A warm welcome to the December issue of PerchPeek’s US Market Monthly update!
Here’s where you’ll find the hottest updates around employee relocation and international talent strategy, insights from our experts on housing and cost-of-living news affecting your staff, the latest trends in global mobility, and tips and tricks on ways to support your teams.
A fly-by summary
The importance of mental health support in the workplace is increasingly being recognised, and rightly so when you consider that 76% of US workers reported at least one symptom of a mental health condition this year, up from 59% just two years ago.
Now for the first time, the US Surgeon General has released a framework for companies to promote and protect employees’ mental health. The report provides a full roadmap for employers with plenty of actionable recommendations, and can be found at hhs.gov.
The report outlines five essential human needs for robust mental health:
This is a significant step as it acknowledges that companies play a crucial role in impacting their employees’ mental health, and provides clear guidance on mental health support best practice.
For People teams, it can be difficult to know where to start when it comes to implementing new mental health support policies, or to know if your standards are in line with other companies. This framework will therefore act as an invaluable resource, enabling People teams to devise support plans that complement these recognised principles from the surgeon general.
The US house-buying market, like in much of the rest of the world, has been pretty crazy over the last few years, and its fluctuations can easily affect your staff, even those not looking to buy a place! While US house prices have reached record highs in recent years, with annual house price growth peaking at +21% year-over-year in April, recent reports show this growth is cooling.
Rising interest rates mean the number of mortgage applications being made is declining, having a knock-on effect on prices. This trend is most evident in the west of the country, though it’s not limited to this region alone. It’s particularly noticeable in expensive markets such as Seattle and the wider Washington state, and San Jose. Other markets affected include Austin and Phoenix.
It’s worth noting the effects that potential stagnation in the buying market could have on renters. If fewer properties are being purchased, this adds to the pressure already being seen in the rental market, especially in major cities, where demand is massively outstripping supply.
To support employees looking for a home, it’s best to keep aware of these challenges and make allowances, like reviewing relocation packages to make sure movers have the financial freedom to stay in temporary accommodation for as long as they need. Plus, offering flexibility to attend viewings during work hours is super helpful - being first in the queue makes a big difference!
As the cost of living soars, particularly in the most populous US cities such as New York and Los Angeles, employees may be considering moving somewhere cheaper - an option that’s been opened up considerably thanks to the boom of remote working and digital nomadism.
A number of US cities are taking advantage of this trend by offering financial incentives to encourage workers to relocate to their area and boost the local economy. These include:
As well as the lower cost of living, some employees may prefer living in a smaller, close-knit environment. For businesses, such incentives can work in tandem with relocation packages, cutting the HR budget while still ensuring an optimal relocation experience.
These incentive programmes may also help inform strategy when investigating potential new office locations, or considering implementing a remote working policy.
It’s been a difficult time for everyone towards the end of 2022, with soaring inflation causing the cost of living to rise. As our clocks tick over to the new year, we’ll see changes to a number of everyday costs. While many are set to increase, there are a few positive points on the horizon!
Here’s our roundup of a number of changes that may have an impact on your teams:
This is how things stand right now, but it’s harder to predict how the cost of living will fluctuate later in 2023 as a result of macro trends. Our advice is to keep on top of such developments and review compensation packages regularly to keep them in line with current living costs, so your teams feel supported through these challenging price increases.
This year we’ve seen a lot of developments in international talent strategy. Diving into the data, here’s what we’ve learned from the many moves we’ve managed in 2022:
We hope you enjoyed this month’s update, and wish you a happy and restful holiday season.
If you ever have any feedback, comments or questions about what's happening in your location, feel free to reach out via the form below!
Thanks for reading, and see you in the new year!
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