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Factors In Relocation

By Staff Report

Aug. 7, 2008

FACTORS IN RELOCATION—1

Company growth led the list of internal factors cited. The top external factor that companies cite is a lack of qualified people locally. Large companies particularly noted that the weak real estate market affected relocation values in 2007.
What internal company conditions had the most significant impact on the number of your employee relocations in 2007?
( ) indicates results from previous year
Internal conditions had no impact 4% (6%)
Growth of company 46%  (59%)
Promotions/resignations 37% (36%)
Knowledge/skills transfers 30% (30%)
Corporate reorganization 24% (22%)
Expansion into new territories 22% (22%)
Acquisitions/mergers 15% (19%)
Budget constraints 13% (9%)
Expansion of facility 11% (19%)
Use of short-term assignments 11% (not listed as an option in 2007)
International expansion 11% (10%)
Increased production 10% (15%)
Closing of facility % (12%)
Decreased production 4% (2%)
Expansion of telecommuting/virtual teams 3% (1%)
Security issues 1% (1%)
Other 5% (5%)
What external factors had the most significant impact on the number of your employee relocations in 2007?
( ) indicates results from previous year
External conditions had no impact 19% (26%)
Lack of qualified people locally 52% (52%)
Economic conditions 24% (25%)
Real estate market 22% (not listed as an option in 2007)
Growth of domestic competition 14% (13%)
Growth of international competition 10% (13%)
Destination country regulations 3% (3%)
War in Iraq/Afghanistan 2% (1%)
Domestic natural disasters (wildfires, floods, etc.) 2% (3%)
International natural disasters (typhoons, etc.) 1% (1%)
Terrorism/political violence 1% (1%)
Other 4% (4%)
Source: Atlas World Group’s 41st Annual Corporate Relocation Survey

FACTORS IN RELOCATION—II

The use of lump-sum payments grew last year, and employees who declined relocations cited family issues most often as their reason for turning down a move.
To what extent does your company reimburse relocation expenses? ( ) indicates results from previous year
  Transferees New hires
Full reimbursement of relocation expenses 63% (55%) 54% (42%)
Lump-sum payment 44% 32%) 49% (31%)
Partial reimbursement based on salary, position, etc. 37% (30) 41% (43%)
No reimbursement of relocation expenses 6% (5%) 5% (8%)
What reasons did employees give for declining relocation? ( ) indicates results from previous year
Family issues/ties 62% (84%)
Housing/mortgage concerns 50% (30%)
Cost of living in new location 49% (49%)
Spouse/partner’s employment 48% (49%)
No desire to relocate 45% (43%)
Personal reasons 41% (33%)
Could hurt career 2% (3%)
Other 2% (4%)
Source: Atlas World Group’s 41st Annual Corporate Relocation Survey

Workforce Management, August 11, 2008, p. 31, 32Subscribe Now!

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