Why Do So Many Corporate Relocations Fail?

The former CEO of Heidrick & Struggles International Inc. placement firm made a startling pronouncement in a recent Financial Times article: “Forty percent of executives hired at the senior level are pushed out, fail, or quit within 18 months.”  To glean this statistic, Kevin Kelly’s firm performed an internal study of 20,000 executive searches.  Other estimates put it at 46% or more who relocate end their new job within 18 months of the move.

The amount spent annually in the U.S. on corporate relocation by Worldwide ERC® member corporation is $9.3 billion. The cost to domestically transfer an employee is nearly $92,000. That’s an enormous amount of money lost for large corporations. For small corporations, it can be devastating.

I have worked with nearly 300 clients as a life coach, and have relocated for my executive husband’s job six times over the past 19 years. I can tell you the secret to a successful executive move: A Happy Spouse.  Enlightened corporations are beginning to see the value of including the spouse more cohesively in the assimilation process.

One of the problems I see is the term used to describe the executive spouse: trailing spouse. While this phrase is mostly used for ex-pats, the concept is loosely linked to executive spouses embarking on domestic moves as well. The picture it paints is anything but positive—like a child reluctantly dragging its toy behind him.

Any spouse carrying the title of “trailing spouse” being dragged behind their wife or husband isn’t going to feel good about it. They need to feel honored, valued and appreciated. They are leaving so much familiarity and comfort behind only to face uncertainty and vulnerability. It’s no wonder they often feel anxiety, grief and depression.

I suggest we replace the term “trailing spouse” with a new and improved version: The Supporting Spouse.

It’s my job at HolisticRelo.com to help The Supporting Spouse transition to their new zip code with peace and acceptance. When corporate relocations start involving companies like Holistic Relo, I predict you will see a reversal of the aforementioned statistic. You’ll start seeing relocations that “stick,” satisfied spouses, and soaring profitability.