There is a consistent demand for relocation services, and the industry has an optimistic outlook overall, according to Atlas® Van Lines’ Corporate Relocation Survey, recently released. Approximately nine out of 10 organizations report that their 2017 budgets and relocation volume either rose or stayed steady, and larger organizations (500-5,000-plus staff) expect the same for 2018. The majority offer assistance to homeowners who are relocating, but the level is now specialized, and varies.
The highlights from the survey:
- Approximately half of respondents anticipate costs as a result of the Tax Cuts and Jobs Act, both in 2018 and over the next eight years. The expectation is higher among large organizations (68 percent) versus smaller ones (31 percent).
- Eighty-seven percent of large organizations are likely to have a plan in place for policy as a result of the Tax Cuts and Jobs Act. (Fifty-eight percent of smaller ones are as likely.) The changes to policy include: gross-up taxable relocation benefits (the most popular); expanded use of lump sums; streamlining relocation processes; restructuring relocation policy; and withholding of relocation benefits.
- Eighty-six percent of respondents offer non-standard incentives or exceptions, including extended temporary housing benefits, relocation bonuses and cost-of-living adjustments (COLAs) in salary. Eighty-two percent offer fixed/flex benefits in their programs, including fixed costs for moves.
- Roughly 60 percent of respondents report the employment of a partner/spouse “frequently impacts” relocations. Fifty-nine percent of respondents offer assistance to partners/spouses.
- Thirty-eight percent of respondents expect increased international relocation in 2018, a decline from 49 percent. Seventy-six percent offer assistance to partners/spouses for an international relocation.
- Thirty percent of large organizations are renegotiating or reviewing supplier contracts; 28 percent are limiting miscellaneous expense allowances; and 27 percent are offering short-term/extended travel/commuter arrangements.
Source: Atlas® Van Lines
For the latest real estate news and trends, bookmark RISMedia.com.