Flexible policies the key to successful relocations

Companies must adopt more flexible relocation policies in order to increase employee satisfaction and better manage relocation expenditure, according to a new report.

The “Flexible Policy in Practice” report from Brookfield Global Relocation Services details in-depth interviews with mobility leaders from several global companies.
 
It found that ‘one-size-fits-all’, standard relocation packages often result in frustrated assignees and services that go unused.
 
A more diverse international assignee population, a growing number of home or host countries for assignments and escalating pressure on mobility program cost containment, has required companies to become more flexible.
 
"In the past, a single assignment policy was all a company often needed to fulfil long-term assignments that were typically offered to one type of assignee - a senior executive from company headquarters," said Scott Sullivan, executive vice president of Brookfield Global Relocation Services.
 
"Today, the topic among mobility managers has shifted to 'show me a flexible international assignment policy that works'."
 
According to Brookfield’s 2011 Global Relocation Trends Survey, only 22% of respondents had formal career-management processes for international assignees and 18% of respondents had a formal candidate pool for international assignments.
 
43% of respondents believed the number of international assignees increased in 2010, the first increase since the 2006 report.
 
Linda Pendlebury, director of Life Relocation, told Human Capital that companies need to recognise relocations as a highly emotive subject for staff and incorporate proper management of this into their relocation strategy.
 
“A truly effective relocation strategy incorporates a mix of strategies for the identification of the right candidate for the relocation through effective processes, suitable property availability in the host location, strategies for effective human resource management and of course the business aspect of the relocation,” she said.
 
“Companies need to plan their strategies very carefully, using 'on the ground' specialists when they possibly can to avoid many pitfalls that occur in a relation, whether it is domestic or international. A key element is constantly reviewing the host location's ‘cost of living’ as this can have a major effect on any relocation."
 
Pendlebury said that if not managed properly, the costs of a failed relocation can run into hundreds of thousands, between the initial cost of hire, relocation expenses and downtime in between a new hire.
 
“The key is to have a very effective recruitment process in place and where possible, use any tools such as psychometric testing for the individual and family. Willingness to relocate is one thing; adaptability is another thing and is the key for any successful relocation,” she said.
 
Kate Weaver, HR director of DLA Piper Australia, said flexibility is key when it comes to mobility policies and programs.
 
“My best advice would be to set up a framework that allows for different jurisdictions, different backgrounds, circumstances and career goals,” she said.
 
“It must be designed to meet the needs of the business, but flexible enough to apply to the unique needs of individual employees.”

- David Corkery, Human Capital Magazine
 http://www.hcamag.com/resources/Mobility/flexible-policies-the-key-to-successful-relocations/108683/