Employee Relocation Management Market Trends
Category Intelligence on Employee Relocation Management covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Global Employee Relocation Industry Outlook
The global employee relocation market was valued at $29 billion in 2017 and is forecasted to grow at a CAGR of 3–4 percent to $32 billion by 2021.Increasing number of international assignments in the US, Western Europe, Australia, Singapore, Japan, India, and China are driving the relocation services market
The relocation industry trends show that the main pricing models are menu-based pricing (medium-high), fixed price (medium), cost plus(high), and incentive-based model(low–medium). Corporate relocation industry trends include usage of technology, level of outsourcing, lump-sum funding, consecutive assignment. US, UK, Australia, Western Europe are regions of high maturity in the global relocation industry.
Global Employee Relocation Market Maturity
- Rise in the number of international and domestic assignments have been the major drivers for the growth of 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 like India are opening up for FDI from foreign players, thus increasing the number of foreign assignments and 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 has become easier
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
- Tax and Immigration: Tiered policies are implemented as per different relocation program like tax grabs is one of the major constraint in 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 lists out the cost components, saving opportunities and does a cost and price trend analysis.
- The report gives Porter’s five force analysis of emerging and developed markets.
- It gives service portfolios and SWOT analysis of key employee relocation services suppliers like Santa Fe, Cartus Corporation, SIRVA Worldwide, etc.
- Discover corporate relocation trends and supplier insights into the employee relocation industry.
