- Europe is third most important location worldwide when it comes to the future success of multinational companies
- Housing shortage continues in key relocation cities causing rising rents
- Developing trend: Companies are beginning to offer relocation benefits to same-sex partners
SWINDON, England, Feb. 13, 2014 /PRNewswire/ -- Multinational companies are increasingly transferring employees to Europe, which now ranks third for the greatest increase in relocation activity over the last two years, according to Cartus' 2013 Trends in Global Relocation: Biggest Challenges survey of international mobility managers.
The Cartus survey, which focused on geographic challenges in Europe (which includes Western Russia) and 10 other regions of the world, received responses from 157 international mobility managers who were asked to evaluate regional challenges, and to rank—by degree of severity—issues specific to each location. The survey found that many of the issues impact not only a company's relocation managers, but also the daily lives and job success of their employees who are being transferred.
In one of the survey's key findings, Europe ranked third worldwide behind North America and China in terms of greatest increase in relocation volume during the past two years. Europe was also ranked third highest in the world as most critical to future business goals (again, trailing North America and China).
"Although Europe is incredibly important to the future success of multinational companies, controlling costs, regulatory issues, and ongoing housing concerns pose challenges which can affect a company's relocation programmes and its overall goals," said Ian Payne, executive vice president and managing director of the Europe/Middle East/Africa and Asia-Pacific regions for Cartus.
Following is the full list of the top 10 biggest European relocation challenges:
- Controlling relocation/assignment costs
- Complying with laws and regulations
- Managing the relocation program
- Payroll and currency issues
- Language issues
- Economic instability
- Intercultural issues
- Structuring compensation packages
Developing Trend: Companies Beginning to Offer Relocation Benefits to Same-Sex Partners
The survey identified another noteworthy trend facing multinational firms: Companies are beginning to implement relocation benefits for same-sex partners. For international relocations, 78% of respondents said they are providing relocation benefits to same-sex partners depending on whether they can obtain visas for the destination country. Only 15% of respondents said they are not providing benefits to same-sex partners at this time, and 9% said that they were providing them on an exception basis only.
"The Cartus survey takes an in-depth look at the challenges facing companies relocating employees in Europe, but it also provides insight into some of the best practices for how these obstacles can be overcome," Payne said.
Cartus provides trusted guidance to organizations of all types and sizes that require global relocation solutions. Cartus serves over 64 percent of the Fortune 50. We provide service in more than 165 countries, applying our more than half century of experience to help our clients with their mobility, outsourcing, consulting, and language and intercultural training needs. Cartus is a subsidiary of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services. To find out how our greater experience, reach, and hands-on guidance can help your company, visit www.cartus.com; read our blog at www.cartusblog.com; or click www.realogy.com for more information.
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Hugh Siler (for Cartus)
Siler & Company