Altair Global recently released the findings of a ground-breaking new study on the effects of relocation on an employee’s productivity that in turn directly ties to the employer’s bottom line. The Momentum Survey Series was commissioned by Altair Global and conducted in conjunction with their Global Consulting Services Team and RIS Consulting Group. More than 500 relocating employees from 12 different client companies participated in the study, which was conducted over a 9-month time period.
The results of the survey were conclusive in identifying the top relocation-related events that most impacted an employee’s productivity before, during and after the move with insight into how varying employee populations differed such as the difference for home owners versus renters, employees moving with families versus those moving alone, and more. Coupling the findings with an additional productivity estimator tool, Altair was able to equate the results into estimated lost revenue for the employer.
The key findings identified that employees experienced anywhere from 15 to almost 20 days of lost work focus over the course of a standard relocation. While some level of decreased productivity is to be expected when an employee is moved from one location to another, possibly taking on a new role within the organization and supporting a family during the move, the total financial impact was unprecedented. Even with conservative estimates on the average productivity loss per employee, when multiplied across an entire employee population, the results showed a possible loss of up to $900K per program.
Mary Beth Nitz, Global Consulting Services Director, led the efforts for Altair Global. “This study was the first of its kind in our industry, and the results are both insightful and impactful. We identified significant opportunities to reduce employee productivity loss throughout the relocation process, and we’re excited about the ongoing dialogue with our corporate clients as we continue to explore the solutions,” said Nitz.
Also of note were the study’s findings that showed the employer’s own methodologies for onboarding and training were a significant source of downtime and lost productivity for employees across the board.
“The findings of the study showed us not only where our policies were not adequately addressing employee needs, but also where our internal processes had broken down and were not effective in allowing employees to maximize their time in dealing with relocation-related functions,” said one client participant.
While the purpose of the study was to identify the key areas in a relocation that would cause the employee to lose focus and decrease job output, another focus was to find solutions to assist the employee in the move to lessen the effects of the relocation. Clients who participated in the study have been provided with detailed analysis and possible policy recommendations in order to address the employee productivity drain.
“My goal for this study was two-fold in that I wanted to ensure we were truly capturing the total effect of relocation on an employee’s work productivity, but also to also engage companies and relocation providers in a new dialogue in which we not only concentrate on getting an employee from point A to point B, but also take a consultative role in defining processes that keep them engaged and productive throughout the move from start to finish,” said Altair Global President and CFO, Chad Sterling.
This first edition of the Momentum Survey Series focused specifically on U.S. inbound employees with the next edition of the survey to focus on international relocation in the coming year. For more information on how to obtain the complete survey report or how to participate in the next survey, visit the Altair Global website www.altairglobal.com/momentum.