Understanding why relocation and rewards should move together

If you work in compensation or total rewards, you already know that a great rewards strategy extends beyond pay and bonuses. The complete package includes benefits, growth opportunities, recognition, flexibility, and the overall employee experience.

But one area doesn’t always get the attention it deserves: mobility. How your organization supports employees who move for work, whether across the country or the world, can significantly impact attraction, retention, and engagement.

Let’s explore how mobility programs connect to your total rewards strategy and why your relocation approach could be one of your most valuable tools in today’s competitive talent market.

Why mobility belongs in the total rewards conversation

Historically, relocation packages were viewed as one-off expenses. They were considered logistical necessities that got people from point A to point B. But today, organizations realize that mobility is more than just moving people. It’s a career move.

A strong mobility program supports the organization’s business goals and an employee’s long-term growth. Companies give employees opportunities to take on new roles in different locations, helping them gain broader experience, develop leadership skills, and build diverse networks. These things can contribute to higher engagement and better performance.

Regarding total rewards through this lens, mobility becomes a key part of your employee value proposition (EVP). It shows that your organization invests in career development and supports employees as they take bold steps to grow, literally and figuratively.

What mobility looks like today

Mobility has evolved beyond traditional long-term expatriate assignments. Canadian organizations are getting more creative with moving talent, domestically and internationally, to meet business needs and employee preferences.

Here are some common types of mobility you’ll see today:

• Long-term assignments: Typically one to three years, often international, where employees relocate to take on strategic roles
• Short-term assignments: Less than a year, often used for project work or skill development
• Permanent transfers: When an employee’s base location changes permanently, either within Canada or abroad
• Commuter or hybrid arrangements: Allowing employees to split time between two locations to balance personal and professional needs

Each has its own set of relocation considerations, from housing and cost-of-living expenses to family support and tax implications. Those details directly influence how mobility interacts with your total rewards framework.

How mobility and total rewards can work together

In some organizations, the mobility function is part of total rewards; in others, it operates under talent management or HR operations. No matter where it lives, collaboration between these teams is essential.

When a relocation is on the table, communication between compensation and mobility teams ensures consistency and fairness. Together, they can:

• Assess whether a relocation impacts base compensation or incentives during the assignment
• Determine if cost-of-living or housing adjustments are needed
• Decide if additional assistance is required, such as cultural training
• Clarify how benefits and tax obligations will be managed
• Align messaging to set clear expectations for the employee so there’s no confusion

When these pieces are handled collaboratively, employees feel supported throughout their transition. Then, leaders can rest assured that mobility decisions align with overall compensation philosophy.

The risks of disconnecting mobility from rewards

When mobility operates in isolation, the result can be inconsistency and confusion. Employees might perceive relocation packages as ad hoc or unfair, eroding trust and engagement.

Organizations sometimes unintentionally use mobility to reward top performers without clear policies. While it may seem like a win-win at first, this can create equity issues and tension among employees who see relocation as a “perk” rather than a business decision.

That’s why viewing mobility as a strategic lever, not a reward mechanism, is essential. The most effective mobility programs are designed with purpose: to fill key roles, build global capability, and develop future leaders.

How mobility and total rewards can work together

Think about what makes your organization stand out as an employer. Maybe it’s innovation, collaboration, or career growth. Whatever your EVP highlights, a well-designed mobility program can bring those values to life.

For example:

• If your EVP focuses on career development, mobility shows your commitment by allowing employees to gain new experiences and advance.
• If your EVP emphasizes diversity and inclusion, mobility can help you build multicultural teams and broaden perspectives.
• If your EVP values employee experience, thoughtful relocation support ensures smooth, transparent and stress-free moves.

In each case, mobility enhances your brand as an employer that truly supports its people where they are now and where they want to go in the future.

Making the employee experience seamless

Relocating can be one of an employee's most exciting and stressful times. A seamless mobility experience makes all the difference. That’s why leading organizations in Canada focus on employee-centered mobility programs beyond logistics.

This might include:

• Personalized relocation assistance for the employee and their family
• Access to cultural or language training for international moves
• Guidance on local benefits and community resources
• Continuous communication before, during, and after the move

When employees feel informed, supported, and valued throughout the relocation process, they’re more likely to stay engaged and perform at their best long after settling into their new role.

Mobility as a long-term investment

Building or expanding a mobility program takes time, coordination, and resources, but the payoff is worth it. Employees who have access to mobility opportunities often demonstrate greater loyalty and adaptability. They bring new insights, cross-cultural awareness, and leadership potential that benefit the organization.

For Canadian employers competing in a tight labour market, that’s a significant advantage. Offering mobility as part of your total rewards strategy signals to current and prospective employees that you’re committed to helping them grow, and that you’re flexible enough to meet evolving business and talent needs.

Bringing it all together

When your total rewards and mobility strategies are aligned, employees see the whole picture: a company that values their contributions, invests in their development, and supports them wherever opportunity takes them.

If your organization is looking to build or refine its mobility program, our consultants can help. We work with Canadian employers to design strategies that align mobility, rewards, and talent goals so your team can confidently move forward.

Learn more about navigating talent mobility to build your program today. Looking for something else? Give us a call at 855-286-5302 or surveys@Mercer.com.