In today’s global economy, mobility managers are faced with increased pressures to reduce risk and control costs while increasing overall program ROI. Technology, shifting cultural norms, and an increased requirement for flexibility fuel an era of innovation in program policies and practices.
Seeking to explore these trends more deeply, we sat down with relocation expert Robert Wyatt, vice president of global client partnerships at Synergy, an international serviced accommodation provider, to discuss what’s driving the changes he is witnessing.
Technology and Data Prevalence
The use of technology and, more recently, artificial intelligence (AI), has played a significant role in accelerating and personalizing the relocation process.
Virtual platforms like online accommodation tours or virtual open days at schools are putting the power of decision-making into the assignees’ hands before they arrive at their destination. Corporates are also increasingly adopting the use of data as they seek to control costs, streamline processes, and personalize the assignee experience.
“The opportunities technology can bring to our industry are significant,” Wyatt says. “From a corporate housing perspective, our industry is moving toward a more self-service, data-driven model, while AI is being adopted to personalize assignments in line with shifting demographics and psychographics.”
Despite the opportunities technology can present, Wyatt cautions organizations to keep in mind the importance of data security. He also notes the current limitations of technology in relation to meeting the requirements of guests in more complex locations such as India.
The Rise of Short-Term Assignments
This digital shift we are experiencing, alongside other factors, is causing a rise in short-term assignments. This can produce benefits for organizations by paving the way for shorter onboarding periods and, as a result, positively influence assignee productivity.
From a corporate housing perspective, Wyatt explains the decrease in requirements for extended-stay options as the modern-day assignee leverages tools—such as the wealth of useful information online, virtual platforms, and so on— to simplify their relocation process.
Wyatt also cites cost control, shifting cultural norms such as the rise in remote work, and evolving individual preferences such as career goals as critical factors influencing the length of an assignment.
Lump-Sum Policies: A Double-Edged Sword
As emerging trends put relocation decisions in the hands of the traveler, lump-sum policies—where employees receive a fixed amount of money to cover relocation expenses—are growing in popularity due to their perceived simplicity and cost predictability.
Wyatt did, however, highlight the importance of conducting thorough due diligence prior to accommodation selection to make sure risk is effectively managed. This might include requiring corporate housing providers to comply with duty of care regulations or ensuring local schools are safe and supportive of children’s educational requirements.
“One of the largest costs to a company is a failed mobility assignment,” Wyatt says. “If a company offers a lump-sum option, it’s imperative for assignees to have access to local—and human—services who can support in guaranteeing a safe and comfortable experience that aligns with the unique requirements of the individual or family.”
The Blend of Mobility With Business Travel: Leveraging Buying Power
With mobility and business travel more aligned than ever, many companies are bringing their travel and mobility spend under one umbrella.
This consolidation, Wyatt explains, can bring about added buying power, which can provide the capabilities to reduce costs while offering more efficient services.
More often than not, organizations are increasingly looking to view more holistic data across the company as they seek to drive efficiencies and control costs. Consolidating this spend is becoming increasingly prevalent as organizations adopt digital tools to better manage housing, transportation, and other travel-related expenses.
Embracing Flexibility Alongside Evolving Legislation
Legislative forces across the world—such as immigration, tax, temporary housing, and more—can have a significant impact on assignee relocation. The requirement for adaptable policies has therefore become more commonplace as corporates seek to mitigate compliance risks.
“It’s critical we collaborate as an industry to ensure we can remain as flexible as possible while also considering cost control,” Wyatt says. “Recent global events have shown just how important it is to remain agile as we seek to prevent leakage in our programs.”
Wyatt went on to highlight specific examples of changes in the political and legislative landscape that could impact relocation policy:
- Global and local elections where visa and immigration policies may change.
- The EU’s blue card reform, which makes it easier for skilled workers to relocate within Europe.
- Saudi Arabia’s decision to reduce the validity for temporary work visas from 180 days to 90.
- Changes to minimum wages in countries like Malaysia and Vietnam.
Looking Ahead
As businesses navigate a consistently changing mobility landscape, it’s imperative to step away from all the noise and avoid losing sight of the overall objective: guaranteeing maximum assignee satisfaction and productivity to ensure maximum program ROI.
Corporate travel mobility is about curating enriching experiences that empower employees to support overarching organizational objectives. By remaining ahead of the curve, companies can capitalize on opportunities to build an ecosystem in which mobility programs are a cornerstone of company success.