A new research report examines how gig work, hybrid models, and the economy are impacting mobility practices.
By Larry Basinait
How are current business environment impacts—the gig economy, hybrid work models, the overall economy, and Gen Z attitudes—impacting employee relocation? A recent HRO Today research report, “Relocation Remains Resilient Despite Challenges,” sponsored by CapRelo examines this question and others to understand the current state of mobility.
The prevalence of short-term contracts and freelance work, main characteristics of the gig economy, has significantly impacted the need for relocation packages. So too has the shift to hybrid work, evolving the entire employee relationship from virtual onboarding and training to employee engagement. Further, the effect of Gen Z is another factor when considering relocation programs since this cohort of workers make up more and more of the workforce.
These key findings help provide insight into how much of an influence these factors will have on plans for relocation over the next two years.
- There has been a negative impact for most organizations on the need for relocation packages for short-term contracts and freelance work. However, more than one-half (60%) indicate that the extent of the impact has been small or moderate.
- There remains a significant demand for employee relocation packages. While there is a moderate decrease in the need for relocation packages overall, there has been no change for nearly one-half (44%) of organizations. Factors such as industry, company size, and location impact the need for relocation packages. Nearly two-thirds (65%) anticipate budgets for relocation will remain about the same over the next two years. Three-quarters (74%) of respondents indicate that there will likely be no appreciable change in relocation plans regardless of economic conditions. Generally, there is little correlation expected between the two factors, outside of extreme disruptions to the economy.
- Hybrid work has affected the need for technology the most in the area of virtual onboarding and training. Virtual onboarding and training have become essential due to the less frequent in-person interactions in hybrid work environments. The need for enhanced communication has also been greatly impacted by hybrid work.
- Overall, hybrid work models positively impact employee retention. Nearly nine-in-ten (89%) indicate there is a positive impact, with three-quarters (74%) indicating the impact is moderate to very positive. Hybrid work has not dramatically changed the challenge of offering relocation packages during recruitment. Roughly equal percentages indicate more challenging (net 36%), no change (34%), and easier (net 30%).
- More than one-half (59%) of study participants indicate that Gen Z is more open to relocation than prior generations. This is more than twice the percentage (24%) who feel they are less open to it.
