The ROI of International Assignments: Moving Beyond the "Holy Grail"

Calculating the return on investment of international assignments has long been called the "holy grail" of global mobility. Companies know the costs intimately—relocation expenses, housing allowances, compensation adjustments, tax equalization—but quantifying the returns has been much harder to pin down. Yet recent research and industry surveys are finally bringing some clarity to this fundamental question, and the findings should give mobility leaders renewed confidence in making the business case for their programs.

The Measurement Gap

ECA International's Managing MoCalculating the return on investment of international assignments has long been called the "holy grail" of global mobility. Companies know the costs intimately—relocation expenses, housing allowances, compensation adjustments, tax equalization—but quantifying the returns has proved far more elusive. Yet recent research and industry surveys are finally bringing some clarity to this fundamental question, and the findings should give mobility leaders renewed confidence in making the business case for their programs.

The Measurement Gap

ECA International's Managing Mobility Survey has tracked this challenge for over a decade, consistently finding that measuring ROI ranks as the top challenge for global mobility teams. Their June 2025 analysis reveals a striking statistic: only 14% of organizations actually attempt to measure ROI for international assignments. The reasons are both practical and systemic—cost estimates are typically prepared by the mobility function, while actual costs are dispersed across the organization, making comprehensive tracking difficult. Many organizations simply lack integrated systems to compile and compare these distributed expenses.

This measurement gap creates a paradox. Organizations generally feel more confident in their ability to measure assignment costs than in assessing assignment value, despite similar percentages conducting formal ROI analysis and comparing estimated to actual costs.

What the Research Shows

Despite the measurement challenges, some organizations have quantified their returns. Localyze's ROI of Global Mobility report, which surveyed 240+ business leaders across the UK, Ireland, Germany, and the Netherlands, provides eye-opening data: organizations see an 85% ROI gain if a relocated employee stays just one year, rising to 270% by the end of year two. The math is straightforward—mean relocation costs of $26,260 compared against perceived annual financial benefits of $48,660. These benefits accrue through improved productivity, enhanced employee performance, and stronger cultural engagement.

Nearly half of the business owners and CEOs surveyed reported a direct correlation between mobility investments and higher company profits. This isn't about soft benefits alone—it's a quantifiable impact on the bottom line.

Industry-Wide Challenges

The KPMG 2025 Global Mobility Benchmarking Report confirms that demonstrating ROI remains the number one challenge facing mobility leaders, cited by 31% as a top concern. Cost management has become less of a priority as organizations shift focus toward value and performance.

EY's 2025 Mobility Reimagined Survey reinforces this evolution. Their research shows that "evolved" mobility functions—those with strong strategic alignment, talent linkage, and digital capabilities—are 1.6 times more likely to cite positive ROI from their programs. These evolved functions don't just track costs; they measure performance ratings, revenue impact, promotion rates after assignments, and speed to fill vacancies.

Beyond Financial Metrics

The returns from international assignments extend well beyond direct financial gain. Localyze found that 78% of respondents said relocated employees demonstrate improved performance and commitment to the business. Additional benefits reported include:

• Access to global talent pools (51% of respondents)
• Enhanced cultural awareness across the organization
• Improved knowledge sharing and innovation
• Stronger employee retention and engagement
• Career development opportunities that 70% of respondents identified

Short-term mobility options also deliver meaningful returns, with 87% of respondents confirming that workcations and similar arrangements boost employee satisfaction.

Making the Business Case

For mobility professionals seeking to demonstrate value to leadership, the evidence increasingly supports a strategic approach. EY's research shows evolved mobility functions are 3.7 times more likely to say their function helps address medium-term talent shortages and 1.8 times more likely to report that mobility significantly drives business growth.

The key lies in aligning mobility programs with broader organizational and talent objectives—something 90% of employers recognize as beneficial, yet only 30% achieve. The gap stems from functional isolation, inadequate data exchange, and operating model inefficiencies.

Building Toward Better Measurement

ECA International notes that for organizations seeking to address these challenges, the first step is laying groundwork for consistent cost tracking. Capturing actual costs requires collaboration across functions and vendors, but this is essential to meaningful ROI evaluation.

The conversation around assignment ROI is maturing. Academic researchers have argued that expatriate ROI must extend beyond statistical formulas to consider strategic value—leadership development, knowledge transfer, and organizational capability building.

As companies navigate economic uncertainty and competition for talent, making the case for mobility's value becomes essential. The research shows that well-managed international assignments deliver meaningful returns—both financial and strategic. The "holy grail" may not be a single number, but a comprehensive understanding of how mobility drives business outcomes.bility Survey has tracked this challenge for over a decade, consistently finding that measuring ROI ranks as the top challenge for global mobility teams. Their June 2025 analysis reveals a striking statistic: only 14% of organizations actually attempt to measure ROI for international assignments. The reasons are both practical and systemic—cost estimates are typically prepared by the mobility function, while actual costs are dispersed across the organization, making comprehensive tracking difficult. Many organizations simply lack integrated systems to compile and compare these distributed expenses.

This measurement gap creates an odd disconnect. Organizations feel more confident tracking what assignments cost than understanding what they deliver. But the numbers tell a different story: roughly the same percentage conduct formal ROI analysis and compare estimated costs to actual costs.

What the Research Shows

Despite the measurement challenges, some organizations have quantified their returns. Localyze's ROI of Global Mobility report, which surveyed 240+ business leaders across the UK, Ireland, Germany, and the Netherlands, provides compelling data: organizations see an 85% ROI gain if a relocated employee stays just one year, rising to 270% by the end of year two. The math is straightforward—mean relocation costs of $26,260 compared against perceived annual financial benefits of $48,660. These benefits accrue through improved productivity, enhanced employee performance, and stronger cultural engagement.

Nearly half of the business owners and CEOs surveyed reported a direct correlation between mobility investments and higher company profits. This isn't about soft benefits alone—it's a quantifiable impact on the bottom line.

Industry-Wide Challenges

The KPMG 2025 Global Mobility Benchmarking Report confirms that demonstrating ROI remains the number one challenge facing mobility leaders, cited by 31% as a top concern. Cost management has become less of a priority as organizations shift focus toward value and performance.

EY's 2025 Mobility Reimagined Survey reinforces this evolution. Their research shows that "evolved" mobility functions—those with strong strategic alignment, talent linkage, and digital capabilities—are 1.6 times more likely to cite positive ROI from their programs. These evolved functions don't just track costs; they measure performance ratings, revenue impact, promotion rates after assignments, and speed to fill vacancies.

Beyond Financial Metrics

The returns from international assignments extend well beyond direct financial gain. Localyze found that 78% of respondents said relocated employees demonstrate improved performance and commitment to the business. Additional benefits reported include:

• Access to global talent pools (51% of respondents)
• Enhanced cultural awareness across the organization
• Improved knowledge sharing and innovation
• Stronger employee retention and engagement
• Career development opportunities that 70% of respondents identified

Short-term mobility options also deliver meaningful returns, with 87% of respondents confirming that workcations and similar arrangements boost employee satisfaction.

Making the Business Case

For mobility professionals seeking to demonstrate value to leadership, the evidence increasingly supports a strategic approach. EY's research shows evolved mobility functions are 3.7 times more likely to say their function helps address medium-term talent shortages and 1.8 times more likely to report that mobility significantly drives business growth.

The key lies in aligning mobility programs with broader organizational and talent objectives—something 90% of employers recognize as beneficial, yet only 30% achieve. The gap stems from functional isolation, inadequate data exchange, and operating model inefficiencies.

Building Toward Better Measurement

ECA International notes that for organizations seeking to address these challenges, the first step is laying groundwork for consistent cost tracking. Capturing actual costs requires collaboration across functions and vendors, but this is essential to meaningful ROI evaluation.

The conversation around assignment ROI is maturing. Academic researchers have argued that expatriate ROI must extend beyond statistical formulas to consider strategic value—leadership development, knowledge transfer, and organizational capability building.

As companies navigate economic uncertainty and competition for talent, articulating mobility's value proposition becomes essential. The research shows that well-managed international assignments deliver meaningful returns—both measurable and strategic. The "holy grail" may not be a single number, but a comprehensive understanding of how mobility drives business outcomes.