How do you measure the ROI of your relocation program?

1 Define your goals and metrics

The first step to measure the ROI of your relocation program is to define what you want to achieve and how you will measure it. Depending on your business objectives, you may have different goals for relocating employees, such as increasing sales, expanding into new markets, improving customer satisfaction, or enhancing innovation. You should also identify the key performance indicators (KPIs) that will help you track and evaluate your progress towards your goals. For example, you may use revenue growth, market share, customer retention, or employee engagement as your KPIs.

2 Calculate your costs and benefits

The second step to measure the ROI of your relocation program is to calculate the total costs and benefits of relocating employees. The costs include both direct and indirect expenses, such as transportation, housing, visa, tax, relocation allowances, cultural training, and administrative fees. The benefits include both tangible and intangible outcomes, such as increased productivity, reduced turnover, improved quality, and enhanced reputation. You should also consider the opportunity costs and risks of not relocating employees, such as losing competitive advantage, missing market opportunities, or facing legal issues.

3 Compare your results and expectations

The third step to measure the ROI of your relocation program is to compare your actual results with your expected results. You can use a simple formula to calculate the ROI of your relocation program: ROI = (Benefits - Costs) / Costs x 100%. This will give you a percentage that indicates how much profit or loss you have generated from your relocation program. You can also compare your ROI with your industry benchmarks or your competitors to see how you perform relative to others. You should also analyze the factors that contributed to your success or failure, such as the quality of your relocation policy, the support of your relocation service provider, or the feedback of your relocated employees.

4 Adjust your strategy and actions

The fourth step to measure the ROI of your relocation program is to adjust your strategy and actions based on your findings and feedback. You should use the data and insights from your ROI analysis to identify the strengths and weaknesses of your relocation program and to make improvements or changes where needed. You should also communicate your results and recommendations to your stakeholders, such as senior management, HR, finance, and business units, and get their buy-in and support for your relocation program. You should also monitor and review your ROI regularly and update your goals and metrics as your business needs and environment change.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?