How to Define ROI in Mobility

Return on Investment (ROI) in the mobility industry has always seemed hard to define or impossible to calculate. The main reason is that a straight line can’t be drawn from the cost of an assignment or program to the success of a relocation program.

In fact, ROI might not even be the right term to use when looking at the success of your relocation program, and instead you potentially look at it as “Return on Expectation” or “The Business Case”. Both of which provide a broader lens when looking at the success of your program or an individual move. It also invites input from multiple departments and greater buy-in from the organization. Odyssey’s team can help you determine the ROI of your relocation program.

TRACKING THE RIGHT ROI?

YEAR-OVER-YEAR RELOCATION SPEND

Here is one example of why ROI may not make sense in your business case. If you were to look at year-over-year relocation spend and saw a positive downward trend you might think that your ROI is improving. But further analysis of the data may show that you may be sending fewer people on assignment, have taken away benefits you have provided your employees in the past, or have a totally different mix of move types (more renters vs. homeowners, or more US domestic moves vs. international moves).

When taken at face value, while costs are down it could mean exactly the opposite of what a successful ROI looks like for your company. For example, if your goal was to grow 20% this year as an overall business, your expectation would be more relocations.

Metrics that can help support the success of your relocation program

  • More completed assignments

  • Specific assignment objectives and/or performance goals achieved (i.e., skills acquired, training complete, start up new region, etc.)
  • Showing professional development for assignees on your talent list

  • Promotions

  • Reduction in failed assignments
  • Reduction in turnover from relocation employees
  • Number of Extensions Accepted
  • Improved/faster recruiting
  • Improved diversity in senior ranks (resulting from assignments)
  • Companywide “mobility” rates
  • Engagement and retention rates (tenure, career progression/promotion rates, etc.)
  • Better operational performance

Below is an example of how the overall business and your internal mobility function can find alignment and develop an effective ROI plan that leadership can understand.

Outcome / Goal Performance Measurement Commentary
Regional Product Development Need to expand local products from 3 products to 10 products Current SKUs do not take into account the local market research of what customers want
Financial Growth Size of the market is currently $500M and its annual revenue at $75M

  • Grow revenue by 30%
  • Increase market share by 10%
  • Increase margin by 10%
  • 3 years to achieve
 Revenue targets are based on current company growth and adjusted from lack of local product knowledge
Organization Socialization and Growth
  • Adoption of Vision and Mission
  • Understanding of overall company goals
  • Internal goals set for all employees
 No current plan for employees in the region. Need to adopt our e360 program.
Talent Development
  • Local talent development and growth of team by 100%
  • High Potential employee identified
  • Second level leaders trained
 Need to identify local replacement for when your assignment ends

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