Any company that moves their employees around the country or globe is concerned about the return on investment (ROI) of corporate relocations.
Here are the cold, hard facts:
- Up to 40% of relocations fail
- The average relocation costs $65,000
- Over the next 10 years, the number of people working abroad will go up 50%*
But before companies concerned about hemorrhaging relocation dollars year over year call for their smelling salts, there is an answer, and it’s right under your nose. The secret to good ROI in corporate relocations is in adopting an employee-centric approach.
Here is why companies that focus on employee wellbeing in corporate relocations results, not only in smoother relocations and happier employees, but better ROI.
Understanding Employee Concerns and Motivations
The phrase “corporate relocation” is enough to make even the most adventurous employees break out in a cold sweat. A whopping 39% of employees say they are hesitant to relocate, according to a recent report. Why are your employees hesitant when you mention relocation? It’s not just the thought of moving their favorite coffee mug to a different office. There are some very real concerns that hold them back.
Family Concerns
Moving with family—especially with kids and a partner’s career to consider—can cause significant anxiety and stress. In fact, 70% of relocations fail because families struggle to settle in. Concerns about children’s education, the spouse’s career, and the general disruption to family life can make relocation a daunting prospect.
Housing and Social Networks
Finding a place to live in a new city is stressful enough without the added pressure of losing your go-to spots and your Saturday morning running group. Employees are expected to rebuild their entire social ecosystem, and the potential loss of established social and support networks further exacerbates the anxiety.
Cultural and Language Challenges
Moving to a new region often means diving headfirst into a completely different culture and language. The fear of sticking out or struggling to communicate can be paralyzing for most employees, especially if they’re there on assignment.
In order to achieve better ROI in this channel, companies need to understand these concerns and craft a strategy that addresses these barriers head-on.
Short-Term Benefits of an Employee-Centric Relocation
Who doesn’t love a quick win? Employee-centric moves can provide immediate ROI, and here’s how:
Reduced Turnover
When you make your employees feel like their well-being is your top priority, it builds brand loyalty and a tighter-knit community. Avoiding turnover saves you from the headache of recruitment, not to mention the cost of training new hires. According to the Society for Human Resource Management (SHRM), the average price tag of a new hire is $4,700 on the low end. Edie Goldberg, founder of the Menlo Park, Calif.-based talent management and development company E.L. Goldberg & Associates puts the cost at upwards of three to four times the salary.
Faster Onboarding Process
The average employee loses 10.2 days by moving state to state, according to Impact Group. If your employees are greeted with a fully furnished, cozy home close to work and all the essentials, they’ll be settled in faster than you can say “corporate housing.”
Boosted Productivity
Happy employees are productive employees. They can concentrate on their job without being distracted by unresolved personal issues related to the move. A study conducted by Oxford University found that workers are 13% more productive when they’re happy and supported!
Enhanced Reputation
Warren Buffet said, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” Companies that prioritize employee well-being during relocations build a reputation as caring and supportive employers instead of watching it deteriorate. Although it’s difficult to quantify the financial benefits, a good reputation can be a significant advantage when attracting top talent, especially in competitive markets.
These short-term benefits translate directly into a positive ROI for the company, as happier, more settled employees are likely to contribute more effectively to the business.
Long-Term Benefits of an Employee-Centric Relocation
Here’s why prioritizing employee well-being during relocations isn’t just a short-term strategy, but a long-term investment in your company’s future:
Increased Job Satisfaction and Loyalty
When employees see that their company is willing to go the extra mile for them, their job satisfaction shoots up. They’re loyal, sticking around longer and giving you their best work year after year. According to Verint, companies with engaged employees see 233% greater customer loyalty and 26% greater annual revenue.
A Boosted Company Culture
A company that successfully manages relocations creates a culture where employees feel valued and supported. Positive relocation experiences are often shared among colleagues, creating a ripple effect that boosts overall morale. According to Forbes, companies with happy employees outperform their competition by 20% on average!
Successful Assignments
Employees who are supported through their move are more likely to succeed in their new roles. They’re not bogged down by personal stress, which means they can focus on achieving their business objectives.
Financial Gains for the Company
Happy employees are more productive, innovative, and committed. This translates into tangible financial benefits, as they’re more likely to contribute positively to the company’s success. Additionally, companies save money by avoiding the costs associated with failed relocations and turnover.
Prioritizing employee well-being during relocations isn’t just a nice-to-have—it’s a strategic move that benefits everyone in the long run.
How AvenueWest Can Help You Get There
To fully realize the benefits of employee-centric relocations, partnering with a company like AvenueWest can make all the difference. AvenueWest offers a range of corporate housing solutions that take the stress out of moving, making it easier for employees to hit the ground running.
Tailored Corporate Housing Units
AvenueWest offers tailored housing options that cater to the specific needs of relocating employees, ensuring that they can settle in quickly and feel at home. That means fully furnished, comfortable homes in locations close to work, schools, and all the amenities your employees could need.
End-to-End Support
We don’t just hand over the keys and wish your employee luck. We offer personalized service every step of the way, helping with everything from property selection to connecting employees with local resources like schools and healthcare.
Tailored Relocation Processes
One size does not fit all, especially when it comes to relocation. We work with you to create individualized packages that address the unique needs and preferences of each employee, making the move as smooth as possible.
A Warm Welcome
Our dedicated team goes the extra mile to make sure employees feel welcome in their new surroundings. From welcome baskets to personal neighborhood experts who can show them the ropes, we make sure your team starts off on the right foot.
By understanding employee concerns, offering tailored support, and partnering with experts like AvenueWest, you can create a relocation experience that’s as smooth as it is successful. And in doing so, you’re not just moving people—you’re moving your company forward.
If your team is looking to improve or create an employee-centric relocation strategy, give us a call. Conversations are always free.
1.800.928.1592
Global@AvenueWest.com
*PwC report, Talent Mobility 2020: The Next Generation of International Assignments (2010)
