Relocation Policy & Trends – Research Highlights & Insights

1. Relocation Policy & Trends – Research Highlights & Insights

2. Big Picture – Three Years Ago

3. Big Picture – Today

4. Relocation Impact: Economic Conditions, Unemployment Recession Recovery Recession Recovery Recession Recovery Recession Periods Source: NBER Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor

5. Relocation Impact: Economic Conditions, Unemployment Recession Recovery Recession Recovery Recession Recovery Recession Periods Source: NBER Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor

6. Relocation Impact: Company Growth, PMI Recession Recovery Recession Recovery Recession Recovery Recession Periods Source: NBER Purchasing Managers Index Data – Annual Aggregate Data from Institute of Supply Management

7. Relocation Impact: Company Growth, PMI Recession Recovery Recession Recovery Recession Recovery Recession Periods Source: NBER Purchasing Managers Index Data – Annual Aggregate Data from Institute of Supply Management

8. Session Presenters Katrina Starnes President & Principal Consultant KES Research, LLC Linda Bauer Darr President & CEO American Moving & Storage Association Douglas Weed, SGMS, SCRP Vice President, Global Services & Supplier Solutions Cornerstone Relocation Group

9. Experience & Expectations

10. 2011: Overall Relocation Experience Compared to 2010, Did the Number of Employees You Relocated in 2011…

11. Historical: Overall Relocation Experience Compared to [Previous Year], Did the Number of Employees You Relocated in [Last Year]… Totals greater than/less than 100 are due to rounding.

12. 2011: International Relocation Experience Compared to 2010, Did the Number of Employees Your Company Relocated Internationally During 2011…

13. Historical: International Relo Experience Compared to [Previous Year], Did the Number of Employees Your Company Relocated Internationally During [Last Year]… Totals greater than/less than 100 are due to rounding.

14. 2012: Overall Relocation Expectation Compared to 2011, Do You Anticipate the Number of Employees Your Company Will Relocate During 2012 Will…

15. Historical: Overall Relocation Expectation Compared to [Last Year], Do You Anticipate the Number of Employees Your Company Will Relocate During [This Year] Will… Totals greater than/less than 100 are due to rounding.

16. 2012: International Relocation Expectation Compared to 2011, Do You Anticipate the Number of Employees Your Company Will Relocate Internationally During 2012 Will…

17. Historical: International Relo Expectation Compared to [Last Year], Do You Anticipate the Number of Employees Your Company Will Relocate Internationally During [This Year] Will… Totals greater than/less than 100 are due to rounding.

18. Volumes & Capacity – Industry Perspective

19. Atlas Corporate Relocation Survey Number of Employees Relocated Previous Year - Median Range By Company Size (Salaried Employees) Note: 361 companies responding in 2011; more than 100 participants from each size firm.

20. Worldwide ERC 2011 U.S. Transfer Volume & Cost Survey Note: 118 companies responding in 2011; mostly larger firms (based on transfer volumes).

21. Pressures & Possibilities

22. Audience Participation! External Factors What external factor had the greatest impact on the number of your employee relocations in 2011? 1 - Economic conditions 2 - Lack of qualified people locally 3 - Real estate market 4 - Growth of domestic competition 5 - Growth of international competition 6 - Other 7 - External conditions had no impact

23. 2011: External Conditions Select External Conditions Having the Most Significant Impact on the Number of Employee Relocations in 2011

24. 2011: External Conditions

25. Historical: External Conditions Recession Recovery Recession Recovery Recession Recovery Recession Periods Source: NBER

26. Unemployment: Educational Disparity Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor

27. 2011 Educational Attainment of U.S. Adults 18+* Only 37% of US Adults 18+ have Associates Degree or Higher (Averaging less than 6% unemployment the past 2 years) *Percentages Calculated from Population Data Breakdown from 2011 U.S. Census Bureau Report Unemployment Rate Source: Bureau of Labor Statistics, U.S. Department of Labor

28. PMI, NMI: Index Averages Recession Recovery Recession Recovery Recession Recovery Recession Periods Source: NBER Purchasing Managers Index Data – Annual Aggregate Data from Institute of Supply Management Non-Manufacturing Index Data – Annual Aggregate Data from Institute of Supply Management

29. Real Estate: Expectations

30. Audience Participation! Internal Factors What internal company condition had the greatest impact on the number of your employee relocations in 2011? 1 - Corporate reorganization/restructuring 2 - Knowledge/skills transfers 3 - Expansion into new territories 4 - Growth of company 5 - Promotions/resignations 6 - Acquisitions/mergers 7 - Expansion of facility 8 - Budget constraints 9 - Other 10 - Internal conditions had no impact

31. 2011: Internal Conditions Select Internal Conditions Having the Most Significant Impact on the Number of Employee Relocations in 2011

32. 2011: Internal Conditions

33. Historical: Internal Conditions Recession Recovery Recession Recovery Recession Recovery Recession Periods Source: NBER

34. Firm Performance: Expectations

35. Audience Participation! Declined Relocations Did any employees decline the opportunity to relocate in 2011? 1 - Yes 2 - No 3 - Don’t know

36. 2011: Declined Relocations

37. 2011: Declined Relocations

38. Historical: Declined Relocations Recession Recovery Recession Recovery Recession Recovery Recession Periods Source: NBER

39. 2011: Reasons Relocations Declined Reasons Employees Gave for Declining Relocation in 2011*

40. 2011: Reasons Relocation Declined

41. Historical: Reasons Relocations Declined Recession Recession Recession Recession Periods Source: NBER

42. Shifting Sands

43. Relocation Remains a Balancing Act Talent Needs Knowledge Sharing Employee Reluctance Budgets Real Estate Market Company Growth Economic Recovery?

44. Audience Participation! Alternative Assignments Is your company utilizing “alternative assignments” (i.e. extended business travel, cross-border commuting, localization, permanent international transfers, rotators, etc.)? 1 - Yes 2 - No, but we plan to do so in the coming year 3 - No, and we don’t plan to do so

45. 2011: Alternative Assignment Use

46. 2011: Alternative Assignment Use How Alternative Assignments Are Incorporated into Corporate Employee Mobility Strategy

47. 2011: Alternative Assignment Use

48. Audience Participation! Cost Containment Which cost containment measure in relocation policy/practice was utilized most by your company over the past year? 1- Cap relocation expenses 2 - Pre-decision counseling 3 - Restructuring policy tiers 4 - Limit miscellaneous allowances 5 - Reviewing/renegotiating contracts 6 - Short-term/travel/commuter arrangements 7 - Other 8 - No cost containment measures beyond typical relocation policy or program utilized

49. 2011: Cost Containment Measures Selected Cost Containment Measures Used by Firms in 2011

50. 2011: Cost Containment Measures