Global Workforce Mobility: Challenges and Opportunities

Transferring employees from point to point has traditionally been referred to as “relocation,” but because of the range of issues this touches in the global marketplace, “workforce mobility” often better describes the industry. And the workforce mobility role in a company is evolving more quickly than ever before. Challenged by labor shortages, a widening global business arena, cost issues, and an increasing diversity of customers and colleagues, workforce mobility experts and the companies they serve have responded with creative strategies to meet the variety of challenges – and opportunities - in today’s world.

Attracting and servicing a mobile workforce

Workforce mobility and HR issues are more closely integrated in recent years. Many US-based companies that began or expanded their global reach in the last decade know that their overall business strategy relies heavily on the quality and placement of their employees, which requires several areas in the company to work in concert. A great many workforce mobility professionals have HR responsibilities as well, others are in close alignment with the HR department; still others have forged a work process with their procurement process. In fact, in a recent study by the workforce mobility association Worldwide ERC 60 percent of companies reported their company’s procurement department was involved in the purchase of US domestic mobility services. Companies are striving to contain costs throughout the service supply chain, and procurement departments are increasing in importance as a partner to the relocation and human resource functions.

But while companies look to control costs, the tightening labor force presents a dilemma: employers will likely need to invest more resources to fill the ranks, even as rising costs demand a close look at the bottom line. And with all the opportunities for good job candidates to trade up these days, it’s important to stay closer to our best and brightest employees. As Carol Ashton, Global Chief HR Officer for Ernst & Young said at a recent global workforce meeting: “Holding onto key talent is like trying to keep frogs in a wheelbarrow.”

According to Worldwide ERC, more than 90 percent of companies in the US are having difficulty finding the right people, and 22 percent consider the problem fairly severe. It has been more difficult for companies to recruit for executive-level and experienced technical positions than entry-level technical positions. The same is true for non-technical positions, though to a lesser extent.

To sustain their growth in this economy, companies are recruiting at increasing rates. Over 40 percent of companies predict the number of new hires they relocate would be greater than the previous year. The biggest challenge companies face when recruiting new hires is the competition between them for recruits, followed by an inadequate supply of qualified candidates. Other challenges include cost-of-living/housing considerations and undesirable areas. Very few think these problems will be alleviated in the next two years. To stay competitive for talent, we know that benchmarking the competition’s recruitment, relocation and retention strategies is critical. In addition, we are experiencing the shortest job search time on record, so we must be quicker to make hiring decisions, or risk losing the best candidates to a competitor. We also must be more creative in developing, enhancing, or allowing access to benefits and services that attract talent.

A mobile workforce is more critical, too – in fact, most companies underscore the importance of mobility for their new hire population. The majority of companies today use tiered relocation policies, often tied to a new hire’s experience level, to provide flexibility in assistance and manage costs. The policy elements that US new hires find most attractive include home sale assistance, home purchase assistance, lump-sum payments or miscellaneous allowances, and household goods shipping. Particularly in the current real estate environment, it’s wise to look at those parts of the policy, benchmark with peers, and ensure that the company is offering reasonable assistance for the demands of the market.

In order to attract skilled employees, over 60 percent of companies will grant exceptions to their formal policy – 12 percent will usually or always grant such exceptions, while 50 percent sometimes do so. Most often, exceptions are granted for extended temporary living, followed by time extensions for the storage of household goods.

What we know… and what we need to learn

The link between recruitment, relocation, and retention is going to grow even stronger. It’s sort of like that old sales idiom – it costs less to retain a current customer than to get a new one. It will cost companies far less to get better at retaining employees than finding and attracting others.

Most large companies today do business in their home country and in other regions and countries… or are learning to address the needs of global companies and transferees on their own soil. The possibility of recruiting and hiring employees from anywhere in the world brings with it a strong appreciation of (and emphasis on) intercultural and multicultural issues in the business environment, changing professional roles that require us to learn about other countries and cultures, and the need to position ourselves and our companies for the opportunities that free trade and business without borders bring.

Employees and transferees drive change

Empowered by technology and the choices that globalization and a tighter labor market bring, employees, transferees and global assignees present a range of challenges to employers, global mobility strategists, HR professionals, and service provider partners.

Multiple generations in the workplace at one time and differing assignment types (short-term, long-term, cross-border, dual career) require a range of expertise, managerial styles, communication methods and employer support and flexibility.

By 2010, the number of US workers aged 35 to 44 — or those typically moving into upper management — will decline by 19 percent. The emerging workforce will be a blend of Baby Boomers, GenXers, GenYers, and the coming wave of graduates. Younger generations have seen massive downsizing, strongly value work-life balance, are less willing to sacrifice family and personal time for their jobs, and more often are “self-managing” their careers. These younger, more tech-savvy workers need different systems and products during a transition. Overall, this blended work force is one where family and personal interests play a stronger role in transferee and assignee work choices and careers.

Sometimes it’s the little things that count

Competitive companies keep one ear to the ground in this kind of environment. It’s not always the expensive, sophisticated strategies that make the difference, and here’s one example. One of my colleagues who consults on workforce issues reinforced the importance that a connection to senior management is a critical component to retaining significant management types. In a study for one of his corporate clients, he interviewed 35 key executives who left the company in recent years. Out of that group, 34 of the 35 said they would have stayed with the company if there were more integration and interaction with senior management – many said that if the CEO had spoken to them one time – just one time! – they would have reconsidered their departures. Worse news still, not only did they leave holes in key management roles, but they each took, on average, 15 people with them to their new positions, which produced “craters” in some functions and departments for the company they left. What a simple fix it would have been to make those employees feel more valued, and what a loss to the company when they left for a new workplace.

Positioning for a powerful workforce

It’s more important than ever to be an employer of choice. Companies that attract employees because of their brand and high-value employee proposition as opposed to (or in addition to) competing with higher salaries, will build more loyalty and will likely have better retention rates.

Companies are looking for ways to build trust and job security for their current employees, because they know that retaining employees as the workforce pool gets smaller is even more important to maintaining a competitive edge. Some of the ways companies are doing this is to address more of the personal issues that are important to employees (for example, providing day care or elder care, identifying the job that will follow the current assignment, addressing more spouse and family issues, and offering skill-building training or higher education opportunities).

Heeding the personal and family needs of employees and recognizing the appeal of communities is a strategic decision. For example, in regions where it is difficult to attract workers, some companies are focusing on building support and loyalty from the families of their current workforce, in hopes that the children of their employees will find the company an appealing employer when they are of age to work. Other companies are looking at ways to hire the spouses of expats (when it is acceptable for them to work in the assignment country) who might be able to fill open positions.

Employers will be challenged to support different models of service and information delivery for their workforces. Traditional “in person” delivery methods are firmly in place, but due to the geographic dispersion of workers and the research and communication preferences of younger transferees, self-service models for the delivery of relocation services are growing in popularity. A menu-driven/cafeteria-style program that offers a selection of assistance options from a pre-determined list can be an effective way to create flexibility in a program while managing costs.

Ultimately, in order to have the most effective and fluid labor pool, the U.S. and other countries will need to consider more dramatic change, such as getting governments involved in developing a new work infrastructure that opens employment to more people; changing employment laws, providing more visas and the like.

The bottom line? The collision between the widening talent shortage and rising costs of workforce mobility is a mixed blessing – though difficult, it is opening a channel of resourcefulness and solutions that will strengthen corporate labor, growth and workforce mobility strategy in coming years.

Al Blumenberg, CRP
2007 Worldwide ERC Secretary-Treasurer
Manager, Global Relocation
Anheuser-Busch Companies, Inc.
St. Louis, Missouri

BIO: Al Blumenberg – Anheuser-Busch Companies, Inc.

Al Blumenberg, CRP, is the Manager – Global Relocation for St. Louis based Anheuser-Busch Companies, Inc.

Al has been in the human resources profession for over 27 years with experience in the areas of domestic and international compensation, 401(k) administration, drug testing administration, and relocation.

In his current role, Al is responsible for the implementation and management of an in-house relocation program that supports 600 global transfers annually.

Over the years, Al has impacted the development and administration of Anheuser-Busch’s Global Assignment Policy for Expatriates and Third Country Nationals, their domestic US based relocation program and most recently a global program for permanent transfers.

Al was elected to the Worldwide ERC board of directors for a three-year term in January 2005 and currently serves as the 2007 Secretary/Treasurer.

Al has a BS in Management, an MBA, and in addition to being a CRP also has certification as a Senior Professional in Human Resources.

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