Relocation Policy & Trends – Research Highlights & Insights

Big Picture – Three Years Ago

Big Picture – Today

Relocation Impact: Economic Conditions, Unemployment

88 89 90 91 92 93 94 95 96 97 98 02 03 04 05 06 07 08 09 10 110%

10%

20%

30%

40%

50%

60%

70%

Unemployment Rate Economic Conditions

Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor

Relocation Impact: Economic Conditions, Unemployment

88 89 90 91 92 93 94 95 96 97 98 02 03 04 05 06 07 08 09 10 110%

10%

20%

30%

40%

50%

60%

70%Decrease Relo Volumes Moving average (Decrease Relo Volumes)Unemployment Rate Economic Conditions

Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor

Relocation Impact: Company Growth, PMI

88 89 90 91 92 93 94 95 96 97 98 02 03 04 05 06 07 08 09 10 110%

10%

20%

30%

40%

50%

60%

70%

80%

PMI Company Growth

Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER Purchasing Managers Index Data – Annual Aggregate Data from Institute of Supply Management

Relocation Impact: Company Growth, PMI

88 89 90 91 92 93 94 95 96 97 98 02 03 04 05 06 07 08 09 10 110%

10%

20%

30%

40%

50%

60%

70%

80%Increase Relo Volumes Moving average (Increase Relo Volumes) PMICompany Growth

Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER Purchasing Managers Index Data – Annual Aggregate Data from Institute of Supply Management

Session PresentersKatrina StarnesPresident & Principal ConsultantKES Research, LLC

Douglas Weed, SGMS, SCRPVice President, Global Services & Supplier SolutionsCornerstone Relocation Group

Linda Bauer DarrPresident & CEO

American Moving & Storage Association

Experience & Expectations

Stay About the Same43%

Decrease11%

Increase47%

Total

52%

10%

37%

Less than 500 Salaried Employees

44%

13%

43%

500-4999 Salaried Employees

31%

7%62%

5000+Salaried Employees

Compared to 2010, Did the Number of Employees You Relocated in 2011…

2011: Overall Relocation Experience

2002 2003 2004 2005 2006 2007 2008 2009 2010 20110%

20%

40%

60%

80%

100%

30% 32% 41% 44% 39% 36% 27%18%

34%47%

40% 40%

47% 43% 50% 50%48%

41%

49%43%

30% 28%12% 13% 12% 14%

25%42%

17% 11%

Increase Stay the Same DecreaseTotals greater than/less than 100 are due to rounding.

Historical: Overall Relocation Experience Compared to [Previous Year], Did the Number of Employees You Relocated in [Last Year]…

2011: International Relocation Experience

Stay About the Same47%

Decrease11%

Increase42%

Total

53%

16%

30%

Less than 500 Salaried Employees

47%

13%

40%

500-4999 Salaried Employees

44%

6%

50%

5000+Salaried Employees

Compared to 2010, Did the Number of Employees Your Company Relocated Internationally During 2011…

Historical: International Relo Experience

2005 2006 2007 2008 2009 2010 20110%

20%

40%

60%

80%

100%

39% 34% 32% 28% 24% 28%42%

49%49% 54%

56%47%

56%47%

12% 17% 14% 17%28%

16% 11%

Increase Stay the Same DecreaseTotals greater than/less than 100 are due to rounding.

Compared to [Previous Year], Did the Number of Employees Your Company Relocated Internationally During [Last Year]…

Stay About the Same61%

Decrease12%

Increase26%

Total

63%15%

23%Less than 500

Salaried Employees

70%

7%

23%

500-4999 Salaried Employees50%

15%

35%

5000+Salaried Employees

Compared to 2011, Do You Anticipate the Number of Employees Your Company Will Relocate During 2012 Will…

2012: Overall Relocation Expectation

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120%

20%

40%

60%

80%

100%

13%33% 33% 28% 29% 25%

10% 22% 30% 26%

58%

51% 51%52% 56% 56%

38%

53%58% 61%

29%16% 16% 20% 14% 18%

52%

26%13% 12%

Increase Stay the Same DecreaseTotals greater than/less than 100 are due to rounding.

Historical: Overall Relocation ExpectationCompared to [Last Year], Do You Anticipate the Number of Employees Your

Company Will Relocate During [This Year] Will…

2012: International Relocation Expectation

Stay About the Same55%

Decrease16%

Increase29%

Total

58%19%

23%Less than 500

Salaried Employees

59%18%

23%

500-4999 Salaried Employees

50%

13%

37%

5000+Salaried Employees

Compared to 2011, Do You Anticipate the Number of Employees Your Company Will Relocate Internationally During 2012 Will…

Historical: International Relo ExpectationCompared to [Last Year], Do You Anticipate the Number of Employees Your

Company Will Relocate Internationally During [This Year] Will…

2005 2006 2007 2008 2009 2010 2011 20120%

20%

40%

60%

80%

100%

27% 30% 29% 28%15% 18%

28% 29%

57% 57% 57% 57%

46%

65%56% 55%

16% 13% 13% 15%

39%17% 16% 16%

Increase Stay the Same DecreaseTotals greater than/less than 100 are due to rounding.

Volumes & Capacity – Industry Perspective

Year Less than 500 500 – 4,999 5,000 or more

2002 1 - 9 20 - 49 200 - 399

2003 1 - 9 20 - 49 200 - 399

2004 1 - 9 20 - 49 200 - 399

2005 1 - 9 20 - 49 200 - 399

2006 1 - 9 20 - 49 200 - 399

2007 1 - 9 20 - 49 200 - 399

2008 1 - 9 10 - 19 100 - 199

2009 1 - 9 10 - 19 100 - 199

2010 1 - 9 20 - 49 100 - 199

2011 1 - 9 20 - 49 200 - 399

By Company Size (Salaried Employees)

Number of Employees Relocated Previous Year - Median RangeAtlas Corporate Relocation Survey

Note: 361 companies responding in 2011; more than 100 participants from each size firm.

Worldwide ERC 2011 U.S. Transfer Volume & Cost Survey

Note: 118 companies responding in 2011; mostly larger firms (based on transfer volumes).

Pressures & Possibilities

Audience Participation!

What external factor had the greatest impact on the number of your employee relocations in 2011?

1 - Economic conditions2 - Lack of qualified people locally3 - Real estate market4 - Growth of domestic competition5 - Growth of international competition6 - Other7 - External conditions had no impact

External Factors

2011: External Conditions

Other

Growth of Domestic Competition

Growth of International Competition

Real Estate Market

Economic Conditions

Lack of Qualified People Locally

External Conditions Had No Impact

0% 15% 30% 45% 60% 75%

1%

9%

12%

36%

37%

51%

14%

Select External Conditions Having the Most Significant Impact on the Number of Employee Relocations in 2011

2011: External Conditions

Total Less than 500 Salaried Employees

500 - 4,999 Salaried Employees

5,000+ Salaried Employees

0%

10%

20%

30%

40%

50%

60%

51% 51%54%

46%

37%34%

30%

48%

36%30%

34%

45%

Lack of Qualified People Locally Economic Conditions Real Estate Market

Historical: External Conditions

88 89 90 91 92 93 94 95 96 97 98 02 03 04 05 06 07 08 09 10 1110%

20%

30%

40%

50%

60%

31%

51%

24%

53%

37%

0.22

0.40.36

Lack of Qualified People Locally Economic Conditions

Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER

Unemployment: Educational Disparity

2010 20110.0%

5.0%

10.0%

15.0%

20.0%

25.0%

4.7% 4.3%

7.0% 6.8%

9.2% 8.7%10.3%

9.4%

14.9% 14.1%

Bachelor's Degree and HigherAssociate DegreeSome College, No DegreeHigh School Graduate, No CollegeLess than High School Diploma

Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor

13%

30%

20%

9%

28%

Less than High School DiplomaHigh School Graduate, No CollegeSome College, No DegreeAssociates DegreeBachelor's Degree and Higher

Unemployment for less educated adults, comprising 63% of the population, averages higher than 10% 2010-2011.

2011 Educational Attainment of U.S. Adults 18+*

Only 37% of US Adults 18+ have Associates Degree or Higher (Averaging less than 6% unemployment the past 2 years)

*Percentages Calculated from Population Data Breakdown from 2011 U.S. Census Bureau ReportUnemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor

88 89 90 91 92 93 94 95 96 97 98 00 01 02 03 04 05 06 07 08 09 10 11 1235%

45%

55%

65%PMI NMI

Recession Recession Recession Recovery Recovery Recovery

PMI, NMI: Index Averages

Recession Periods Source: NBER Purchasing Managers Index Data – Annual Aggregate Data from Institute of Supply ManagementNon-Manufacturing Index Data – Annual Aggregate Data from Institute of Supply Management

2008 2009 2010 2011 20120%

20%

40%

60%

80%

100%

7% 12%

40%32% 35%15%

29%

52%57% 55%78%

59%

8% 12% 10%

Better than 2011 Same as in 2011 Worse than 2011

Real Estate: Expectations

Audience Participation!

What internal company condition had the greatest impact on the number of your employee relocations in 2011? 1 - Corporate reorganization/restructuring2 - Knowledge/skills transfers3 - Expansion into new territories4 - Growth of company5 - Promotions/resignations6 - Acquisitions/mergers7 - Expansion of facility8 - Budget constraints9 - Other 10 - Internal conditions had no impact

Internal Factors

2011: Internal Conditions

Other

Budget Contraints

Expansion of Facility

Acquisitions/Mergers

Expansion into New Territories

Corporate Reorganization/Restructuring

Promotions/Resignations

Knowledge/Skills Transfers

Growth of Company

Internal Conditions Had No Impact

0% 15% 30% 45% 60%

2%

14%

16%

23%

25%

27%

34%

37%

39%

7%

Select Internal Conditions Having the Most Significant Impact on the Number of Employee Relocations in 2011

2011: Internal Conditions

Total Less than 500 Salaried Em-

ployees

500 - 4,999 Salaried Em-

ployees

5,000+ Salaried Employees

0%

10%

20%

30%

40%

50%

60%

39%36%

43%38%

14% 12% 11%

18%

Company Growth Budget Constraints

Historical: Internal Conditions

88 89 90 91 92 93 94 95 96 97 98 02 03 04 05 06 07 08 09 10 110%

10%

20%

30%

40%

50%

60%

70%

46%

24%

39%

13%

29%

14%

Company Growth Budget Constraints

Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER

2006 2007 2008 2009 2010 2011 20120%

20%

40%

60%

80%

100%

76% 74%59%

27%

63%71% 67%

20% 23%

32%

34%

32% 20% 29%

4% 2% 9%

40%

5% 9% 4%

Better than 2011 Same as in 2011 Worse than 2011

Firm Performance: Expectations

Audience Participation!

Did any employees decline the opportunity to relocate in 2011?

1 - Yes2 - No3 - Don’t know

Declined Relocations

2011: Declined Relocations

Total Less than 500 Salaried Em-

ployees

500 - 4,999 Salaried Em-

ployees

5,000+ Salaried Employees

0%

15%

30%

45%

60%

75%

90%

57%

33%

58%

83%

Declined Relocations in 2011

2011: Declined Relocations

Total Less than 500 Salaried Em-

ployees

500 - 4,999 Salaried Em-

ployees

5,000+ Salaried Employees

0%

15%

30%

45%

60%

75%

90%

57%

33%

58%

83%

18% 15% 17% 21%

Declined Relocations in 2011 Number of Declined Relocations Increased

Historical: Declined Relocations

88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 110%

15%

30%

45%

60%

75%

90% 82%

65%

57%

27% 28% 29%

18%

Relocations Declined Number of Declined Relocations Increased

Recession Recession Recession Recovery Recovery RecoveryRecession Periods Source: NBER

Other

Job Security Concerns

No Desire to Relocate

Cost of Living in New Location

Spouse's/Partner's Employment

Personal Reasons (non-disclosed)

Family Issues/Ties

Housing/Mortgage Concerns

0% 15% 30% 45% 60% 75% 90%

3%

7%

28%

28%

39%

42%

64%

71%

Reasons Employees Gave for Declining Relocation in 2011*

2011: Reasons Relocations Declined

2011: Reasons Relocation Declined

Total Less than 500 Salaried Employees

500 - 4,999 Salaried Employees

5,000+ Salaried Employees

0%

20%

40%

60%

80%

64% 64%

74%

55%

39% 42%38% 38%

71%76%

66%73%

Family Issues/Ties Spouse's/Partner's Employment Housing/Mortgage Concerns

Historical: Reasons Relocations Declined

88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 110%

20%

40%

60%

80%

100%Family Issues/Ties Spouse's/Partner's Employment Housing/Mortgage Concerns

Recession Recession Recession Recession Periods Source: NBER

Shifting Sands

Relocation Remains a Balancing Act

Talent NeedsEmployee Reluctance

Company GrowthReal Estate Market

Budgets

Economic Recovery?

Knowledge Sharing

Audience Participation!

Is your company utilizing “alternative assignments” (i.e. extended business travel, cross-border commuting, localization, permanent international transfers, rotators, etc.)?

1 - Yes2 - No, but we plan to do so in the coming year3 - No, and we don’t plan to do so

Alternative Assignments

2011: Alternative Assignment Use

Total Less than 500 Salaried Em-

ployees

500 - 4,999 Salaried Em-

ployees

5,000+ Salaried Employees

0%

15%

30%

45%

60%

75%

46%

30%

47%

60%

Altenative Assignments Used or Plan to be Used

2011: Alternative Assignment Use

Other

Used in Place of Traditional Short-Term Assignments

Used in Addition to Traditional Short-Term Assignments

Used in Place of Long-Term Assignments

Used to Develop Internal Talent

Used in Addition to Long-Term Assignments

Used to Accommodate Employee Needs

Used to Maximize Budget/Corporate Resources

Used to Meet Strategic Business Goals

0% 15% 30% 45% 60% 75% 90%

2%

15%

28%

29%

34%

39%

40%

45%

57%

How Alternative Assignments Are Incorporated into Corporate Employee Mobility Strategy

Total Less than 500 Salaried Employees

500 - 4,999 Salaried Employees

5,000+ Salaried Employees

0%

20%

40%

60%

39%

12%

41%

52%

29%26%

34%

25%28%

12%

22%

42%

15%18% 19%

9%

Addition to Long-term Replace Long-termAddition to Short-termReplace Short-term

2011: Alternative Assignment Use

Audience Participation!

Which cost containment measure in relocation policy/practice was utilized most by your company over the past year?

1- Cap relocation expenses2 - Pre-decision counseling 3 - Restructuring policy tiers4 - Limit miscellaneous allowances5 - Reviewing/renegotiating contracts6 - Short-term/travel/commuter arrangements7 - Other8 - No cost containment measures beyond typical relocation policy or program utilized

Cost Containment

2011: Cost Containment Measures

Other

Offer Short-term/Extended Travel/Commuter Arrangements

Restructure Policy Tiers/Eligibility for Benefits

Limit Miscellaneous Allowances

Offer Pre-decision Counseling

Review/Renegotiate Supplier Contracts

Cap Relocation Benefit Amounts

No Cost Containment Measures Beyond Typical Pol-icy/Program

0% 15% 30% 45% 60%

1%

18%

19%

19%

23%

24%

35%

30%

Selected Cost Containment Measures Used by Firms in 2011

Total Less than 500 Salaried Employees

500 - 4,999 Salaried Employees

5,000+ Salaried Employees

0%

20%

40%

60%

35%

42%

36%

26%24%

16% 17%

40%

23%

9%

19%

42%

19%

9%

18%

29%

Cap Relocation Benefit Amounts Review/Renegotiate Supplier Contracts

Pre-Decision Counseling Restructure Tiers

2011: Cost Containment Measures

Historical: Cost Containment Measures

2009 2010 20110%

20%

40%

60%

31% 30%

35%

26%22%

24%23%20% 19%

17%

23%

Cap Relocation Benefit AmountsReview/Renegotiate Supplier ContractsPre-Decision CounselingRestructure Tiers

Historical: Cost Containment Measures

2009 2010 20110%

20%

40%

60%

31% 30%

35%

26%22%

24%23%20% 19%

17%

23%

Cap Relocation Benefit AmountsReview/Renegotiate Supplier ContractsPre-Decision CounselingRestructure Tiers

Questions?

2012 CRS Results

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Katrina StarnesPresident & Principal ConsultantKES Research LLCEvansville, IN 47725Phone: 812.867.0179E-mail: katstar@insightbb.com

Douglas Weed, SGMS, SCRPVice PresidentCornerstone Relocation GroupBasking Ridge, NJ 07920Phone: 908.580.9600E-mail: DWeed@crgglobal.com

Linda Bauer DarrPresident & CEOAmerican Moving & Storage AssociationAlexandria, VA 22314Phone: 703.683.7410 E-mail: ldarr@moving.org

Ryan McConnellVice President, Corporate MarketingAtlas Van LinesEvansville, IN 47711Phone: 800.638.9797E-mail: ryamcco@atlasworldgroup.com

Session Presenter Contact Information