How Mobility functions can evolve and thrive with a workforce in flux

The survey shows:

• Benefits of evolved mobility: Mobility functions that focus on the five drivers are 2.3 times more likely to say mobility helps organizational resilience; 2.2 times more likely to say mobility improves their sustainability agenda; 1.5 times more likely to say mobility helps address talent shortages; and 1.3 times more likely to cite positive mobility return on investment (ROI) and response to talent shortages.
• More scope, tighter budgets: 71% of employers say cross-border mobility risks have increased in the last two years, with 66% expecting mobility’s scope to increase. Nearly all respondents (97%) are looking to manage costs more effectively.
• Retaining talent: 64% of employees say they’re more likely to stay with their employer after a long-term cross-border assignment, with the quality of the experience being the most relevant factor.
• Unrealized potential: 95% of employers believe there are benefits to more closely aligning mobility to business and talent goals, but 60% still see mobility as isolated or siloed from other functions.
• Defining ROI: Nearly all employers (99%) are tracking ROI of their mobility programs, up from 80% in 2023. But there is greater opportunity to align effective metrics with the shape and purpose of the mobility function.
• Generative technology: 93% of mobility functions are using generative AI (GenAI) to some extent, with only 22% using it routinely. The most “evolved” mobility programs are nearly twice as likely to already use GenAI routinely, compared to programs that are merely “effective.”

Beyond any single or cyclical event, new conditions for cross-border business require new thinking about the purpose and potential of workforce mobility programs. Market and labor trends demand more agility and thoughtfulness around mobility investment and influence within organizations.

Following a dramatic decrease in business travel spending connected to economic, health, and geopolitical uncertainty, spending (pdf) is expected to reach US$1.8t by 2027, up 75% from 2022 levels. At the same time, employers are looking globally to find in-demand skills, and are building models for a knowledge-driven workforce that shows a preference to work remotely at least two days per week.

Mobility professionals already show some adaptation to the new demands on their function, especially with respect to implementing systems or policies to address increased risks with a distributed workforce. With added focus on workforce mobility comes a need for added visibility: nearly all employers (98%) say they are tracking domestic and international employee movements, compared to just 49% of employers in last year’s survey. Growing attention on the increased scope of mobility is also evidenced in slightly higher numbers of employers who have developed policies or approaches for flexible mobility, and expect higher mobility technology investments in the next five years.

But to thrive in this era of flux, mobility functions need to do more than adapt at a piecemeal pace. Functions which fully evolve their models with an agile mindset, serving their organization’s business and talent strategy in a cost-effective way, see better outcomes. A more evolved mobility function displays:

• Strategic alignment: connecting workforce mobility strategy with broader organizational objectives
• Talent linkage: using mobility for talent attraction, retention, and development
• Digital focus: extent of automation and digitization of mobility processes
• Flexibility: agility in the customization of mobility experiences, including options of program types and  benefits
• External expertise: co-sourcing or outsourcing of select processes
  

The greater influence of “Evolved” mobility functions on broader outcomes can be connected to their higher level of integration and awareness of organizational health and aspiration. Mobility professionals (95%) agree that strategic alignment of their function to business and talent strategy has multiple benefits, with a further 89% agreeing mobility helps secure organizational resilience. But most (60%) still believe mobility is isolated or siloed from other functions, with just as many (58%) believing the function is hampered by lack of internal data exchange.

The most evolved mobility functions are not passive observers of organizational strategy, but proactive learners and advisers to human resources and other parts of the business. Perhaps because of this proactivity and connectedness to the business, the “evolved” functions are more aware of the rising risks associated with cross-border travel, more likely to believe their scope is increasing, and more likely to build initiatives to control costs and improve efficiency.

Aligning metrics with desired outcomes

Part of understanding the present and potential influence of mobility on the wider organization is having metrics that measure the function based on the right focus areas. Although nearly all mobility professionals are tracking ROI in some way, there is no universal norm. The largest number of employers (64%) track performance ratings, with cost (56%) and the function’s impact on business revenues and finances (54%) being the next most common metrics feeding an ROI analysis.

But to realize the mobility function’s strategic potential, especially connected to talent strategy, organizations need to adapt what metrics they track, and how. They need to ask whether they are tracking the right things, and whether they really understand their objectives and are collecting metrics accordingly. For example, if an organization wants to know what role mobility assignments play in career pathways, they should measure those outcomes. At present, less than half of respondents track talent retention and employee promotion after a mobility assignment, with further disparities between mobility program types seen through the lens of inclusive and equitable growth. “Evolved” mobility functions are roughly twice as likely than “Effective” functions to track KPIs of tailored support for family members or dependents, and having diversity, equity and inclusion-related goals for managers.

Most mobility professionals (86%) say their function improves the overall sustainability agenda and targets for their organization, including in helping to manage the carbon footprint, contributing to corporate sustainability targets, and prioritizing environmentally friendly transport options. But just as with talent indicators, it’s not clear that mobility functions are tracking the right data to have the greatest strategic influence. The EY 2023 Sustainability Value Study showed 85% of global organizations don’t have processes to measure emissions on an ongoing basis, for example.

As most mobility professionals (57%) report “somewhat positive” or “neutral” returns on their mobility programs, there is an opportunity for organizations to recalibrate their collection of metrics around sustainability, talent and business goals in a tangible and realistic way. This recalibration can provide hard data of mobility’s strategic influence, and help organizations realize its potential.

The imperative for mobility functions to evolve in step with talent strategy is as much a reflection of current trends as it is a recognition of a greater transformation in workforce realities. The EY 2023 Work Reimagined Survey reported a persistently high number of employees (34%) willing to leave their jobs in the next year, with pay being their primary concern. Employees and employers largely agree the question is settled as to whether remote and hybrid work will persist in the “next normal.” The new question is in what form, and to what end.

Mobility professionals say their organizations recognize this shift, with 82% having developed a policy or approach for hybrid mobility. But employers aren’t yet convinced that remote work is an adequate alternative to cross-border travel. Just 41% of employers think hybrid mobility can replace physical movements of employees, and 49% believe it doesn’t offer the same level of learning for senior professionals especially.

Recognizing the broader benefits to talent development is another distinction between “Evolved” and merely “Effective” mobility functions. Nearly all (96%) of “Evolved” functions and just 41% of “Effective” employers are tied to two or more core areas of talent development, including:

• Developmental programs designed to include mobility experiences
• Mobility included as part of career milestones for leadership
• Early career programs designed with mobility steps
• Mobility experiences offered to top and solid performers

Recognizing risk and realizing talent opportunities

Efforts to improve mobility programs to better serve broader workforce strategy cannot ignore increased complexity and risk exposure. For all the potential dividends tied to integrating varied mobility types with talent goals, there remains a gap in recognition and focus of legal, tax, cybersecurity risks associated with a mobile workforce. Employers are much more likely than employees to be aware of the risks arising from their hybrid work strategy, for example, but awareness doesn’t always lead to action.

While 84% of employers recognize data privacy risks from hybrid mobility arrangements, just 55% have policies to address those risks — a moderate improvement from last year’s 47%. On the other hand, an even greater 87% of employers are aware of cybersecurity risks from hybrid work, but just 46% have policies to address them, down from 51% last year. The need to close the gap of awareness and action to manage risks is one proactively addressed by the more “Effective” functions, and is an area of necessary focus for all.

There is no one-size-fits-all approach to mobility programs, with organizations needing to chart their path based on a unique constellation of designs and objectives. By linking the function to talent development goals and processes, and to targets for talent attraction and retention, organizations can add greater value for employees through exceptional experiences, and encourage new workforce models for agile organizations.

The potential of GenAI solutions is still being realized, but some applications are already seen as enhancing mobile employee experience. The use of AI-based chatbots, language tools or travel assistants can foster connection and access to information in an asynchronous working world. These specific use cases are in addition to GenAI’s inherent ability to create “rough drafts” of unique outputs based on disparate data sets.

A people-first approach to technology

But technology is only useful in the hands of people trained and comfortable using it. With a rapidly evolving technology ecosystem — especially connected to GenAI-enabled solutions — there can be an impulse to fill operational needs without assessing the full strategic impact. Rising cost pressures underscore the need for targeted investments that serve broader business goals. Increasing competition to find people with in-demand skills bolster the case for organizations to keep a people-first mindset through technological innovation. “Evolved” mobility functions are more likely to be trying transformational technologies to stay competitive, with 27% routinely using GenAI at work compared to 14% of functions that are just “Effective.”

For mobile employees, user experience (UX) of technology has a direct connection with their overall employee experience (EX). Framing digitalization efforts as part of a broader evolution of the mobility function, in line with integration with workforce strategy, holds greater opportunities than remaining in a transactional silo.

Maintaining greater organizational visibility and integration with other functions is a concern for employers regardless of operating model, but the use of a CoE shows at least moderate improvements in connectivity. For employers with centralized mobility functions, 65% say the function is siloed from the rest of the business, compared to just 57% of employers with a CoE model. Two-thirds of employers with a shared service center model say the mobility function is hindered by lack of data exchange, compared to the lower 57% of employers with a CoE. The CoE model may see better connectivity because it offers a separation of delivery for mobility services, allowing a focus on strategic work to be completed elsewhere.

Five actions to drive an “Evolved” mobility function

As organizations look to evolve their mobility function to cope with growing complexity, and help achieve broader strategic goals, it’s important to recognize the interplay of agility and resilience. By being willing to embark on a bespoke reimagination of mobility’s capabilities and strategic role, organizations can break the function out of transactional isolation.

Here are five actions for organizations to take:

1. Act strategically

• Embed and align mobility into the wider organizational strategy.
• Increase the strategic effectiveness of mobility by reducing operational silos and improved exchange of data with other business functions.

2. Integrate with talent

• Embed mobility into the wider workforce agenda, recognizing its importance to developing future leaders.
• Enhance the mobility experience. Mobility has a crucial role in boosting talent retention, and the quality of the assignee experience is central to this.

3. Focus on digital

• Promote the use of new digital tools and ensure humans are at the center of transformation.
• Prepare for GenAI to become widely adopted, with the potential to transform ways of working and mobile employee experience.

4. Build people-first mobility programs

• Build in flexibility to mobility programs to enhance employee experience.
• Create a people mobility strategy that enables compliant hybrid and remote work.
• Put sustainable and inclusive thinking at the heart of Mobility programs.

5. Develop resilient operating models

• Proactively address the rising risks caused by the changing mix of work models and international regulation.
• Leverage external providers to access know-how and take the pressure off in-house resources.

Summary

The EY 2024 Mobility Reimagined Survey reveals five drivers of evolved mobility functions that can lead to better outcomes for mobile employees, business goals and organizational resilience. Past mobility models focused only on business travel or long-term relocation are not necessarily fit for a more digital, integrated and strategic purpose. Evolving workforce mobility to provide a cross-border approach that is high-impact, efficient, and cost-effective can help promote growth for the business and for people.