2018 Global Mobility Trends Report
In a year deemed by many to be both one of global economic growth and geopolitical uncertainty, Hong Kong-headquartered Crown World Mobility (CWM) in March 2018 announced the launch of its 2018 Global Mobility Trends report.
According to CWM, “This year, we expect millennials to have an even greater influence on mobility trends. Talent has arguably never been more globally mobile than it is today, and millennials are hungry for international experiences. Low-cost adventure moves and DIY moves are becoming more popular. In fact, more than half (52%) of companies now have employee-initiated move policies.”
“At the same time, employers need to think about how to approach both the risks and opportunities of new technologies and DIY moves, such as unregulated online travel options like Airbnb or Uber on the one hand, and the potential benefits of data analytics on the other.”
Hong Kong, which is still one of the most expensive cities for expats, remains a key hub for global organizations who therefore need to have talent here. “In Hong Kong we are seeing an increased focus on Mobility ROI and making sure the significant investment of a move is justified,” according to the company. “Cross-border moves from mainland China to Hong Kong are another trend and are happening at all levels of organizations, from entry level to very senior roles.”
CWM outlined 10 key trends for 2018:
- New focus on the accompanying partner
While commonly seen in Hong Kong, dual-career has become an emerging global trend this year. Other than that, there is an upsurge in male accompanying partners with the rise of female senior roles. This would mean businesses need to review support programs historically meant for female partners and creatively design new solutions such as offering local job opportunities and diverse peer networking communities tailored for males.
- Mobility ROI
This year will see more debate and more movement around mobility ROI. A move away from one-size-fits-all policies is expected, with a refresh of ROI measures including a tailored selection of company priorities, business function goals and employee priorities.
- Lump sum and cash allowances on the rise
Why? Millennials who are early in their careers may be looking for low-cost moves with more flexibility and choice, and employers are eager to focus on the overall employee experience.
- Diversity Mobility 2.0
Diversity & Inclusion (D&I) is becoming more important to global companies. Organizations with strong D&I cultures are putting more emphasis on diversity in mobility, and the report predicts expanded eligibility and flexibility in policies to meet diversity goals, such as making split-family policies more robust to support same-sex and dual-career families.
- Duty of care, risk management, assignee well-being
One key trend to watch is the proliferation of online marketplace travel options such as Airbnb, Uber, or Kayak. While companies typically encourage employees to use corporate systems for travel and relocation, DIY travel is on the rise and millennials may be more likely to view these online options as attractive or lower-cost options. Employers need to update their mobility policy and employee communications to mitigate risks associated with unregulated choices. As well as putting risk management steps in place — such as travel-tracking technology, new security measures — companies are increasingly investing in employee health and wellness programs, which can reduce stress and improve productivity.
- Smart mobility
How long does it take employees to be up and running on the job after a move? If we increase the number of female assignees, will our future leadership pipeline also have more women? These kinds of business-critical questions can now be addressed with the use of data analytics.
- U.S. tax code changes impact policy — not just a domestic issue
Just like Brexit, changes to U.S. tax code are not just domestic issues. The repeal of deduction for certain moving expenses is expected to lead to changes in policy — for example, more organizations may push lump sums for relocation expenses, or favor short-term vs. long-term assignments.
- Employee-initiated moves
Talent has arguably never been more globally mobile than it is today, and millennials are hungry for international experiences. Low-cost adventure moves are becoming more popular. Indeed, more than half (52%) of companies now have employee-initiated move policies.
- Cost savings
Where are cost savings coming from in 2018? More and more employers are using ‘core-flex’ policies, and creatively approaching the development of business-aligned policies and alternatives to household goods shipments for long-term assignments. Organizations need to strike a balance between cost savings and assignment acceptance and satisfaction by employees.
While 87% of companies address repatriation in their policies (up from 82% in 2015), only 9% address things like Repatriation Integration Briefings and other assignment ROI support. This year the conversation will expand, and the most creative, talent-mobility focused companies will help shake up this historically least developed stage of the international assignment program.
The report is available at https://www.crownworldmobility.com/en-us/blank_page/2018-global-mobility-trends (registration required).