Why lacking a formal mobility program can hinder your total rewards strategy

In a small-to-medium–size company or a company for which moving employees internationally or even domestically might be an infrequent need, you may not currently have a formal mobility program in place. Each situation might be handled as a one-off. However, in your role managing total rewards, you’re focused on creating fair, competitive, and motivating total rewards packages. While the dollars associated with relocation are separate from compensation, the experience and opportunity is certainly valued as part of the total rewards strategy. It is important to have a mobility program in place that minimizes or eliminates barriers to relocation.

While your organization may handle employee relocations and temporary moves on an ad hoc basis, it can create significant challenges that ripple through your total rewards strategy and employee experience.

Let’s explore why establishing guidelines for a mobility program can help you and the rest of your HR teams be more proactive, strategic, and equitable. We’ll also give a nod to the pitfalls you’ll avoid by implementing a successful mobility strategy (e.g., think compliance).

What is a mobility program?

Before diving into the challenges, it’s important to understand what a mobility program entails. A mobility program is a structured approach to managing employee moves—whether international or domestic, temporary or permanent. It typically includes:

• Defined mobility drivers: Why are employees moving? Is it for leadership development, filling a critical skill gap, or business expansion?
• Established mobility packages: Creating standardized relocation packages based on the drivers, which may include allowances for housing, cost of living, tax support, and other benefits.
• Set eligibility criteria: Using decision trees or guidelines to determine which employees qualify for which packages.

This structure ensures consistency, fairness, and clarity for both employees and managers.

What happens when you don’t have a formal mobility program?

Without a defined mobility program and governance, organizations often resort to one-off offers or arrangements when employees relocate. This reactive approach can lead to several challenges:

1. Inconsistent and inequitable treatment

When mobility decisions are made on a case-by-case basis without clear guidelines, you risk over- or under-providing support. One employee might receive generous housing allowances, while another in a similar situation gets minimal help. This inconsistency can breed resentment and perceptions of unfairness, which undermine your total rewards philosophy of equity. There are also negative implications for the mobility brand if adequate support is not provided—where mobility is a critical lever for your talent and workforce planning strategy, the impact can be significant.

2. Less than optimal employee experience

Relocation is inherently stressful. Without a clear, consistent mobility program, employees may feel uncertain about what support they will receive. Lack of communication and unclear expectations can lead to dissatisfaction, disengagement, and even attrition. Your total rewards package loses its impact if employees don’t feel supported during these critical transitions, particularly where they perceive a negative financial impact tied to the relocation.

3. Compliance and risk issues

Mobility involves complex tax, immigration, and legal considerations. Without a formal program and governance, you may inadvertently expose your organization to compliance risks. For example, failing to properly address tax or visa requirements can result in penalties or employee dissatisfaction. These risks can apply to domestic moves as well.

4. Missed strategic opportunities

A reactive approach to mobility means you’re always playing catch-up. You miss the chance to use mobility proactively as a talent development and retention tool. Without clear mobility drivers and packages, it’s harder to align moves with your broader talent strategy and total rewards goals.

5. Administrative inefficiencies

Ad hoc mobility arrangements often require more time and effort from HR, compensation, and mobility teams to negotiate and manage. This inefficiency can increase costs and distract from strategic initiatives.

Who owns mobility decisions and governance?

In most organizations, business leaders have the final say on mobility offers because they understand the business needs. However, mobility teams should be consulted and involved early and often to ensure compliance, equity, and alignment with total rewards. This partnership is essential to balance business objectives with employee experience and risk management.

How a formal mobility program can help you

Implementing a formal mobility program brings several benefits that directly support your total rewards strategy:

• Consistency and fairness: Standardized packages and eligibility criteria ensure employees in similar situations receive equitable treatment.
• Improved employee experience: Clear policies and proactive communication set expectations and reduce stress for relocating employees.
• Risk mitigation: Governance and compliance checks reduce legal and tax risks.
• Strategic talent management: Mobility becomes a deliberate tool to develop leaders, fill critical roles, and support business growth.
• Operational efficiency: Streamlined processes create capacity for your team to focus on strategic total rewards initiatives and strategic partnering with business leaders.

Why this matters to you as a total rewards leader

Mobility is a critical component of your total rewards ecosystem. When managed well, it enhances your ability to attract, retain, and develop talent globally. When left unmanaged or handled inconsistently, it can create inequities, compliance risks, and a poor employee experience that undermines your total rewards goals.

With a formal program in place, you can be assured that mobility is not an afterthought but an integrated part of your total rewards strategy. This integration helps you deliver a consistent, fair, and compelling employee value proposition that supports your organization’s talent agenda.

Taking the next step

If you’re currently managing mobility on a case-by-case basis, regardless of your relocation volume, it’s time to consider the risks and missed opportunities. A formal mobility program is not just a nice-to-have—it’s a strategic imperative that supports your total rewards objectives and strengthens your employer brand.

Click on the button below to download our mobility checklist. This is an easy to follow structured approach to formalizing your mobility program.

Mobility Checklist

For more guidance and resources on building effective mobility programs, give us a call at 855-286-5302 or email surveys@mercer.com.