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More On The Move

Approximately 110,000 relocations by Canadian companies take place annually at a cost of about $1 billion, according to a recent report commissioned by Royal LePage Relocation Services (RLRS). But beyond the raw data, some trends are apparent that indicate some companies arent managing the process as effectively as they might.

The "Emerging Trends in Employee Mobility" report, an in-depth survey from 100 Canadian-based companies, notes that the average Canadian company invests almost $20,000 to move a single employee to another location in the country, while large companies (over 1000 people) typically spend almost double that figure. Companies with more than 100 employees and multiple locations account for approximately 40,000 relocations a year in Canada. These companies spend a whopping $800 million annually on employee mobility.

One key trend is that relocations overall are on the increase. Almost 35 per cent of the companies in the survey indicated that their transfer volume had increased. However, temporary assignments (short-term assignments in which the employees have a reasonable expectation of returning to their original location) have increased in popularity over the past three years, according to the survey findings, and will likely continue to grow over the next three years. Temporary assignments accounted for about one in every five employee transfers - just fewer than 8,000 relocations a year for companies with more than 100 employees. Almost half of all large companies have used temporary relocations at one time or another.

According to survey respondents, many companies see temporary assignments as less expensive and less stressful on employees than permanent relocations. This is primarily because temporary relocations eliminate real estate costs and avoid the permanent relocation of an entire family.

Canadian companies face challenges in employee relocation [ConnectIT e-News Daily]

January 24, 2005 in Money Matters | Permalink