Meeting the Needs of Employees
Highlights:
- Family Issues/Ties (51%) and Spouse/Partner’s Employment (34%) are the most frequent cause of declined domestic relocations, and factor in the top four concerns for international relocations.
- Despite 79% of companies offering spouse assistance, only 1 in 5 employees accept this assistance, despite the importance of dual incomes.
- Cost of Living is responsible for nearly 1 in 3 failed relocations. The real estate market poses a serious concern for relocating employers domestically.
Spouse Assistance:
Despite 79% of companies offering spousal assistance and the importance of spousal assistance in successful relocations, companies reported that only 1 in 5 employees accepted this assistance in 2021. Keep in mind that nearly 1 in 3 relocations are declined because of a spouse or partner’s employment. Spousal support is, of course, more nuanced than just reliance on a dual income. Relocation or change in employment and residence can impact spouse/family eligibility for everything from healthcare to tax considerations. It may be the case that companies’ overall assistance offerings are simply not robust enough to overcome the myriad concerns employees and their families consider when offered a job requiring relocation.
Child Care and Elder Care
Family Issues/Ties were responsible for nearly half (51%) of declined relocations in 2021. The global workforce has a median age of 38-39 and is comprised mainly of Gen X and Millennials. These generations are largely either caring for or reliant on their parents, as well as raising their own children. Multigenerational support systems which can include grandparents providing child care, children caring for aging parents, or simply a desire to stay close to loved ones may make relocation a less realistic or attractive prospect for employees.
Housing/Real Estate
Cost of living concerns were responsible for 32% of declined relocations. As inflation increases and the housing market remains highly competitive, companies may benefit from revisiting their house hunting policies to allow both homeowners and renters flexibility when relocating. Given the current state of the real estate market, companies may benefit from increased house-hunting assistance for 2022 and beyond. Currently, around 1 in 5 companies made changes in 2021, with about the same number of companies anticipating changes during 2022.
Recommendation:
- Companies should examine the needs of their relocating employees and address gaps in policy as needed.
- Increase house-hunting opportunities/assistance in finding housing for homeowners and renters.
- Increase or update spousal assistance programs.
- Grow practical family support assistance, including paid leave to care for elderly parents.
- Review hybrid/remote work offerings for relocating employees. Hybrid/remote work allows employees to live outside metropolitan areas, increasing the chances of finding a home faster and saving on living costs.