Fiona Murchie looks at some of the themes emerging from ERC’s annual conference in Chicago.

Going to conferences, surely, is about engaging with likeminded people, building on ideas you didn’t even know you’d had and taking away useful nuggets for the future. It is important, no matter what the economic climate, to get out there and talk the talk, reaffirm, challenge and enjoy. That’s why I was so keen to attend this year’s ERC conference in Chicago. Yes, a lot of painful decisions have been made in the last year, jobs lost and companies restructured, but outgoing ERC president Al Blumenberg urged us to remember that “people pursue their most creative ideas in difficult times, so step into the storm and focus on new strategies.” His other ‘truth’ was the need to continue making connections with people, because it’s those connections that make us happy.

Relocation/mobility is, of course, a people industry, so we’ve no excuses not to follow Blumenberg’s advice in that regard!

Keynote speaker Stuart Varney, a British-born newscaster with Fox radio, observed that the real challenge ahead comes via demographics. Throughout the developed world, fertility rates have fallen, population is in decline and societies are ageing rapidly. Today, the biggest group in society is the retired, and they are being supported by a workforce that is having fewer children. As things stand, we simply cannot keep our promises in terms of, for example, pensions and healthcare. Varney’s view was that the financial panic of recession is over, the US is already in expansion mode and, by early next year, there will be more growth.

His mood of quiet optimism was shared by delegates: an electronic straw pole in the conference hall revealed that 64 per cent of them felt next year would be better. A month after the conference, the US has declared itself out of recession, but we in the UK continue to struggle after a false dawn, which we hope will be short lived.

At a conference exploring globalisation trends, it was ironic to hear that globalisation in itself can present a problem. Varney cited the example of enjoying a typical restaurant meal in the US: we have to learn to adjust, he said, to the madness of a world where a restaurant meal consists of salmon from Norway, water from Italy and wine from France. In the UK, there are signs that the tide is turning towards valuing ‘local’ produce – but this, in itself, is a complex issue, since halting the export of green beans from Nigeria will have ramifications for local producers. The carbon footprint versus international relocation is a theme we will take up again in features in 2010. According to Varney, we are beginning a period of wealth redistribution and the demand for ‘fairness’ will only grow after the debacle of financial excesses.

I spent an interesting hour with Scott Hellier, Manager, Supplier Services of CORT. This specialist furniture provider works outside the relocation industry, so has a wider perspective on business needs. Re:locate has always held the view that, despite the recession, mobility will continue, with a lot of corporate movement going on independently and totally project driven. Scott Hellier agrees. “What companies are looking for are strategic initiatives when they’re wanting to enter new markets. They need business solutions and a broader mobility focus.” Clearly, that’s what CORT is delivering, well outside the furniture rental box, working with as many strategic partners as possible.

It’s all happening

Under the radar, all sorts of companies are moving people and looking for new markets, both in their home countries and overseas, with new-style relocation serving this business flow. Reacting to what people actually want and what businesses say they need is the new challenge, and those quick and flexible enough to be able to deliver are those most likely to succeed.

Given all the insecurities of the current economy, these days those employees asked to move are not as keen to do so permanently as they might once have been. Instead, they want to try out the new role for size – and businesses want that flexibility, too. Solutions such as furniture rental, which are quick and accessible, can help to make the whole thing work, not only for individuals but for entire project teams.

However, Scott Hellier observes, despite the pressures to comply in order to retain one’s job, people are not prepared to uproot their families unless they are totally reassured, and they will put up with the stresses of business moves and short-term assignments to make things work. But once the recession lifts, there is a danger that core talent will switch allegiance to a new employer. The return of skilled migrants to their homelands will further add to the ‘brain drain’, and, as we know from the picture in the UK, disillusioned young families are being tempted to a better lifestyle in countries such as Australia, New Zealand and South Africa.

Talent management was top of the agenda before the recession hit, and those most likely to succeed are the companies nurturing their talent even through the toughest times. In the UK, there are signs that graduate recruitment is back on the agenda, and that some organisations have been too swift to cull their knowledge base.

Valuable lessons

The Global Thought Leaders Session at the conference was, perhaps, one of the most valuable, reflecting on what had changed over the last 12 months and highlighting some reassuring constants. The underlying war for talent is heating up and will continue to be an issue. Globalisation and population issues are irreversible.

When new countries are opening up to investment, talent and expertise will be attracted there. Anita Blanchett, global vendor manager for BP, astutely remarked, “People haven’t changed. People in the relocation profession like being in a people business … Employees are looking for people to help them.” Unfortunately, sometimes procurement decisions are focusing on the wrong things, driven by assignment management fees rather than understanding the supplier-service costs involved. This is reflected further in our removals feature.

Undoubtedly, there is more complexity in relocation, with the impact of constantly changing immigration regulations, additional security, compliance demands and the overwhelming range of mobility issues associated with new business start-ups, diverse countries and cultures, which often lack the maturity and infrastructure to cope.

Globalisation is set to continue, challenging times are forcing the business world into increased transparency, and on the horizon are new types of relationship between employer and employee in an increasingly knowledge-based economy.

© 2009. This article first appeared in the winter 2009/10 edition of Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.

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