Will you fire them?

Saying no to vaccines...will you fire them?

Many companies are feeling like they are stuck between a rock and a hard place. This article from Korn Ferry raises the question of what to do about employees who refuse to get vaccinated once a vaccine mandate is declared. Here in the U.S., the Biden administration mandated that workers at companies with more than 100 employees get vaccinations or undergo regular testing, but the Occupational Safety and Health Administration (OSHA) has not yet revealed how this will be enforced. According to this article, companies find themselves in a horrible position where they must balance between two deeply unacceptable outcomes: losing good employees or having potentially ill workers (and possibly clients). They find themselves in the dilemma of having to decide whether to fire employees who do not comply, even when that worker is one of their high-performing stars. Add to the situation that in some cases, these refusers are costing their company a significant amount of money. In the case of United Airlines, for example, they are spending nearly $3 million a month in paid leave for unvaccinated pilots.

How does this relate to global mobility?

There's a similar scenario playing out within global mobility programs. As vaccine mandates continue to divide and create concerns about labor shortages and greater supply chain problems, many mobility programs are experiencing their own version of "what we do now?" Some employees who have (at some point along the way since the pandemic) accepted an offer to relocate are now reconsidering, changing their minds and ultimately refusing to relocate. Now companies are having to determine how to handle these challenging situations. If relocating was tied to that job offer, will the employee's employment now be reconsidered? Can the company fire them and seek a replacement? What's the impact of those decisions on the company and its business initiatives? Depending on how easy (or not) it is to source talent for the position, companies may find themselves with their backs against the wall where the talent has the advantage. 

So what exactly are companies doing in these situations?

Maybe the question that should come before this is, "How often is this really happening?" In a recent "Mobility Minute Survey," only 17% of participants hadn't experienced relocation refusals, meaning 83% have experienced it, with nearly 40% saying that they have seen a number of employees refuse to relocate, as opposed to only a very few employees saying "no thanks."

I was definitely not too surprised that in this talent market currently, there is no definitive method for handling these situations, and that the majority of companies (basically nine out of 10) are handling this issue on a case-by-case basis. Mobility managers are having to connect with hiring managers and discuss next steps as these situations arise. While most respondents shared that the company would reconsider the structure for ongoing employment and compensation — especially if the employee had a salary change related to being based in a specific location, most felt it would probably not lead to the employee being terminated. This "take them as they come" approach does potentially open up the opportunity for other employees to push back and seek allowances that have been made for others. This approach may also consume a lot of time and attention.

In our survey, many shared that any funds that the company has paid toward a relocation would need to be returned to the company by the employee. In those situations, employees are not always aware of the total cost spent on their relocation to that point, despite usually being very aware of any reimbursements or allowances that were paid. That's because there are often vendor payments for some services that have been provided, and while the employee received the service, they might not have been aware of the amount the company paid. 

OK, so what do I do with this information now?

As we continue to emerge from the pandemic into a murky future — where remote work and the various work structures that fall under hybrid remain most desirable to employees — one has to wonder: Will we see increases in relocation refusals? If your mobility program is one of the few that has not experienced refusals yet, your turn might come soon and you might want to revisit the communication that employees receive up front as it relates to how this situation would be handled, making it clear that all relocation-related expenses will need to be reimbursed, if that is the program's decision. For those that have experienced refusals already...same advice! Additionally, to avoid surprises when an employee makes this decision, make sure they are aware of how to access the total costs of what has been spent and specifically what would be required to be paid back.