How does inflation impact Host Housing and Utilities?
With inflation continuing to be a global issue, let’s review some key areas that inflation can impact your global mobility program and ways to address them! Step two - Host Housing and Utilities.
In the first part of this series, we looked at inflationary impact on COLA, but what about another major program cost housing & utilities?
Rent prices and utilities costs have also been rising rapidly across the globe. Rapidly moving housing markets can have a significant impact on successful house-hunts and rapidly increasing utilities costs can have a big impact on assignees’ wallets.
What can you do?
Keep up with the pace!
Review your housing allowances regularly to ensure you are getting figures that are as up to date as possible with the market. For utilities, if you are providing
an allowance, update it regularly too. AIRINC updates for volatile locations can be as often as quarterly, so check in if your update schedule is less frequent.
Review your practice
If you are in the 25% of companies that do not provide utilities support, you may wish to look at providing reimbursement or an allowance to ensure assignees are not being unduly burdened by increasing host costs
Understand your pay approach
Keep in touch with your data provider and your relocation partners to ensure that you have a strong understanding of conditions on the ground and that your relocation partners understand what your budgets are meant to provide (and what they aren’t). This can help you evaluate assignee requests for overages and make informed decisions to grant or deny them.
Do you have other cash benefits like Miscellaneous Relocation Expenses or home leaves? Read more in our next blog in 2023! Subscribe above!
Or download the full paper NOW for details on how inflation and currency fluctuations can affect your global mobility program, as well as concrete steps you can take to maintain your assignment allowances.
Interested to know more about how AIRINC tools can help you with your assignees' questions around their housing?
AIRINC's Housing: Housing budgets can be used to support a variety of assignment types and talent investment profiles. You have the option to configure the housing allowances based on a variety of parameters so that they align to your mobility programs.
Contact us for more information or browse our Resource Center for more AIRINC reports and content!
