5 ways you can reduce your mobility costs
For companies, the objectives have changed slightly in recent years and although saving resources and costs have always been in the top ten of the goals, it is now a priority. In terms of global mobility and corporate relocation programs, it is necessary to have good cost management and to be very careful when adjusting so as not to harm employees or put their needs at risk.
Adjustment strategies should be studied with caution and consider two important points:
– The company’s objectives: try as far as possible to maintain those that are already established and in case of adjusting them avoid losing their initial mission. These are the ones that will set the tone for the degree of control possible.
– Relocation benefits: aligned to the needs or expectations of the employees.
Here is the list of ways you can reduce your mobility costs without getting lost in the attempt:
- Spending history. Budgets from previous years are crucial to have a starting point and define savings. Relocation management companies are key to determining these expenses and having an overview can uncover expenses that may have been unnecessary that you could now do without.
- Evaluate relocation policies. As the environment has changed, benefits have also adjusted according to needs or new ways of operating. A traditional expatriate assignment will generally cost more than a permanent transfer or virtual assignment, so be in tune with other companies and offer benefits in line with the industry, allowing you to remain competitive.
- Evaluate how remote work fits into your program. Many companies and human resources departments must now conscientiously manage the arguments for the physical relocation of staff. There will be some positions where relocations are necessary, but others will only handle remote work with business travel or routine visits to a nearby state.
It is also important that as these policies evolve, experiences should be gathered from employees that will help future decision-making and define programs and assignments in the best way for the employee and the company.
- Consider location. If an employee has been in a host country for more than five years, evaluate the possibility of permanent relocation to reduce costs and eliminate previously necessary administrative and supervisory processes.
- Make sure you are compliant. If most of your employees work remotely, it is vital to keep track of where they live and work – even if they are within the U.S. – as each state government is aggressive in its internal tax policies and penalties for non-compliance. You should be vigilant in reviewing and taking advantage of tax breaks that reduce relocation and relocation costs within the U.S. and in the host country.