Month: September 2018

Household Goods Moves and Your Relocation Management Company

Post author By Ann Knapp | CRP, GMS, CMC
Post date September 26, 2018

Household Goods Moves and Your Relocation Management Company

Transferees and new hires often require household goods moves from their current location to their new location. Usually this move must adhere to a specific time schedule. It is in the employer’s best interest to ensure that the transferee has a positive and successful relocation experience. A qualified Relocation Management Company (RMC) can ensure that household goods moves are conducted professionally within specific timeframes, and provide service guarantees.

What might transferees and new hires experience by arranging their own household goods moves?

Transferees and new hires that arrange their own household goods moves face several challenges. They may need to set aside a significant amount of time to research qualified transportation options. Once they complete this research, they must obtain estimates for their move. While the Federal Motor Carrier Safety Administration has a number of excellent resources, tips, and guidelines to help people as they look into household goods moves, many employees have little time to spare doing the requisite amount of work to choose a reputable moving company. Additionally, while helpful checklists are useful to understand the basic processes, it may be challenging for an employee to fully understand and be able to compare the information and responses they receive from several moving companies. In some cases, employees may be inadvertently exposed to less than professional services by disreputable moving companies.

How can your RMC help with household goods moves?

Employers should work with a qualified RMC that can provide guidance and assistance for household goods moves. Transferees and new hires should be able to focus on their new position. Also, they should take care of their family and professional responsibilities. A qualified RMC should obtain multiple bids for household goods moves, to ensure best pricing. Also, RMCs should have programs in place to ensure they meet service levels and suppliers meet specific performance criteria.

Global Mobility Solutions’ team of global relocation experts, in a major corporate initiative led by Ann Knapp, Director of Transportation Services, created Curbside Manner™, which is the standard of quality that all GMS Transportation Partners are measured against. Curbside Manner™ requires transportation partners to always treat each customer with the utmost fairness and respect throughout their relocation process. Also, every member of the transportation team must treat each move with the highest level of professionalism, decorum, and service.

What should employers do?

Employers should ensure that transferees and new hires have access to a qualified RMC. The RMC can obtain multiple transportation estimates and arrange household goods moves. They can ensure the highest level of professional courtesy and performance. The RMC will manage household goods moves, so the employee can focus on their new responsibilities.

Conclusion

Global Mobility Solutions’ team of global relocation experts helps thousands of our clients with household goods moves for transferees and new hires. As a result, we can help your company understand how to utilize the full range of Pre-Decision Services, including moving cost estimates, to help ensure successful relocations. 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.

Tags corporate relocation, Domestic Relocation, Household Goods Movement, Household Goods Movement Management, relocation best practices

Global Relocation Tips Relocation Challenges Visas and International Travel

United States Internal Revenue Service Could Deny or Revoke Over 362,000 Passports

Post author By Global Mobility Solutions
Post date September 25, 2018

Blue United States of America Passport Isolated on a White Background.

The Fixing America’s Surface Transportation (FAST) Act signed by President Barack Obama on December 4, 2015, includes a provision regarding a United States Passport and delinquent tax debt. This provision requires the Internal Revenue Service (IRS) to collaborate with the State Department. As a result, the IRS may deny or revoke the passport of any US taxpayer with seriously delinquent tax debt.

What is the issue?

The IRS has issued Notice 2018-1 “Revocation, Limitation, or Denial of Passport in Case of Certain Tax Delinquencies” to provide clarification on the issue.

Section 32101(a) of the FAST Act adds new Code Section 7345. This requires the Treasury Department to notify the State Department if a certification is made that an individual has a “seriously delinquent tax debt.”
Code Section 7345(a) provides that if the Treasury Department receives certification by the IRS Commissioner that an individual has a seriously delinquent tax debt, they must send this certification to the State Department for action and may include denial, revocation, or limitation of the taxpayer’s passport.
Under Code Section 7345(b)(1), a “seriously delinquent tax debt” is an unpaid, legally enforceable, and assessed federal tax liability of an individual. The amount must be greater than $50,000, and for which:
- A notice of federal tax lien is on file under section 6323, and
- The taxpayer’s right to a hearing under section 6320 exhausts or lapses; or
- A levy issues under section 6331.

Additionally, Code Section 7345(f) requires the $50,000 amount to adjust for inflation each calendar year beginning after 2016.

What is the need for Code Section 7345?

The basic concept of Code Section 7345 is to increase revenues. Prior to Code Section 7345, a taxpayer who was seriously delinquent on their tax debts faced limited consequences. Often residing outside of the country, such taxpayers had little incentive to pay their tax obligations in a timely manner.

Who does Code Section 7345 affect?

Code Section 7345 affects taxpayers who have seriously delinquent tax debt with no arrangements to settle. An important point to note is that this tax debt does include penalties and interest. A somewhat manageable $20,000 tax debt can quickly grow to over $50,000 when the amount includes penalties and interest. This in turn will trigger the possible passport denial or revocation. As a result, approximately 362,000 Americans could be at risk of losing their passport. Importantly, taxpayers who are in bankruptcy, subject to tax-related identity theft, or are working with the IRS to create a payment plan will not face passport denials or revocations.

What should employers expect?

Employers should expect that their United States citizen employees on assignment outside of the United States either permanently or on temporary basis are subject to Code Section 7345’s requirements. Employees denied a passport renewal or who have their passport revoked will not be able to move between countries.

What should employers do?

Employers who have US citizen employees on permanent or temporary assignment outside of the country should communicate Code Section 7345’s requirements to these employees. The IRS has remedies in place for taxpayers with seriously delinquent debt to prevent the loss of a passport. However, those employees must take action or face the denial of a passport renewal, or revocation of their current passport.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their country-specific employment, visa, and residency requirements. As a result, we can help your company understand how to respond effectively to Code Section 7345’s requirements. Learn how to respond to IRS and State Department passport enforcement issues that may impact US citizen employees on permanent or temporary assignment. Global Mobility Solutions’ relocation industry and technology experts 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.

Tags global mobility, Global Relocation Tips, Visa and Immigration Rules, Workforce Mobility, workforce mobility management, World Cultures and Customs

Global Relocation Tips Global Relocation Trends Visas and International Travel

India’s Economic Growth Continues and Becomes Sixth-Largest in World, Surpassing France

Post author By Global Mobility Solutions
Post date September 18, 2018

Mumbai skyline view from Marine Drive in Mumbai, India

According to the World Bank’s data for 2017, India’s economic growth has now pushed the country forward to become the world’s sixth-largest economy. With a 2017 Gross Domestic Product (GDP) of $2.597 trillion, India’s economy surpasses France’s 2017 GDP of $2.582 trillion. India’s economic growth is further enabled by its surplus of highly skilled professional workers. According to the Centre for Economics and Business Research, India is on track to also surpass Britain in 2018, becoming the world’s fifth-largest economy.

Where is the growth in India?

India’s economic growth is accelerating across several sectors of its economy. The growth of India’s population adds further accelerant to its rapidly expanding economic growth. Sectors experiencing the greatest growth rates include:

Agriculture
Banking and Insurance
Business Investment
Construction
InfoTech Industry
Manufacturing
Mining
Real Estate
Retail/Consumer Spending

What does this mean?

As Global Mobility Solutions has previously noted, Korn Ferry’s study “Global Talent Crunch” highlights the skilled talent shortage that is impacting countries and specific industries around the world. This same study, however, notes that India is the only country in the analysis that will maintain a surplus of skilled talent through 2030. India’s economic growth is accompanied by a surplus of skilled talent that will provide the nation with a highly vibrant economy and bright prospects for continued success. The government of India will have more resources to invest in infrastructure improvements. Therefore, the population of India will benefit from plentiful job opportunities throughout the nation, across several industries.

What should employers expect?

Employers should expect India’s economic growth will continue to increase. If they are currently selling to India-based customers, this business should be on track for future expansion. Additionally, India offers good prospects for business investment and joint ventures. Employers should examine their business objectives to see how their company can benefit from India’s continued economic success. Since India also has a significant surplus of highly skilled workers, employers should expect that the country will be a good source for talented workers.

What should employers do?

Employers should review their business objectives and hiring plans related to their projects in India, or that result from sales trade with customers based in India. They should also examine the India government’s policies related to work permits and visas, so they can understand and respond to future growth and investment activities in this country. Employers should review their relocation policy to ensure it is designed to attract transferees and new hires from India’s skilled labor force. They should also examine the work permit and visa guidelines in the countries in which they have business locations that would benefit from relocating India-based transferees and new hires.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with country-specific employment and visa requirements. As a result, we can help your company understand how to gain the most benefit from India’s economic growth and favorable business prospects. 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.

Tags global mobility, immigration, India, Talent Management, Visa and Immigration Rules, workforce mobility management, World Cultures and Customs

Global Relocation Global Relocation Tips

Japan’s Labor Reform Law Helps Corporate Japan Rethink Work Styles

Post author By Tamara Molino | CRP, GMS
Post date September 13, 2018

3D Japan flag (with clipping path)see more country...

The government of Japan introduced a labor reform law in June. The law will change Japanese working behaviors that are detrimental to workers and their health. Several high profile examples of workers harmed by overworking led to the creation of the labor reform law.

What is the issue?

The Japanese work culture is famous for its focus on overworking employees. This culture is popularly known as “karoshi,” a Japanese word that means death from overwork. It is ingrained in corporations and is expressed in several ways:

Employees who stay late receive praise for their hard work
Companies frown upon employees who depart work before their supervisors
Most employees feel guilty for taking paid holidays and vacations

One of the most well-known examples of karoshi is the death by suicide of Matsuri Takahashi, a 24-year old employee who put in a lot of overtime at Japan’s largest advertising firm, Dentsu Inc., on Christmas Day in 2015. She had not been able to sleep much after working over 100 hours of overtime a month in the time leading up to her death.

Working 80 hours or more of overtime each month is seen as the threshold level where employees have an increased chance of dying. Many Japanese companies have employees working at this level or even higher. In addition to stress and suicide, other health effects of karoshi include heart attacks and strokes.

What does the labor reform law require?

Japan’s labor reform law:

Requires employers to limit overtime work to less than:
- 100 hours per month
- 720 hours per year
Ensures equal pay for equal work

Skilled professional workers with high wages are exempt from working-hour regulations
- This group includes product developers, financial traders, bankers, consultants, and researchers

Several Japanese companies had already starting taking steps to reduce their reliance on overtime prior to the law’s enactment. They also had been trying new programs to make it easier for employees to take paid holidays. The new law now requires all employers to make specific efforts to reduce overtime.

What should employers expect?

Employers should expect they must comply with the new labor reform law. Several companies have noted positive effects related to their efforts to reduce overtime. For example, SCSK Corporation states that its profits have doubled over a six year time period while they had implemented programs to reduce overtime. Management recognized that healthy and rested employees contribute more to the company’s bottom line performance since they can provide value-added services to customers.

In addition to helping protect employees from karoshi, the new labor reform law creates working environments that are more favorable to women, mothers, foreign workers, younger workers, and mature workers. As Japan continues to face a decline in its working population, the government recognizes that anything it can do to help companies provide better working hours and conditions will in turn draw a larger pool of prospects into the labor market.

What should employers do?

Employers should examine their working culture, policies, and programs to be sure they comply with the new labor reform law. They should develop human resource information systems that will allow reporting on statistics required by the new law.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with country-specific employment requirements. We can help your company understand how to comply with Japan’s new labor reform law. 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.

Tags Workforce Mobility, World Cultures and Customs

Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends

Spain’s Changing Economy Leads to Relocation Opportunities

Post author By Tamara Molino | CRP, GMS
Post date September 11, 2018

cityscape view at dusk — Madrid, Spain financial district skyline at twilight.

Since undergoing a massive retrenchment from 2008 through 2013 when it lost 9% of its Gross Domestic Product in real terms, Spain’s changing economy has recovered and is now transforming into a global technology power center. As of 2016, exports have risen dramatically, with many companies selling throughout the European Union and beyond.

What is causing the change?

Mariano Rajoy, Spain’s Prime Minister from 2011 through 2018, instituted several reforms designed to help the country recover from its economic crisis. These reforms included reducing redundancy pay from 45 days per year worked to 33 days, and moving wage bargaining to the company level, thus making the labor market more flexible. Also, the financial system was addressed by closing under-performing banks that had made excessively risky property loans, and public finances were reformed by cutting the country’s budget deficit.

Mr. Rajoy’s digital agenda led to expansion of Spain’s fibre-optic network for high-speed data transmission, now covering 76% of the population, the highest percentage across all of Europe. Infrastructure investments in Spain have improved transportation and rail networks. Outside of Spain, the global economic recovery has increased demand for Spanish products and services, as well as improved traditional leading sectors in Spain such as tourism and travel.

What does this mean?

As Spain’s changing economy improves and continues its technology-driven transformation, the demand for highly skilled professional workers is increasing. Although the country has several leading universities and a number of technology industry startups, the demand for highly skilled workers is outpacing the number of qualified employees. Spain has a number of registered unemployed workers, but the skills gap is wide for positions in the new economy. Nearly half of job openings through 2030 will require a high level of skills and qualifications. Employers in Spain may benefit from relocation programs designed to attract and retain new hires with specialized skills and experience.

What should employers do?

Spain’s changing economy is driving growth across several industries, leading to a high level of demand for skilled workers. Employers should examine their relocation policy to determine if it is in line with Spain’s requirements for work visas. Consulate of Spain offices in cities such as Los Angeles offer forms, guidance, and assistance for work visas.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with country-specific employment requirements. We can help your company understand how to design your relocation policy so it supports transferees and new hire relocations critical to your company’s ability to grow in Spain’s changing economy. 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.

Tags global mobility, global relocation, Global Relocation Tips, relocation, Relocation to Europe, Workforce Mobility

What is the issue?

What is the need for Code Section 7345?

Who does Code Section 7345 affect?

What should employers expect?

What should employers do?

Conclusion

Where is the growth in India?

What does this mean?

What should employers expect?

What should employers do?

Conclusion

What is the issue?

What does the labor reform law require?

What should employers expect?

What should employers do?

Conclusion

What is causing the change?

What does this mean?

What should employers do?

Conclusion

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