The global mobility industry is ever changing, influenced by shifting regulations, talent needs, economics, and technology. It is essential for companies to keep informed to ensure competitive policies as well as attract and retain key talent. Cornerstone always keeps a close eye on mobility trends to keep our clients informed. In part two of our look at the state of mobility, let’s explore the global trends impacting mobility in 2025.
Workforce Trends Shaping Mobility Support
With the pandemic firmly in the rear-view mirror, more companies are instituting return to office (RTO) mandates. An RTO mandate can be mostly in-person (4+ days/week) or a hybrid arrangement where the employee works 2-3 days in the office and the remainder remote. In the latest research from McKinsey, employees working at least four days in the office doubled from 34% to 68% between 2023 and 2024 with those working in a hybrid or mostly remote arrangement declining. With the U.S. federal government along with large global companies such as Amazon, AT&T, and JP Morgan Chase requiring return to in-person work in 2025, the number of employees working in the office will continue to grow. While in-person working is still less than pre-pandemic, some employees have indicated they plan to leave their employers rather than return to the office, especially if a non-company supported relocation is needed to comply with the company’s mandate. Mobility teams have an opportunity to support RTO efforts by defining how/when employees may be supported and ensuring the necessary support is available to those either hired remotely or who moved when the role became remote.
As part of RTO efforts, some companies have found that they either lack the office space needed to accommodate all returning employees or need to incent employees with upgraded offices. This may result in decisions to change office locations, which in some cases can trigger the need for group move support.
Group moves can also be triggered by other factors such as changes in corporate tax rates, cost of living, or availability of talent. An uptick in group move activity is expected this year.
Navigating Immigration Policy Shifts and Compliance
Globally, in 2024, immigration policy was a key issue in more than 70 elections. Policy shifts, whether immediate or long-term, are anticipated as a result of these elections. At the same time, there are critical shortages of skilled talent in certain fields requiring countries to ensure accessibility to meet hiring needs.
Enforcement of immigration laws is expected to become more of a focus resulting in increased scrutiny of applicants, approval delays and stricter border control. Particularly in the U.S., companies may see increased site visits to verify information submitted on applications for employees that have received work authorization.
Companies must remain vigilant and educated on changing immigration policies and should evaluate back-up strategies to support the talent mobility needs of the organization.
Increasing Importance of Sustainability in Global Mobility Programs
2025 will mark the first year that reporting is required under the EU's Corporate Sustainability Reporting Directive (CSRD). In February, the rules regarding the directive were simplified. Under the new rules, the CSRD will only apply to companies with more than 1,000 employees. While the reporting requirement predominantly applies to organizations in the EU, some U.S. companies may also be impacted. Separately, U.S. companies will be navigating changing federal and state requirements. Outside of legislation, companies also need to contend with customer demands for sustainable products and policies.
The result of these dynamics results in mobility teams looking to incorporate strategies to reduce carbon in their programs and policy benefits. It may also require mobility teams to support company reporting efforts.
Demand for Digital Solutions
With the rise of AI and wide availability of integrated technology, companies are looking for efficiencies and service that digital solutions can provide. The demand for integration of emerging technology is prevalent across the mobility supply chain, whether AI supported procurement processes or supplier integration that provides companies with real-time information to support decision making. While critical, mobility continues to be highly personal and the human connection between employees and the companies supporting them remains a priority.
Employee Flexibility and Choice in Global Mobility Policy
Changes being made to global mobility policies reflect the need to balance flexibility/choice and a first-rate employee experience with efficient cost management. There is a continuing trend toward structured core/flex policies, which are a great way to accomplish all three goals. Structured core/flex or tiered policies with benefit or service limits provide efficient cost management. High quality employee experiences are attainable through the increased personalization and choice inherent in core/flex programs.
Lump sum policies are another option offering employee flexibility, though globally, companies are moving away from lump sum policies except for early career/entry-level programs. Companies are recognizing that lump sum policies do not provide the support needed for an international move or assignment, increasing the burden on the employees and local stakeholders, who often are called upon to assist the employee. If a lump sum policy cannot be avoided, Cornerstone provides the employee with expert guidance and vetted suppliers along with an intuitive lump sum tool that enhances the employee experience.
Challenges in the Global Supply Chain
Global supply chain seems to be in a constant state of flux due to global events and geopolitical issues. Key areas to watch include:Factors Impacting Household Goods Shipments
Disruptions to shipping in the Red Sea and the Suez Canal are expected to continue in 2025 due to the geopolitical tensions in the Middle East. Because of safety concerns, many ships are continuing to avoid the area by sailing around Africa, resulting in longer transit times and higher costs. Additionally, more ships are needed to transport the same amount of cargo, resulting in equipment shortages. International shipping costs and travel times are expected to continue to rise.
While the number of ships allowed through the Panama Canal has increased, it still remains reduced due to water levels. Starting January 1st, new changes were introduced to the reservation system and new tariffs were introduced. These changes will also contribute to higher international shipping costs.
Global household goods shipments touching the U.S. may be impacted by rising toll and fuel charges, increasing warehouse rent rates, and higher truck repair costs. In addition, household goods providers are contending with higher insurance rates as a result of increased litigation. To best manage cost, ensure plenty of lead time for shipments and work with Cornerstone for access to a negotiated network of suppliers.Affordability and Accessibility of Housing
Each location has its own unique challenges, however across the globe, employees moving internationally are facing tight housing markets and rising prices. This is particularly applicable to low to middle priced properties in major cities. To navigate these challenges, companies may need to consider increased temporary living benefits and flexibility with budgets and lease start dates. Employees may need to consider housing options that may not meet all their requirements. Rome Jubilee
The Rome Jubilee, a year-long celebration in the Roman Catholic church will impact Rome and its surrounding areas in 2025. The Jubilee began on December 24, 2024, and ends on January 6, 2026. Italy’s National Tourist Research Institute estimates 35 million tourists will travel to Rome this year for the Jubilee. Cost increases and reduced availability for corporate housing, hotels, and travel are anticipated. 2026 Winter Olympics and Paralympics - Italy
While the 2026 Winter Olympics are not scheduled to start until February 2026, impacts will start to be felt toward the end of 2025 as preparations get under way. For the first time, two cities (Milan and Cortina d'Ampezzo, Italy) will be co-hosting the games. Events will be held in various venues across northern Italy, making these games the most widespread ever. The Winter Olympics and Paralympics will impact the European market for corporate housing, hotels, and travel, resulting in both cost increases and reduced availability.
2025 is shaping up to be a year full of change and challenges. Cornerstone always keeps a close eye on the evolving mobility landscape. We will keep you informed of potential issues arising in global mobility and will provide recommendations and options that can better support your mobile employees.
Did you miss part 1 of our key trends shaping mobility today? Click here to dive into the evolving housing landscape in the U.S and Canadian markets.
Cornerstone is your source for relocation insights and will help you determine the best course of action and approach for your global mobility project. Please reach out to your Account Director or our Consulting team consultingservices@crgglobal.com for any assistance or questions you may have.