Here are 5 corporate relocation trends WHR Global is keeping an eye on for Q4 and beyond!
Global Housing Costs
Verdict: ↑ Varied ↓
Whether purchasing or renting around the world, global housing costs are expensive, but the past 12 months have been inconsistent. Within the corporate relocation industry, it’s important to keep an ear to the ground in key hubs of economic activity so organizations know when to adjust housing allowances, begin to offer mortgage support for homeowners, or improve the level of support. Below are examples of just a few key economic zones WHR is monitoring closely:
- Germany: Year-over-year (YOY) property price decrease of -4%.
- Japan: YOY property price increase of 5%.
- Netherlands: YOY property price decrease of -9%.
- Singapore: YOY property price increase of 7%.
- Switzerland: YOY property price increase of 4%.
- United Arab Emirates: YOY property price increase of 18%.
- United States:
- Homebuyers: average 30-year fixed mortgage rate increase from 6.02% (15-Sep-2022) to 7.18% (15-Sep-2023).
- Boston, MA: median monthly rent increase of 3% YOY from $3,200 USD/month to $3,300 USD/month.
- Los Angeles, CA: median monthly rent decrease of -8% YOY from $3,195 USD/month to $2,950 USD/month.
- Houston, TX: median monthly rent remained stagnant with a 0% YOY difference from $1,794 USD/month to $1,795 USD/month.
- New York, NY: median monthly rent increase of 5% YOY from $3,480 USD/month to $3,664 USD/month.
- Miami, FL: median monthly rent decrease of -12% YOY from $3,800 USD/month to $3,350 USD/month.
Corporate Relocation in the Netherlands
Verdict: ↑ Trending Up ↑
Thanks to the European Union’s Right to Work and expat-friendly legislation such as the 30% facility, corporate relocation is positioned to trend upwards. For those unfamiliar, the Netherlands 30% facility allows employers to choose to pay their employees 30% of their annual salary tax-free (provided they meet certain baseline conditions). Expats also enjoy geopolitical stability, a consistently high quality of life, and expat-friendly banks such as ABN AMRO.
Netherlands Migration Statistics (2013-2022)
This chart shows immigration, emigration, and net immigration for the Netherlands from 2013-2022.
ESG Considerations in Corporate Relocation RFPs
Verdict: ↑ Trending Up ↑
Environmental Social Governance (ESG) is becoming commonplace in most corporate relocation RFPs. As organizations focus on sustainability and ethical practices, these factors play a pivotal role in their vendor selection. ESG compliance aligns with a company’s values, reflecting positively on its brand image.
Choosing corporate relocation services providers committed to these principles demonstrates a commitment to social and environmental responsibility, appealing to both employees and stakeholders. Organizations should seek out corporate relocation serivces providers who value committed action plans such as EcoVadis certifications and Science-Based Targets.
EcoVadis helps organizations manage ESG risk and compliance, meet corporate sustainability goals, and drive impact at scale by guiding the sustainability performance improvement of corporations and their supply chains.
Science-Based Targets help organizations lead the way to a zero-carbon economy, boost innovation and drive sustainable growth by setting ambitious, science-based emissions reduction targets.
Air Shipments in Corporate Relocation
Verdict: ↓ Slightly Trending Down ↓
As detailed in our article, “ESG in Global Mobility: Turning the Tide on Air Shipments,” there are significant ESG advantages to reducing or eliminating air shipments. Air shipments have long been the go-to choice for international relocations and corporate moves due to their speed and efficiency. However, the environmental impact of air cargo emissions cannot be overlooked. As a greener alternative, sea container shipments present a compelling case for global mobility programs to transition towards more eco-friendly transportation modes.
To compare typical CO2 emissions between modes of transport (measured in grams of CO2 per metric ton of goods shipped per mile): flights emit 500 grams of CO2/metric ton of cargo per kilometer of transportation. However, ships emit only between 10 to 40 grams of CO2 per kilometer.
Communicate the difference in CO2 emissions between air, road, and sea shipments. Your employees may self-select a more eco-friendly option (if feasible), sending fewer items in their air shipments or not utilizing them at all. Or, instead of an LDN air shipment container which has a weight capacity of 750 lbs, consider reducing this entitlement to a D air shipment container which has a weight capacity of approximately 500 lbs.
Implement programs such as Discard & Donate to reduce shipment sizes, thereby reducing organizational costs and CO2 emissions. Consider offering a cash allowance in lieu of the air shipment, or eliminate the air shipment option altogether.
Inclusive Language in Employee Relocation Policies
Verdict: ↑ Trending Up ↑
As discussed during various regional relocation council meetings, including WiERC & CRC Chicago, corporations can have a large positive or negative impact on their employees by how their policy language is written. Writing a definition for family size, as an example, can have large downstream impacts if a family member feels excluded.
Here are some of the considerations employers should take into account when defining family size in their relocation policies:
- Is your definition for family size consistent across all HR policies?
- Is your relocation policy inclusive of same-sex relationships?
- Should dependent children be limited to 18-years-old and younger? Or should dependent children include those up to 21-years-old if they’re still attending school?
- Should your relocation policy include or exclude elderly dependents? If elderly dependents are included, this could have immigration complications.
In summary, the corporate relocation landscape is undergoing significant shifts, and WHR Global is diligently monitoring these trends for Q4 and beyond. The global housing market presents a complex and varied picture, emphasizing the need for organizations to remain adaptable and responsive in adjusting housing allowances and support mechanisms. The Netherlands emerges as a promising destination for corporate relocation, thanks to favorable legislation and expat-friendly policies. Additionally, the rise of Environmental Social Governance (ESG) considerations in relocation requests for proposals (RFPs) underscores the growing importance of sustainability and ethical practices. Finally, the focus on inclusive language in employee relocation policies highlights the impact that thoughtful policy design can have on employees’ well-being and satisfaction. As the corporate relocation landscape evolves, staying informed and embracing these trends will be crucial for organizations seeking to navigate this dynamic environment successfully.