ranging from immigration to paper-work, taxation and residences.
Rising Number of International Assignments
Globalization, expansion of Fortune 500 organizations and consulting companies has resulted in a considerable global employee relocation market. International assignments are increasing in the US, Western Europe, Australia, Singapore, India, Japan, and China. Relocating existing employees helps companies avoid overhead costs in hiring and training in a different country.
Challenges of Relocation
A difficult relocation process is a bad deal for both the company and the concerned employee, resulting in high costs, and problems in adjustment, deterring the relocated employee from optimal performance.
Challenges in relocation include complicated immigration restrictions, visa issues, taxation complications, procurement of residence, visas for any dependents or partners, and overall adjustment in different surroundings.
Simplifying the Relocation Process
Destination Service Providers (DSPs) and establishing a point-of-contact person in the destination location to handle the relocation process lessen the pressures on the HR managers directly and also makes it easier for the relocated employees to find their grounding in a different environment.
By implementing data-driven decision-making and the right technology, HR and mobility teams can monitor expenses, highlight any possible difficulties, focus and optimize resources, streamline billing and eventually perfect the mobility program for the long-run.
Despite the world becoming a ‘global village’ each nation comes with its own set of difficulties for immigrant workers. Policies put in place by US President Donald Trump restricting the immigration process, the exit of UK from the European Union (Brexit) and regulatory policies in Latin America require a separate procedure for relocation, tailored to the destination country.
Many times, it is local experts who are most qualified and prepared to pave the way for the relocated employees to work in the destination country. Even once the relocated employees are settled in the new nation, many companies opt for standalone services in the destination country to support payroll, taxation, HHG (household goods) and spousal support as per the local guidelines.
Companies in North America and Europe are increasingly outsourcing relocation services to global players that can provide end-to-end solutions, along with technology platforms to track the relocation process and expenses incurred.
At a time when relocation of employees has become common, regionally and internationally, the added responsibility of an easy relocation falls onto the HR managers, to ensure effective utilization of the company’s resources and retention of the employee. The corporate relocation industry has grown correspondingly, to meet the needs of employee relocation in the most efficient manner.