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Industry Profile
DOMESTIC U.S. RELOCATION POLICY & PRACTICES
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CONSUMER GOODSConsumer Goods, Food & Beverage
CARTUS | 2017 DOMESTIC U.S. POLICY & PRACTICES SURVEY | INDUSTRY PROFILES: CONSUMER GOODS 2
I N D U S T R Y P R O F I L E S : C O N S U M E R G O O D S
Industry Profiles examine the ways that individual industries approach key program practices and assignment policy features, based on data gathered in the
2017 Domestic U.S. Relocation Policy & Practices Survey.
Twenty percent of the 141 respondents to Cartus’ 2017 Domestic U.S. Relocation Policy & Practices survey are companies in the Consumer Goods industry. Volume for Consumer Goods companies mirrors that of companies overall, with the highest concentration of moves between 26-100 moves per year, and the gender of transferring employees was predominantly (61%) male.
OVERVIEWThe consumer goods industry, including retail, wholesale, and distribution, has entered into a period of transformation. Consumer confidence remains elevated, and while disposable income decreased slightly in June 2017 after tracking consistently higher over the past 12 months, consumer spending continues to increase, but buying habits are changing.
There is no shortage of merchandise to buy or places from which to purchase, and the internet is a great equalizer with respect to pricing. Technology has had a significant impact on the consumer goods industry—the speed and convenience of online shopping and subscription-based online ordering are capturing an ever-increasing market share from traditional brick-and-mortar businesses. Traditional retailers struggle to rethink store numbers and footprint size to adjust to the shift in purchasing habits. Stores are struggling to maintain and increase market share through multi-channel efforts (e.g., in store, online, mobile); however, these measures cut into profitability. The impact of technology on the state of the Consumer Goods sector has been immense and widespread, affecting marketing, sales, operations, and security across the board. This has led to a shift in the profile of candidates, especially in the retail portion of this industry category.
Consumer Goods sector companies have seen a shift to more technology positions to increase their digital footprint and exposure. Artificial intelligence (AI) is now embedded into our daily lives more than some are aware—consumers encounter elements of AI by using voice-activated virtual assistance, such as Siri®, Alexa®, or Cortana®, to provide directions, play music, find restaurants or stores, etc. AI also holds great promise for streamlining processes and improving customer service while reducing operating costs (e.g., self-checkout, paying through an app, GPS tracking, etc.). Consumer Goods companies continue to adjust their strategies to keep pace with multiple pressures.
Think of how much change has happened in less than 20 years. In 2000, 12% of Americans owned mobile phones; now more than 95% do, and 77% utilize smartphones. Facebook, which has more than two billion users today, hadn’t even launched yet. Americans texted on average 35 times per month, and now average more than 128 texts per day. Forty-three percent of Americans were internet users in 2000, while in 2017 that number has grown to eighty-four percent. The use and availability of technology continues to change the consumer experience and while these changes affect all industry sectors, Consumer Goods companies are taking the brunt, while they are also challenged with compliance issues concerning protection of the customer data that they collect and store.
Technology has had a significant impact
on the consumer goods industry.
The Consumer Goods sector shoulders a
great responsibility for ensuring the security
of the sensitive customer data they
collect and store.
3 INDUSTRY PROFILES: CONSUMER GOODS | 2017 DOMESTIC U.S. POLICY & PRACTICES SURVEY | CARTUS
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Cost ControlNot surprisingly, relocation costs are the biggest challenge in this industry segment, significantly higher than overall industries (63% for the Consumer Goods sector versus 52% for overall). In fact, relocation cost was almost double the next rated concern of high cost areas. Multiple tiers are common in this segment, with 42% of companies utilizing four or more tiers. In fact, the percentage of Consumer Goods sector companies with four our more tiers in their program is 10 percentage points higher than overall companies (42% versus 32%). When looking at how policy tiers are defined, 50% of Consumer Goods sector companies defined tiers by employee level, far behind all other industries at 88%. Interestingly, 90% of the companies cited cost control as the number-one driver in the need for policy flexibility. It appears that they are using multiple tiers in the design of their programs to achieve cost control. Many companies have begun turning to core-flex as a source of additional flexibility, and this may occur with Consumer Goods companies as well.
Short-Term and Rotational AssignmentsFifty-four percent of Consumer Goods sector respondents use short-term assignments, but use of both short-term and rotational is significantly lower than in industries overall, as is the percentage of companies who expect these assignment types to increase. Half of the companies in this sector have a distinct rotational policy that is separate from their short-term assignment policy.
Home SaleFifty-two percent of Consumer goods companies offer a Guaranteed Buyout program (about the same as other industries) and it is also the primary home sale program for the majority of the respondents. In fact, the Consumer Goods sector is almost twice as likely as other industries to see this as their primary home sale program. BVO without a sunset clause is the second most common home sale program, with only 8% having a sunset clause. It is typically recommended that companies consult legal counsel when evaluating offering BVO without sunset. In terms of policy, 60% of companies in this sector have made changes to their policies, with 28% adding tiers or core-flex policy provisions, a testament to this sector’s interest in flexibility as a potential cost control measure.
Talent ShortagesFifty-two percent of companies in this segment report that talent shortages have increased somewhat. The top strategies being used, or considered, to address talent shortages were sign-on bonuses (67% for Consumer Goods companies versus 43% overall), targeted recruiting (58% versus 69%), and intensified campus recruiting (42% versus 43%).
Relocation cost as a concern nearly
doubled the next highest rated concern
of high cost areas.
More than half of Consumer Goods companies stated
that talent shortages have increased.
CARTUS | 2017 DOMESTIC U.S. POLICY & PRACTICES SURVEY | INDUSTRY PROFILES: CONSUMER GOODS 4
I N D U S T R Y P R O F I L E S : C O N S U M E R G O O D S
Policy Comparison GridThis grid reflects the key elements of relocation challenge and policy, comparing Consumer Goods with other industries and highlighting significant differences between the two.
CHALLENGES
Relocation Challenges Consumer Goods All other industries
Relocation cost 63% 52%
High cost areas 37% 35%
Measuring return on investment (ROI) 26% 29%
Real estate market 22% 28%
Need for more flexibility in relocation policy 22% 27%
Recruiting and talent development 19% 23%
Mobility program tracking 11% 12%
POLICY
Domestic U.S. Policy Structure Design Consumer Goods All other industries
Tiered 80% 70%
Menu-driven 8% 11%
Single 8% 10%
Core-flex 4% 9%
Drivers of Flexible Policy Approaches Consumer Goods All other industries
Cost control 90% 51%
Attracting qualified candidates 60% 37%
Reducing policy exceptions 50% 36%
Changing employee needs (family, spouse, elder care, etc.)
40% 34%
Changing employee expectations (Gen X, Gen Y, Millennials, etc.)
30% 34%
5 INDUSTRY PROFILES: CONSUMER GOODS | 2017 DOMESTIC U.S. POLICY & PRACTICES SURVEY | CARTUS
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CORE-FLEX POLICY
Primary Core versus Flex Elements
Consumer Goods All other industries
Core Flex Core Flex
Temporary living 83% 17% 56% 44%
Household goods shipment 83% 17% 71% 29%
House hunting 80% 20% 51% 49%
Tax assistance 80% 20% 78% 22%
Storage of household goods 67% 33% 50% 50%
Miscellaneous allowance 67% 33% 71% 29%
Guaranteed buyout 60% 40% 17% 83%
Lease breakage 60% 40% 44% 56%
Final trip 60% 40% 59% 41%
Car shipment 60% 40% 50% 50%
Buyer Value Option 50% 50% 44% 56%
New home purchase closing costs 50% 50% 46% 54%
Duplicate housing 50% 50% 19% 81%
Rental assistance 50% 50% 44% 56%
Home sale incentive 50% 50% 17% 83%
Return trips 33% 67% 36% 64%
Loss on sale 0% 100% 13% 87%
Rationale for Determining Core & Flex Elements
Consumer Goods
All other industries
Employee level 83% 54%
Move type (e.g., homeowner, renter) 83% 48%
Budget 83% 46%
Move purpose 50% 30%
HOME SALE
Primary U.S. Home Sale Program Consumer Goods All other industries
Guaranteed offer/buyout 48% 23%
BVO without sunset 24% 42%
None 12% 13%
BVO with sunset 8% 14%
Direct reimbursement 8% 7%
By exception 0% 1%
CARTUS | 2017 DOMESTIC U.S. POLICY & PRACTICES SURVEY | INDUSTRY PROFILES: CONSUMER GOODS 6
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Changes in Past Two Years to Home Sale Policy/Program
Consumer Goods
All other industries
No 60% 63%
Yes—policy design—added/changed tiers 28% 15%
Yes—policy design—added/changed existing program options or core-flex policy provisions
24% 19%
Yes—added or changed lump sum policy 8% 8%
Yes—changed home sale program type from buyout to BVO
4% 3%
BUYER VALUE OPTION
Consumer Goods All other industries
Offer BVO 60% 66%
Sunset Clause for BVO Program Consumer Goods All other industries
No 71% 78%
Yes 29% 22%
GUARANTEED BUYOUT
Consumer Goods All other industries
Offer guaranteed buyout 52% 50%
Eligibility Determined for Guaranteed Buyout Program
Consumer Goods
All other industries
By level 70% 64%
By hire status 15% 22%
All homeowners 15% 10%
By exception 0% 4%
LOSS ON SALE
Offer Loss on Sale Support Consumer Goods All other industries
Yes, varies by employee level 36% 21%
No 32% 44%
Yes, offer on exception basis only 12% 15%
Yes, for all employees 8% 11%
Case-by-case 8% 2%
Current employees only 4% 7%
7 INDUSTRY PROFILES: CONSUMER GOODS | 2017 DOMESTIC U.S. POLICY & PRACTICES SURVEY | CARTUS
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RENTER-LEASE CANCELLATION
Offer Lease Cancellation Support Consumer Goods All other industries
Yes 82% 83%
Yes, by exception 12% 8%
No 8% 9%
HIGH COST AREAS
Allowance for Higher Living/Housing Costs Consumer Goods All other industries
No, we don’t provide COLA 39% 57%
Yes, we provide COLA via a formal policy 36% 25%
Yes, we provide COLA via a formal policy excluding new hires
14% 4%
Yes, we offer on a case-by-case basis 7% 9%
Reflected in compensation 4% 4%
Increases in lump sum or miscellaneous expense Allowance (MEA)
0% 1%
Mortgage Subsidy Provided Consumer Goods All other industries
No 79% 76%
Yes 13% 22%
Yes, by exception only 8% 2%
Rental Subsidy Offered Consumer Goods All other industries
No 88% 82%
Yes, depends on employee level 8% 7%
Yes, by exception 4% 5%
Yes, for all renters 0% 6%
SHORT-TERM U.S. ASSIGNMENTS
Organization Uses U.S. Domestic Temporary/Short-Term Assignments
Consumer Goods
All other industries
Yes 54% 64%
No 46% 36%
ROTATIONAL ASSIGNMENTS
Use of U.S. Rotational Assignments Consumer Goods All other industries
No 83% 59%
Yes 17% 41%
Change Expected in Rotational Assignments Over Next Two Years
Consumer Goods
All other industries
Stay the same 50% 56%
Increase 25% 41%
Decrease 25% 3%
CARTUS | 2017 DOMESTIC U.S. POLICY & PRACTICES SURVEY | INDUSTRY PROFILES: CONSUMER GOODS 8
I N D U S T R Y P R O F I L E S : C O N S U M E R G O O D S
Formal Policy for U.S. Domestic Rotational Assignments
Consumer Goods
All other industries
Yes 50% 53%
No 25% 31%
No, rotational assignments are done on a case-by-case basis
25% 16%
INTERNS
Relocation Program for Interns Consumer Goods All other industries
No 57% 67%
College interns 39% 31%
MBA/Graduate interns 26% 21%
TALENT MANAGEMENT
Strategies for Overcoming Talent Shortages Consumer Goods All other industries
Sign-on bonuses 67% 43%
Targeted recruiting 58% 69%
Intensified campus recruiting 42% 43%
Enriching relocation packages on a case-by-case basis/approving exceptions
33% 17%
More focus on intern programs 17% 40%
Recruiting from other countries 17% 10%
Offering short-term/temporary assignments 8% 17%
More local training 8% 12%
Enriching relocation packages across the board 8% 0%
Offshoring/outsourcing 0% 14%
Company Using Different Approaches to Manage Millennials
Consumer Goods
All other industries
No 75% 76%
Yes 25% 24%
Strategies Implemented to Retain Millennial Talent
Consumer Goods
All other industries
More rotational/developmental assignments 92% 63%
Providing mentors 83% 47%
Flexibility (e.g., working remotely, flexible work hours, etc.)
75% 57%
Short-term temporary assignments 67% 53%
Developmental training 50% 37%
Offering more special projects 50% 27%
More investment in technology 25% 20%
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Cartus’ Industry Profiles series contains the following eight industry sectors. For these reports
and other Cartus research studies, including information on policy comparisons by industry,
please contact your Cartus representative or visit our Resource Hub on cartus.com.
Industry Description
FINANCIALBanking, Finance, Insurance, Real Estate
PHARMAPharmaceuticals, Healthcare
CONSUMER GOODSConsumer Goods, Food & Beverage
RAW MATERIALSEnergy, Utilities, Mining, Forest Products
MANUFACTURING/ CONSTRUCTIONManufacturing, Machinery, Aerospace, Instruments, Construction, Engineering
SERVICE/MEDIABusiness Services, Hospitality, Entertainment, Telecommunications, Media
OIL & GASPetroleum Products, Gasoline
TECHTechnology, Electronics, Computers, Software
Survey Report
DOMESTIC U.S. RELOCATION POLICY & PRACTICES
21
07