RELO Roundtable…a gathering place

Despite the political posturing, name calling, and the war of words being waged in Washington, companies are increasingly more upbeat about the economy and the future of domestic and international relocations than they have been in the last six years.

At least that's the attitude of the 408 corporate executives, HR specialists and move managers who participated in Atlas Van Lines' 44th annual Corporate Relocation Survey.

Atlas is one the largest licensed household goods movers operating in the U.S. and the largest subsidiary of Atlas World Group, an international transportation and move management company based in Evansville, Indiana. 

2011 Survey Highlights – Good News, Finally!

Seventy-two (72) percent of the respondents polled say they believe their respective companies will fare better in 2011. The optimism rate among large firms surveyed with more than 5000 employees jumps to 80 percent.

The comprehensive, 159-page report suggests an uptick in corporate optimism from even one year ago:

• Fifty-four percent of executives surveyed believe the U.S. economy will improve in 2011. This is the highest rate of such optimism recorded since 2006, and is similar to 2004 post-recessionary expectations.
• Mid-size and large firms are most optimistic: close to a third or more expect volumes to increase; roughly a fourth of mid-size and a third of large firms expect budget increases as well.
• Thirty percent of companies plan to relocate workers this year, the highest percentage in six years.
• Eighty-seven percent of companies will spend as much or more on relocation in 2011 as in 2010, the most since 2007.

For the second year in a row, most firms across company size expect their overall financial performances to improve compared to the previous year. Half or more expect the U.S. economy to improve as well.

This year's survey includes the following analysis:  

• Relocation Volumes and Budgets – Expectations improve, return to non-recessionary levels
• International Relocation Volume – Greater expectations
• Economic Outlook – Progressively greater optimism for U.S. economy and individual firms
• Market Impact on Relocations – Depressive pressures lessening on middle management and entry level relocations
• Employees Declining Relocation – Employee reluctance lessening; housing/mortgage issues continue to play major role
• Incentives & Cost Containment – Maintaining balance
• External Factors – Shifts indicate recession impact lessening; real estate market still issue; impact differs by company size
• Internal Factors – Company growth retakes top spot, budget constraints lessen; still recessionary levels
• Outsourcing – Increases overall, across company size
• Relocation Reimbursement/Payment – Greater use of multiple reimbursement methods continues
• Cost Coverage
  
• Trailing Spouse/Partner Assistance – Employment assistance remains stable
• International Relocation Durations – Short-term expectations increase
• International Outsourcing – Overall level increases significantly
• International vs. Domestic Policy – Most additional considerations, international employment assistance stable

Data from the 2011 Atlas survey shows the Midwest is now the top destination of transfers (37 percent); followed by the Northeast (31 percent), the South (28 percent) and West (20 percent). Thirty-two (32) percent of companies say they increased the number of international relocations in 2010, with 28 percent predicting another increase in 2011.

The effect of economic/market pressures on entry level/new hire and middle management relocations appear to be lessening.

In 2008 and 2009, roughly 40 percent of companies say these pressures decreased relocations in these job sectors. In 2010 that percentage dropped to just above 25 percent.

Seventy-eight percent say the economy or real estate markets are the most important factors affecting relocations. While employers may be more optimistic about the economy, many of their workers remain cautious and somewhat apprehensive.

Fifty-nine percent of firms responding report they had employees decline relocation offers in 2010; the third highest level in several years. Among larger companies and international enterprises, the rate jumps to 87 percent. Three of every four companies surveyed say the number of employees declining relocation in 2010 stayed about the same as 2009, reflecting little change in workers' attitudes toward moving.

Just as in last years survey, the fact that sixty-nine percent of employees who wouldn’t move cited housing and mortgage concerns, 55 percent cited family issues and ties, and 41 percent cited their spouse’s or partner’s employment.

Over one fourth of companies surveyed say that declining a relocation request usually hinders an employee's career.

Some other interesting facts gleaned from the Atlas survey include:

• Eighty-four percent of firms have a formal relocation policy.
• More than half of all relocations were new hires (53 percent).
• Employees age 36-40 remained the most frequently relocated salaried employee in 2010 (37 percent); most are male – only 19 percent of relocations involved female employees.
• Forty-five percent of relocations involved employees with children; 61 percent of those relocated were homeowners.
• Thirty-two percent of responding firms give employees just one week or less to accept a relocation offer (up 7 percent from 2010 survey).
• More than three-fourths of companies reimburse/pay to pack all items; 28 percent to move pets; 14 percent will even reimburse for moving boats.
• Among international relocations, the most frequent destination was Europe (41 percent).

Click on the links below to view the Atlas Van Lines 44th Annual Corporate Relocation Survey results:

PDF Downloads:
Intro & Results (30 pages, 4.8 MB)
Summary & Charts (159 pages, 9.7 MB)
View Past Results (1998 – 2010)

Sign Up to Participate in Next Year's Survey!

Source: Atlas World Group

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