Posted on February 24th, 2010 by Mike Morabito
Pulse Points 2010: Trends and Best Practices for Global Mobility Programmes
As relocation volume stabilises and shows signs of a slow, but steady recovery, early indicators suggest 2010 will be a year of programme recalibration. The U.S. housing market continues to struggle. Many practices highlighted in 2009’s Trends and Best Practices report still apply. Strict Home Marketing parameters, use of buyer incentives, and formal loss on sale and negative equity provisions remain. While these benefits will underscore most U.S. domestic programmes, Paragon is choosing to focus on some new themes this year as the impact of “The New Normal” is poised to take center stage.
Pulse Point 1: Due Diligence
As companies and transferees become risk adverse in the “New Normal” environment, Paragon predicts a bias towards more focused due diligence as the initial step in domestic transfers and international assignments.
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Posted on February 11th, 2010 by Mike Morabito
Paragon Relocation’s article on Managing Home Leave was recently featured in The Forum for Expatriate Management report on Managing Expatriate Reward. Managing Home Leave is a critical issue for companies planning and implementing global assignments.
Is there a connection between Home Leave and employee attrition/retention? Home Leave was intended to helpminimise the effects of the culture shock of an international assignment. It allows assignees tomaintain family ties and stay current with home business contacts and associates; and keep connected with their community and culture. Still, attrition rates upon completion of assignments remain high. Is there a disconnect between the philosophy of the home leave provision and its actual impact to assignment satisfaction?
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Posted on February 5th, 2010 by Mike Morabito
The more things change, the more they stay the same…
If one word could be used to describe the outlook that corporate relocation professionals have for 2010 it would be stability. This is a marked difference over 2009 which saw employers decrease hiring budgets by 23% and a housing market which saw decreases by 18% from the previous year .
Overwhelmingly the results from this month’s Paragon Pulse survey indicate that US Domestic relocation volume will either stay the same as last year or even increase over the previous year. Is it possible that the bottom of this down economy has been reached? Of the respondents to the survey, 62% indicated that there will neither be an increase or a decrease over the volume that they had last year. However, 19% of respondents indicated that there will be an increase of volume in 2010 as opposed to just 5% saying there will be a decrease in volume over the same period of time. This makes sense because since November of last year hiring has slowly been on the rise .
Another question on the survey asked how the respondents would like to improve their current relocation program in 2010, the highest amount chose to “Try to reduce the number of exceptions to policy” at 37%, while the second highest number of respondents chose “Create more relocation training for internal hiring managers and or recruiters” at 26%. To reduce the number of exceptions to policy Paragon recommends reassessing the current policies which are available to the transferring employees to see if current best practices could be aligned more effectively with the current needs of the employees moving. Often small changes to a relocation program can bring about a tremendous reduction of exceptions which saves money in the end.
In conclusion, the stabilization of volume in 2010 is a welcome sign of relief that perhaps the economy will be better this year than last year. Hopefully these are early signs that companies will begin hiring again and that the housing market will begin to achieve some of the value that it has lost since 2007, which will make selling transferee’s homes a much smoother process for corporations and employees.
Click here to see the complete survey results from the US Domestic Best Practices in Volume Trends 2010.
Coming out in early February is Paragon’s 2010 Policy Benefits Best Practices White Paper. Please contact us to request a Free copy.
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