LONDON, 8 August 2024 – Aon plc (NYSE: AON), a leading global professional services firm, has released its annual International People Mobility Report which shows the evolving nature of global mobility across 37 countries, 82 percent of which are in the EMEA region.
The report finds that inflation and rising costs, combined with talent shortages are two key factors driving mobility. While business travel has gradually been returning to pre-pandemic levels, and even beginning to surpass them, the policies and practices that support mobility have changed radically, largely driven by political instability, Environmental, Social and Governance (ESG) policies and sector-specific needs and emerging roles.
This year, inflation and price increases are the top-ranked factors with 51 percent of respondents marking them in first place. In 2023, this was already a significant challenge and ranked second-highest, but the move to number one reflects the wider economic concerns that have affected consumers and businesses alike.
Despite falling to second place in 2024, talent shortages remain a key priority affecting global mobility decisions. Nearly half of participants (49 percent) said that talent shortages are affecting their strategy as they try to build a resilient workforce.
Almost a quarter (22 percent) of respondents said that political unrest and related events are impacting global mobility, in comparison to 2023 when 16 percent indicated that sanctions related to the war in Ukraine affected their policy. Diversity is another growing priority for employers that are reviewing their global benefit offerings to ensure they are equitable and support their DEIB (Diversity, Equity, Inclusion and Belonging) strategies, making it the fourth priority factor (18 percent of respondents). ESG and sustainability factors also continue to impact decisions, although at a smaller scale compared to 2023.
Top four factors driving mobility in 2024:
|
2024 |
2023 |
Inflation/rising prices |
51 percent |
50 percent |
Talent shortages |
49 percent |
51 percent |
Political unrest/warzones |
22 percent |
N/A |
Growing awareness of equitable treatment |
18 percent |
N/A |
The report also shows the impact of growing compliance burdens on all forms of international mobility. Increasingly complex country specific rules for travelling and working, combined with more ambitious mobility plans to address talent shortages, mean this will be a major area of focus for the future.
The rise of ‘bleisure’ (blending business and leisure travel) and ‘workcations’ (short-term working from a remote location) as emerging forms of global mobility are also creating new challenges for businesses. With 62 percent of companies allowing short-term remote workcations, it will become a key priority for employers that global travel policies have clear guidelines for differentiating work and leisure time, and that business travel insurance cover is sufficient.
Linda Beavis, global leader for mobility, global benefits, Aon said:
“While business travel might be back on the corporate agenda, the policies and practices that support it have changed radically, creating new risks both for HR and Global Mobility teams. Political instability, growing compliance demands and new regulations, increased awareness of pay imbalances and demand for flexible and remote working all add complexity but we are also seeing employers looking to innovate. Each of these trends brings new opportunities for businesses, but also requires businesses to make sure that their safety, insurance, and documented processes keep pace with new styles of working and a more diverse workforce.”
The survey results offer insights and data for employers who want to benchmark their approach to international mobility, to improve their understanding of market developments and make better decisions for their employees and clients. The report’s findings are drawn from a survey of more than 350 participants in 37 countries around the world, across 17 industry sectors, and are compared to previous editions to generate insight into the future of workplace people mobility. The findings in Aon’s 2024 IPM Report explore how employers are responding to restored freedom of movement while managing business priorities for travel, overseas assignments, and international remote working.
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues in over 120 countries provide our clients with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
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