What Does a Failed International Assignment Cost Your Company?

How much does a failed assignment cost? The answer? A lot. One of the most recent figures reported by Relocate Magazine in 2024 reported a failed international assignment could cost up to $1.25 million per employee, which considered costs such as compensation, hard relocation costs, assignment support and taxes.

Failed assignments happen for a number of reasons, but often it stems from dissatisfaction with either the relocation experience itself or the destination city. You can’t control every emotion and experience your employees may have, but there are some things HR managers can do to identify good candidates for relocation, and how to help them prepare for their move and get excited about their new city.

• Discuss family priorities: Does the employee have any family members they’ll be leaving behind? Is it applicable to find top schools for any children who are relocating near their future home? It’s important to know what things the new city will need to provide to make sure the transferee and his or her family has access to all the resources they need and desire.
• Is the new city drastically bigger or smaller than the current one? Moving from a metropolitan area to a small town – or vice versa – can be more of a shock than some people might expect. If it is, make sure it’s a change they could be happy with.
• Other factors: Commute time, recreation, climate…these are all things that might not be immediately noticeable but can chip away at a person’s overall wellbeing.

Once these questions have been answered, it’s important to consider if the employee is a good candidate for relocation. Any red flags could spell costly trouble down the road.

Should everything check out, there’s one additional step that can help ensure the success of his or her relocation – a pre-move trip. This gives employees a chance to visit their potential new city and get a better feel for the area. This trip should also include time to find a suitable home and an orientation to the city and culture, so they don’t feel lost, especially if it’s a city that’s significantly bigger than their current one. Relocation support should continue up to three to six months after the move so you can help address any concerns before they become a serious problem.

Most companies cut back on any relocation expenses not absolutely mandatory for getting employees from Point A to Point B.  While it may make sense short-term to cut down on spending, what sounds better? Spending $2,000 for a pre-move trip and relocation support or spending six or seven figures to hire a replacement after he or she announces the new city just isn’t working out?

Sometimes people leave a job after relocating for a better opportunity, but more often than not, they leave for some type of personal reason. We believe that most of the time, investing in small additional support can mean big savings down the road.

Learn all the ways Hilldrup can support an upcoming employee relocation by exploring our menu of services here.

Onie Girton Author

Onie Girton is the Senior VP, Sales and Client Services, where she is responsible for Hilldrup’s corporate sales division, client services and relocation as well as marketing. Onie has held multiple leadership roles and holds her CRP and GMS designations as well as an MBA from Elon College.