Marketing SpectrumMDAAtlas Van Lines Corporate Relocation Survey

1
Foreword

• SITUATIONAL ANALYSIS
• Atlas Van Lines conducts corporate relocation
  issues research on an annual basis.
  Traditionally, the research has been
• conducted as a mail survey sent to companies
  throughout the United States. This year, Atlas
  Van Lines decided to
• re-vamp the study using telephone interviews, to
  allow the company to segment information and
  learn more about large,
• medium, and small companies and how they handle
  corporate relocations. For the 33rd Annual
  Corporate Relocation
• Survey, Atlas Van Lines contracted Marketing
  Spectrum/MDA, an independent research company, to
  obtain objectivity
• and confidentiality. Research design and
  assistance was provided by Keller Crescent Co., a
  total marketing
• communications company with headquarters in
  Evansville, Indiana.
• METHODOLOGY
• Atlas Van Lines reviewed past questionnaires in
  order to identify pertinent previous years
  questions and to insert
• questions of particular interest to Atlas for the
  year 2000. Marketing Spectrum recommended an
  interviewing method of
• phone surveys, to accomplish the research. MDA
  began phone interviews on February 3, 2000 and
  the field work was
• completed on March 15, 2000.

2
Management Summary
Corporate Profile Manufacturing/Processing is
the most highly represented business
classification in this study. The following is a
breakdown of respondents company business
classifications A little over half of
these companies are international (54) however,
companies employing 5000 or more employees may
drive this number. While only 39 of small
companies are international, 76 of large
companies are worldwide. The average annual
sales for all companies involved in this study is
65.2 million. Almost half (49) of the
companies involved in this study employ less than
500 salaried workers, 33 employ 500-4999
employees 18 have 5000 or more salaried
employees.
3
Management Summary
Corporate Profile contd A little more than
seven in ten (71) companies have a formal
relocation policy. Due to bigger budgets and
more annual relocations, large companies (91)
are more likely to have a formal relocation
policy than are small companies (54). The
same is true for centralized relocation
departments. Around 80 of medium/large
companies feel that a centralized relocation is a
necessity while only 66 of small companies have
a department entirely devoted to the
administration of employee relocations. These
centralized relocation departments are
responsible for the following - Controlling
Household Goods Carrier Selection (77) -
Controlling Freight Carrier Selection
(74) Carrier selection is mainly the
responsibility of the company (40). The other
60 of companies decide on a carrier via the
following methods The average number of
employees relocated in 1999 moved
Relocations between foreign countries and those
from the U.S. to foreign countries are not
included.
As expected, large companies account for more
relocations.
4
Management Summary
Decision Maker (Respondent) Profile The majority
of respondents (78) work in Human
Resources/Personnel. A variety of respondents
completed this survey from managers (26) to
relocation administrators (27) to other
unspecified positions (24). A little over
half (57) of decision makers read trade
publications - HR Magazine (37) - Mobility
(28) Almost eight in ten (79) employees do
not belong to any relocation-related
associations. As with many other measures in
this study, employees in larger companies are
more likely to belong to a relocation-related
association. In comparison to 1998,
companies allocated more money for relocations in
1999. A little more than eight in ten (83)
relocation decision makers say that their 1999
relocation budget either increased or stayed the
same - 44 increased from 1998 budget - 39
stayed the same as 1998 budget - 17 decreased
from 1998 relocation budget
5
Management Summary
Transferee Profile The most frequently
transferred employee is in his thirties with the
average age being 36 years. An average
of 101 employees were transferred in 1999.
Larger companies drive this number with an
average of 306 employees being transferred in
1999. The following is the makeup of those
employees transferred in 1999 - 20 women
(Despite societal advances, husbands are less
likely to follow wives, hence fewer relocations
among women) - 60 had trailing spouses While
a little more than half of respondents (52) feel
that relocation will stay the same in 2000, 29
anticipate an increase and 19 feel that there
will be a decrease in the number of relocations
in 2000. Only 29 of respondents feel that
external factors had a significant impact on the
number of employee transfers in 1999. These
people feel that the following external factors
had an impact - Economic Conditions (59) -
Lack of Qualified People (52)
6
Management Summary
Transferee Profile contd In contrast to
external factors, more than half (54) of
respondents feel that internal factors had a
significant impact on the number of employee
transfers in 1999. Internal factors were
especially likely to impact larger companies.
The following internal conditions are
significant - Growth of Company (76) -
Promotions/Resignations (74) - Expansion into
New Territories (64) Companies vary on the
amount of time they allow employees to decide on
whether to accept a relocation offer. Some
employees (39) have up to two weeks to accept an
offer, others (27) have up to one month to
decide, while some have only one week or less to
accept (14). Larger companies usually allow the
employee more time to accept a relocation offer.
The majority of companies allow the hiring of
spouses of employees (79). The smaller the
company the less likely it is to allow spouses to
join the workforce.
7
Management Summary
Policy Administration In total, only 40 of
companies outsource relocation services. However,
this low number appears to be driven by companies
of less than 500 employees. Almost two-thirds
(65) of large companies outsource some or all
relocation services. Of those companies
who do outsource, the services that are most
likely to be outsourced are - Household goods
transportation (80) - Real estate (79) Only
36 of decision makers say that the internet is
used for relocation-related matters. Those who
do use the internet use it for a variety of
purposes - To communicate via e-mail with
relocating employees (86) - To research
relocation-related matters (77) - For matters
unrelated to relocation (70) On average,
employees are allowed 4.6 expense-paid
house-hunting days spouses are allowed to
accompany the employee on 1.7 expense-paid
house-hunting trips.
8
Management Summary
Relocation Costs The following are companies
methods of reimbursement of moving
expenses If an employee decides to buy a
home in the new location, companies will cover a
variety of moving expenses. - 78 pay to pack
all items - 74 pay to move exercise
equipment - 73 pay to move an automobile -
63 pay to move recreation and lawn equipment -
62 pay to carry items down from the attic If an
employee decides to rent, companies cover the
following - 71 offer home finding trips - 65
reimburse for lease cancellation - 65 offer to
move one or more automobiles - 61 offer storage
9
Management Summary
Relocation Services Only 38 of companies assist
an employees spouse/partner in finding
employment in the new location. These companies
help in the following ways - 43 assist the
spouse/partner in finding a job outside of the
company - 30 pay job finders fees - 23
assist the spouse/partner in finding a job within
the company - 4 pay the spouse/partner's salary
until hired On average, only 13 of employees
employed by companies who offer spouse/parner
employment assistance, took advantage of it in
1999. Only 8 of companies provide elder care
assistance to the transferee. Assistance
provided by these companies includes - Provides
a list of nursing homes (68) - Moves the
elderly relative (26) - Reimburses for outside
care (10) - Allows the transferee to use
pre-tax dollars for outside care (10) - Moves
the elderly relative that does not live with the
transferee (5) Approximately one in five (22)
respondents believe that an employees
willingness to relocate is never affected by
his/her spouses employment status. Half (50)
believe that employees willingness to relocate
is seldom affected. 18 say an employees
spouses employment status frequently affects
his/her relocation decision, 10 say it almost
always does.
10
Management Summary
Relocation Services contd The majority of (79)
respondents say that declining the opportunity to
relocate does not hinder an employees career. A
little over seven in ten (72) respondents feel
that the number of employees who declined
relocation offers did not change between 1998 and
1999. Two in ten (20) say that the number of
employees declining relocation offers in 1999
decreased. Only 39 of employees who were asked
to relocate in 1999, declined the opportunity.
Reasons given were - Family ties (87) -
Personal reasons (77) - No desire to move
(77) - Spouses employment (65) The average
number of relocation carriers companies have
contractual agreements with is 2.4.
11
Management Summary
Transportation A little more than six in ten
(63) of respondents say that their company does
have preferred contract carriers. Only 30 of
companies included in the survey outsourced
services to a relocation service or brokerage
firm in 1999. The services provided to these
firms are - Real estate sale/purchase (89) -
Contract of household goods moving company
(74) - Orientation tours in the new location
(72). The most important attributes when
selecting a contract carrier are - Service
(94) - Price (76) - Reputation (72) -
Claims processing (70) When evaluating a
carrier, 95 say that the most important
attribute is service, 89 say on-time delivery,
80 say price, 79 say employee feedback, and 70
say claims processing. From the employees
perspective, the most important aspects of a move
are - Claims processing (81) - Packer (77)
- Driver (70) A little more than two in ten
(22) companies use electronic transfer of funds
to their contract carrier 15 use on-line access
with their carrier for shipment records/history,
and 14 use on-line registration access with
their carrier.
12
Management Summary
Geography A little more than eight in ten (83)
companies relocated employees to the United
States in 1999, while only 15 of employees were
relocated to Canada, and 8 to Mexico. When
choosing a cross-border carrier, a majority of
respondents (98) say that service is most
important, followed by price (84), scheduling
(82), and reputation (77). International Amo
ng companies that did relocate employees
internationally, relocations to and from the
United States dominated international
relocations, with foreign relocations from the
U.S. being slightly more common than U.S.
relocations from abroad. Relocations between two
foreign countries were the least common and
represented less than half of those either to or
from the U.S. to a foreign country. Almost nine
in ten (88) companies offer additional leave
time to internationally relocated employees, 80
offer additional leave time that includes travel
and at least one visit to the United States or
Canada, 69 offer additional tax considerations,
67 offer extended per diem charges for a hotel,
and 67 offer increased allowances for permanent
storage. More than half (53) of companies have
never used the electronic data interchange (EDI)
interface capabilities on international
shipments. A little over two in ten (23) seldom
use EDI. A little over three-fourths of
companies (77) offer no assistance to
internationally transferred employees
spouses/partners in finding employment in the new
location. Of those companies who do offer this
assistance, an average of 35 of internationally
relocated employees in 1999 took advantage of
this.
13
Management Summary
International contd Only 24 of international
relocations were declined or failures for lack of
adaptability by the spouse/partner (36), other
reason unspecified (36), lack of adaptability by
the employee (29), or lack of spouse/partner
assistance (21).
14
Corporate Profile
Business Classification
Q.1
Less than 500 Salaried Employees
Total
500 4999 Salaried Employees
5000 Salaried Employees
15
Corporate Profile
Company Type
Q.2
Less than 500 Salaried Employees
Total
500 4999 Salaried Employees
5000 Salaried Employees
16
Corporate Profile
Companys Average 1999 Annual Sales
Q.3
In Millions
17
Corporate Profile
Salaried Employees
Q.4
MEAN 2064 Salaried Employees
18
Corporate Profile
Formal Relocation Policy
Q.5
19
Corporate Profile
Administration of Employee Relocations from
Centralized Department
Q.6
Less than 500 Salaried Employees
Total
500 4999 Salaried Employees
5000 Salaried Employees
20
Corporate Profile
Centralized Relocation Department Duties
Q.7
Total
21
Corporate Profile
Centralized Relocation Department Duties
Q.7
indicates small sample size indicates
approximation
22
Corporate Profile
Carrier Selection
Q.8
Total
23
Corporate Profile
Carrier Selection
Q.8
24
Corporate Profile
Relocation Destination
Q.9
Average of Employees Relocated to Each Location
in Total
25
Corporate Profile
Relocation Destination
Q.9
By Company Size
indicates less than 0.5
26
Decision Maker Profile
Department Function
Q.10
Total
27
Decision Maker Profile
Department Function
Q.10
By Company Size (Salaried Employees)
Traffic/Transportation
Compensation/Benefits
Relocation Services
Administration
Other
Human Resources
28
Decision Maker Profile
Position with the Company
Q.11
29
Decision Maker Profile
Position with the Company
Q.11
Less than 500 Salaried Employees
500 4999 Salaried Employees
5000 Salaried Employees
30
Decision Maker Profile
1999 Relocation Budget in Comparison to 1998
Q.12
Less than 500 Salaried Employees
Total
500 4999 Salaried Employees
5000 Salaried Employees
31
Decision Maker Profile
Trade Publications
Q.13a Q.13b
Do you read trade publications?
Trade Publications Respondents Read
Trade Publications with less than 2 Readership
are not shown
32
Decision Maker Profile
Trade Publications
Q.13a Q.13b
indicates small sample size
Trade Publications in Total with less than 2
Readership are not shown
33
Decision Maker Profile
Relocation-Related Association Membership
Q.14
Less than 500 Salaried Employees
Total
500 4999 Salaried Employees
5000 Salaried Employees
34
Transferee Profile
Age Range of Frequently Transferred Employees
Q.15
Total
Average Age 36 years
35
Transferee Profile
Age Range of Frequently Transferred Employees
Q.15
By Company Size (Salaried Employees)
36
Transferee Profile
Number of Employee Transfers in 1999
Q.16
Average
37
Transferee Profile
Percentage of Employees Transferred in 1999 who
are Women
Q.17
Average
38
Transferee Profile
Percentage of Transfers Involving a Trailing
Spouse in 1999
Q.18/Q.19
Average
39
Transferee Profile
2000 Relocation Anticipation
Q.20
Less than 500 Salaried Employees
Total
500 4999 Salaried Employees
5000 Salaried Employees
40
Transferee Profile
External Factors
Q.21
Total
29 of Respondents (Base 66) felt that external
factors had an impact on the number of employee
transfers in 1999
41
Transferee Profile
External Factors
Q.21
By Company Size (Salaried Employees)
indicates small sample size indicates
approximation
42
Transferee Profile
Internal Factors
Q.22
Total
54 of Respondents (Base 129) felt that
internal factors had an impact on the number of
employee transfers in 1999
43
Transferee Profile
Internal Factors
Q.22
By Company Size (Salaried Employees)
indicates approximation indicates small sample
size
44
Transferee Profile
Length of Transfer Offer
Q.22b
Total
45
Transferee Profile
Length of Transfer Offer
Q.22b
By Company Size (Salaried Employees)
indicates small sample size
46
Transferee Profile
Allowance of Hiring of Spouses of Employees
Q.23
Less than 500 Salaried Employees
500-4999 Salaried Employees
5000 Salaried Employees
47
Policy Administration
Outsourcing of Services
Q.24, Q.25
48
Policy Administration
Outsourcing of Services
Q.24
Large companies are more likely to outsource some
or all relocation services. Almost two-thirds
(65) of large companies outsource while only 19
of small companies outsource relocation services.

By Company Size (Salaried Employees)
49
Policy Administration
Outsourcing of Services
Q.25
By Company Size (Salaried Employees)
indicates small sample size
50
Policy Administration
Internet Usage
Q.26a, Q.26b
Is the Internet Used for Relocation-Related
Matters?
How is the Internet Used for Relocation-Related
Matters?
51
Policy Administration
Internet Usage
Q.26a, Q.26b
By Company Size (Salaried Employees)
indicates approximation
52
Policy Administration
Number of Expense-Paid Relocation Trips
Q.27, Q.28
Total
Trips
Days
Dont know
Varies
Four or more
Three
Two
One
None
4.6 days
1.7 trips
Average Number of Expense-Paid Trips/Days Allowed
for House-Hunting
53
Policy Administration
Number of Expense-Paid Relocation Trips
Q.27, Q.28
Average By Company Size (Salaried Employees)
54
Relocation Costs
Reimbursement of Moving Expenses
Q.29
Total
55
Relocation Costs
Reimbursement of Moving Expenses
Q.29
By Company Size (Salaried Employees)
56
Relocation Costs
Moving Expenses the Company Covers
Q.30
Total
57
Relocation Costs
Moving Expenses the Company Covers
Q.30
By Company Size (Salaried Employees)
indicates approximation
58
Relocation Costs
Moving Expenses
Q.31
Total
When a Transferee or New Hire will be Renting
(not Buying) does your Company Pay for
59
Relocation Costs
Moving Expenses
Q.31
By Company Size (Salaried Employees)
When a Transferee or New Hire will be Renting
(not Buying) does your Company Pay for
indicates approximation
60
Relocation Services
Spouse/Partner Assistance
Q.32a, Q.32b, Q.32c
Does your Company Assist an Employees
Spouse/Partner in Finding Employment in the New
Location?
How does your Company Assist an Employees
Spouse/Partner in Finding Employment in the New
Location?
An Average of 13 of Employees in 1999 used
Spouse/Partner Employment Assistance
61
Relocation Services
Spouse/Partner Assistance
Q.32a, Q.32b, Q.32c
By Company Size (Salaried Employees)
indicates small sample size
62
Relocation Services
Elder Care
Q.33a, Q.33b
Does your Company Assist the Transferee for Elder
Care?
What Assistance does your Company Provide to the
Transferee for Elder Care?
63
Relocation Services
Elder Care
Q.33a, Q.33b
By Company Size (Salaried Employees)
indicates small sample size
64
Relocation Services
Frequency of Relocation Affected by Spouses
Employment
Q.34
Less than 500 Salaried Employees
Total
500 4999 Salaried Employees
5000 Salaried Employees
65
Relocation Services
Does Declining the Opportunity to Relocate
Usually Hinder an Employees Career?
Q.35
Less than 500 Salaried Employees
Total
500 4999 Salaried Employees
5000 Salaried Employees
66
Relocation Services
Change in the Number of Relocation Declination in
1999 from 1998
Q.36
Less than 500 Salaried Employees
Total
500 4999 Salaried Employees
5000 Salaried Employees
67
Relocation Services
Relocation Declination in 1999
Q.37a, Q.37b
Did any Employees Decline the Opportunity to
Relocate in 1999?
What Reasons did the Employees give for Declining
Relocation?
68
Relocation Services
Relocation Declination in 1999
Q.37a, Q.37b
By Company Size (Salaried Employees)
indicates approximation indicates small sample
size
69
Relocation Services
Average Number of Carriers your Company has
Contractual Agreements with for Transportation of
Household Goods
Q.38
70
Transportation
Are there Preferred Contract Carriers
Q.39
Less than 500 Salaried Employees
Total
500 4999 Salaried Employees
5000 Salaried Employees
71
Transportation
Contract Carriers
Q.40a, Q.40b
Did your Company Outsource any Services to a
Relocation Service or a Brokerage Firm in 1999?
Which Services did it Provide?
72
Transportation
Contract Carriers
Q.40a, Q.40b
By Company Size (Salaried Employees)
indicates approximation
73
Transportation
Important Attributes when Selecting a Contract
Carriers
Q.41a
Total
Top 3-Box
74
Transportation
Important Attributes when Selecting a Contract
Carriers
Q.41a
By Company Size (Salaried Employees)
Top 3-Box
indicates approximation
75
Transportation
Important Attributes when Evaluating a Carrier
Q.41b
Total
Top 3-Box
76
Transportation
Important Attributes when Evaluating a Carrier
Q.41b
By Company Size (Salaried Employees)
Top 3-Box
77
Transportation
Importance of Certain Aspects of a Move from
Employees Perspective
Q.42
Total
Top 3-Box
78
Transportation
Importance of Certain Aspects of a Move
Q.42
By Company Size (Salaried Employees)
Top 3-Box
indicates approximation
79
Transportation
Contract Carriers
Q.43
Which of the Following does your Company Use?
80
Geography
Relocation Destinations
Q.44
Where did your Company Relocate Employees to in
1999?
81
Geography
Cross-Border Carrier Selection
Q.45
How Important are the Following Attributes when
Choosing a Cross-Border Carrier?
Top 3-Box
82
Geography
International Employee Relocations
Q.46
Average
83
International
Relative Index of International Employee
Relocations
Q.47
Average Number of International Employee
Relocations in 1999 15.7
84
International
International Employee Relocations
Q.48
Which of the following Services do you Offer to
your Employees for International Relocations?
85
International
International Employee Relocations
Q.49
Does your Company use Electronic Data Interchange
(EDI) Interface Capabilities on International
Shipments?
86
International
International Employee Relocations
Q.50
How does your Company Assist an Internationally
Relocated Employees Spouse/Partner in Finding
Employment in the New Location?
An Average of 35 of Internationally Relocated
Employees in 1999 Used the Companys
Spousal/Partner Employment Assistance
87
International
International Transferees who Used
Spousal/Partner Employment Assistance
Q.51
Average
88
International
International Employee Relocations
Q.52a, Q.53b
In 1999, were any International Relocations
Declined or Failures?
The Reasons Cited for International Relocation
Failures or Declinations were (Base 14 )