Benivo Blog

Reducing the $30 Million Cost of Unsupported Moves in Employee Relocation

Written by Michelle Curran | 29.10.2024

In today's global business landscape, employee relocations are increasingly common — but did you know that up to 15% of employees in an organization relocate yearly, with many of these moves happening without proper support? A new whitepaper reveals the staggering costs and risks associated with these unsupported relocations, and the numbers are eye-opening.

The $30 Million Problem You Didn't Know You Had

Our research, conducted in collaboration with the London Business School community, uncovered that companies with 30,000 employees could be losing up to $30 million annually due to unsupported moves. But how is this possible? The math is startling:

  • Employees spend up to 89 hours on relocation-related tasks during their initial weeks
  • 69 of these hours occur during working time
  • At an average billing rate of $100 per hour, that's $6,900 lost per move in productivity
  • Add another $1,000 in lost productivity from colleagues helping these employees
  • For every 10,000 employees, that adds up to nearly $10 
    million in annual losses

Beyond the Bottom Line: The Hidden Impacts

The costs aren't just financial. Our research revealed a dramatic difference in employee satisfaction between supported and unsupported moves:

  • Supported moves: Net Promoter Score (NPS) of 71
  • Unsupported moves: NPS of 14
  • That's more than a 50% difference in positive employer brand perception

Critical Compliance Risks

Unsupported moves expose organizations to serious compliance risks across multiple areas:

  • Tax liabilities and permanent establishment risks
  • Immigration law violations
  • Data privacy breaches
  • Labor law compliance issues
  • Duty of care responsibilities

The Path Forward

The good news? Technology-driven solutions, like Benivo, now enable essential relocation support at a fraction of the cost of traditional methods. Modern digital platforms can help organizations: 

  • Save up to $8,000 per relocation
  • Ensure compliance across all moves
  • Enhance employee satisfaction
  • Scale support efficiently
  • Protect your employer's brand

Learn More

Want to discover the full scope of this challenge and learn how leading organizations are addressing it? Download our comprehensive whitepaper.
Contact Benivo to learn how we can help you reduce this unexpected cost.