Employee Relocation Management

Global Employee Relocation Industry Outlook

The global employee relocation market was estimated to be around $31.5 Bn in 2019 and is forecasted to grow at a CAGR of 3–4% to $33.5 Bn by 2021

Increasing number of international assignments in the US, Western Europe, Australia, Singapore, Japan, India, and China are driving the relocation services market.

Business profit gauges the overall corporate gains made across all sectors. Increasing business profit leads to a rise in the demand for corporate relocation services. 

When organizations are lucrative, they will probably invest more in relocating the workforce or attracting prospective workers with relocation plans. Corporate profit is likely to balloon in the near future, offering a worthwhile potential opportunity for the employee relocation service providers.

Global Employee Relocation Market Maturity

• Rise in the number of international and domestic assignments has been the major driver for the growth of the employee relocation services market in North America and Europe.
• Increasing number of IT and consulting assignments, expansion of operations of Fortune 500 organizations in India, China, Brazil, South Africa have accelerated outsourcing of relocation services to global service providers.

Global Relocation Industry Trends

• Buyers in North America and Europe are outsourcing relocation services to global players that can offer end to end solutions including technology platforms that can track the relocation process and expenses.
• Regulatory complexity, inflation, and immigration restrictions in Latin American countries such as Brazil and Argentina are not supported by global players, hence the market is still at a nascent stage
• International assignments are increasing in APAC and Middle East accelerating the demand of relocation services in this region.
• The buyers have been opting for standalone services that support payroll, taxation, HHG, spousal support, etc., and regional/local niche players.
• The pressure for cost reduction of relocation program is high. This is generally attained by shortening the tenure of the international assignment

Global Relocation Drivers and Constraints

Drivers

• Expansion of Operations: Major companies are establishing facilities in developing countries. Developing economies such as India are opening up for FDI from foreign players, thus increasing the number of foreign assignments and the need for relocation.
• Recovery of Developed Economies: Western economies are recovering from recession and they are showing positive signs of growth, which would increase the number of foreign assignments.
• Technology Support and Adoption: Service providers are offering technology platforms that offer tracking and expense management solutions for buyers. Communication and corporate support have become easier.
• Relocation Technology: Several remote management connections (RMC) plan out of some sort of centric technology. This can be something their own developers built or there are off-the-rack products put up for sale, which are then tailored to the RMC’s company. The employee’s relocation advisor works outside the technology, which usually prompts action items for all authorized services. From spousal services to marketing help, every item is outlined with system triggers and touch-points along the way to assure constant follow-through from the advisor.

Constraints

• Cost of International Assignments: HR managers often fail to estimate the total cost for international assignments. Currency fluctuations and retention of talent are also major factors that impact the cost of relocation.
• Low Entry Barrier: Another factor affecting the employee relocation services market is low barriers to entry for new industry entrants, which would create challenges for the existing players in the marketplace.
• Tax and Immigration: Tiered policies are implemented as per different relocation programs, such as tax grabs is one of the major constraints in the easy transitioning of an expat. For example, income tax is assessed on family or household basis in France.
• Trump Effect: The new orders from Trump could impact the international relocation, especially the inbound movement to the US.

Market Overview

Relocation industry trends show that the most adopted relocation tools are Assignment Management Solutions, Compensation Assignment, Cost Tracking, Self-Service Platform, Business Traveler Risk Assessments, Global Equity Tracker(Incentive Compliance).

As the relocation service requirement is for the developed markets, engaging with one of the start-ups will provide greater scope for assignees to verify and utilize the global supplier services, particularly real-estate services in the host country.

Expense management, temporary living, spousal career assistance, home finding, compensation and tax compliance, home sales, new home purchase and household goods movement are the major spend categories of the global relocation industry.

Employee relocation services procurement intelligence shows that end-to-end service providers offer the best savings opportunity for the buyers with minimal involvement in the process.

In-house, end-to-end service providers, bundled service providers, single service outsourcing, multiple supplier outsourcing, etc. are some procurement models.

Key success factors for Relocation Services Implementation include flexibility options, choice of service provider, transparent communication, and maturity in technology adoption. 

Why You Should Buy This Report

• The report on the corporate relocation management market lists out the cost components, saving opportunities, and cost and price trend analysis.
• The report offers Porter’s five force analysis of developed and developing relocation industries.
• It provides service portfolios and SWOT analysis of some of the largest relocation management companies such as Santa Fe, Cartus Corporation, and SIRVA Worldwide, to name a few.
• Furthermore, the market research offers corporate relocation industry statistics and supplier insights.