Some Stats on Global Mobility's ROI

Calculating the return on investment (ROI) of a specific relocation or expatriate assignment can be quite challenging. In fact, many call this the “holy grail” of mobility! However, ROI is possible to calculate. You can do it by identifying the costs associated with sending an employee abroad (relocation, housing, compensation adjustments. etc.) and then measuring the tangible and intangible benefits gained from the assignment, such as increased market share, new business development, knowledge transfer, and employee development. Then you have to compare the two to determine a net return on investment. Many programs also consider an interview or qualitative assessment alongside the quantitative data to help in the ROI calculation and to also find areas of improvement for a mobility program. Most agree that pinpointing the “investment” amount is slightly easier than getting to a number for the “return” portion.

As we push through Q4 of 2024, many mobility programs are approaching an “expense cut-off” date, where they start wrapping up the collection, auditing, and reporting of relocation and assignment expenses for the year. Global compensation accumulation programs support accurate tax filings and program compliance, while also highlighting the full investment being made by the company into each move or assignment. The sum of this process often raises eyebrows with CFOs as the costs (the “I” in ROI) add up. 

The “R” portion can take some time to get. An assignment may take 2, 3, or more years to finalize. But the reality is that nearly half of the business owners and CEOs in Localyze's report entitled “The ROI of Global Mobility” cited a direct link between mobility investments and higher profits. The survey data also reported an incredibly high return on their investment into global mobility with a 270% ROI gain for 2 year assignments! Take a look at this chart from the report:

Did you see that bottom line in the above, showing a huge ROI increase for those doing a 2 year stint? Besides participants feeling that mobility plays a role in maximizing profits, they also shared other parts of their business operations that have been improved by global mobility. Global mobility improved:

• Access to global talent
• Cultural awareness across the organization
• Knowledge sharing
• Innovation
• Employee retention
• Employee morale
• Faster hiring 
• DE&I

For employees, there were some significant outcomes shared. 

1. An overwhelming majority of respondents (78%) said that relocated employees improve their performance at work.
2. According to 87% of respondents, short-term mobility options (STAs and EBTs) boost employee job satisfaction.
3. 66% of respondents stated that relocations create opportunities to experience personal growth.
4. 70% felt that relocations create opportunities for employees to further develop their careers.
5. 87% of respondents said they were more likely to engage with the company culture.

If you are looking for some great data that supports your personal understanding of the value of mobility, it doesn't get much clearer than this. 

"Relocating employees comes at a cost, but the benefits outweigh them by a large margin. It’s clear that Global Mobility is not just a luxury perk for companies but rather, it’s a vital business enabler in a very global world.”