Inflation will continue to ebb and flow, but the likelihood of a return to an “old-world” or pre-pandemic financial situation is slim, especially in the near term.
As consumers, we already acutely feel the impact of inflation on our daily lives. As business leaders, rising costs necessitate changes to how we procure the components of our services and the price put on the end product.
Our costs to deliver client reports and other required compliance components of our contract Service Level Agreements (SLA) have not been significantly impacted by inflation, and the costs are shared across all services the company performs. However, the Relo Specialist Team payroll costs have been substantially affected by inflation and the talent shortage and are highly attributable to assignee service costs. Hence, our internal conversations around profit margins and pricing will take the RS Team payroll, overall wages, and technology into greater consideration than Insurance / Government Compliance.
As the cost of mobility, especially cross-border moves, increases, so does business pressure on total rewards and talent mobility professionals to identify cost reduction. So what do the standard cost-reduction techniques of decreasing in size and quality, unbundling, and ending discounts look like in a global relocation policy? It looks like fewer assignee benefits at a time when relocating employees face increased challenges and the war for talent demands an excellent assignee/employee experience.
We are all facing the same dilemma: controlling costs while maintaining and improving the employee relocation and assignment experience.
As mobility teams make plans for 2023, we strongly encourage them to create their exposure matrix, review those of their supplier teams and use them to drive understanding with internal stakeholders.