Month: October 2014

HR innovation and talent management: A perfect pair

Post author By Tamara Molino | CRP, GMS
Post date October 30, 2014

The global economy is a more diverse marketplace than ever before. Workers on one end of the world can connect with employees thousands of miles away in real time thanks in part to the latest technological advances. As a result, international operations are growing, and global mobility is now an integral part of expanding business processes.

Although international relocation has become an important aspect of improving global operations, a surprising number of companies are still handling assignments in similar ways they were performed years ago. Development in technology has had a major impact on talent mobility over the years, but if companies want to keep pace with increasing global demand, they’ll need to implement cutting-edge systems as international assignments become more common in the workforce.

HR technology can drastically impact talent mobility processes.

Human resources must embrace technology
A stand-alone approach to global assignments is outdated now that mobility has become a standard practice across different verticals. Human resource information systems must integrate with supporting technologies that incorporate assignee data into the company’s general HR database, as it is crucial to creating a ubiquitous mobility process. A unified system helps create affordable, scalable and realistic processes that can grow in unison with increasing global demand.

Cutting-edge HR technology plays an integral role not only in streamlining mobility processes, but it also aids in back-end organization. For these reasons, the HR technology market is now worth more than $15 billion in software alone, according to a recent study conducted by Bersin & Associates, which cited Bloomberg statistics. In fact, the human resources consulting firm said the value of new tools that help in managing employee communications, recognition and workplace wellness is also growing rapidly. In fact, the top 50 venture deals completed in 2014 totaled more than $560 million.

What’s the next step?
Certainly, the recent influx of investment in HR technology is promising for international relocations, but human resource departments need to make smart and strategic steps when implementing new technology into existing mobility processes. According to workforce mobility association Worldwide ERC, member companies individually invest an average of more than $15.7 million in each year for global transfers. This points to the need for businesses to outline a smart and strategic mobility framework. Too much money is at stake to consider anything otherwise.

Since international mobility has become a norm, organizations need to know how to outline an actionable and profitable plan for a successful assignment. A recent Deloitte study outlined how businesses can diversify their talent mobility designs based on two key dimensions: development value and business value. The design helps companies ensure that the level of support they provide to assignees is justified based on the forecasted business value of each assignment. There are four categories in the value-based approach:

Learning experience: These assignments are high in development value and low in business value because the talent – often young, promising employees – are expected to bear some of the costs associated with the move in exchange for global experience and professional growth.
Commodity job: Target employees are volunteers or low-cost talent, which makes this level of support low in business and development value. These are designated for local and at-risk assignees.
Strategic opportunity: These assignees are the future leaders. The focus here is on development, experience and retention, which makes this level of support high in development and business value.
Skilled position: Although low in development value, skilled position employee support during a relocation is high in business value because these assignees typically have specialized skill sets. They have deep, niche capabilities and are rapidly deployed on project-based assignments.

This type of framework, when used in unison with cutting-edge HR technology, can add significant value to any international assignment process. Not only will it help businesses decide the financial viability of certain assignees, but it also provides a framework for HR departments on how much support to give during the process. Companies can also use smart strategies and technology to develop and retain the next generation of leaders – the majority of which are not only willing to, but expect to be internationally relocated at some point in their careers.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

Corporate Relocation Global Relocation Global Relocation Trends

Going global: The future of talent mobility

Post author By Tamara Molino | CRP, GMS
Post date October 28, 2014

Singapore business district skyline panorama over Marina Bay

Thanks in part to recent developments in workplace technology, productivity and professional development are no longer limited by geographic boundaries. Corporate talent can easily complete work from various locations.

As markets continue to expand, more businesses will find it necessary to increase workforce mobility around the world. A recent Price Waterhouse and Coopers study found that assignee levels have increased 25 percent in the last 10 years and are projected to grow another 50 percent by 2020. With the projected mobility increases, businesses may want to keep their eyes on industry trends. Here are three issues to keep in mind to prepare for the future of talent mobility:

Businesses must adopt new technology to better connect a globally diverse workforce.

The future lies in the cloud
The estimated increase highlights the need for companies to surround employees with the right technological infrastructure to maintain productivity. Cloud-based systems may increase talent agility and flexibility since employees can access corporate information on a moment’s notice with an established Wi-Fi connection. Especially as the younger workforce continues to mature, these individuals will likely require more diverse business interactions.

Attract top talent through new technology
Young assignees are open to change. They often embrace new challenges and view relocation as a means of professional development. In fact, a separate PwC study found 37 percent of millennial respondents would like the opportunity to go on a global assignment. This can become a reality if and when businesses adopt cloud-based applications for everyday business operations. Once this technology is implemented, geographically separated employees become better connected, which in turn improves collaboration and productivity. Pew research found that nearly one-quarter of millennial respondents felt technology set their generation apart from older age brackets. These technologically savvy employees want to work with cutting-edge technology.

Businesses can position themselves as innovative and progressive by implementing new technology. Recent Deloitte research revealed that 78 percent of millennial respondents said they were influenced by how innovative a company is when deciding if they want to work there or not. Corporate adoption of new technology not only eliminates workplace borders, it also has the potential to draw some of the best talent in the workforce at any age, not just young adults. Sometimes some of the best, most experienced employees developed strong skill sets because they were early adopters of new technology.

Standardization and price reductions
In addition to new technology implementation, market trends demonstrate that companies are looking to reduce short-term costs in their mobility programs. Certainly, the current domestic and global economic landscape may be a primary driver in cost reductions, but it’s important to effectively manage costs at all times, regardless of the surrounding economic conditions. According to a recent industry survey, 72 percent of respondents attributed economic conditions to an overall reduction in international assignment costs.

With a potential decline in global mobility costs, as well as a projected growth in assignee relocation, employers are beginning to focus more on international compliance with industry standards. Minimizing relocation timelines to increase assignment success is also contributing to standardization and central decision-making authority. While traditional averages of standardized policies were around 72 percent, the survey found 92 percent of employers indicated they standardized policies on a global level versus a regional or divisional level.

As companies continue to standardize their relocation policies and implement cloud-based infrastructures, costs will likely go down. Moreover, adoption of new technology can attract top talent – most of whom are looking to make a move abroad for the sake of professional development. Cloud-based systems can also help connect globally differentiated employees without sacrificing collaboration or productivity. A managed and cutting-edge approach to talent mobility is the way of the future, and it could very well drive down costs in the process.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

Domestic Relocation Domestic Relocation Challenges Global Relocation Global Relocation Challenges

Growth in rental market poses challenge to talent mobility

Post author By Sam Hoey | CRP, GMS
Post date October 24, 2014

Phoenix Arizona city skyline at dusk, showing a beautiful city destination for companies considering a 2020 Phoenix Relocation

Rental Market Workforce Mobility Challenges

Rental fees are increasing, thanks in part to a tightening rental property market, increasing the challenges for rental market workforce mobility as renters are facing higher prices while wage raises grow at a tepid pace. Domestic relocation may be impacted as a result, posing a challenge for transferees as they look to take on a new location. Companies can provide relocated talent with help before a move, but as rent in most markets continues to mature, transferees are likely to see a larger portion of their income spent toward rent.

Rent, Number of Renters Increasing

Rent is growing in a number of major markets.

According to new industry research, the number of domestic renters grew in 2013. More specifically, a recent study conducted by the National Low Income Housing Coalition found that last year there were 42.4 million renters in the U.S., which represented slight growth from the 41.9 million in 2012. High housing costs continue to plague the modern-day renter as the rental property market tries to combat historically low vacancy rates. Renters made up 36.5 percent of all households in 2013, a nearly 1.5 percent increase from 2012 and close to 4 percent more than in 2006.

Major domestic metropolitan areas have experienced moderate to steep inclines in rent per household in recent years as well. The New York Times, citing real estate website Zillow, recently pointed out that 90 cities in the U.S. had a median rent that was more than 30 percent of the median gross income when factoring out utility fees. Individuals moving within domestic borders will likely have to dedicate a greater portion of their salary toward housing costs. As a result, there is less room for peripheral moving expenses, which can add up quickly.

Further research shows rent will likely increase in the near future as well. Citing research firm Capital Economics, The Times noted rent could rise as much as 4 percent this year, which is a modest incline from the 2.8 percent growth in 2013. However, as inflation in certain markets is annually at 1 percent or higher, rent increases could even outpace Capital Economics’ projections. For instance, rent in Miami costs, on average, 43 percent of the typical household income. In Chicago, that figure rose 10 percent in one year as renters give way to 31 percent of their incomes on average.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

Corporate Relocation Domestic Relocation Domestic Relocation Challenges

GMS Partners With Move For Hunger

Post author By Sam Hoey | CRP, GMS
Post date October 21, 2014

SCOTTSDALE, Ariz., Oct. 14, 2014 – Corporate relocation provider Global Mobility Solutions (https://gmsmobility.com/) is the newest partner of 501(c)3 nonprofit organization Move For Hunger (http://moveforhunger.org/). GMS will call upon its extensive supplier network to further the mission of ending hunger in the US and Canada. In securing this important partnership, GMS worked directly with Move For Hunger’s esteemed founder Adam Lowy.

A much-respected member of the philanthropic community, Lowy has had a remarkable and positive impact on the world. He founded Move For Hunger in 2009, and the organization’s growth over the last five years has been tremendous. In 2011, he was a finalist at the VH1 Do Something awards. This year, Forbes named Lowy to its prestigious 30 Under 30 list of the “brightest stars” to watch in the business world.

“GMS is proud to partner with Move For Hunger. The goal of feeding those who are hungry is certainly one our organization can stand behind,” commented Ann Knapp, Transportation Services Director at GMS. “Through our strategic partnerships with our extraordinary van line agent partners, we’ll be working with our customers to help put food on the tables of those in the greatest need across the US and Canada. Hunger continues to be a worldwide problem, and we’re honored to have the opportunity to take an active role in helping those that need it.”

Move For Hunger has taken an innovative approach to a serious but typically unseen problem. Today, the organization works with over 600 moving companies in 47 states and throughout Canada and has delivered more than 3.5 million meals to local food banks across North America. Moving companies donate their time and labor to pack and transport nonperishable food items left by their customers. Receiving food banks then sort and distribute the items to area residents in need.

“We’re thrilled to have Global Mobility Solutions on board as a partner,” remarked Lowy. “Every new partner contributes to our success. All of us at Move For Hunger believe that with the help of GMS and its built-in network of moving companies, we’ll soon be making an even bigger dent in food insecurity across Canada and the US.” The facts about hunger in America tell a sobering story. One in six people and one in five children do not get enough to eat. Food insecurity does not discriminate; it’s not only the homeless and poor who struggle to find their next meal. Older Americans on fixed incomes and middle class Americans recently laid off from work are increasingly faced with tough choices, such as keeping the lights on or paying the mortgage versus eating three meals a day.

Even temporary hunger can have long-term consequences. Chronic and sometimes serious illnesses, mental health issues and obesity are all possible outcomes of food insecurity. In children, the effects of malnutrition during the growing years can be devastating and often linger into adulthood. For many of those experiencing food insecurity, but especially children, the summer months are particularly challenging. Young people are out of school, the holiday food drives have yet to begin, and the pleasant weather sometimes makes people forget about problems like hunger.

However, summer happens to be the busiest time of year for moving companies, so Move For Hunger’s unique solution has been a huge boost for food banks. The partnership with Move For Hunger affirms GMS’s commitment to demonstrating impactful, responsible corporate citizenship.

Additionally, you can shop, put tickets in your cart, and checkout for raffle tickets to raise money for charity.

About Global Mobility Solutions

Founded in 1987, Global Mobility Solutions is a global corporate relocation services company that specializes in workforce mobility. The company’s corporate services include global assignment management, domestic relocation management and a range of pre-decision solutions. Global Mobility Solutions is a winner of the 2014 HRO Today Customer Satisfaction Survey.

Contact:
Thomas Belnap, Marketing Manager
800-617-1904 ext. 8832
[email protected]

Tags Press Room

Corporate relocation tips Domestic Relocation Challenges Domestic Relocation Trends Relocation Challenges

CFPB rule changes may affect relocating employees

Post author By Global Mobility Solutions
Post date October 15, 2014

Pensive businessman signs a document at the office

CFPB Rule Changes – New regulations set forth by the Consumer Finance Protection Bureau are scheduled to take effect next year, which will likely impact the corporate relocation process going forward. The financial information that relocating employees have to provide to lenders is changing.

Employee relocation is a complex process, which is why an expert relocation management company proves to be beneficial in moving talent. A major aspect of an employee relocation is the sale or purchase of a home, and up until this point, the real estate aspect of a relocation has been relatively static.

The Real Estate Settlement Procedures Act of 1974 and the Truth in Lending Act of 1968 laid the groundwork for buying and selling residential real estate in that both pieces of legislation required substantial financial information from the buyer. This included a detailed advanced disclosure of estimated and actual mortgage lender, title and other settlement costs to borrowers, according to the U.S. Department of Housing and Urban Development’s website. In essence, the legislation made it easier to obtain mortgage financing.

Changes are wide-sweeping

Employee relocation services may be impacted by the new CFPB regulations.

In the past, a number of different parties all worked together to provide a seamless and comfortable moving experience for the moving employee. More specifically, the third-party relocation service, the employee’s company, insurance underwriters, attorneys and real estate agents all pitched in to create a comfortable moving experience for relocating employees. While it may seem unrelated that the CFPB – an agency that was created to help prevent another financial meltdown in 2010 after the economic recession was in full swing – has laid out new regulations set to take place in April 2015, corporate relocation will be impacted nonetheless. Since so many parties are involved in making the employee transition smooth, almost everyone is affected in some way.

In April 2012, the CFB Bulletin 2012-03 established new regulations that placed responsibility on the lender to protect consumers who obtained loans to purchase real estate property. The rules were put in place to protect the consumer. Yet, even though banks and lenders are now responsible for financial oversight and protection, the trickle-down affect corporate relocation efforts as well. Although most relocation companies interact with relocated employees prior to the purchase of a property, transferees may likely use a portion of an allocated allowance to apply for a mortgage, which is where the reach of the CFPB comes into play.

Relocation services impacted
More recently, the CFPB announced a rule that eliminated the good faith estimate, the HUD-1, or the former settlement sheet where all seller and buyer costs and proceeds are calculated and shown. The new closing disclosure form must be provided to the buyer three days before closing, or consummation, as the CFPB now calls it. After this window, only limited items can change, according to relocation services industry trade group Worldwide ERC.

Worldwide ERC pointed out that since most relocation service providers now require a HUD-1 at least two days before closing to obtain client approval, the process may be backed up to five days once the new regulations take effect. These added regulations point to the increased complexities surrounding employee relocation, and highlight the need for partnering with an expert in global talent management.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

Tags Real Estate

Corporate Relocation Corporate relocation tips Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Relocation Challenges

Top 5 emerging international markets

Post author By Tamara Molino | CRP, GMS
Post date October 14, 2014

Walking through the beautiful streets of Dublin, Ireland

When it comes to the corporate relocation process, finding the right fit for employee mobility can be difficult. Different areas of the world are better positioned for personal and professional growth depending on the vertical, but developing in an emerging market is much easier said than done. A multilayer economic hotspot may be the ideal location to relocate talent for new or existing business ventures, but it takes time and a depth of knowledge to successfully adapt and find personal success in a new market.

A recent Forbes analysis of international GDPs found 70 percent of world growth in the next several years will come from emerging markets. Although China and India comprise about 40 percent of that maturation, there are still other viable options for businesses aiming to relocate talent. Keeping that in mind, here are five emerging markets to keep tabs on for a potential international relocation and reasons to further invest in talent relocations in these geographical areas:

Emerging markets offer unique opportunities for expatriates.

Central America: Although this encompasses several different countries, the region is small enough where businesses could individually identify local economies and choose which one best aligns with their business needs. CBS News recently came out with a list of the ten best places to invest in real estate, and half of the locations were located in Central America. The low cost of living and typically warm climate make for happy employees, which is a primary objective of global relocation. In terms of real estate investment, finding a return in this region of the world won’t be as difficult, either. CBS specifically cited Mexico, two cities in Belize, Nicaragua and Panama as possible real estate investment gold mines. Businesses and their employees can consult relocation services on the best areas to buy or lease property once a move location is decided.
Colombia: The South American nation isn’t exactly well-known on the international stage as a manufacturing haven, but it’s proximity to the coastline, strong economic growth and cost of doing business make it a viable possibility to relocate talent. Bloomberg predicts GDP growth between 2013 and 2017 will occur at a rate of nearly 22 percent with just a 3 percent inflation rate. A separate Reuters report noted Columbia’s economic growth was as high as 6.5 percent in the first quarter of 2014, although that figure dipped to 4.3 percent in the second quarter. A strong economic backbone and low projected inflation present an opportunity for relocated talent to find personal and professional success.
Indonesia and Malaysia: While China, India and Korea dominate the economic growth talks, smaller nations such as Malaysia and Indonesia are gaining a considerable amount of attention with regard to commercial prosperity. The two nations are separately governed bodies, but the bordering nations’ economies will likely continue to grow in the next few years. Indonesia’s GDP is projected to grow more than 30 percent between 2013 and 2017, while Malaysia is expected to mature 22 percent in the same time period. The latter nation’s inflation rate is as low as 2.5 percent and has a considerably low ease of doing business rank, according to Bloomberg. While vast cultural changes may prove to be a challenge for newly moved employees, global relocation firms can provide talent with services to help the settling-in process, whether it’s through offering van line services, tax preparation or providing ongoing counseling and support after the move.
Turkey: Bloomberg also ranked Turkey in its top-20 emerging markets, calling the nation the seventh-most viable nation for economic growth. Its GDP is forecast to grow more than 21 percent between 2013 and 2017, but its inflation rate is 5.4 percent, which has pundits jumping off the Turkish bandwagon. However, Turkey is a highly opportunistic market not only because of the current local real estate boom, but also because its workforce is packed with young and emerging talent. CBS News reported that half of residents in Istanbul, the nation’s capital and largest economic market, are aged 30 and younger, meaning buying power in Turkey is likely to increase as the rest of the population ages. Young talent may enjoy moving to this Western European and Southeast Asian nation not only because of its projected GDP growth, but also because of the young and emerging talent surrounding them. A youthful workforce in the nation’s capital specifically may help newly moved talent find individuals who have similar interests and desires, thus making the relocation process easier.

Emerging markets provide a strong opportunity to relocate top talent. Businesses can benefit from sending employees to other countries to help further develop company production and create new business resources. Recent Ernst & Young forecasts show investors are already exploring emerging markets as developing countries are attracting half of foreign direct investment. Companies focused on employee mobility are moving toward emerging markets, and a business that relocates its top talent to these locations could directly benefit from regional economic growth.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

Global Relocation

3 Tips For Seamless International Talent Relocation

Post author By Tamara Molino | CRP, GMS
Post date October 8, 2014

Happy couple in front of their new home — Shot of a happy young couple holding the keys to their new home

Relocating business within the U.S. is difficult enough, but when a company needs to relocate talent to another country, things can get even more challenging. According to a recent Atlas Van Lines survey, 27 percent of respondents are expecting their international relocation volumes to increase. Keeping that in mind, here are three tips to help with an international talent relocation process:

Help the employee get accustomed: Moving a single employee or a group of individuals is a complicated task, which is why it’s critical to help transferees get accustomed to their surrounding environments before they start working.
International talent relocation presents unique challenges.

If employees aren’t able to arrange a visit to the new location before they pack their things and move, they should do as much research on the area as they can, Forbes suggests. This may include reading local news or publications that focus on the surrounding area, which can help new residents get accustomed to the language and cultural interests. Cultural training is one of the most highly overlooked areas of employee training, and depending on the destination, can be crucial to assignment success. Culture shock is a very real phenomenon that impacts many western travelers. When preparing for or managing culture shock, the U.S. Bureau of Educational and Cultural Affairs recommends keeping an open mind, staying physically active and making an effort to get to know other people as much as possible.
Paperwork exists outside of the office: When talent is relocating overseas, they must first get their paperwork in order, otherwise the move won’t happen at all. A business can significantly help its employees do their homework on important travel documents such as customs and immigration information to Visa acquisition or even identifying which vaccinations, if any, their talent has to get before they depart. Some countries have currency restrictions for entry as well – so companies that do their due diligence will make the moves much easier on their employees. The IATA and the U.S. Bureau of Consular Affairs are both excellent supplementary resources that outline what countries require upon arrival.
Hire an experienced partner: If a business is unsure how to tackle this issue, global relocation management companies can provide insightful solutions necessary to navigate today’s mobility challenges. In fact, Relocate Magazine highly recommends employing a trusted partner in this capacity, especially if management or C-level executives are unfamiliar with global relocation, much less the new area where they’re moving their talent. Even if higher-ups have employee relocation experience, global relocation firms can provide unique and fresh insight into each move. Whether a company needs a partner to help with the entire move, or just needs to outsource certain aspects of a relocation effort, third-party talent relocation firms can help alleviate a large amount of stress and weight off of a business’s shoulders by providing faster, more efficient and often cheaper results.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

Tags corporate relocation, global relocation, relocation companies, Workforce Mobility

Other Services

About

Contact

Address

About

Other Services

Address

About

Address

Looking for something?