As many as 57 per cent of multinational companies expect to increase the number of employees they transfer this year and next, according to the 2012 Trends in Global Relocation Survey released today by relocation service provider Cartus Corporation.

Cartus did a survey of 122 multinational firms based in the Americas, EMEA, and APAC representing all major industries in the first quarter of this year. On average, each respondent company has approximately 49,500 employees throughout the world and transfers more than 300 employees annually.

When asked, "How do you expect your organization's mobility activity to change over the next two years?" 57 per cent of respondents expect assignment activity to increase, 37 per cent expect it to stay about the same, and 6 per cent of firms surveyed envision decreasing their number of global transferees.

"Our global trends survey uncovered two key issues behind the anticipated increase in corporate relocation activity: a need for companies to support their planned expansion into emerging markets, and a need to fill the void in available local talent in those markets," said Matt Spinolo, executive vice president of Cartus.

Among the more surprising findings of the Trends in Global Relocation study is that despite the respondents anticipated increase in relocation volume, companies are changing the way they deploy employees. Not only are firms moving away from traditional, long-term assignments into more alternative, temporary forms, but they are also trimming benefits and somewhat reducing assignment durations.

Spinolo said, "The survey also documented the trend toward benefit 'right sizing' which, for many companies, has been driven by years of a tough economic climate that have made them smarter and more targeted in their assignment programs." Although this pertains to all relocation assignment forms, it is most notable in long-term assignments, where approximately half (51 per cent) of companies said they will most likely alter their policies associated with long-term assignment during the next two years.

Meanwhile, employees are also focusing more on their careers when it comes to deciding to accept a job transfer. The survey found that the No. 1 reason (at 90 per cent) employees accept job transfers is "career development" over "attractive compensation." Survey respondents ranked compensation a distant second on the list at 35 per cent.

Emerging markets

Expansion into emerging markets was ranked as the leading reason for increased relocation activity over the past two years. Meanwhile, the locations to which companies are sending their employees are increasing; respondents named 41 separate countries among their individual top three most frequent relocation destinations, and the number swelled to 74 when companies were asked about new locations to which they are sending their people.

As another strategy to help control costs and better position themselves, the survey showed that companies are moving more employees on permanent transfers, with local pay and benefits. The five countries that received the greatest increase in permanent transfers over the past two years are: the United States, the United Kingdom, Singapore, Switzerland, and China.

Commenting on these trends, Spinolo said, "The focus on compliance is clearly being complicated by the explosion in emerging markets, where navigating regulations in the key areas of tax, compensation, and immigration can be incredibly complex. Simultaneously, these issues are posing new questions for how companies handle their growing populations of 'global nomads' -- an emerging group of transferees who move so regularly, and so repeatedly, that they never return 'home' and become career expatriates."

Over the next two years, multinational companies believe these five emerging-economy countries, also known as the BRICS countries (Brazil, Russia, India, China, South Africa), are poised to present the biggest challenges for assignees: 1. China 
2. India 
3. Brazil
 4. Russia
 5. South Africa