Industry leaders from Baker Hughes, Toyota, Chevron, and Walmart convened at GWS 2024 to share their perspectives on the current state and future trajectory of mobility within their organizations and the industry at large. This article shares their insights, highlighting key themes around policy shaping, cost optimization, technology integration, and the role of mobility as a strategic investment.
Balancing Leadership and Responsiveness in Policy Shaping
Arjun Jonnalagadda, global mobility director at Baker Hughes, emphasized the dual role mobility leaders play in both steering direction and responding to organizational needs. “It’s a bit of both,” he said. “We must have the business acumen to understand how our policies and practices impact on-the-ground populations. Our leaders trust us to bring industry-leading practices.”
Echoing this sentiment, Emerson Ross, senior manager of global mobility at Walmart, described himself as an influencer within his organization. “I see our whole team as one,” he said. “We have to work collectively with our supplier partners to drive policy, cost analytics, and everything at Walmart. We are very much engaged.”
Brett Lyons, manager of global mobility at Chevron, highlighted the importance of strategic foresight. “We try to stay ahead of the curve and anticipate the needs of the business,” he said. However, he acknowledged the necessity of being reactive when unexpected scenarios arise. Jessi Koppenhauer, senior manager of talent strategy and travel services at Toyota, emphasized owning the program and valuing supplier input to maintain industry-leading practices.
The Current State of Mobility: A Time of Flux and Opportunity
The panelists concurred that the mobility landscape is undergoing significant changes. Koppenhauer pointed to a “massive flux” influenced by geopolitical situations, generational workforce shifts, and the emergence of technology and artificial intelligence (AI). “It’s an exciting but challenging transformational opportunity,” she said.
Ross noted that AI will play a major role moving forward, stressing the importance of leveraging technology effectively. “If you have great technology but aren’t using it properly, it’s useless,” he said. Lyons observed some instability in the industry but dismissed notions of it falling apart. He highlighted ongoing discussions about industry consolidation and the potential impact of the National Association of Realtors (NAR) settlement on real estate practices.
Building Value Through Strategic Mobility Programs
Demonstrating the value proposition of talent mobility emerged as a central theme. Jonnalagadda emphasized the need to measure and showcase how mobility impacts career progression, retention, and talent development. “Mobility is an important pillar for talent development in our organization,” he stated. “Our job is to demonstrate the value proposition of talent mobility in career development and broaden our talent pool.”
Ross shared a practical example of leveraging data to optimize costs without compromising the associate experience. “We analyzed the miscellaneous allowances and adjusted the amount provided; by doing so, we achieved cost savings without negatively impacting the associate experience. We are more focused on the associate experience,” he said. “We use our data to prove what we need to change.”
Lyons underscored the importance of offering solutions to stakeholders. “It’s about providing options and being a true partner,” he said. “We need our supplier partners to understand our organization and be a good cultural fit.”
Koppenhauer highlighted the value of an optimal team member experience for attracting and retaining talent. “From my partners, I need logistical execution and strategic storytelling,” she said.
Cost Optimization Over Cost-Cutting
When addressing cost considerations, the panelists advocated for a shift from cost-cutting to cost optimization. Ross described how data-driven decisions allowed for significant cost reductions without sacrificing employee satisfaction. Jonnalagadda noted that their current focus is on optimizing/customizing support for where it makes more sense for employees instead of a one-size-fits-all all approach.
Lyons shared that Chevron had not been mandated to cut costs; instead, they eliminated certain programs based on benchmarking rather than cost concerns. “Every policy change we’ve made has actually increased costs because it’s about the employee experience,” he said.
The consensus was clear: Mobility should be viewed as an investment, not a cost. Jonnalagadda emphasized that mobility is integral to talent development, while Ross and Koppenhauer agreed that the strategic value far outweighs the expenses. “We reframe the conversation and call it cost optimization,” Koppenhauer said. “We’re investing in employee relocation, so there’s awareness of spend and a desire to be smart about it.”
Navigating Supplier Relationships and Expectations
Suppliers often face the challenge of being asked to cut costs while simultaneously investing in technology and other initiatives. Koppenhauer acknowledged this tension but framed expenditures as investments rather than costs. “We want to make sure that the extensions of us are after the same future goals,” she said.
Lyons suggested that suppliers should feel empowered to propose alternative solutions rather than simply reducing prices. “It’s not reasonable to expect a company to continue offering the same service at a reduced price,” he said. “There are ways to drive down costs without actually reducing your own.”
Ross advised suppliers to be transparent and honest about costs. “Don’t be afraid to say no,” he said. “Be transparent with your corporate members, and it builds a better relationship.”
Embracing Flexible Policies and Technological Advancements
Looking ahead, the panelists anticipate significant changes in mobility policies over the next three to five years. Jonnalagadda expressed optimism about the industry’s future, highlighting the mutual desire among talent and organizations for international exposure and diverse talent pools. He advocated for responsible and sustainable mobility practices, with a focus on core-flex policies that offer flexibility and choice to employees.
Ross shared that Walmart had successfully transitioned to flexible policies, providing employees with the ability to make decisions best suited for their families. “It’s been highly successful for us,” he said. Koppenhauer emphasized the need for technology to enhance the employee experience. “I want technology to be savvy and smart, making the experience that much better in the future,” she said.
Lyons underscored the importance of technology as part of the solution but not the entirety of it. He called for ease of use, transparency, and accurate reporting in technological tools. “Employees are reluctant to use tools that are difficult,” he said. “Technology needs to be part of the solution, not the solution.”
The Role of AI in Enhancing Duty of Care
The integration of AI in mobility practices was another focal point. Jonnalagadda saw AI as an enabler that can bring social intelligence to the forefront, providing employees with valuable information about their new locations. “AI can encapsulate raw data to help relocating employees inform better,” he said.
Koppenhauer viewed AI as a means to automate tasks, allowing for deeper human interaction. “It will allow us to focus more on the human aspect,” she said. The panelists agreed that AI would not replace the human touch but would enhance the ability to provide better duty of care.
A Call for Transparency and Fairness in the Mobility Model
When asked about changes they would like to see in the mobility model, Lyons advocated for eliminating referral fees to foster greater transparency. “I think those referral fees create an unlevel playing field,” he said. “It would make it easier for everyone to understand where revenue is coming from.”
He acknowledged that such a shift would require significant changes but believed it would lead to a fairer system where costs are more directly tied to services rendered. “I think it would put the onus on everybody to pay their fair share,” he said.
Conclusion
The insights from these industry leaders paint a picture of a mobility landscape in transition—one that is increasingly focused on strategic investment, employee experience, technological integration, and transparent practices. As organizations navigate the complexities of global talent mobility, the emphasis is on flexibility, responsible spending, and leveraging technology and AI as tools to enhance, not replace, human interactions.
The collective wisdom suggests that the future of mobility lies in its ability to adapt to changing workforce expectations, technological advancements, and global dynamics, all while maintaining a steadfast commitment to the people at the heart of every move.