BENCHMARK SURVEY:
COVID-19 Impacts and Reactions
Contents Key findings from the pulse survey responses to each question below are included in this report. Additional details including quantitative results, select excerpted responses and regional/ industry nuances, when applicable, are accessible for each survey question as well.
INTRODUCTION/METHODOLOGY Q1: How are companies deciding who moves, who does not have to move, etc.? Q2: Are companies encouraging or even recommending that employees relocate? Q3: What are companies doing in terms of talent acquisition/ hiring strategies, both now and for the rest of 2020? Q4: Are hiring freezes still in place and/or expected to be extended? Q5: When companies are hiring, are they authorizing relocation benefits? Q6: How are companies managing employees currently in the relocation pipeline? Q7: Are employees being encouraged to move or are they being encouraged to do what makes them feel safe? CONCLUSION
Introduction/Methodology In June 2020, Altair’s Global Consulting Services team conducted a pulse survey of Altair’s Client Services and Operations team members to gauge their clients’ reactions to the impacts of the COVID-19 pandemic. This report is a summary of key findings from responses received on behalf of 28 companies. Companies represented in the results of our pulse survey are from a diversified crosssection of industries including:
Participant Industry
Technology
Manufacturing
Aerospace
Consumer Products
Energy
Other*
*Other includes: Agriculture, Financial Services, Insurance, Nonprofit, Pharmaceuticals, Professional Services, Natural Resources, Retail and Telecommunications.
Q1: How are companies deciding who moves, who does not have to move, etc.?
Who is Moving?
Who is Not Moving?
Case-by-case at Critical Positions Business Discretion Only
Only APAC Regional Moves
N/A (all profiles considered for relocation)
Employees Able to Work from Home
All Except APAC Regional
Everyone Except Interns
Employees Who are Able and Choose to Move
Most Employees Moving Internationally
Interns
Employees Who Cannot or Prefer to Delay
Everyone (no limits reported)
Q1: How are companies deciding who moves, who does not have to move, etc.?
Highlights:
• Almost half of participating companies are deciding who moves mostly on a case-by-case basis at the discretion of the business. • There were several mentions of intensive/ individualized analysis and deference to business units/management to qualify the critical
nature of the positions/relocations.
Select Responses:
• If position can be remote, employee will work remotely temporally until 9/30/20, if employee chooses. Employees are encouraged •
• • •
to move by end of summer; critical positions must relocate immediately. Mostly case-by-case contingent on need of the employee (i.e., they already cancelled their lease at origin, have nowhere to go, etc.). It feels like Global Mobility has to put a business case together for each move right now based on employees creating a sense of urgency. All employees are required to relocate, company states they accepted offer knowing they would relocate and expectation is to relocate. Company will rescind offer if employee decides not to move (applies globally). Company sees candidates being less open to consider a relocation or assignment right now. In the beginning, everything was on hold. Then, the business decided to proceed with critical moves based upon the need for specific locations and projects. Some interns’ roles went virtual, but the majority are still moving forward with no change in hiring strategies.
Regional Nuances:
• Several assignments that evacuated back to home locations are now being moved back to their assignment (very challenging,
especially with China). • All U.S. domestic moves on hold until at least 9/30. Assignments across all regions being extended month by month until international travel restrictions are lifted. • Move volume within APAC has returned to normal, no remaining restrictions. • In EMEA, we are seeing certain populations either delayed or cancelled such as interns or graduate programs.
Q2: Are companies encouraging or even recommending that employees relocate?
Are Companies Encouraging or Recommending Employees Relocate?
Highlights:
Yes, when possible
No
• Our survey found that companies are not necessarily pushing relocation but are rather accommodating it as best they can. • There are wide variances reported in the nature of encouragement (i.e., whether it is compulsory and driven mainly by business
need or flexible and more deferential to employee need). • Of course, the ability to move, even if encouraged, remains contingent upon travel and immigration restrictions.
Select Responses:
• Company wants the employees to relocate but is allowing some employees to cancel and work virtually or extend up to 120 days
the entire process. • Company is pushing employees reluctant to move to get out of temporary housing by starting to have them participate in the cost of same and other measures such as being very aggressive about insisting on virtual area tours and virtual marketing of their current homes (if home sale applicable).
Regional Nuances:
• One company has taken a global approach to hiring and onboarding remotely, where possible. In one instance, the U.S. global
mobility lead worked with an EMEA leader to confirm approval for a cross-border EMEA move based on the easing up of restrictions in the Schengen Area.
Q3: What are companies doing in terms of talent acquisition/ hiring strategies, both now and for the rest of 2020?
Talent Acquisition and Hiring Strategies Now
Talent Acquisition and Hiring Strategies for Remainder of 2020
Hiring as normal, but at slower pace
Increased hiring
Hiring as normal
Increased hiring by Q4 or early 2021
No hiring due to business conditions
No hiring due to formal freeze
Hiring as normal by late summer 2020
Continued increased hiring
Only critical profiles being hired
Hiring as normal
Only hiring critical profiles through Fall 2020 at least
Unknown
Only critical profiles
Q3: What are companies doing in terms of talent acquisition/ hiring strategies, both now and for the rest of 2020?
Highlights:
• Almost two-thirds of surveyed companies report either hiring as normal or hiring at a reduced pace. • Only one company currently has a formal hiring freeze and another has effectively stopped hiring but not due to a formal freeze
but rather because the extreme impacts of current economic conditions. • We even have one client reporting an increase in hiring now and projected through 2020. • Many companies we surveyed are less sure about their strategies for the remainder of the year but several report expectations of continued reduced hiring while others have targeted a shift back toward normal hiring practices by late summer through Q4 2020/ early 2021.
Select Responses:
• U.S.: Lifting hiring freeze locally as states open up. No change to talent strategy. • No hiring freeze currently; activity expected to increase Q4 into 2021.
Q4: Are hiring freezes still in place and/or expected to be extended?
Hiring Freeze Currently in Place?
Highlights:
N/A (No hiring freeze previously)
No (previous freeze expired or discontinued)
Yes (either strict or with limited exceptions)
• A minority of surveyed companies report an absolute freeze on hiring in place today, but many have clearly slowed down their pace
and among those, several cite the current business/economic climate as driving this decreased activity. • More than half of surveyed companies have not instituted a freeze at all during the crisis. • Our responding companies with full or partial freezes in place are mostly unsure whether those will be lifted or extended as they remain in a wait-and-see stance relative to the crisis.
Select Responses:
• No official hiring freezes, but we see many hires being placed on furlough immediately and due to anticipated reorganizations we
also see many relocations being cancelled. • No restrictions, other than the practical one of understanding that global permanent transfers start dates may be impacted by immigration and/or travel restrictions. • Beyond Q1 2020, no hiring freezes are in place; however, there are could be additional layers of approvals required prior to relocation authorization.
Q5: When companies are hiring, are they authorizing relocation benefits?
Relocation Benefits Authorized When Hiring?
Yes
N/A (strict hiring freeze in place)
Highlights:
Yes, by a very strong margin, most companies are authorizing relocation benefits for their new hires, even if only to ensure as much pre-relocation/assignment preparation as possible can be completed.
Select Responses:
• Yes, company is authorizing relocations but delaying start dates/relocation dates until we see how the summer unfolds. • Moves are still occurring, but volume has slowed and more flexibility by both HR and the hiring Business Units is evident.
Regional Nuances:
One company has run into more challenges in some of their global regions (LATAM mainly) with some countries’ strict travel restrictions; however, this company authorizes the moves to Altair upfront so immigration work can proceed and to prepare for when the travel restrictions are lifted.
Q6: How are companies managing employees currently in the relocation pipeline?
How is Current Relocation Pipeline Being Managed?
Delayed start dates
All current moves preceeding normally
Current moves proceeding but at employee’s pace
Highlights: • Other than delayed start dates and extended work-from-home arrangements, there are no remarkable changes seen among
respondents in how are they are managing employees currently in the relocation pipeline. • Interestingly, in terms of scope of assistance, at least one surveyed company is leveraging denied extensions of temporary living to encourage finishing the full relocation.
Q6: How are companies managing employees currently in the relocation pipeline?
Select Responses:
• Delaying start dates wherever possible or making the business case to move them on an individual basis. • Moves are not necessarily being stopped, but some have been put on hold, delayed and/or extended. • Relocation benefits are continuing to be offered. Some in process received additional temporary living; some went back home until
new office re-opens. No change in benefits. • All benefits authorized. Some relocations that were on hold and working remotely are now moving in stages. • Company still proceeding with authorizations; some start dates have been moved and Temporary Living has been extended based on employee requests.
Regional Nuances:
• Inside U.S.: Company will honor start date from departure location and will relocate later when it’s safe to travel, e.g., stay in place in
California is lifted, global security operations center is open to travel. • Outside U.S.: If employees are approved for Work From Another Country (WFAC), Company will honor their start at origin and onboard them remotely with relocation later when it is safe to travel, etc. If they could not successfully WFAC, they are pushing out the start date until they can get visa and related approvals. • Some locations in EMEA still have closed borders so Company is assessing on a case-by-case basis to determine if the employees can move. • Global assignees have almost all been returned to U.S. with no backfilling in the works at this time.
Q7: Are employees being encouraged to move or are they being encouraged to do what makes them feel safe?
Approach to Relocation
Employees encouraged to move
Employees encouraged to do what makes them feel safe
Highlights:
Employee safety and employer duty of care appear to be the strong rule with all but a few surveyed companies report deference to their employees’ sense of safety.
Select Responses:
• Company is very paternalistic and clear that the employee’s comfort is paramount to the process. They seem to have no problem
with virtual work until the employee can physically relocate. • Employees being encouraged to move, even if still remote in the new location (compensation and payroll purposes) – all regions. • Due to business travel ban and significant temporary office closures, many managers have told their employees not to feel rushed to move. All are encouraged to do what makes them feel safe. • Pace of the relocation is entirely up to the employees as they determine what is best for their families.
CONCLUSION While a bit premature to report common/widespread policy trends emerging from the COVID-19 pandemic, the companies our Global Consulting Services team have recently engaged with have fallen somewhere on a spectrum of reactions to the issue. These have ranged anywhere from reducing benefits to save costs or enhancing benefits to meet the extraordinary needs of employees in the process of relocating or on assignment at this time. These reactions have varied with industry, company culture and the financial impacts of the crisis on individual companies, e.g., relative pressure to save costs in the near term. Inevitably, we believe mobility policy trends will be impacted by the crisis; however, policy changes are often a lagging indicator of trends and most companies will likely manage the near-term issues ad hoc by granting exceptions to policy and/or shifting their use of policy types or tiers. This aims to balance the evolving needs of mobile employees with quickly shifting business objectives. Following are some of the changes our Global Consulting Services team have recently seen considered, not widely but among companies focused specifically on reducing costs in the near term: • More judicious application of domestic U.S. home sale assistance, namely moving away from Guaranteed Purchase Offer (GPO)
approaches toward Buyer Value Option (BVO) programs or a capped reimbursement of reasonable and customary sale expenses • Revisiting eligibility parameters for various policy types and tiers and adjusting as needed to align with budget constraints • Adopting lump sum approaches or capped move budgets where they were not previously used • Revisiting caps/limits/budgets and adjusting them downward while simultaneously narrowing the scope of targeted expenses • More deference to local/regional receiving business partners to limit scope of assistance or customize policies • Increased interest in the benefits of core-flex policy structures including predictability of budgeting the cost of flex components and improved employee experience • Tightened program time limits (reducing the limits downward from the traditional 12 months)
CONCLUSION Additionally, Worldwide ERCŽ currently has open an ongoing survey to its corporate members and has posted the current results here. The percentage of WERC survey respondents reporting that they are proceeding as normal in dealing with both domestic and international relocations/assignments has decreased slightly and the percentage postponing activity has increased slightly since midApril. Domestic activity has not shifted as much as international, which we would expect given the increased travel and immigration complexities of international moves. We feel these results confirm what we have seen in that the mobility industry is still far from approaching a pre-COVID status. Until things stabilize further, we predict many mobility teams will struggle to share firm plans for recruiting, onboarding and relocation. Altair’s Global Consulting Services team continues to monitor this evolving situation and any longer-term trends that may emerge to ensure our clients are proactive and prepared for what the next phase of the pandemic may bring. If you have any questions about the COVID-19 Impacts Benchmark, please reach out to your Client Services Representative or Altair’s Global Consulting Services team at GlobalConsultingServices@altairglobal.com.
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