Optimizing Employee Relocation Procurement for Today’s Global Workforce

Employee relocation encompasses the comprehensive process of transferring one or multiple employees from one geographical location to another. Such relocations may involve a move within the same city, to a different urban center, or even to a foreign country. These transitions can occur either voluntarily or involuntarily. In voluntary relocations, employees initiate the request for the move, which employers may choose to support. On the other hand, involuntary relocations are instigated by the employer, necessitating the employee’s acceptance of the relocation terms to maintain their employment within the organization.

Employee Relocation – Procurement Intelligence

The employee relocation sector is poised for gradual growth, projected to achieve a Compound Annual Growth Rate (CAGR) of 1.2% from 2023 to 2030. With the post-pandemic period witnessing a return to normalcy, an increasing number of employees are expressing willingness to relocate for suitable career opportunities. Primary factors influencing these decisions include considerations such as the cost of living, housing expenses, housing availability, as well as safety and security concerns. These factors are closely followed by the desire for convenience in daily living, work arrangements, and access to recreational activities, minimizing lengthy commutes. The pursuit of an elevated quality of life remains a significant motivating factor behind relocation decisions. Foremost among employees’ considerations is the assurance of finding comparable or superior advantages in their prospective new locations.

Order your copy of the Employee Relocation Procurement Intelligence Report, 2023 – 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Companies are progressively prioritizing the establishment of inclusive and diverse work environments, thereby driving the demand for relocation services geared towards facilitating employees’ transitions to new locales while addressing their individual needs, both personal and professional. In response to this escalating demand, relocation service providers are expanding their service portfolios to encompass a broader spectrum of assistance, including support in locating educational institutions tailored to children’s specific requirements and cultural adaptation services.

The advent of advanced technologies such as Augmented Reality (AR), Virtual Reality (VR), and Artificial Intelligence (AI) is revolutionizing the employee relocation process. Notably, relocation management companies are leveraging these technological innovations to streamline and enhance relocation experiences. A pivotal component of relocation technology offered by these firms is a platform enabling real-time tracking of the relocation process for employees, employers, and relocation representatives. This platform facilitates the seamless coordination with employees, empowers employers to monitor relocation expenses, and provides relocation experts with the tools to guide employees throughout the relocation journey. For instance, document signing technology streamlines paperwork procedures, particularly beneficial during international relocations.

When considering a role in a different location, one of the initial considerations for employees is often the factors influencing the cost of living. Relocating to a city with higher living expenses can significantly impact negotiations regarding salary and relocation arrangements. Therefore, for organizations partnering with a Relocation Management Company (RMC), possessing an accurate cost of living calculator is invaluable, as it greatly aids in the recruitment process.

The recent survey conducted by Allied Van Lines, Inc. in 2022 revealed the following statistics:

• Moving expenses of around 33.07% of workers were covered.
• Around 18.08% of the workers received sponsored trips to look for housing.
• 16.58% received a lump sum to utilize as needed.
• Temporary living cost was given to around 16.48% of the workers.

Numerous companies specializing in relocation management allocate significant resources to advanced relocation technology. These technological systems serve not only to streamline internal workflows within these companies but also provide clients with 24/7, real-time access to updates on the status of relocations, budgeting utilities, and comprehensive reports. The data gathered through these systems enables relocation service providers to furnish comprehensive year-end tax details and gross-up information, thereby relieving clients of yet another cumbersome responsibility. Additionally, many of these companies extend the convenience of mobile access and tools to clients and employees undergoing relocation, ensuring they can stay engaged with their individual relocation or program even while on the move.

List of Key Suppliers

• Signature Relocation
• Aires
• Graebel Companies
• NRI Relocation
• WHR Global Employee Relocation
• Cartus Corporation
• Altair Global
• Sirva Worldwide
• Atlas Van Lines
• Allied Van Lines 

Browse through Grand View Research’s collection of procurement intelligence studies:

• Payroll Outsourcing Services Procurement Intelligence Report, 2023 – 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
• Legal Services Procurement Intelligence Report, 2023 – 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape) 

Employee Relocation Procurement Intelligence Report Scope

• Employee Relocation Category Growth Rate : CAGR of 1.2% from 2023 to 2030
• Pricing Growth Outlook : 2% – 3% (Annually)
• Pricing Models : Lump sum pricing, direct billing pricing, reimbursement pricing, third-party pricing, competition-based pricing
• Supplier Selection Scope : End-to-end service, customization offered, cost and pricing, compliance, service reliability, and scalability
• Supplier Selection Criteria : Relocation packages available, global reach, customization option, services offered, technology and tools used, track record and reputation, regulatory compliance, and others
• Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions