Business Travel Executive, February 2019

Converging geopolitical and economic forces are reshaping the landscape of relocation making it imperative for companies operating in the employee mobility space to pay close attention to what is happening around them Shifting demographics new entrants in the housing market immigration and visas and changing tax questions are among the issues affecting the relocation industry in the year ahead Volatile is the word Lee Curtis RESIDE Worldwide Inc s founding partner and co CEO uses to describe the relocation landscape From Brexit to immigration to the current trade wars the companies that we all serve will be making real time decisions on hiring relocation and growth that will have a dramatic downline effect on the service providers that support them Christine Moore vice president global marketing for Oakwood says the company has the opportunity to work with companies operating in a range of industries around the world and she has seen first hand things impacting relocation In the wake of the most recent US election Brexit visa challenges and other global conditions we are finding that companies are increasingly focused on saving costs finding efficiencies within their corporate travel and relocation programs while also maintaining employee compliance with their policies Moore says Companies have a continued need to align talent around the globe with their business strategy and growth plans regardless of current external marketplace conditions When comparing costs among options its important to remember its not just about the rate Moore says Any analysis should take into consideration the entire cost of the stay of relocating an employee including the cost of food transportation and parking and laundry services while considering which environment will allow the traveler to settle in quickly and be most productive For example proximity to the office is not just about the commute there are other reasons an employee could want to be near work In high demand metropolitan areas such as the Bay Area of northern California Oakwood has corporate customers who are willing to pay higher rent to be closer in order to support the density of their employee base and create an easier living experience Data Outsourcing DIY The relocation arena continues to be highly competitive and will likely become even more so in 2019 and beyond according to Rajeev Goswami co founder and CEO of WWStay That is the primary reason his company has placed a significant amount of its focus on technology and reporting Data is king Goswami says And will continue to be increasingly important in the future Disruptions here include the technological advancements that allow for increases in the speed at which data can be transferred the increased use of video and the desire of many employers to allow employees the flexibility to live where they like and participate via these improving technological means Tammy Gillespie founder and CEO of temporary housing provider Switchplace says a combination of uncertainty in the economy visa processing delays and shifts by some companies to use extended business travel have all played a role in relocation disruption lately In the United States changes in the tax law in 2018 mean moving expenses are now no longer deductible except for military personnel who are moving under orders Thus far this has not meaningfully reduced relocation activity but over time it is expected to have some effect In most instances the company is paying the taxes on behalf of the employee Gillespie says This just adds more cost to the relocation package In 2018 immigrations challenges impacted the relocation landscape says Selena Rogers director of sales and reservations at Furnished Quarters especially the working limits placed on many visas Even with the disruptions Goswami notes that when a particular skill set is needed in a location businesses will do what it takes to get the right resources to that location so the impact may not be as big as some think Thats why WWStays expectation is for relocation activity worldwide to increase as global economies remain relatively strong The best evidence of that is in the Middle East where there are frequently wars or rumors of wars yet resources Business Travel Executive FEBRUARY 2019 15 Navigating the employee relocation landscape requires a good map and a watchful eye By Keith Loria