With the economy on a historic run and employment at milestone numbers, companies are firming up their resources and talent. For corporate mobility professionals, a combination of factors is shaping strategy—and the most significant is the Tax Cuts and Jobs Act, according to new research.
Approximately three-quarters (74 percent) of respondents in the 2018 Atlas Corporate Relocation Survey anticipate that, due to the legislation, their policies will shift, with changes including cutting expenses, more lump sums and restructured tiers. Fifty-five percent believe their costs will go up from 2019-2025, and 51 percent believe they’ll rise this year.
Even with expenses increasing, employers recognize relocations are valuable—especially as the competition heats up for hires. The common drivers, according to the survey, are:
- Lack of local talent (44 percent)
- Expansion (43 percent)
- Company growth (37 percent)
For bigger companies, expansion is the leading motivator, followed by a corporate restructuring (e.g., a merger) and knowledge/skills transfers. Notably, budget constraints and the economy are not as impactful as in past surveys.
Who will be impacted by the impending overhaul in policy? According to the survey, the average employee relocator is a 30-something male in mid-level management, who has no children, but is married. In 2017, 75 percent of relocators were males; the quarter remaining were women. Of all employee relocators, the majority moved within in the U.S., with 38 percent to the Northeast, 30 percent to the Midwest, 27 percent to the West and 26 percent to the South. On a global spectrum, 27 percent relocated to Western Europe, 25 percent to the United Kingdom, 25 percent to Asia, and 22 percent to Canada.
The Atlas Corporate Relocation Survey is based on data gathered from 435 participants.