FACTORS IMPACTING RELOCATION
Highlights:
- COVID-19 remains the top external influence on companies, but at a decreasing rate: 56% companies reported COVID-19 was the most significant external impact they faced in 2021, compared to 62% of companies in 2020.
- Economic conditions (41%) and Lack of Qualified People/The Great Resignation (31%) accounted for the second and third most impactful external influences on relocation.
- 46% of companies report Expansion as the most significant internal impact on relocation volume. Expansion encompasses changing geographic footprints, facilities, and remote/virtual work capabilities.
- Energy/Mining, Wholesale/Retail, Finance/Insurance, and Technology/Software were the most likely industries to report generalized Company Growth during 2021.
Companies reported a diversified range of external influences on relocation. View the chart below to see a full detail of external factors impacting small, medium, and large companies in 2022:
A complex landscape is emerging, implying that jobs are, in some ways, an employee's market. We anticipate that cultural shifts in the workplace, especially as it pertains to remote and hybrid work, will persist into 2022 and beyond. Likewise, economic conditions such as inflation, cost of living, and the real estate market will create pressures on employees deciding whether to relocate. The status of the real estate market especially has shown an increasing impact on relocations, from 16% of companies reporting its influence in 2020, to 27% reporting it as a significant external impact in 2021.
As for internal relocation, there are few norms across industries. From 2020 to 2021, Expansion (All Types) was the most steeply increasing internal factor impacting relocation. Across companies, this comprised of expansion of facilities, geographic footprint, and virtual/remote working capabilities. In 2021, delayed or reduced hiring saw a decrease in impact, further indicating recovery from the pandemic. However, budget restraints saw the least amount of change, with only a 2% decrease in impact from 2020 to 2021.
Recommendation:
- Collect data on employees’ specific considerations and needs pertaining to current economic conditions. Consider revisiting relocation policies such as housing assistance, cost-of-living adjustments, commute times, and hybrid/remote work policies.