Employee Relocations Are An Unfair Business: But Data Can Level the Playing Field

Relocating is a significant challenge for employees and Mobility leaders at any organization, whether at a small startup or a large corporation. It’s a stressful and costly process that involves a lot of careful planning. However, despite all the efforts that go in, relocation can be an incredibly unfair and unequal process. Not all employees receive equal support.

Inequity in employee relocation support can undermine morale and foster resentment within a company, decrease productivity and increase turnover rates.

What is the answer to overcome this unfairness?

Data!

Data can help make relocation fairer for everyone involved. By leveraging data-driven insights, HR leaders and mobility professionals can ensure every employee gets the support they deserve.

In this article, we'll explore how correctly applying data strategies in GM can revolutionize employee relocation, making the process more transparent, efficient and fair for all.

Data & Diversity

A notable challenge in employee relocation is the lack of diversity among relocating populations. 

PerchPeek Founder Paul Bennett said “Research indicates that ethnic minorities are less likely to pursue relocation opportunities, which highlights the necessity of addressing the specific needs and priorities of each individual relocator.”

Utilizing the right relocation data is crucial in this effort.

• Integrating demographic data from relocation systems with HRIS helps organizations identify programs that are lacking diverse representation, enabling informed policy and practice adjustments.

• Data can help companies identify how the costs and experience of relocations varies for employees relocating under different circumstances, For example, cost estimators and satisfaction tracking may vary for those relocating from distant locations or with families. Such data can allow a company to tailor their relocation policies to make sure everyone receives the support their situation requires.
• Data allows teams to track the satisfaction scores of different cohorts, such as single vs with partner vs with family, male vs female, varying ethnicities, to identify whether a relocation program is benefitting some groups more than others.
• Data also makes it possible to show how requests vary between different cohorts, and align relocation packages to suit these. For example, many non-EU countries will have a tougher time setting up a credit card, or even a bank account, upon arrival in the EU, and may therefore have a higher tendency to request other means of liquidity on arrival - the data will show the trends here. Similarly, particular cultures may be more inclined to ship belongings, and effectively tracking these requests can highlight where a policy may need to be adjusted for specific regions according to this need.

Data & Equity

Equity in employee relocation is often compromised, as relocators with similar needs, seniorities, and circumstances frequently receive disparate relocation packages. This inconsistency may arise from:

• A lack of clear guidelines, as different individuals initiate relocations. 
• Talent teams awarding relocation allowances as a way to encourage acceptances, treating them much like sign on bonuses
• Employees negotiating more effectively with their managers, resulting in better packages.

At the other end of the spectrum, a one-size-fits-all approach to relocation can lead to inequity, especially when relocators have varied personal priorities. For example, some may prefer an extended stay in expensive temporary accommodation, while others might want those resources allocated toward relocating a dependent loved one. 

Lastly, equity is further undermined when the format of relocation support is not tailored to each individual. Some relocators struggle with long email chains, or communicating always via phone call, or via an App, but this shouldn't be the end of their receiving support. PerchPeek found that between 3 and 6% of relocators would rather be supported via desktop rather than via the PerchPeek App - that’s why we made a web-version of the PerchPeek App!

Implementing a robust relocation data system can address these issues by:

• Allowing organizations to manage and track all relocations, thus reducing excessive variation on a case-by-case basis.
• Using the system to give clearer guidelines on company policy and bandings to all parties who initiate relocations.
• Facilitating flexible relocation packages with essential expense tracking to ensure appropriate allocation of funds.
• Quality assurance data helps monitor engagement with support services, identifying under-engaged individuals for targeted interventions to make sure everyone utilizes their relocation benefits.

Requirements to achieve data-driven fairness

To establish the pillars of fairness within your relocation program, several key data elements are essential.

• All relocations must be initiated in the same system for comprehensive data tracking.
• Program data should be categorized into Policies, Demographics, Fees, Allowances, and Quality and Satisfaction Metrics.
• Implement effective cost tracking by itemizing lump sum expenditures, direct vendor fees, and all other expenses accordingly.
• Integrate a Human Resource Information System (HRIS) to simplify the initiation and ongoing tracking of relocators.

Summary and taking actions

Relocation data is essential for creating a fair and equitable relocation program. It can significantly enhance staff morale, optimize company budgets, and improve overall business performance. 

The aforementioned data metrics are among the most critical for achieving these goals and have become increasingly attainable through modern providers. Challenge your current relocation management company (RMC) and service network to deliver these insights, as relocation fairness is not merely an option; it is a necessity. 

If you would like to explore how to implement some of these data elements, please feel free to reach out to learn more about PerchPeek’s capabilities at perchpeek.com. Thank you for reading.

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