Month: July 2018

Categories
Corporate relocation tips Domestic Relocation Tips Global Relocation Challenges Global Relocation Tips Relocation Challenges Relocation Programs

Why Choose Traditional Temporary Housing?

Couple on floor next to moving boxes

With all of the housing options available to you, why should you choose traditional temporary housing provided through a Relocation Management Company (RMC)? Newer providers like online “bnb” websites or rentals offered by owners seem to offer so much more flexibility to meet your travel needs. From studio apartments and lofts in artsy places, to luxurious vacation rentals, the supply of interesting and exotic abodes seems endless. Also, the draw of quick and easy rentals as well as anecdotal stories of great bargains make these places seem irresistible to savvy travelers and transferees alike. With so much to choose from, what could traditional temporary housing offer in comparison?

Before you book yourself and your family into a rental through online providers, look into these four specific areas to be sure the rental meets your full requirements:

1. Security Standards

Do you know if there is a security system at the location? Is the rental’s location in a safe and family-friendly neighborhood? What about the Wi-Fi System? Traditional temporary housing locations receive evaluations on several criteria. Employees must undergo background checks. Building security undergoes an assessment. Even if a rental location is advertised as having good security, or is claimed to be in a safe neighborhood, has this been verified? Do you know if the area changes character depending on the day or hour?

2. Cleanliness

Temporary housing must meet specific cleanliness and quality standards, and undergoes professional cleaning prior to rentals. Is this what you will find through an online rental provider? Travelers often see and remark on the differences in cleanliness standards among hotel chains. Do you know if there are any cleanliness standards at the online provider’s rental unit? Will you have to perform cleaning services yourself? How would you know if surfaces are clean and sanitary? Would you be able to determine if surfaces have simply been wiped down with a single cleaning rag throughout the entire rental unit?

3. Move-in Inspection

Traditional temporary housing provided by an RMC includes a full move-in inspection covering several points. This inspection is to ensure the renters can verify the state of the unit. They also have an opportunity to note any discrepancies within the rental paperwork before moving in to the unit. However, many online rental providers are not onsite to greet renters and may not offer a move-in inspection. As such, renters are often at risk if something is not in working order, missing, or broken, and they are unable to provide proof the item was in that condition prior to their moving in.

4. Maintenance and Emergencies

Traditional temporary housing provided by an RMC includes information and processes for renters to follow should any item require maintenance, or should an emergency arise. Major equipment receives maintenance and service on a regular schedule. However, online rental providers may not provide specific instructions and processes for maintenance. Also, they may not be in a position to assist the renters during emergencies. Major equipment may not be maintained by professionals on a regular basis. Also, there are usually no guarantees in place should the renter determine the unit no longer meets their needs even if major equipment does not work properly.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients find traditional temporary housing that fully meets transferring employees and their family member’s requirements for security, cleanliness, and move-in readiness. As a result, we can help your company find the best temporary housing options for your relocation program. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Categories
Domestic Relocation Tips Domestic Relocation Trends Global Relocation Tips Global Relocation Trends Household Goods Talent Mobility

Five Tips to Help Your Company Move Employees to Remote and Challenging Locations

Signing documents for a loan

What is the best method to help an employee agree to take a relocation assignment at remote or challenging locations? Or to help a candidate accept a new job offer at a similarly challenging location?

Companies that are not familiar with the relocation process may not realize how important it is to put in the extra effort early on to gain acceptance for assignments while also reducing overall relocation costs. Look for a Relocation Management Company (RMC) that has experience working with clients to place employees in remote and challenging locations. The RMC will provide valuable insight to help your company increase job acceptance rates.

Here are five tips that will help your company move employees to remote and challenging locations:

Five Tips to Help Move Employees to Remote and Challenging Locations

1. Pre-Decision Services

GMS is recognized as the RMC that pioneered the development and usage of many of today’s most effective “pre decision” services.

The use of pre-decision services has emerged in the mobility industry as a critical tool in the retention of an organization’s talent and helping employees relocate to challenging locations. Our corporate clients will tell you that the implementation of this program for both a domestic move and a global assignment results in employees that start work sooner, stay longer, and are a better fit in the corporate culture.

Our systems and processes including high-touch customer service, policy expertise, benchmarking, and flexible reporting options allow clients to manage employee relocation programs with better ease and efficiency.

Pre-decision services include the following:

  • Candidate Assessment – Assess candidate expectation, skills, personal qualities, family circumstance, and financial preparedness.
  • Cost of Living analysis – Cost of living comparison of origin and destination cities to help determine acceptable or competitive salary range.
  • Market analysis – Determines the likely home sale timeline and identifies potential home sale challenges such as negative equity.
  • School Reports – Public and Private School reports provided to the relocating employee to aid community selection.
  • Moving Cost Estimates – Cost estimates on household goods transport, helps budget for relocation costs.
  • Community Search and Tours – Coordinates community orientation tours to familiarize relocating employees to their new location, and assist in selecting an area that fits their particular interests.

2. Community Tour of Challenging Locations During Interview

Companies should work with an RMC to set up a community tour during an interview. The focus should be on the many positive aspects of the location. This will help position the company and the location in the best light possible.

For example, a client might be experiencing a loss of candidates due solely to the fact that the candidate arranged their own transportation from their hotel to the company’s facility. If the candidate’s hotel is located near an airport and the surrounding area is not scenic, the candidate will not see any desirable neighborhoods and local points of interest. Partnering with an RMC to provide community tours can address this issue. RMCs provide upfront education on the area to help the candidate see the many positive aspects of the location. As a result, the RMC will help the client increase job acceptance ratios.

3. Include the Family

When a company has determined a candidate is a good fit for the position after the initial interview, a second interview should help finalize the decision process. Companies should consider flying the candidate and their family out for the second interview, before finalizing the job offer.

Including the candidate’s family shows them that the company cares about their well-being, and wants them to feel comfortable in the new location. Work with an RMC that can help the family members learn more about the community, schools, activities, and other points of interest. The RMC will learn what is important to the candidate and their family members during the pre-decision process. The RMC can use this information to highlight the new location in the best manner.

4. Offer Spousal or Partner Assistance

When an employee is offered a relocation opportunity in challenging locations, their spouse or partner’s needs should be considered as well. Often a new job for a transferee may mean a job change for their spouse or partner, in addition to relocating to a new location. The more support and information a company provides for spouses and partners, the more likely the relocation will be successful.

Companies should consider offering services that will help the candidate’s spouse or partner and their family members during the relocation process. Such services can include spouse or partner employment support, counseling services, and stress management assistance.

Spouse and partner career support programs promote successful relocations. Employees expect their company’s relocation programs to provide a wide range of services, technology, and tools. These resources will help make for an easy and smooth relocation process. Along with services targeted specifically for the transferee, the most successful company relocation programs also provide support programs for spouses and partners. Employee’s family members participate in the relocation process, and as such their buy-in and support can ensure a successful assignment.

5. Destination Spotlights for Challenging Locations

Employees considering a relocation assignment are looking for information to help convince them that a relocation assignment will be a valuable experience. Companies with successful relocation programs provide as much information about new and challenging locations as possible. This helps their employees and family members gain a favorable impression and acceptance of a relocation assignment.

A destination spotlight showing highlights and exciting activities provides peace of mind. Also, it boosts the confidence of employees considering a relocation assignment. RMCs can provide information on North America and Global destinations that will help employees learn the best features about the new location.

Conclusion

Global Mobility Solutions’ team of global relocation experts have helped thousands of our clients move employees and candidates to remote and challenging locations. We can help your company understand how to design your relocation program. As a result, your program will highlight the best features of a location, and increase job acceptance ratios.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Domestic Relocation Tips Global Relocation Tips Household Goods Relocation Management Talent Management Talent Mobility

What is the Best Way to Recruit Top Talent in a Tight Job Market?

Image of pretty business leader looking at camera

What is the best way to recruit top talent in a tight job market? Many recruiters and human resource professionals face this question on a daily basis. When an economy is growing, employment opportunities are plentiful. This in turn increases the difficulty of finding top talent for open positions. Competition for highly skilled and talented employees means employers must examine their processes and find new ways to gain an advantage in tight job markets.

Some employers have found unique ways to expand their recruiting efforts. Others have found advantages in offering programs that appeal to job seekers as well as their families. Often, employers must look inward to determine the specific reasons why employees choose to accept or decline their job offers. With this knowledge, employers can improve their recruiting processes to appeal to a larger number of candidates.

Here are five ways employers recruit top talent during a tight job market:

1. Leverage Social Media to Recruit Top Talent

The Society for Human Resource Management’s survey of HR professionals on whether they are using social media for talent acquisition shows that 84% of organizations are currently using social media for recruiting, and an additional 9% have plans to do so. Also, over 30% of organizations are targeting smartphone users with mobile recruiting efforts.

Most of these recruiting programs focus on passive job candidates. Efforts may be as simple as sharing job openings on company Linkedin pages, or digital advertisements targeted to appear when job seekers enter specific terms into a search engine. 71% of companies report these efforts are effective in decreasing the time to fill non-management salaried positions. Interestingly, companies report that these efforts are not as effective for recruiting executive and upper management positions, nor are they as effective for non-management, hourly employees. This divergence may be due to a number of factors including access to social media, interest in maintaining such connections, and overall time commitments impacting these groups in different ways.

2. Pre-Decision Services

Companies that are considering job candidates who may require relocation assistance can gain many benefits from using pre-decision services. Putting in the extra effort early in the relocation process delivers quantifiable results for productivity and cost reduction.

Pre-decision services include:

  • Candidate Assessment – Assess candidate expectations, skills, personal qualities, family circumstance, and financial preparedness.
  • Cost of Living Analysis – Cost of living comparison of origin and destination cities to help determine acceptable or competitive salary range.
  • Market Analysis – Determines the likely home sale timeline and identifies potential home sale challenges such as negative equity.
  • School Reports – Public and Private School reports provided to the relocating employee to aid community selection.
  • Moving Cost Estimates – Cost estimates on household goods transport helps budget for relocation costs.
  • Community Search and Tours – Coordinates community orientation tours to familiarize relocating employees to their new location, and assist in selecting an area that fits their particular interests.

Companies benefit from using pre-decision services in many ways:

  • Job acceptance ratios increase; failed relocations decrease.
  • Budget accuracy increases.
  • Eliminates the risk of non-acceptance by the transferee/assignee.
  • Streamline new location orientations.
  • Minimizes policy exceptions.
  • Identifies candidates unable or unwilling to relocate so efforts are re-focused on viable options.
  • Reveals concerns and issues prior to relocation, such as cultural differences or family concerns.
  • Proven overall cost savings.

3. Leverage Relocation Package in the Hiring Process to Recruit Top Talent

Companies that struggle to fill positions using traditional hiring methods may not understand how to use their relocation program to attract qualified candidates. In industries with many competitors all trying to attract the same candidates, it is often difficult for a smaller or less well-known company to be seen as an employer of choice. Also, the company may not be able to offer the same level of perks and amenities to job candidates. However, offering benefits such as more flexible work arrangements might help a company attract new hires.

Relocation programs are great vehicles to clearly demonstrate to job candidates how much a company values them and their families, as we have shown in our Case Study on Technology Industry Relocation Programs. Companies can communicate specific relocation program areas that reflect industry best practices, as well as highlight their job offer and relocation assistance package in the best manner to recruit top talent. Depending on the relocation program’s specific features, companies might highlight the package’s home buying assistance, spouse and partner assistance, and full destination services for the transferee’s needs.

4. Policy Exceptions for Relocation Packages

The moving process can be challenging, time-consuming, and result in significant delays for candidates to start their new position. When moving to a new location, house-hunting might require a number of trips to search for homes, neighborhoods, schools, and nearby amenities. Relocation packages should offer some flexibility so that candidates can more easily accept a job offer without having concerns about their ability to successfully complete their relocation.

Companies should have a defined process in their relocation policy that tells candidates how to request a policy exception. Candidates with special needs and requests will feel more comfortable knowing how they should proceed. Companies can also use this information to learn whether their relocation program might need adjustments in certain areas to reduce exceptions as well as to attract new hires.

5. Increase Compensation

Companies may need to increase compensation as a way to recruit top talent that is highly skilled and experienced. Depending on the industry, length of assignment, and job requirements, higher levels of pay that are reflective of the critical need for talent might help a company attract new hires.

Industry growth and increases in employment opportunities may also lead to a rise in compensation, as can be seen in the computer/information technology and healthcare industries. Positions requiring extensive skills, technical training, and significant investment in education and internships often result in higher wages than the median annual wage for all occupations. An increasingly important specialism in IT is cybersecurity, and salaries reflect high demand for new hires who possess the requisite skills and experience.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients design relocation programs and market them effectively to enhance the attractiveness of their employment offerings and recruit top talent. As a result, we can help your company understand how to increase your recruiting program’s success by using best practices to design a relocation program that provides a clear and distinct competitive advantage.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Choosing a Relocation Company Corporate relocation tips Domestic Relocation Global Relocation

How to Position Your Request for Proposal so Suppliers Have Correct Information

Your task is to position your Request for Proposal for Relocation Services so suppliers have all of the correct information they need to provide you with full and useful responses. With all of the many aspects of relocation programs, where should you begin?

To get the best responses, position your Request for Proposal with the information the suppliers need to understand your company and its current processes. You want to be clear in each question you ask the supplier, so you need to provide them with information about who you are and what you are seeking in a relocation services provider. Answers will vary based on the information you provide.

At a minimum, you should provide these four main points of information in order to receive robust responses to your Request for Proposal:

Four Main Points

1. Company Overview, Scope of Program, and Facility Locations

Provide information about your company, including size, number of employees, facility locations, organizational structure, and any associated companies and divisions. The scope of your relocation program is critically important for suppliers to know. Is it going to be a global program that covers all facilities worldwide? Or is the program specific to one geographical region, or only one division of your company? Position your Request for Proposal to provide as much detail as possible about what kind of relocation program your company is seeking. Additionally, be sure to include information about what range of services your company is interested in using.

2. Relocation Volume, Percentage of Homeowners and Renters, Average Home Sale Values

Position your Request for Proposal to include the number of relocations. This information is important for suppliers to know, to ensure appropriate staffing levels and structure for your company’s account service. It is also important information for the supplier to know so they can present the best pricing possible. The percentage of relocating employees who are homeowners versus renters helps the supplier understand the range of services your company’s program should use. The supplier will also be able to provide suggestions on how best to design the relocation program’s features and benefits. For your relocating employees who are homeowners, you should provide the average home sale values over the last few calendar years. This will help the supplier plan for the resources necessary to give these homeowners the best range of services. As a result, they will be able to correctly budget for home sale programs.

3. Position Your Request for Proposal so it Clearly Defines Global Program Needs

Many companies think of relocation programs in basic terms of moving their employee and family members from one location to another. Depending on the locations involved, the employee and their family might need a wide range of services to ensure a successful relocation. Global relocation needs could include any or all of the following services:

  • Assistance with Visas, Work Permits, Immigration
  • Language Training
  • Cultural Training
  • Travel Assistance
  • Property Management
  • Short Term Housing
  • Home Finding Assistance
  • Settling in Services (Driver’s Licenses, Child Care, Utility Arrangements, Interim Health Insurance)
  • Vehicle Lease or Purchase
  • Spouse and Partner Employment Assistance
  • School Searches
  • Pet Arrangements and Relocation
  • Repatriation Services

4. High Level Policy Review, Lump Sums

Provide information about your company’s current relocation policy and program at a high level. Note any tiers within the current policy that are used to provide different levels of service. The number of lump sums is important to include. Many RMCs have structured programs that employees can utilize with their lump sum dollars.

For example, Global Mobility Solutions (GMS) assists relocating employees with maximizing their allocated lump sum relocation dollars through our vast network of partners. Employees can select the options that they need from our a la carte menu of services, providing those services are within the parameters of your company’s specific policy. The dedicated relocation coach provides advice and counsel along the way. Additionally, the coach will explain how to best utilize their lump sum relocation dollars.

GMS’ relocation experts might also recommend an alternative to your company’s lump sums in the form of a managed cap program. The GMS managed cap program gives the employee a specific amount of funds to spend along with the benefit of the support services offered by GMS. GMS provides expertise in policy counseling to the employee on the best allocation of their funds when choosing from an array of relocation services. In addition, they receive guidance on the taxation of particular components. The managed cap program has contributed to fewer budget overages and higher satisfaction levels than the lump-sum option. This results in a maximum benefit for both the company and the employee.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their requests for proposals. We can help your company understand how to position your request for proposal so that it has all of the information suppliers need for them to present the best solutions for your company’s relocation program. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Domestic Relocation Global Relocation

What is a Repayment Agreement in the Relocation Industry?

Cropped shot of a businessman working in his officehttp://195.154.178.81/DATA/i_collage/pi/shoots/805747.jpg

A Repayment Agreement is a legal document that defines the expectation of a specific length of time for a relocation assignment, as well as the employee’s willingness to remain with the company during this time. Companies offer relocation assignments to employees with the expectation that there is a specific length of time for the assignment, and structure a Repayment Agreement should the employee depart prior to the end of the assignment.

During this time, the employee agrees to remain with the company and work to the defined parameters of the assignment. As confirmation of this expectation and agreement, a Repayment Agreement is proffered to the employee, to be signed accordingly. Most companies follow this practice, and it is easy to obtain an employee’s signature on a Repayment Agreement.

Repayment Agreement

Generally, a Repayment Agreement sets forth the timeframe that the company expects the employee to remain working in the relocation assignment. Should the employee leave the company prior to the expiration of the timeframe, the employee would owe the company an amount related to the relocation costs that the company paid to move the employee to the new location.

The amount of the repayment could be the full amount of moving costs, or a negotiated amount agreed upon by the company and the employee. The amount could also follow a graduated scale, reducing over time so the employee’s portion is pro-rated. The Repayment Agreement usually includes a full description of all costs considered for possible repayment, along with the specific amounts for each cost.

Why is a Repayment Agreement Important?

A Repayment Agreement is important for a company to have in place should the relocating employee decide to leave the assignment. Employees under consideration for relocation assignments often have exceptional skills, specific knowledge, and talents that are valuable to the company. Competitors and recruiters search for these employees and make offers of employment.

A Repayment Agreement lets the relocating employee know their out-of-pocket direct costs should they consider leaving their current employer. This usually provides a significant hurdle for competitors and recruiters who might be asked to cover the cost of any Repayment Agreement. Also, since the employee usually does not want to repay these relocation costs, this helps keep them within the assignment. Additionally, should the employee decide to leave, the employer will receive the repayment and be able to use those funds for other relocation costs or further investment.

However, companies should consider how easy or difficult it is to recruit within their industry. Difficulties recruiting employees to work for a company or within an industry might be an indicator that structuring a Repayment Agreement is not in their best interest.

What is included in the Calculation?

A number of costs might be included in a Repayment Agreement calculation. Costs might include any or all of the following, or more:

  • Household goods packing and unpacking services
  • Household goods moving van line costs
  • Travel to and from the new location during the assignment process including
    • Airfare
    • Taxi
    • Tolls
    • Incidentals
  • Costs associated family assistance during the relocation including school searches
  • Spouse or partner assistance including career resources and cultural adaptation
  • Pet care assistance
  • Temporary housing
  • Home sale assistance including commissions and fees (these costs may be considerable in a repayment agreement)
  • Property management costs
  • Home finding assistance
  • Mortgage assistance
  • Vehicle lease or purchase
  • Interim health insurance
  • Child care
  • Visa and immigration costs
  • Tax assistance including gross up costs

What is a Good Length for a Repayment Agreement?

Generally, a good length for a Repayment Agreement should depend on the total costs for the relocation and an assessment of the employee’s value to the organization in the specific assignment. Keep in mind that the relocation assignment is in place to help the company achieve an objective. Therefore, the Repayment Agreement should have a timeframe long enough for the objective to reach fulfillment, or at least meet substantial progress toward a larger, long-term goal.

In general, most relocation contracts require employees to work in the assignment for one to two years. Employees must repay the relocation costs if they depart employment on their own, or if they separate from the company for cause.

How Can a Company Collect on a Repayment Agreement?

While it is easy to obtain an employee’s signature on a Repayment Agreement, collecting a repayment is more difficult. Often, the employee will have departed to a new location. They also may change their address and contact information without informing their previous employer. Companies often rely on internal departments such as Accounting or Human Resources to try to collect repayments. This puts an undue burden on these employees, who may not have skills for collecting repayments from individuals.

A better option is to work with a qualified Relocation Management Company (RMC) that has experience in collecting repayments. RMCs have access to a wide range of resources designed to help clients with their relocation programs, including collections for Repayment Agreements. This removes the burden of collections from the company and lets them focus on pursuing corporate objectives and seeking new hires.

Conclusion

Global Mobility Solutions’ team of have helped thousands of our clients design their relocation programs with appropriate Repayment Agreement provisions. We can help your company understand the importance of inserting appropriate Repayment Agreements into relocation assignment offers, and assist with collections when necessary.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Electronic Logging Devices and the Impact on the Household Goods Moving Industry

"18 Wheeler shot from a low perspective with a Canon digital camera. Exposure is 1/80s, f/22, ISO100. Work path is included."

Beginning in December of 2017, all drivers with applicable tractors had to install and operate Electronic Logging Devices (ELDs). These devices replace the outdated and cumbersome log-book that drivers had been using for several years.

The ELD offers many benefits for both drivers and their respective carriers

Benefits of Electronic Logging Devices

  • Limits the hours a driver can be behind the wheel, which should reduce the number of Tractor Trailer accidents.
  • The device does all of the work and drivers no longer need to keep a log.
  • The Federal Motor Carrier Safety Administration (FMCSA) will be able to track and report on driver trends and statistics with greater accuracy.

However, despite the many benefits that ELDs provide, there are several disadvantages which have negative impacts on the household goods moving industry.

Disadvantages of Electronic Logging Devices

  • Drivers may not drive/work for more than 11 hours in a 24 hour period. There is also mandatory rest time per week. These new restrictions will lengthen the time it takes for the driver to make it to destination, which may increase other costs such as per diems, corporate housing, and rental cars.
  • ELDs start tracking with the pre-trip inspection, which had not typically been included in log books. This will reduce the length of time a driver will be on the road.
  • When the ELD notifies the driver that they are done for the day, they must stop immediately or be subject to fines from not just FMCSA, but also their own van lines.
  • Routes with heavy motor vehicle traffic will be greatly impacted because ELDs measure total time on the road whether the driver is moving or at a stand-still on the freeway. Traffic jams will cause drivers to time out faster.

What should employers with relocating employees expect with ELDs?

Employers who have plans relocate employees should prepare for longer times related to their relocating employee’s household goods move. This may impact employee starting times at their new location, as well as lead to higher costs for the relocation.

What else should employers be aware of?

Driver and Labor Shortage: An additional challenge facing the Household Goods Moving Industry is the driver and labor shortage. Over 40% of drivers are over 50 years old, and are aging out of the business at a very high rate due to the physical demands of the job. The industry has been facing this problem for the past 10 years, and attracting more talent continues to be challenging. According to the American Transportation Research Institute (ATRI), only 4.4% of drivers are in the 20-24 year age range. This could impact the availability of drivers to move household goods for relocating employees, possibly lengthening the time needed to reach the final destination and delay positon start times.

Tax Rule Impact: Also, employers should be aware of the tax rule change impact on moving costs. Employers who choose to gross up moving costs for relocating employees will face higher costs as this benefit is now taxable. IRS Code Section 217 no longer creates a tax payer deduction for the Qualified Moving Expenses of household goods moving costs and final move expenses. These formerly non-taxable employee reimbursements and payments to third party vendors are now taxable income to the employee. If employers choose not to gross up, then going forward these expenses should be treated just like other taxable relocation expenses – reported as earnings to the employees, subject to income and payroll taxes, and reported on their annual W-2 as wages.

What should employers do?

Employers should review their hiring and relocation plans and timelines to account for possible delays related to any household goods moving processes, and the cost impact of the tax rule change eliminating the tax payer deduction for Qualified Moving Expenses.

Conclusion

Global Mobility Solutions’ team of global relocation experts have helped thousands of our clients with household goods moves and everything a relocating employee and their family need during the process. We can help your company understand how to plan for the impact of ELDs as it relates to your relocation program, and the cost impact of tax rule changes. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Visas and International Travel

United Kingdom Changes Immigration Rules for Tier 2 Sponsored Visas

Vector Image of The British Flag

The United Kingdom Home Office is changing the Immigration Rules for Tier 2 Sponsored Visas effective July 6, 2018. The change is in response to growing concern within the business community over the negative impact the current immigration rules are having on hiring efforts for technical occupations.

What is the change to the Immigration Rules for Tier 2 Sponsored Visas?

Starting on July 6, doctors and nurses who apply under the Tier 2 (General) Sponsored Visa rules will be exempt from having to also apply for a Restricted Certificate of Sponsorship (RCoS). This removes these workers from the cap on skilled worker visas.

What is the reason for this change?

Currently, over 8,000 RCoS requests have been refused since December 2017 due to the available quota reaching its limit. Since December 2017 those with salaries below £50,000 have been unsuccessful in obtaining an RCoS. Applicants must receive an RCoS before they can submit a visa application. Thousands of doctors have been denied Tier 2 Visas due to the immigration quotas. The National Health Service has been pressing the Home Office to exempt skilled employees from Tier 2 visa requirements as the immigration quotes restrict their ability to hire medical staff. Starting on July 6, there will be no requirement for prior approvals, and a Certificate of Sponsorship (CoS) can be assignable to an individual following the completion of a Resident Labor Market Test (RLMT).

What is the impact of this change?

This change will allow the National Health Service to recruit talent from outside of the United Kingdom and European Union. This change in turn also increases the availability of up to 1,600 RCoS that health workers no longer require. Employers can use these RCoS for highly qualified professionals in other areas such as Information Technology, Engineering, and Teaching.

What should employers expect with this change?

Removing health workers from the monthly allocation should open up opportunities for recruitment in other business sectors under the RCoS. The business community is hoping that the minimum salary threshold will soon be reduced from the current £50,000 threshold, to further increase the availability of labor for businesses in the United Kingdom.

What should employers do?

Employers should review their hiring plans for foreign professionals in the United Kingdom to determine their eligibility with these changes. They should also monitor the United Kingdom Home Office’s future changes to rules. Changes that may reduce the minimum salary threshold below £50,000 would further expand the available pool of labor.

Conclusion

Global Mobility Solutions’ team of global relocation experts have helped thousands of our clients with country-specific employment and visa requirements. We can help your company understand how to gain the most benefit from the changes to the United Kingdom’s Tier 2 Sponsored Visas. Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

Other Services

Our Technology

Global Relocation

Group Moves

U.S. & Canadian Relocation

About

About Us

Careers

GMS Client Login

Privacy Policy

 

Contact

Contact Us

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904 

Available 24/7/365

About

Contact Us

About Us

GMS Client Login

Privacy Policy

Other Services

Our Technology

Global Relocation

Group Moves

U.S. & Canadian Relocation

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

About

Contact Us

About Us

GMS Client Login

Privacy Policy

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

Accessibility by WAH

Looking for something?