As the thick of the pandemic becomes a distant memory, employee relocations are on the rise
While the pandemic-era rise of remote work meant a reduction in relocation costs for most employers, two trends in the labour market right now may mean that businesses should brace themselves for a rise in relocation budgets for new and existing employees, a new report suggests.
On the one hand, many companies are keen to get their workers back in the office; on the other, hiring for many roles remains very competitive, and employers are still casting wider geographical nets in their hunt for talent. Put it together and you get a pretty simple conclusion ― employers might want to prepare larger relocation budgets.
According to a report by Atlas Van Lines, 70 per cent of companies experienced an uptick in employee relocation in 2022.
“In some ways, the pandemic has increased the demand for mobility by employees looking for new opportunities,” the report reads. “But companies are optimistic. Almost all companies predict increasing domestic relocations and larger budgets for 2023, continuing the upward trend.”
A slack labour market over the past couple decades plays a role here too ― companies have actually been paying less for relocation than they did in decades previous.
“In the 1980s and ’90s, nearly a third of job seekers would move for new positions,” said Andrew Challenger, senior VP of Challenger, Gray & Christmas, speaking to Worklife. That has fallen since, but as the job market continues to evolve and stay competitive, companies may start to see relocations budgets as investments.
Two thirds of companies surveyed by Atlas are expecting to pay more in this direction this year, and 50 per cent are expecting that to include an uptick in expensive international relocations.
“From a financial perspective, it’s akin to investing in a new venture: There are upfront costs, risks and uncertainties but potential long-term rewards,” says Huzaifa Ahsan, a consultant at e-learning platform KodeKloud. “As the world of work continues to evolve, corporate relocations reflect companies’ adaptability in the face of change.”
Content written by Kieran Delamont for Worklife, a partnership between Ahria Consulting and London Inc. To view this content in newsletter form, click here.