The Importance of Measuring Mobility ROI

On average, companies are moving fewer employees than in previous years.  The slow recovery of the economy and struggling job market are just a couple of the reasons for this trend.  More importantly, organizations are beginning to think strategically about all aspects of their business plans and objectives, trying to ensure their top talent are available to achieve their business goals. 

Fewer, More Strategic Moves
Fewer moves within an organization means there is a greater need for success and return on investment.  Although companies may be moving fewer employees, the individuals being chosen for relocation are the ones with the most talent.  The trick is ensuring that top talent will say “yes” to a relocation offer.  How can an organization optimize the chances of retaining their talent pool during a transition?  Providing more support and benefits to employees will make your workers more comfortable and willing to accept a relocation offer, maximizing your return on investment and saving money in the long run. 

Relocation is No Longer an Afterthought
With many companies downsizing, outsourcing, and consolidating as apart of their business strategy to earn a higher profit margin, employees aren’t being moved for the same reasons as they used to be.  The days of relocating employees for visibility or career-pathing are gone.  “At Vandover, we believe this is the way of the future,” Vandover’s president Margery Marshall says.  “It’s no longer just about tactics.  It’s more about a strategy for the company that makes sense; where they truly have aligned mobility into their talent management plans.  This means they really are pre-planning who they’re moving and why, making sure the tools are in place.  This will provide more support early on for the employee and their family.”

Measuring ROI is Mission Critical
Very few organizations used to measure the return on investment of a given relocation assignment.  However, companies are quickly becoming more strategic.  Today, 60% of business executives say that measuring ROI is mission critical to their business strategy.  They are getting smarter about long-term planning, making the right investments, and having a deliberate human capital strategy. Nobody used to monitor the number of moves, the cost, and return on investment of relocating employees.  Margery says, “The handling of relocation as a tactical afterthought must stop.  This is a major wake-up call.  It’s time to make a change.”

War for Talent
There really has become a “War for Talent.”  Good talent is hard to find, retain, engage, and, often times, relocate.  This, in turn, is causing more corporations to get more receptive to return on investment.  “We are seeing companies making less deliberate moves involving specific talent,” says Margery.  When first-choice candidates say “no” to a move, the company still has to invest the same amount of money for the second-, third-, or fourth-choice candidate who says “yes” to the move.  This cost may also rise if that employee does not effectively and efficiently fulfill the given job assignment.  This is why the War for Talent in the workforce is more vicious than ever.  It is crucial to track the success of your employees in order to ensure the right job gets done.  You may ask yourself a few simple but strategic questions.  Did the employee stay with the company?  Did they get the job done?  These sorts of questions and more will help your company evaluate your need for specific talent. 

More than any other set back in a business; the loss of talent is by far the most detrimental to an organization.  There may be a waterfall effect that takes place if the right talent is not available to ensure smooth and successful business operations.