A Balancing Act: Cost Management & Employee Satisfaction in Global Mobility
In today’s business landscape, cost pressure is a constant, often driving organizations to reevaluate their approach to employee relocation. Cost containment reflects a pragmatic response to economic realities, where companies strive to achieve operational excellence without compromising on their commitment to their workforce, specifically, recruitment, development, retention, and talent mobility efforts.
Managing costs against employee satisfaction and employee experience is a challenging balancing act that requires equal parts preparation and attention.
At Cornerstone, we believe it is possible to find the balance between business and workforce objectives and employee satisfaction with relocation programs. Here are some key strategies and considerations to help organizations with the challenges of managing costs today, and their employee satisfaction, tomorrow:
Program Development and Ongoing Optimization
Establishing clear relocation benefits and policies is the essential first step within relocation program management. Reviewing and identifying areas for refinement with your RMC year over year ensures your program meets the needs of relocating talent and aligns with organizational objectives and market trends while maximizing the value of talent investment. Questions that organizations can ask themselves include:
- Is the mobility program competitive?
- Is it meeting stakeholder needs?
- Are there any opportunities for cost containment?
- Are there opportunities for flexibility to better support your population without adding to program costs?
Assessing your program and evaluating your talent mobility needs can determine if the program meets current recruiting goals now and into the future.
Supplier Partner Management
Leveraging your RMC’s vetted network of suppliers and partners optimizes the variety of services needed by relocating employees. Your RMC can monitor performance, employee satisfaction, and costs allowing organizations to benefit from a streamlined process and framework that is unique to your program’s needs.
Expense Management
RMCs typically offer robust expense management solutions to track and oversee relocation expenses effectively. These tools are designed to centralize and facilitate fast, convenient expense payments for relocating employees, contributing to overall employee satisfaction, while also increasing efficiency and transparency in program spending. Reviewing exceptions regularly (requested, approved, and denied) gives key indicators of trends within a program. Regular reporting not only improves future decision-making, but ultimately can lead to cost savings.
Compliance Assistance
Work closely with tax advisors to understand the tax implications of global mobility for both the company and your relocating employees. Structuring compensation packages and benefits in a tax-efficient manner can minimize tax liabilities for both parties and contribute to overall cost containment.
Alternative Mobility Models
Explore various mobility models with your RMC, such as short-term or rotational assignments, as viable options to traditional long-term assignments. In certain cases, alternative relocation models can achieve critical business objectives while reducing overall relocation costs.
Performance Measurement
RMCs partner with their clients in establishing key performance indicators (KPIs) to monitor the effectiveness of their relocation programs, employee satisfaction, and cost-based initiatives. By tracking and analyzing relevant metrics, such as retention rates or satisfaction surveys, along with policies as discussed above, organizations can verify program successes and identify potential program improvements. A proactive approach, and even minor changes along the way, may allow for easier, and more effective, program changes down the road.
Drawing on industry expertise and market knowledge, RMCs provide organizations with valuable insights into complex legal and regulatory requirements, housing trends, immigration, and beyond. While economic change cannot always be anticipated, positioning your program for success is possible. By implementing these strategies and continuously monitoring and adjusting global mobility programs, organizations can find the sweet spot that effectively keeps programs up to date, manages costs, and supports their talent’s relocation needs.