Increased globalization and job opportunities, coupled with changing work dynamics, are driving the employee relocation category’s growth

Employee Relocation Category - Procurement Intelligence

The employee relocation category is expected to grow at a CAGR of 1.2% from 2023 to 2030. With the return to normalization in the post-pandemic period, many employees are willing to relocate for the right position. The foremost considerations include the cost of living, housing expenses, availability of housing, as well as safety and security. These factors are closely followed by the convenience of residing, working, and engaging in recreational activities without enduring extended commutes. The desire for an enhanced quality of life continues to motivate relocations. Above all, prospective staff need assurance that they will find equivalent or superior advantages in their new locale.

Companies are progressively emphasizing the establishment of diverse and all-encompassing work environments. This trend is fueling the need for relocation services aimed at facilitating employees’ transfers to different locales while safeguarding their individual and vocational requirements. In response to this growing demand, relocation service providers are expanding their offerings to include more comprehensive assistance. This includes aiding in the search for schools catering to children with specific requirements and support related to cultural needs.

Technological advancements such as AR, VR, and artificial intelligence (AI) are revolutionizing the process of moving staff from one place to another. The important component of relocation technology offered by relocation management companies is a platform that enables real-time tracking of the relocation process for employees, employers, and relocation representatives. It helps in storing the employee movement data and making it readily available. This simplifies the coordination with employees while allowing the employer to monitor relocation expenses. Additionally, it can also help relocation experts to guide employees throughout the relocation process. For instance, document signing technology can help streamline the paperwork during international relocations.

When a worker agrees to a role in a different location, one of their initial considerations might be the elements influencing the cost of living. Relocating to a city with higher expenses can impact discussions regarding salary and relocation arrangements. If collaborating with a Relocation Management Company (RMC), it's worth noting the value of possessing an accurate cost of living calculator, as it can greatly assist in the recruitment procedure.

The recent survey conducted by Allied Van Lines, Inc. in 2022 revealed the following statistics:

• Moving expenses of around 33.07% of workers were covered.

• Around 18.08% of the workers received sponsored trips to look for housing.

• 16.58% received a lump sum to utilize as needed.

• Temporary living cost was given to around 16.48% of the workers.

Numerous companies specializing in relocation management allocate significant resources to advanced relocation technology. These technological systems serve not only to streamline internal workflows within these companies but also provide clients with 24/7, real-time access to updates on the status of relocations, budgeting utilities, and comprehensive reports. The data gathered through these systems enables relocation service providers to furnish comprehensive year-end tax details and gross-up information, thereby relieving clients of yet another cumbersome responsibility. Additionally, many of these companies extend the convenience of mobile access and tools to clients and employees undergoing relocation, ensuring they can stay engaged with their individual relocation or program even while on the move.

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Employee Relocation Sourcing Intelligence Highlights

• While there might be several suppliers for the category, the uniqueness of their services and their importance to the moving process could give them some leverage. However, relocation companies might have the ability to establish long-term partnerships and negotiate favorable terms.

• The category is fragmented as corporate clients often have several employee relocation service providers to choose from. They can negotiate on pricing, service quality, and additional perks.

• Labor costs, packing/unpacking services, transportation, temporary housing, taxes, and others are some of the costs incurred in the employee relocation category.

• The average moving amount spent by large corporations can range anywhere between USD 2,000 to USD 100,000. The spending may vary from company to company, or new hire vs. executive.

Employee Relocation Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions 

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the employee relocation category:

• Labor Cost

• Packing/Unpacking Service

• Transportation

• Temporary Housing

• Taxes

• Others

Labor cost and transportation form the largest cost components of the employee relocation category.

List of Key Suppliers in the Employee Relocation Category

• Signature Relocation

• Aires

• Graebel Companies

• NRI Relocation

• WHR Global Employee Relocation

• Cartus Corporation

• Altair Global

• Sirva Worldwide

• Atlas Van Lines

• Allied Van Lines