64% of companies participating in our 2021 Mobility Outlook Survey report that cost predictability is a top priority for Mobility teams in 2021. Meanwhile, 48% of companies report that they are looking for more cost containment. With cost focus in the spotlight, is it possible to budget for your cake and eat it too?
Cost Containment
Cost containment has been a top priority from the business year-on-year. Companies can help lower costs in many ways that support the overall programme, whether it's ensuring that the right policy is applied with the right talent for the right assignment, or considering new approaches to data to align with overall company principles and strategies. As with most changes, we would urge companies to be cautious of creating inconsistencies and inequities in the programme for the sake of cost containment. Organisations should aim for universal application of policies that align with overall principles, rather than customized approaches for each move. Some cost containment ideas – for example, the removal of spousal assistance - can impact other mobility priorities like assignee experience. When we consider why assignments fail, lack of spousal/family integration in the host location tops the list. We encourage Mobility teams to be mindful not to create a cost containment experience that results in missed opportunities compared with alignment to overall strategic goals.
Cost Predictability
The great news is that cost containment can follow cost predictability. By focusing on cost predictability as the first step in a two-step equation, Mobility is better poised to create an environment of equity and stability, with the support of the right tools. A robust assignment cost estimation is crucial to help Mobility and business teams anticipate not only the individual assignment costs, but to allow the Mobility programme to accurately create opportunities for new moves, whilst ensuring GM costs are aligned with financial targets. With clear and predictable costs, the business is better able to make the right investment choices. Companies may save less on some individual assignments but achieve greater cost containment at the programme level by making informed and aligned investment decisions.
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