Global Domestic Relocations Remain High in War of Talent

Corporates increasingly turning to outsourced mobility vendors for domestic relocations in large markets

A domestic relocation is relatively straightforward compared to an international relocation; policies and benefits are relatively standard, best practices are established, and complications are fewer and less onerous—in most countries. Even in international relocations between closely allied countries such as the U.S., U.K., and Canada, relocations are aided by shared culture, language, and social demographic profiles. But in large countries that comprise diverse cultural, economic, and regional characteristics, a domestic relocation can present unexpected complexity. In markets such as India, China, and Brazil, transferees can confront dramatically different cultures, lifestyles, and languages without leaving their home country.

Weichert Workforce Mobility first noted an increase in these global domestic relocations in 2015 and began collecting data to better inform policies for intercountry relocations in major markets they serve. What was an emerging trend from 2016 to 2019 went into overdrive when the pandemic closed international borders. Today, even with pandemic-era obstacles lowering, large organizations continue to look more to their own countries to meet their recruitment and relocation demands.

“It’s all about the war for talent at the end of the day,” says Laura Levenson, Global Practice Leader, Advisory Services for Weichert Workforce Mobility. “We’ve already moved more than 200 people within India this year; many of these from a single company.”

“Through the past year, our Advisory and Client Service teams have been flooded not only with questions regarding best practices but also requests for assistance reflecting the need for a formal set of guidelines to administer domestic moves outside the US, UK, and Canada, where the relocation industry has historically seen the most domestic activity,” Levenson writes on the Weichert blog.

“In Korea, new tenants typically pay a full year’s rent up front,” says Levenson. “In Japan, new tenants may be asked for “key money” in addition to rent and security deposits.” This non-refundable gift to the landlord, set solely at the landlord’s discretion, can equal several months’ rent.

The data Weichert has been collecting and continues to gather has proven a useful resource in servicing the increased demand for global domestic relocations. In some countries, the difference in the cost of living between low-cost and high-cost cities is much more drastic than it is in the U.S. A move from Rio de Janeiro to Sao Paulo, Brazil may pay 50% more for monthly utilities and 70% more for cab fares. Weichert’s research reveals a wealth of practical information about these differences that are key to effective relocation policies, though it does not delve into specific financial figures.

For those interested in further insights and international idiosyncrasies, Levenson will demonstrate Weichert’s Global Domestic Mobility tool at the Worldwide ERC Spring Virtual Conference May 17-May 19 in a session titled Global Domestic Mobility Research. “We use a cloud-based interactive tool to present the data in a way that is very usable, very graphic, and fun to use,” says Levenson. “Our design team refers to it as visual storytelling.” The data behind the tool reflects more than six years of research and is constantly updated by Weichert clients and partners. “We will ask a new client that has domestic mobility to fill in the survey, and that data is automatically available to us and up to the minute.” Levenson also reaches out to clients and destination service providers to essentially triangulate the destination data, which includes core benefits, rental practices, corporate housing, education, and transportation for the most popular cities in a given country.

For more information on the Spring Virtual Conference click here. Registration is just $150 for the two-day event, and attendees can earn up to 24 total continuing education units for (S)GMS®/(S)GMS-T® and (S)CRP® recertifications through viewing the live and recorded sessions.