WHAT'S HAPPENING
As a result of companies downsizing, having layoffs or even temporary freezes on hiring, some of our clients are anticipating their upcoming moves to be for current employees rather than all of their moves being for newly hired employees. They still have to run their businesses effectively. The good news story here is that what constricts on the global scene will begin to thrive domestically.
Global trade will continue, but the transformation from global to national mobility drivers means that commerce within borders will surpass international priorities for at least the next two years. International executive and employee relocations will slow while domestic relocations will experience a material upsurge.
As the landscape continues to shift, Global Mobility teams will be facing new challenges as they manage their operations and at the same time reflect upon lessons learned to build out their mobility programs for future resilience.
Fact:
De-Globalization will be the near term normal
HOW TO PREPARE
Given the fast pace in which this crisis continues to develop, it will be essential to conduct a deep dive review of all mobile employees, categorizing those that were displaced, worked remotely or require a visa extension, review tax positions taken during the COVID-19 period, manage risk, quantify costs and inform the business on these metrics.
As businesses start to re-imagine talent strategies there is no doubt that mobility will be impacted. It will vary from company to company depending on the company’s locations, the nature of their work, impact on global projects and ongoing cost containment.
Global Mobility teams should plan several waves of COVID-19 restrictions and a period of ongoing ‘shocks’, teams will need to be agile and dial up or dial down in response to the complexities of COVID-19 restrictions. Global Mobility teams and business stakeholders should work closely together to determine the volume of short and long-term assignees needed in the upcoming months and years.
Read more on De-Globalization and other impacts to the Employee Relocation Industry Here.