The global employee reolcation services market was valued at almost USD 20 billion in 2016 and is expected to surpass USD 23 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on employee relocation services for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the employee relocation services market during the forecast period. Some of the top vendors listed in this industry analysis include Graebel, Mobility Services International, Global Mobility Solutions, Santa FE Relocation Services, and Cartus.
In terms of geographical analysis, North America accounted for around 45% of the overall market share during 2016 to become the dominant shareholder in the global employee relocation services market. The growth of the market in this region is attributable primarily to the rise in relocation activities in the US.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “The new generation workforce, especially the millennials, seek relocation opportunities for professional growth and career development. This is prompting buyers in the market to offer flexible relocation policies with proper work-life balance, work-from-home, and use of updated technology to encourage young professionals to take up international assignments. Such developments are likely to ameliorate the demand for employee relocation services in the global market in the coming years.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Reduction in the volume of long-term assignments
The demand for long-term assignment is substantially deteriorating due to the intricacies encountered by buyers in terms of legal and tax policies in the host country. As a result, there is an increased preference among buyers to relocate employees for short-term or through commuter assignments, which can bring about benefits such as tax reduction/exemption. For instance, the US provides special consideration for employees that undertake short-term assignments, which is less than one year. They can be exempted from travel, meals, and lodging expenses incurred in the pursuit of business.
Ease on immigration regulation
Easy immigration policy enhances employee relocation due to reducing complexities in the immigration process. Buyers prefer to relocate employees to immigration-friendly nations such as Canada, Austria, China, and Singapore as expatriates do not have to comply with stringent laws, which elongates the process of relocation. For example, MEA (Qatar, Oman, Dubai, and the UAE) is an immigration-friendly region and attracts mostly APAC overseas worker due to the abundance of employment opportunities and increased security.
Preference of relocation opportunities for new generation workforce
The new generation workforce is pursuing opportunities to relocate to various regions as part of overseas assignments for career development and professional growth. Buyers in the market are catering to this demand by offering flexible relocation policies with work-from-home benefits and proper work-life balance to attract young professionals. Regions such as North America, Europe, and Australia are some of the top destinations preferred by new generation workforce.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Employee Relocation Services – Procurement Market Intelligence 2017’.
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