Labor Market Disconnect

Companies are posting record-high job openings, but many of these open positions remain unfilled. This has a direct impact on how companies attract, relocate, and retain the best talent. For mobility managers, this can affect both volume and the benefits provided for new hires.

Recent data indicate an apparent disconnect in the labor market. While many companies are freezing hiring or reducing headcount in some departments, critical vacancies remain posted month after month. Key industries, including healthcare, technology, and professional services, have struggled with high numbers of open roles. Driving the gap are frequent mismatches between job requirements and available skills, exacerbated by rising wage expectations and changing worker priorities.

Four Pressures Reshaping Mobility Strategy

For HR leaders, particularly in Global Mobility roles, this tension in the labor market offers new challenges and opportunities:

1. Talent Deployment Urgency: With key roles remaining unfilled for longer, mobility leaders face pressure to relocate talent quickly and efficiently to plug workforce gaps. Speed can differentiate your program for candidates and senior leadership in these situations.
2. Expanded Talent Pools: As companies widen their search for the right candidates, relocation becomes even more important in letting HR tap into broader geographic talent pools.
3. Supportive Retention: The risk of relocation fatigue and the potential turnover it can cause requires mobility leaders to give additional thought to how their mobility policies treat candidates. Emotional, cultural, and family support are increasingly crucial in ensuring a successful transition amid global uncertainty.
4. Cost Justification and ROI: With rising costs in every area of business, mobility managers need to tie initiatives to clear business outcomes. Demonstrating return on investment (ROI) through faster onboarding, reduced vacancy duration, and improved employee performance shows the value of continued investment in relocation.

Transferees and international assignees feel increased pressure as well. As companies focus on filling urgent gaps, some employees are being asked to relocate more quickly and with fewer luxuries, counter to higher expectations around flexibility, remote work options, and family needs. This creates a balancing act for mobility leaders juggling business direction and employee satisfaction.

Adapting Your Mobility Strategy

To adapt your mobility program for today’s labor market, we recommend prioritizing the following actions:

1. Reassess Talent Mobility Policies: Ensure your policies are agile and that they support talent’s needs within budget.
2. Partner with Talent Acquisition: Calibrate your relocation timelines and processes to align with your company’s hiring strategies.
3. Enhance Pre-Assignment Support: Invest in readiness programs to prepare transferees and assignees and support their overall success rates.
4. Track Key Metrics: Measure vacancy fill time, relocation satisfaction, and retention rates to guide decisions and fine tune your policies.

Mobility’s Role in Closing Talent Gaps

Mobility leaders can play a more active role in bridging talent gaps by thinking beyond traditional relocation logistics. Align your mobility efforts with broader hiring objectives, speed, support, and strategic placement, to help your organization fill the right roles right away.