Even in organizations where relocations or temporary assignments don’t happen often, the need for a clear mobility strategy can’t be overlooked. Whether your company is moving employees across provinces or sending someone abroad, handling each relocation as a one-off might feel flexible, but that flexibility can come at a cost.

If you oversee total rewards or compensation in your organization, you’re already focused on creating fair, competitive, and motivating employee packages. But without a structured mobility program, even the best intentions can result in inconsistencies that impact employee experience, compliance, and your broader talent strategy.

Let’s examine what can go wrong when mobility isn’t formalized and how a clear, well-managed approach can strengthen your rewards framework and employer brand.

Defining a mobility program

When we are talking about a mobility program we are referencing the approach your organization takes to manage employees’ moves, whether short-term temporary assignments, domestic relocations, or international transfers. The goal is to ensure every move supports business objectives while maintaining fairness, compliance, and a great employee experience.

A strong program usually includes defined mobility drivers, standardized relocation packages, and set criteria for eligibility.

This structure ensures consistency and transparency so employees and leaders understand what to expect from the start.

What happens when mobility isn’t formalized?

Without a formal program, mobility decisions tend to happen ad hoc. While this might seem like a practical approach, it often leads to confusion, inequities, and unnecessary risk.

Here are some of the biggest challenges companies face when they skip formal governance around relocation or temporary assignments.

1. Inconsistent and inequitable treatment

When mobility decisions are made case by case, support can vary dramatically. One employee might receive generous relocation benefits while another gets only the basics. Over time, these inconsistencies can create frustration and perceptions of unfairness, undermining your total rewards philosophy and your credibility as an employer.

Even if each decision makes sense in isolation, the lack of structure can lead to mixed messages about how employees are valued. And when word spreads internally, morale can take a hit.

2. A rocky employee experience

Moving for work is exciting, but it can also be stressful. Without a clear mobility framework, employees often don’t know what support they’ll receive or how relocation will impact their compensation and benefits.

That uncertainty can lead to disengagement and turnover, especially if employees feel they’re taking on financial or personal risk without enough organizational backing.

A formal program offers clear expectations and provides peace of mind. Employees know what to expect, and HR can ensure the experience feels supportive and aligned with your company’s culture and values.

3. Compliance and risk exposure

Mobility is about moving people responsibly. Even within Canada, there are taxes, employment law, and immigration implications to consider. These details can slip through the cracks when mobility is handled informally.

For example, failing to manage tax implications for cross-border relocations or not tracking temporary assignments properly could expose your organization to penalties. The same applies to international assignments that require visas, work permits, or specific reporting.

A formal mobility program reduces those risks by building compliance into the process from day one.

4. Missed opportunities for talent development

Without structure, mobility becomes reactive, used only when a problem arises or a role needs to be filled quickly. This short-term mindset can cause organizations to miss out on one of mobility's biggest advantages: talent development.

Strategic temporary assignments and relocations can be powerful career accelerators. They expose employees to new challenges, markets, and leadership opportunities, broadening their skill sets and building loyalty. When mobility is embedded in your total rewards and talent strategy, it becomes a deliberate investment in your future leaders.

5. Administrative strain on HR teams

One-off relocations often require extensive back-and-forth between HR, compensation, and business leaders. Without standardized packages or policies, every move becomes a negotiation.

This not only slows decision-making but also drains valuable HR resources that could be focused on more strategic initiatives. A formal mobility program streamlines administration with pre-established guidelines, templates, and processes. It’s faster, fairer, and less stressful for everyone involved.

Why mobility governance matters

Having defined mobility governance is essential even in smaller or mid-sized organizations where moves are infrequent. Governance ensures that mobility decisions align with company policy, local laws, and total rewards principles.

Typically, business leaders will identify the need for a relocation or temporary assignment, while HR or mobility professionals provide structure, guidance, and compliance oversight. This partnership balances decisions, serving both the business and the employee.

When mobility governance is absent, decisions can be made in silos, leading to inconsistency, hidden costs, and reputational risks.

The benefits of a formal mobility program

Implementing a formal mobility program doesn’t have to mean overhauling your entire HR function. Even a simple, scalable framework can have a significant impact.

Here’s what happens when mobility is managed strategically:

• Consistency and fairness: Employees in similar situations receive comparable support, reinforcing equity and trust.
• Improved employee experience: Clear policies and communication ensure employees feel valued and supported throughout their relocation.
• Reduced risk: Built-in compliance checks prevent tax, immigration, and legal issues.
• Talent development: Temporary assignments and relocations are used intentionally to strengthen leadership pipelines.
• Operational efficiency: With standardized processes, HR teams spend less time troubleshooting and more time focusing on strategy.

A well-run mobility program creates predictability for HR, clarity for employees, and credibility for leadership.

The connection to total rewards

Mobility may sit separately from compensation in your budget, but the employee experience of a relocation is very much tied to total rewards .

When employees feel supported and valued during a move (through financial assistance, guidance, and care), the experience strengthens their overall perception of your rewards offering. On the other hand, when relocation feels disorganized or inequitable, it undermines the sense of fairness and trust that total rewards are designed to promote. A formal mobility program bridges that gap by ensuring consistency between what’s promised and what’s delivered.

A practical next step

If you’re ready to take a closer look at how your organization manages mobility, our consultants can help. We work with Canadian employers to build customized mobility programs that support people and business goals so every relocation or temporary assignment adds value, not complexity.

Learn more about talent mobility and begin mapping out your program today. Looking for something else? Mercer associates are looking forward to connecting with you. Call us at 855-286-5302 or email surveys@Mercer.com

About the author

Rebecca Hall, Principal

Rebecca spent much of her career working in compensation in various corporate roles then transitioning to consulting with Mercer. Her current role, as the Content Leader for imercer.com, allows her to leverage her knowledge of human resources and talent strategy to create materials supporting Mercer’s Products & Services in North America.