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Relocation Policy & Trends – Research Highlights & Insights
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Big Picture – Three Years Ago
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Big Picture – Today
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Relocation Impact: Economic Conditions, Unemployment Recession Recovery Recession Periods Source: NBER Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor
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Relocation Impact: Economic Conditions, Unemployment Recession Recovery Recession Periods Source: NBER Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor
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Relocation Impact: Company Growth, PMI Recession Recovery Recession Periods Source: NBER Purchasing Managers Index Data – Annual Aggregate Data from Institute of Supply Management
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Relocation Impact: Company Growth, PMI Recession Recovery Recession Periods Source: NBER Purchasing Managers Index Data – Annual Aggregate Data from Institute of Supply Management
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Session Presenters Katrina Starnes President & Principal Consultant KES Research, LLC Douglas Weed, SGMS, SCRP Vice President, Global Services & Supplier Solutions Cornerstone Relocation Group Linda Bauer Darr President & CEO American Moving & Storage Association
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Experience & Expectations
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Compared to 2010, Did the Number of Employees You Relocated in 2011… 2011: Overall Relocation Experience
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Totals greater than/less than 100 are due to rounding. Historical: Overall Relocation Experience Compared to [Previous Year], Did the Number of Employees You Relocated in [Last Year]…
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2011: International Relocation Experience Compared to 2010, Did the Number of Employees Your Company Relocated Internationally During 2011…
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Historical: International Relo Experience Totals greater than/less than 100 are due to rounding. Compared to [Previous Year], Did the Number of Employees Your Company Relocated Internationally During [Last Year]…
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Compared to 2011, Do You Anticipate the Number of Employees Your Company Will Relocate During 2012 Will… 2012: Overall Relocation Expectation
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Totals greater than/less than 100 are due to rounding. Historical: Overall Relocation Expectation Compared to [Last Year], Do You Anticipate the Number of Employees Your Company Will Relocate During [This Year] Will…
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2012: International Relocation Expectation Compared to 2011, Do You Anticipate the Number of Employees Your Company Will Relocate Internationally During 2012 Will…
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Historical: International Relo Expectation Compared to [Last Year], Do You Anticipate the Number of Employees Your Company Will Relocate Internationally During [This Year] Will… Totals greater than/less than 100 are due to rounding.
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Volumes & Capacity – Industry Perspective
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YearLess than 500500 – 4,9995,000 or more 20021 - 920 - 49200 - 399 20031 - 920 - 49200 - 399 20041 - 920 - 49200 - 399 20051 - 920 - 49200 - 399 20061 - 920 - 49200 - 399 20071 - 920 - 49200 - 399 20081 - 910 - 19100 - 199 20091 - 910 - 19100 - 199 20101 - 920 - 49100 - 199 20111 - 920 - 49200 - 399 By Company Size (Salaried Employees) Number of Employees Relocated Previous Year - Median Range Atlas Corporate Relocation Survey Note: 361 companies responding in 2011; more than 100 participants from each size firm.
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Worldwide ERC 2011 U.S. Transfer Volume & Cost Survey Note: 118 companies responding in 2011; mostly larger firms (based on transfer volumes).
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Pressures & Possibilities
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Audience Participation! What external factor had the greatest impact on the number of your employee relocations in 2011? 1 - Economic conditions 2 - Lack of qualified people locally 3 - Real estate market 4 - Growth of domestic competition 5 - Growth of international competition 6 - Other 7 - External conditions had no impact What external factor had the greatest impact on the number of your employee relocations in 2011? 1 - Economic conditions 2 - Lack of qualified people locally 3 - Real estate market 4 - Growth of domestic competition 5 - Growth of international competition 6 - Other 7 - External conditions had no impact External Factors
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2011: External Conditions Select External Conditions Having the Most Significant Impact on the Number of Employee Relocations in 2011
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2011: External Conditions
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Historical: External Conditions Recession Recovery Recession Periods Source: NBER
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Unemployment: Educational Disparity Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor
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2011 Educational Attainment of U.S. Adults 18+* Only 37% of US Adults 18+ have Associates Degree or Higher (Averaging less than 6% unemployment the past 2 years) *Percentages Calculated from Population Data Breakdown from 2011 U.S. Census Bureau Report Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor
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Recession Recovery PMI, NMI: Index Averages Recession Periods Source: NBER Purchasing Managers Index Data – Annual Aggregate Data from Institute of Supply Management Non-Manufacturing Index Data – Annual Aggregate Data from Institute of Supply Management
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Real Estate: Expectations
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Audience Participation! What internal company condition had the greatest impact on the number of your employee relocations in 2011? 1 - Corporate reorganization/restructuring 2 - Knowledge/skills transfers 3 - Expansion into new territories 4 - Growth of company 5 - Promotions/resignations 6 - Acquisitions/mergers 7 - Expansion of facility 8 - Budget constraints 9 - Other 10 - Internal conditions had no impact What internal company condition had the greatest impact on the number of your employee relocations in 2011? 1 - Corporate reorganization/restructuring 2 - Knowledge/skills transfers 3 - Expansion into new territories 4 - Growth of company 5 - Promotions/resignations 6 - Acquisitions/mergers 7 - Expansion of facility 8 - Budget constraints 9 - Other 10 - Internal conditions had no impact Internal Factors
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2011: Internal Conditions Select Internal Conditions Having the Most Significant Impact on the Number of Employee Relocations in 2011
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2011: Internal Conditions
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Historical: Internal Conditions Recession Recovery Recession Periods Source: NBER
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Firm Performance: Expectations
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Audience Participation! Did any employees decline the opportunity to relocate in 2011? 1 - Yes 2 - No 3 - Don’t know Did any employees decline the opportunity to relocate in 2011? 1 - Yes 2 - No 3 - Don’t know Declined Relocations
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2011: Declined Relocations
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Historical: Declined Relocations Recession Recovery Recession Periods Source: NBER
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Reasons Employees Gave for Declining Relocation in 2011* 2011: Reasons Relocations Declined
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2011: Reasons Relocation Declined
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Historical: Reasons Relocations Declined Recession Recession Periods Source: NBER
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Shifting Sands
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Relocation Remains a Balancing Act
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Audience Participation! Is your company utilizing “alternative assignments” (i.e. extended business travel, cross- border commuting, localization, permanent international transfers, rotators, etc.)? 1 - Yes 2 - No, but we plan to do so in the coming year 3 - No, and we don’t plan to do so Is your company utilizing “alternative assignments” (i.e. extended business travel, cross- border commuting, localization, permanent international transfers, rotators, etc.)? 1 - Yes 2 - No, but we plan to do so in the coming year 3 - No, and we don’t plan to do so Alternative Assignments
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2011: Alternative Assignment Use
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How Alternative Assignments Are Incorporated into Corporate Employee Mobility Strategy
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2011: Alternative Assignment Use
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Audience Participation! Which cost containment measure in relocation policy/practice was utilized most by your company over the past year? 1- Cap relocation expenses 2 - Pre-decision counseling 3 - Restructuring policy tiers 4 - Limit miscellaneous allowances 5 - Reviewing/renegotiating contracts 6 - Short-term/travel/commuter arrangements 7 - Other 8 - No cost containment measures beyond typical relocation policy or program utilized Which cost containment measure in relocation policy/practice was utilized most by your company over the past year? 1- Cap relocation expenses 2 - Pre-decision counseling 3 - Restructuring policy tiers 4 - Limit miscellaneous allowances 5 - Reviewing/renegotiating contracts 6 - Short-term/travel/commuter arrangements 7 - Other 8 - No cost containment measures beyond typical relocation policy or program utilized Cost Containment
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2011: Cost Containment Measures Selected Cost Containment Measures Used by Firms in 2011
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2011: Cost Containment Measures
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Historical: Cost Containment Measures
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Questions?
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2012 CRS Results Get your copy before you leave today! Give us feedback on our industry research with the insert, and let us know if you’d like to participate in 2013!
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Katrina Starnes President & Principal Consultant KES Research LLC Evansville, IN 47725 Phone: 812.867.0179 E-mail: katstar@insightbb.comkatstar@insightbb.com Douglas Weed, SGMS, SCRP Vice President Cornerstone Relocation Group Basking Ridge, NJ 07920 Phone: 908.580.9600 E-mail: DWeed@crgglobal.comDWeed@crgglobal.com Linda Bauer Darr President & CEO American Moving & Storage Association Alexandria, VA 22314 Phone: 703.683.7410 E-mail: ldarr@moving.orgldarr@moving.org Ryan McConnell Vice President, Corporate Marketing Atlas Van Lines Evansville, IN 47711 Phone: 800.638.9797 E-mail: ryamcco@atlasworldgroup.comryamcco@atlasworldgroup.com Session Presenter Contact Information
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