This month, Mobility News has been focusing on the future of talent mobility. We reached out to a member of the WERC Emerging Leaders Taskforce (formerly known as the Young Professionals group), Gus Armbruster, CRP, vice president of Armbruster Moving & Storage, to hear his thoughts.
The Emerging Leaders Taskforce supports and fosters emerging leaders within the talent mobility industry. This is done through opportunities for industry visibility and thought leadership, providing the ability to invest back in the industry through volunteer and philanthropic opportunities, facilitating connections between peers, and fostering ambassadors of WERC and the talent mobility industry. Members contribute insights, enhance visibility, and serve as key role in advancing the association’s mission and objectives. Learn how you can get more involved with WERC.
What do you predict will be the biggest changes the talent mobility industry will see in 2025?
In talent mobility, change is fundamental. Companies adapt to market demands, economic conditions, and workforce needs. Supply chains in talent mobility gather projected relocation volumes, but these are often educated guesses influenced by variables like restructuring and global events or past move history. Projections provide a planning framework but rarely capture the true scale of activities, requiring agility and responsiveness by the industry. With that being said, our industry adapts well to change.
I anticipate a couple of changes to take place in 2025. First, we will see an increase in relocations compared to 2024. The combination of lower interest rates and pent-up demand to buy will open up more inventory and a competitive buyer pool in America.
Second, I anticipate that, in 2025, there will be an increase in corporations altering their mobility policies, leading to more open RFPs. One reason for these policy changes is the National Association of Realtors (NAR) settlement, prompting corporations to adjust their home sale program policies, and this will open the door to making more changes.
Consumers will help dictate how much change will be needed in this policy. Will buyers start to pay for their agent commissions or will sellers continue the tradition of paying all agent commissions? Time will tell. I anticipate that the real estate industry will experience a rise in flat-fee brokers who charge a fixed rate for listing or purchasing a home rather than a commission based on the sale price. This will most likely begin with the buyer’s agent. Consumers can choose what level of service they would like from their agent and choose that flat-rate charge. This flat-fee model will simplify the negotiation between consumer and agent on a fee as well as allow the consumer to choose their level of service.
Third, we will see cost containment being a buzzword in RFPs and throughout corporations. The constant pressure from the top down to lower relocation cost spend will certainly have ripple effects in our industry. One outcome will be a rise in lump-sum policies. Global mobility managers will need to be well educated on the different types of lump-sum programs and the pros and cons of these types of programs. As an industry, we need to quantify the ROI of relocating talent around the globe. This will arm everyone, especially global mobility managers, with data to push back on cost containment.
How are you, and your company, preparing for the new year?
My leadership team huddles together every week to review strategic initiatives. With quick weekly huddles our team not only stays focused on our initiatives but up to date in real time on what is happening in our industry.
As a service provider, specifically as a mover, in the talent mobility industry, it’s important to continually review and iterate our back-end processes to improve our product to our clients. We have heard the buzzword cost containment often in 2024 and expect this to continue into 2025. This is why our team rigorously works to streamline our back-end processes not only to improve our service but also to lower the cost of operating. This helps us stay competitive in today’s market when competing in open RFPs.
Recently, my team has overhauled our lump-sum program to incorporate the latest technology and expand our network of referral partners, including mortgage companies, real estate agents, and destination service providers. The average corporate move size has decreased to 10,000 pounds, resulting in smaller moves than ever before. This shift necessitates cost control and the introduction of diverse products to meet budgetary, policy, and cost requirements. As budgets face increased scrutiny, we anticipate a rise in lump-sum opportunities.