Corporations Continue to Relocate Employees at Record Levels Despite Financial Concerns

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Despite a slowing economy, an overwhelming majority of multinational corporations remain highly optimistic about the global outlook for their businesses and say they plan to send more employees on overseas assignments in the months ahead, according to the new Global Relocation Trends Survey, published annually by GMAC Global Relocation Services.

The worldwide survey of 154 multinational firms found that 68% of corporations are ramping up their employee assignment efforts. Of those, 95% say they plan to either increase the number of employees being transferred or stay at the same level as last year. A mere 5% expect to decrease the number of employees relocating in 2008. The firms that participated in the latest survey manage a total worldwide employee population of 4.3 million.

According to GMAC Global Relocation Services, the optimism is impressive in light of a looming recession in the United States. Helping offset this, are booming markets in China and steady expansion of the European Union, which has created a vast and relatively open marketplace for trade encompassing some 500 million people.

Still, corporations are not immune from global economic challenges. Despite this projected growth, the majority of companies (58%) indicated they are cutting back on expenses for international assignments in response to economic conditions. At companies that are reducing expenses, 29% of respondents—the highest since the survey began tracking this subject—indicated they are reducing policy offerings and financial incentives for relocating employees.

"The Global Relocation Trends Survey continues to present the newest data and research while providing companies throughout the world with valuable insight into current and emerging global mobility trends," says Rick Schwartz, president and CEO of GMAC Global Relocation Services. "The survey identified three significant challenges facing corporations: Finding suitable candidates for assignments, helping employees—and their families—complete their assignments, and retaining these employees once their assignments end."

Now in its 13th year, the annual Global Relocation Trends Survey has become the definitive study of companies' employee-relocation practices, policies and projections. As it does each year, the newly released survey paints a comprehensive picture of evolving trends and emerging issues facing companies of all sizes that rely on an international workforce. For information on how to receive the full survey, go to http://www.gmacglobalrelocation.com/2008grtshc.html

Family Concerns

Family concerns were cited as the most common reason for assignment refusal (89%), followed by spouse career concerns (62%). Family-related issues play a key role throughout the duration of international assignments; 28% of respondents cited family concerns as the top reason for early returns from assignments.