Get a Quote

Factors Impacting Relocation

Talent Needs Continue to Drive Relocation

For the past eight years, the key external factor affecting relocation volumes has been the lack of qualified local talent. Companies cannot grow without the right people, so relocation’s function as a talent engine is critical.

  • Company growth remains similar to previous recessionary levels (39%), despite maintaining a substantial increase over 2009 (24%). However, just as many firms (39%) also report volumes are affected by expansion (facility, new territories, or international).
  • Indicators of potential challenges are emerging: 28% of firms reported economic conditions as a factor, an uptick from 2017 (21%). The impact of the real estate market on volumes also shifted up (19% vs. 11%). Both remain within historic ranges for recovery after falling to historic lows in 2017. This may simply be a correction—or a sign of economic headwinds beginning to affect relocation.

The impact of factors continues to vary by company size. For mid-size firms, the biggest impacts resulted from expansion efforts (45%) and competition growth (international or domestic, 43%). These were followed by lack of local talent (38%) and company growth (34%). Large firms were similarly affected by their need for local talent (49%), company growth (46%), and organizational changes (acquisitions/mergers or corporate reorganization/restructuring, 46%). Small firms’ biggest issue was talent (49%), with company growth (38%) in second place.

We note growing impact of political/regulatory environments (domestic or international) on volumes in a rising trend over the last five years. Last year saw the highest percentage of firms report these issues as significant. Political and regulatory issues including visa/immigration restrictions, trade bloc treaty changes, Brexit concerns, and others increasingly affect how companies manage relocation.

The impact of available talent remains markedly above the level reported in 2009 (31%) and far above much lower levels seen before 1996. Regardless of company size, talent shortfalls remain a key driver of relocation volumes overall.

 
Question 11-1
Chart Q11-1
-- click to enlarge --
Question 11-2
External factors having the most significant impact on the number of employee relocations
Chart Q11-2
-- click to enlarge --
Question 12-1
Internal conditions having the most significant impact on the number of employee relocations
Chart Q12-1
-- click to enlarge --
Question 12-2
Internal conditions having the most significant impact on the number of employee relocations
Chart Q12-2
-- click to enlarge --
We use cookies for several reasons, including keeping our sites reliable and secure, personalizing content, providing social media features, analyzing site usage, and for marketing purposes.

Click here to configure the cookie level that will be stored. Español