The Millennial Workforce and the Gig Economy
The trend of millennials’ aspiration for discovery will have an unprecedented influence over upcoming global mobility trends. Already, more than 38% of the global workforce is mobile and by 2022, will make up 42.5% or 1.87 billion people.
PwC found that 71% of millennial respondents desired overseas assignments and moving forward, we can expect millennials to see overseas assignments as a rite of passage. In a separate survey conducted by Mercer, it was found that millennials are keen to move abroad primarily for career development opportunities, and do not necessarily need generous financial packages.
Data from: Mercer
HR managers should thus focus on offering comprehensive mobility packages that enable frequent moves instead of generous financial packages. Additionally, the cost structure of the mobility industry needs to change since more companies will be sending their employees on shorter assignments. On the consumer end, this would mean more frequent moves, albeit with lower volume per move.
In the past, overseas assignments were uncommon given the administrative burden and uncertainty in obtaining overseas work authorisations. However, such barriers have gradually been lowered. Trading blocs, in particular have contributed to this, with the EU famously adopting a policy permitting the freedom of movement. Other blocs such as ASEAN and MERCOSUR have since signed agreements in this direction as well.
With an increasingly mobile workforce, international companies have the opportunity to attract top talent wherever they may come from, and deploy them to wherever they may be needed. This will be of growing importance, given the skills shortages around the world.
Data from: Financial Times
However, therein lies the challenge of measuring and demonstrating a positive return on global mobility programmes. Recent technological advancements may hold the key to managing this.
According to BGRS, data analytics opens a kaleidoscope of new opportunities for the optimisation of mobility management. The clearest application will be in using data to save costs by identifying true assignment cost of mobility programmes. Beyond costs, data analytics can also factor in a range of indicators from employee satisfaction scores to service providers’ cost data, which would enable mobility managers to design the most holistically beneficial programme for both employees and the company.
Aside from technology, shifting personal preferences may also present an opportunity for companies to manage the cost of their mobility programmes.
For example, there is a growing preference for Do-It-Yourself (DIY) solutions in today’s uber mobile economy. This trend is evidenced by the popularity of self-service platforms like Airbnb and Expedia, which have enabled individuals to plan and manage their overseas trips to their desire.
Applying this DIY concept to the global mobility industry, it can enable HR departments to budget for overseas assignments more effectively and free up the team to focus on other areas. Instead of handling the relocation process for employees, HR managers would only need to provide lump sum relocation payouts to them. This can also be beneficial for employees since they will have greater control over how their personal items are moved to their overseas home.
The millennial generation has already transformed various aspects of modern workplaces, from ushering in the practice of Bring Your Own Device to changing expectations on “office wear”. Moving forward, the dynamics of a “workplace” will have to change as this globe-trotting generation moves towards the gig model.
The Moovaz platform was built to satisfy this generation’s need for one-stop, on-demand services. By using the platform, users can plan and manage their move as easily as booking an accommodation on Airbnb. All that’s required is for the user to input their origin and destination locations, size of move and move date. With just a smart device, users can then proceed to inventorise their items either through our DIY self-survey tool or the video survey tool, eliminating the need to arrange for a day-off for an on-site visit. Our back-end algorithms would then aggregate a list of service providers based on the move details, allowing our users to choose their desired package designed to meet their moving needs. In line with the millennials’ desire for overseas opportunities, we enable a seamless and efficient moving process so that they can take the leap forward and embark on international assignments without having to worry about the hassle of moving.