TECHNOLOGY - Cartus...Measuring return on investment (ROI) 35% 29% Need for more flexibility in relocation policy 35% 27% Real estate market 35% 28% High cost areas 18% 41% Recruiting

®

Industry Profile

DOMESTIC U.S. RELOCATION POLICY & PRACTICES

21

07

TECHNOLOGYTechnology, Electronics, Computers, Software

CARTUS | 2017 DOMESTIC U.S. POLICY & PRACTICES SURVEY | INDUSTRY PROFILES: TECHNOLOGY 2

I N D U S T R Y P R O F I L E S : T E C H N O L O G Y

Industry Profiles examine the ways that individual industries approach key program practices and assignment policy features, based on data gathered in the

2017 Domestic U.S. Relocation Policy & Practices Survey.

Twelve percent of the 141 respondents to Cartus’ 2017 Domestic U.S. Relocation Policy & Practices survey are companies in the Tech industry. Volume concentrations for Tech companies differed from companies overall, with the highest concentration of moves split over both ends of the spectrum, less than 25 and greater than 1,000 moves per year. The gender of transferring employees was 78% male.

OVERVIEWTechnology companies are continually on the leading edge, considering unconventional and innovative ways to meet the demands of the savvy consumer. Technology innovations are driving huge changes in every industry segment. To maintain the competitive pace of innovation, companies within this market segment are battling in the war for talent. The rise of technology is making more flexible, project-based arrangements an acceptable alternative, even causing changes in U.S. domestic programs which have tended to follow more traditional patterns. And, as with the majority of all industry segments, relocation costs remain the top concern.

Relocation PolicyA tiered policy structure was reported by 65% of Tech sector respondents. The percentage of Tech companies with four or more tiers in their program lags all other industries by 16 percentage points (44% versus 60%). When looking at how policy tiers are defined, Tech sector companies were split in how they defined tiers—by employee level and by move type, both at 56%. This lagged behind all other industries at 77% by employee level and 61% by move type.

Home sale assistance, in the form of Buyer Value Option, was offered as the primary home sale program by 46% of respondents. Only 8% of Tech respondents offer Guaranteed Buyout to all homeowners.

The Tech sector was just behind all other industries in the percentage that covered 100% of loss on sale (33% versus 38% overall). Thirty-three percent of Tech sector companies said that they covered 75-99% of loss on sale, and another 33% said that coverage varies by policy and employee level.

High Cost AreasVery limited assistance is offered by Tech companies for moving to high cost areas, as a mere 7% of companies offer assistance as a formal part of policy. When assistance is provided, it is in the form of either mortgage subsidies (7%), compensation (7%), or offered on a case-by-case basis (14%). This is likely due to the high concentration of Tech sector companies having headquarters or operational centers in high cost areas.

To maintain the competitive pace of

innovation, companies in the Tech sector are

battling in the war for talent.

Buyer Value Option is offered as the primary home sale program by

46% of Tech industry respondents.

3 INDUSTRY PROFILES: TECHNOLOGY | 2017 DOMESTIC U.S. POLICY & PRACTICES SURVEY | CARTUS


Short-Term and Rotational AssignmentsForty-six percent of Tech company respondents utilize short-term assignments. Only 15% offer rotational assignments, but all of those that do have a distinct and separate policy in place.

Talent ShortagesThe majority of companies in the Tech industry plan to, or are addressing, talent shortages by the use of targeted recruiting (50%), followed by 33% increasing their focus on intern programs and by offering sign-on bonuses.

Policy Comparison GridThis grid reflects the key elements of relocation challenge and policy, comparing Tech companies with other industries and highlighting significant differences between the two.

CHALLENGES

Relocation Challenges Tech All other industries

Relocation cost 53% 58%

Measuring return on investment (ROI) 35% 29%

Need for more flexibility in relocation policy 35% 27%

Real estate market 35% 28%

High cost areas 18% 41%

Recruiting and talent development 6% 26%

Mobility program tracking 6% 14%

POLICY

Domestic U.S. Policy Structure Design Tech All other industries

Tiered 65% 74%

Menu-driven 18% 10%

Core-flex 17% 8%

Single 0% 8%

Drivers of Flexible Policy Approaches Tech All other industries

Cost control 46% 75%

Attracting qualified candidates 46% 45%

Changing employee needs (family, spouse, elder care, etc.)

46% 38%

Changing employee expectations (Gen X, Gen Y, Millennials, etc.)

23% 42%

Reducing policy exceptions 15% 48%



CORE-FLEX POLICY

Primary Core versus Flex Elements

Tech All other industries

Core Flex Core Flex

Tax assistance 88% 12% 76% 24%

Household goods shipment 70% 30% 73% 27%

Temporary living 70% 30% 56% 44%

Car shipment 67% 33% 47% 53%

Miscellaneous allowance 63% 37% 72% 28%

Final trip 57% 43% 59% 41%

New home purchase closing costs 50% 50% 46% 54%

Duplicate housing 50% 50% 19% 81%

Storage of household goods 50% 50% 70% 30%

Rental assistance 44% 56% 45% 55%

Buyer Value Option 40% 60% 45% 55%

House hunting 40% 60% 58% 42%

Lease breakage 33% 67% 49% 51%

Return trips 25% 75% 38% 62%

Guaranteed buyout 25% 75% 23% 77%

Home sale incentive 20% 80% 21% 79%

Loss on sale 17% 83% 10% 90%

Rationale for Determining Core & Flex Elements

Tech

All other industries

Move type (e.g., homeowner, renter) 50% 52%

Employee level 40% 62%

Budget 30% 55%

Move purpose 20% 36%

HOME SALE

Primary U.S. Home Sale Program Tech All other industries

BVO without sunset 46% 37%

None 31% 12%

Direct reimbursement 15% 6%

BVO with sunset (guaranteed offer after a set period of time)

8% 13%

Guaranteed offer/buyout 0% 31%

By exception 0% 1%



Changes in Past Two Years to Home Sale Policy/Program

Tech


No 67% 62%

Yes—policy design—added/changed existing program options or core-flex policy provisions

17% 20%

Yes—added or changed lump sum policy 17% 7%

Other 17% 3%

Yes—policy design—added/changed tiers 0% 19%

Yes—changed home sale program type from buyout to BVO

0% 3%

BUYER VALUE OPTION


Offer BVO 50% 67%

Sunset Clause for BVO Program Tech All other industries

No 83% 69%

Yes 17% 24%

GUARANTEED BUYOUT


Offer guaranteed buyout 8% 56%

Eligibility Determined for Guaranteed Buyout Program

Tech


All homeowners 100% 13%

By level 0% 63%

By hire status 0% 24%

By exception 0% 7%

LOSS ON SALE

Offer Loss on Sale Support Tech All other industries

No 64% 38%

Yes, offer on exception basis only 22% 14%

Yes, varies by employee level 7% 26%

Yes, for all employees 7% 11%

Current employees only 0% 8%

Case-by-case 0% 3%



RENTER-LEASE CANCELLATION

Offer Lease Cancellation Support Tech All other industries

Yes 79% 83%

Yes, by exception 14% 8%

No 7% 9%

HIGH COST AREAS

Allowance for Higher Living/Housing Costs Tech All other industries

No, we don’t provide COLA 71% 55%

Yes, we offer on a case-by-case basis 14% 8%

Yes, we provide COLA via a formal policy 8% 32%

Reflected in compensation 7% 3%

Increases in lump sum or miscellaneous expense allowance (MEA)

0% 2%

Yes, we provide COLA via a formal policy excluding new hires

0% 2%

Mortgage Subsidy Provided Tech All other industries

No 79% 76%

Yes, by exception only 14% 2%

Yes 7% 22%

Rental Subsidy Offered Tech All other industries

No 93% 84%

Yes, by exception 7% 5%

Yes, depends on employee level 0% 8%

Yes, for all renters 0% 3%

SHORT-TERM ASSIGNMENTS

Organization Uses U.S. Domestic Temporary/Short-Term Assignments

Tech


No 54% 36%

Yes 46% 64%

Change Expected in the Use of U.S. Domestic Temporary/Short-Term Assignments Over the Next Two Years

Tech


Stay the same 66% 51%

Increase 17% 43%

Decrease 17% 6%



ROTATIONAL ASSIGNMENTS

Use of U.S. Rotational Assignments Tech All other industries

No 85% 62%

Yes 15% 38%

Change Expected in Rotational Assignments Over Next Two Years

Tech


Increase 50% 39%

Decrease 50% 2%

Stay the same 0% 59%

Formal Policy for U.S. Domestic Rotational Assignments

Tech


Yes 100% 50%

No 0% 32%

No, rotational assignments are done on a case-by-case basis

0% 18%

INTERNS

Relocation Program for Interns Tech All other industries

No 57% 65%

College interns 36% 32%

MBA/Graduate interns 36% 20%

TALENT MANAGEMENT

Strategies for Overcoming Talent Shortages Tech All other industries

Targeted recruiting 50% 67%

Sign-on bonuses 33% 50%

More focus on intern programs 33% 35%

Enriching relocation packages on a case-by-case basis/approving exceptions

17% 21%

Intensified campus recruiting 17% 42%

More local training 0% 13%

Recruiting from other countries 0% 16%

Offshoring/outsourcing 0% 13%

Enriching relocation packages across the board 0% 2%

Offering short-term/temporary assignments 0% 17%

Company Using Different Approaches to Manage Millennials

Tech


No 83% 75%

Yes 17% 25%



Strategies Implemented to Retain Millennial Talent

Tech


Flexibility (e.g., working remotely, flexible work hours, etc.)

50% 74%

Short-term temporary assignments 50% 59%

Developmental training 50% 48%

More rotational/developmental assignments 0% 74%

Providing mentors 0% 67%

Offering more special projects 0% 30%

More investment in technology 0% 7%

© 2017 Cartus Corporation | All rights reserved.Cartus and the Cartus logo are registered trademarks of Cartus Corporation.

www.cartus.com | connect with us

Survey Report

DOMESTIC U.S. RELOCATION POLICY & PRACTICES

21

07

Cartus’ Industry Profiles series contains the following eight industry sectors. For these reports

and other Cartus research studies, including information on policy comparisons by industry,

please contact your Cartus representative or visit our Resource Hub on cartus.com.

Industry Description

FINANCIALBanking, Finance, Insurance, Real Estate

PHARMAPharmaceuticals, Healthcare

CONSUMER GOODSConsumer Goods, Food & Beverage

RAW MATERIALSEnergy, Utilities, Mining, Forest Products

MANUFACTURING/ CONSTRUCTIONManufacturing, Machinery, Aerospace, Instruments, Construction, Engineering

SERVICE/MEDIABusiness Services, Hospitality, Entertainment, Telecommunications, Media

OIL & GASPetroleum Products, Gasoline

TECHTechnology, Electronics, Computers, Software

https://www.facebook.com/cartus

http://www.linkedin.com/company/cartus

http://twitter.com/cartus

http://google.com/+cartuscorporation

http://www.youtube.com/user/CartusCorporation

http://www.xing.com/companies/cartus

http://www.cartus.com/en

https://www.cartus.com/en/resource-hub/

https://www.cartus.com/en/

Documents

TECHNOLOGY - Cartus...Measuring return on investment (ROI) 35% 29% Need for more flexibility in relocation policy 35% 27% Real estate market 35% 28% High cost areas 18% 41% Recruiting