CHICAGO, March 7, 2019 /PRNewswire/ -- SIRVA Worldwide Relocation, the leading global relocation and moving service provider, released its annual Mobility Report filled with insights and statistics revolving around the relocation and moving industry. Building off data from 2017, this report continues to focus on the challenges and opportunities that mobility encounters to better align mobility with the business growth and workforce priorities of an organization. It also addresses the existing gap between the perception of mobility as an operational function and its potential to play a more strategic role in the achievement of company goals and growth.
In SIRVA's 2018 report, almost 250 participants representing 235 organizations from a variety of industries took part in its mobility survey, offering insights on topics such as program demographics, customer employee experience, mobility partnerships, policy and delivery approach and organizational change.
Participant insights show that the role of mobility has changed for organizations in the past couple years. According to SIRVA's 2018 report, 57% of organizations have experienced a shift in the role of the global mobility function in the past 24 months. The shift was likely motivated by strategic business objectives requiring talent deployment, focus on compliance/risk awareness, and focus on the employee/customer experience.
Additionally, SIRVA's 2018 report covers the lump sum delivery approach extensively. A popular term in the relocation industry, lump sums provide an option to deliver support to a relocating employee while potentially minimizing administrative needs and providing more predictability to anticipated relocation costs. A lump sum approach will not be ideal for some employees but may provide benefits when leveraged appropriately.
For example, the core benefits lump sum is provided to assist with designated core relocation benefits that would have otherwise been provided as part of a reimbursement. On the other hand, flex benefits can also be part of a lump sum which provides an element of flexibility when used to assist with flex benefits offered in a relocation policy. Flex benefits include: spousal support, additional home finding trip, pet shipment and other extended temporary living benefits.
SIRVA's 2018 report indicates that 64% of organizations include a lump sum component in one or more available policy types (domestic and global). 37% of organizations offer a "lump sum only" package where the employee is not provided any additional support. When calculating the value of the lump sum, 29% of organizations base the amount on defined policy provisions (e.g., final move expenses based on home/host location and family size).
In this context, SIRVA's 2018 report outlines that a lump sum will differ from a miscellaneous relocation allowance. The miscellaneous relocation allowance is provided to the employee to cover incidental relocation costs that are not covered elsewhere in the policy. In contrast, a lump sum is defined as a cash payment to a relocating employee that is intended to cover all or a portion of relocation services that would otherwise be delivered directly to the employee.
Another important aspect of SIRVA's 2018 report deals with the partnerships between mobility teams and internal/external subject matter experts. These partnerships provide the option to leverage the knowledge, expertise, global reach and operational infrastructure of each stakeholder. Market entry, resource limitations, and cost minimization and transparency are areas where partnerships within the mobility space can be beneficial. As the role of mobility shifts from operational to consultative, there is a need to create capacity for the mobility team to focus on business partnering opportunities. SIRVA's 2018 report indicates that 63% of organizations believe they can improve the customer and/or employee mobility experience by maintaining program control internally.
These insights only scratch the surface of the data and findings in SIRVA's 2018 Mobility Report that are available for your organization. Additional topics covered include: mobility deployment drivers, mobility program demographics, organizational changes and more. To learn more, readers are encouraged to download a copy of the full report.
About SIRVA
SIRVA Worldwide Relocation and Moving is a global leader in moving and relocation services, offering solutions for mobility programs to companies of every size. With 58 locations in 177 countries, we offer unmatched global breadth supported by localized attention and innovative technology that strikes the right balance of self service and human support. From relocation and household goods to commercial moving and storage, our portfolio of Brands (SIRVA, Team Relocations, Allied, northAmerican, Allied Pickfords & SMARTBOX) provides the only integrated moving/relocation solution in the industry. By leveraging our global network, we deliver a superior experience that only a "one-stop shop" can provide.
Ryan Valentine Marketing Coordinator +1 630 570 3269 [email protected]
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