Momentum Productivity Study – The Results Brian Potts, CRP, GMS-T - Senior Vice President, Pacific Region, Altair Global Mary Beth Nitz, SCRP, SGMS, GPHR - Director, Global Consulting, Altair Global Connie Skinner, CRP, GMS-T – Relocation Manager, Global Relocation

The Momentum Productivity Study Origin: Altair’s hypothesis Collaborative development process – Defined targeted population – Identify factors impacting productivity – Draft questions and rating scales – Develop communications for clients and transferees

Methodology Solicited and secured client participation and contact lists for transferees fitting study profile – 12 client participants Administered electronic survey to 1,250 invitees – 546 survey responses – 44% response rate Performed qualitative interviews with 40 invitees (out of 300 total opt-ins)

Respondent Demographics

Relocation Activities  Respondents were asked to rate the separate components of their relocation in terms of distraction and time lost from job focus. Items were defined as: ­ High Impact: caused three or more days (combined) of lost productivity. ­ Low Impact: caused fewer than three or more days (combined) of lost productivity. ­ Not Applicable: did not apply to transferee or impact productivity. High Impact >3 Days Low Impact <3 Days

What Did We Ask? Work-Related Activities  The decision-making process related to accepting or declining the relocation/transfer with regard to personal situation.  The decision-making process related to accepting or declining the relocation/transfer with regard to financial situation.  Negotiating the compensation, benefits, and relocation assistance.  Communicating and interacting with internal departments supporting the relocation process.  Adapting to the new work environment from a social/cultural perspective.  Job training/employee orientation/ professional development necessary to assume the role in the new location. Relocation-Related Activities  Preparing, marketing, selling, and closing process of departure area residence.  Selecting, arranging, and transitioning into a temporary housing facility.  Arranging household goods transportation, packing, delivery, unpacking, and auto shipment.  Finding the appropriate destination community to reside in (home finding process).  Managing relocation-related travel.  Securing a destination location residence (and the mortgage process, if applicable).  Settling into and becoming familiar with the new community.  Managing relocation expenses/the expense reimbursement process/tax preparation and filing.  Transition of household-related services, such as mail, utilities, home maintenance contracts, etc. Personal/family-related activities  Communicating with and managing family issues during separation period(s).  Dealing with and negotiating general family reluctance or aversion issues regarding the move.  Researching, identifying, and managing schooling/educational requirements for accompanying family members.  Handling of spouse/partner career transition challenges related to relocation.  Disconnecting from social and support networks (extended family and friends).  Managing ongoing personal financial concerns, issues, and decisions resulting from the move.  Making decisions regarding elder family members. Do they remain behind or move with the family?

Key Findings  Findings validate industry focus on core relocation needs, but there’s still more we can do.  Socio-environmental issues are important; they rated just below core high- impact items.  Simple, routine activities have a surprisingly high impact and job focus and productivity.  Most survey participants reported multiple high-impact aspects.

Industry Assistance – On-Point with Physical Move  Top-rated high-impact items for all respondents combined are the physical requirements of a move: ­ Finding the destination community – 58%. ­ Securing destination residence – 49%. ­ Disposing of the departure home/lease cancellation process – 44%. ­ Arranging household goods transport – 42%.

Socio-Environmental Issues are Important  “Socio-environmental” distinguishes between physical aspects of the relocation and subtle, personal, and situational aspects: ­ Job training/employee orientation/professional development necessary to assume new role at the destination – 38%. ­ Adapting to the new work environment from a social and cultural perspective – 33%. ­ Settling into and becoming familiar with a new community – 33%. ­ Disconnecting from social and support networks (extended family and friends) – 29%. ­ Managing family issues during separations – 25%.

Some Other Surprises  Managing ongoing personal financial worries, issues, and decisions related to the move.  Transition of household-related services like mail, utilities, pest control and lawn maintenance contracts, cable/internet, etc.  Communicating and interacting with internal departments supporting the relocation program.

So What Now?  U.S. Domestic vs. International Moves ­ Formal destination services ­ Cultural training ­ Spouse/partner/family transition assistance  Concierge services  Onboarding / employee orientation  Streamlining internal processes and communications

The Hidden Cost of Relocation  The average homeowner experiences at least 19.8 days of lost work productivity as a result of a relocation.  The average renter experiences at least 15.6 days of lost work productivity as a result of relocation.

Productivity Cost Estimator Tool

A Client’s Perspective – Wells Fargo  Working with Compensation Team to determine full costs to include in the cost estimator tool; likely to use ranges to be conservative.  Currently focused on efficiency and effectiveness throughout the relocation process.  This productivity data ties in with Wells Fargo’s efficiency and effectiveness goals and will be helpful in assessing the ongoing value of relocation over the next few years.  Productivity data fits perfectly with on-going policy analysis.

Up Next! Momentum International Productivity Study  Individuals who completed an international move (either perm. transfer or long-term assignment) within a 6 month period (relocation/transition process only)  Individuals who moved under a formal international permanent transfer policy or international long-term assignment policy  Survey will have particular focus on the settling-in process (cultural training, language training, destination services)  Survey questions currently in development

Questions??