The Hidden Cost of Reduced Global Mobility Activity

Over recent years, global mobility programs have consistently expressed cautious optimism, driven largely by budget constraints, cost management pressures, and shifting policies. According to our "2025 Global Mobility Insights and Trends Survey," nearly half (47%) of companies anticipate budget limitations restricting relocations and assignments this year. 

Increasing costs, remote work adoption, high living expenses, and global volatility have further constrained employee development opportunities. One global mobility leader from the engineering industry noted, “After a year of benchmarking and re-aligning our relocation benefits globally, we will need to revisit our policy offerings to better support budget limitations for the business.”

In his CEO letter titled "An Increasing Lack of Mobility," Elliot Clark, CEO of SharedXpertise, emphasizes a critical consequence of these trends—the declining emphasis on corporate relocation may erode crucial global leadership competencies. Historically, international assignments have been instrumental in shaping executives' cultural awareness and international management capabilities. Clark warns that fewer opportunities for such experiences could compromise future leaders' effectiveness in the global market. Clark emphasizes, “Nothing teaches how little you know about other cultures as trying to work within them. Nothing teaches what you need to know about other cultures as much as working within them.”

Clark underscores that while digital tools and online resources provide convenience, they cannot substitute the deep cultural insights gained through actual relocation experiences, stating firmly, "Reading something on the internet can never be substituted for actual lived experience."

He advocates for companies to reconsider and reinvigorate their mobility practices, highlighting the strategic importance of fostering globally experienced leaders. Without reinvigorating mobility and providing developmental opportunities, companies risk creating a generation of leaders less equipped to handle global complexities. Organizations lacking personal intercultural experiences within their workforce often face challenges like miscommunication, difficulty adapting to diverse markets, and potential legal issues, ultimately impacting innovation, productivity, collaboration, and employee engagement.

I revisited a recent post, where we shared 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! 

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.

What do you think? Is it time to prioritize mobility again? What do you see as potential consequences for companies that do not foster these experiences any longer?

It may be that your company is simply bumping into a financial situation where the reality is that the budget is just not available…for now. But re-iterating the value of these experiences for the company and it's employees can help provide or maintain the understanding of their value.

If your in a company that is grappling with the value of relocation and assignments, here are a few additional articles for you to consider:

Is Talent Mobility Your Competitive Advantage in 2025? 

Some Stats on Global Mobility's ROI 

The top three drivers of a successful talent-management strategy