Month: November 2023

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Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips

Employees Not Taking Advantage of Lump Sum Relocation Packages

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Learn why it is essential for employees to utilize every penny possible in a lump sum relocation policy

What is a Lump Sum Relocation Policy?

A lump sum relocation package is a fixed sum of money employers provide to employees being transferred or newly hired. This money is given in place of relocation benefits like assistance with moving household goods, training in culture and language, or help finding a new home. Employers anticipate employees will use the lump sum payment to handle their relocation process.

Employers with employees who have recently graduated from college, individuals who contribute to the company, or those who are new to their careers may be the most suitable recipients for relocation packages that involve a lump sum payment. These workers typically rent their homes and have only a few belongings to relocate. Furthermore, they only sometimes demand substantial investments in talent acquisition since they are vying for positions at a lower level.

When it comes to companies hiring new employees or transferring them to higher positions, it is considered the best practice to offer a variety of advantages. Individuals at more elevated levels often necessitate a substantial investment in recruiting skilled individuals. Providing benefits that aid in successful relocations also leads to increased employee contentment.

Avoiding Risks with Lump Sum Packages

By offering lump sum packages versus a comprehensive relocation package, you may be putting your employees and your business at risk, cutting costs at the expense of employee satisfaction, loyalty, and productivity.

Firstly, it is common for employers to need more money in their lump sum compensation packages to fully cover the costs of relocating their employees. Even if employees can negotiate a higher lump sum amount, they still have to personally pay for relocation expenses, such as storage and labor, to unload their belongings. This is a frequently encountered situation for employees relocating with lump sum packages. 

In most cases, employees relocating with a lump sum package see the financial amount as a bonus and money to move with. The most straightforward example is employees might try to use a local moving company to save some of that cash instead of using a vetted van line company provided by their relocation management company. 

While it seems incredible that the employee can pocket the saved cash, much can go wrong in the relocation process. Using an unorganized household goods shipping provider that cannot handle a rushed family move can cause many more issues than solutions.

What Advantages Do Lump Sum Mobility Policies Offer?

Lump sum relocation packages offer benefits in streamlining the process for employers. The primary advantage is employers and their mobility managers face fewer complexities when providing relocation assistance. Supporting employees during their relocation is simplified to merely addressing inquiries regarding the availability of the lump sum funds.

Employers can also make things easier by simplifying their budgeting and forecasting processes. Instead of spending time and effort trying to figure out the exact costs of hiring or transferring employees, they can use a standard number that applies to all tiers of their relocation program.

GMS Is Here to Help

The corporate relocation specialists at Global Mobility Solutions (GMS) have assisted numerous clients in developing relocation policies that effectively attract and retain skilled individuals. With our expertise, we can help your company by offering exceptional relocation packages, ensuring a positive experience for transferees and new employees.

GMS became the initial relocation corporation to register as a .com officially. Additionally, they developed the inaugural online interactive instruments and calculators, which brought about a complete transformation in the relocation sector. GMS continues leading the industry by being the forerunner in innovative and technological solutions through their exclusive MyRelocation™ technology platform.

Contact our specialists to explore how your organization can utilize one-time relocation packages for new employees and transferees.

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.

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Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Talent Management Talent Mobility Visas and International Travel

Global Talent Shortage Can Be Mitigated With Global Relocation

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Group of business people at the office, two of them shaking hands for successful deal, colleagues around applauding

Learn how offering relocation benefits can help hire top talent

It’s no secret that your company must set itself apart from the competition if you want top talent for job openings. What factors can put your company above the rest when hiring for vacant positions?

Offering relocation benefits to those who have to move for the job could be a great way to lure top talent. But just how much does the offering of global relocation packages help persuade candidates to your side?

Korn Ferry’s study “Global Talent Crunch” highlights the skilled talent shortage impacting countries and specific industries worldwide. Many countries are already facing a skilled talent shortage across several industries. The study examines the talent shortage issue across twenty major developed and developing countries, including:

  • Americas: Brazil, Mexico, United States
  • EMEA: France, Germany, Netherlands, Russia, Saudi Arabia, South Africa, United Arab Emirates, United Kingdom
  • Asia Pacific: Australia, China, India, Indonesia, Japan, Malaysia, Singapore, Thailand

Which industries are most at risk due to talent shortage?

The financial and business services industries are the most at risk due to talent shortage. According to the study, these industries could be facing a shortage of nearly 11 million workers by 2030, with about $1.3 trillion negative impact. Across the globe, technological advancement is at risk due to a skilled talent shortage of over 4 million Technology, Media, and Telecommunications (TMT) workers by 2030. Additionally, manufacturing will have a surplus of workers through 2023, quickly becoming a skilled talent shortage of nearly 8 million workers by 2030.

Which countries are most at risk due to talent shortage?

The greatest vulnerability to talent scarcity lies in advanced nations. France and Germany in Europe and Japan in Asia encounter the highest levels of risk. The United States and Australia also confront a significant deficit in skilled personnel, with the US anticipating a staggering loss of approximately $1.8 trillion in yearly earnings by 2030. Conversely, India stands alone among the countries examined, as it remains in possession of an excess of skilled talent until 2030.

What should employers expect?

Employers should expect to find it increasingly difficult to recruit and hire in several countries and industries. Those with plans to expand into new markets should consider this as they develop their hiring plans and corporate objectives.

Employers finding difficulties hiring and recruiting for positions in specific countries and industries should consider highlighting their relocation program’s benefits in their recruiting materials. The healthcare industry has been facing a critical talent shortage for several years. Healthcare employers have responded in several ways, including:

  1. Providing Exceptional Candidate Experiences
  2. Using Data to Enhance Recruiting
  3. Recruiting for Cultural Fit
  4. Creating a Superior Employer Brand
  5. Speeding the Process to Keep Candidates Engaged

Relocation Management Companies (RMCs) are ideal sources for information on global candidate recruitment and relocation. Pre-Decision Services are critical for employers as they provide valuable information about a candidate’s ability to accept a position and be successful. Assessment data can be paired with structured interview questions to understand better the candidate’s interests, goals, and motivations.

Contact GMS for More Resources

The team of professionals at Global Mobility Solutions (GMS) specializes in assisting companies with corporate relocation, creating effective relocation programs that can successfully appeal to and maintain skilled employees. By implementing industry-leading strategies, our team can help your company design a relocation program that enhances your ability to attract and retain new employees and alleviate the challenges of a talent shortage. 

GMS became the inaugural relocation firm to become a registered .com. Additionally, they developed the initial digital tools and calculators, which significantly changed the relocation sector. GMS persists in leading the industry by introducing pioneering innovations and technological solutions through their exclusive MyRelocation™ technology platform.

Contact our experts online to discuss your company’s relocation program needs.

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.

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

What is Good Guanxi in China’s Culture?

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Learn more about Relationships and Doing Business in China

What is good guanxi (pronounced gwon-she) in China’s culture? 

In some cultures, the task at hand is the primary focus of business. These cultures tend to use clear language and have direct communication styles. It is easy to see whether a product, a transaction, or an activity benefits each party. Relationships are not the primary driver of economic activity.

In China, the main priority in business is building and maintaining relationships rather than focusing solely on completing tasks. The culture in China places great importance on whether a relationship can bring about connections or benefits for both parties. The term “guanxi” embodies these relationships.

Parties that accept guanxi must return it in equal measures. While guanxi can take many forms, it should be seen as given voluntarily. Exemplary forms of guanxi may result in lower obstacles to doing business in China. Guanxi must also be maintained going forward to keep the relationship adequately positioned.

How Should a Company Build Good Guanxi?

A few general guidelines exist for companies that want to do business in China. The company should build a business network with a focus on good guanxi:

  • Introductions should be made by those who already have good guanxi with the prospect
  • First meetings should be in person, not by electronic devices
  • Remember that the relationship is at the personal level, not the organizational level
  • It may take longer to build good guanxi than you might expect
  • Dependability and reliability must be hallmarks of the relationship
  • Trust is with the network and the connections, not with the organization

What are Important Points to Consider for Good Guanxi?

While understanding guanxi will generally help those looking to do business in China, the concept has essential nuances. As a result, working to generate good guanxi may result in poor business relationships. Points to consider include:

  • The downsides to guanxi that sometimes correlate with questionable business practices
  • Fundamentals of business are essential, and good guanxi alone may not provide solutions
  • You must view guanxi across individuals, government structures, and corporate organizations
  • Good guanxi may vary by location, industry, and corporate focus

What Does This Mean?

Companies looking to develop operations or expand business opportunities in China must understand guanxi. China has a distinct culture and rich history, just as all countries do. 

As a result, there is rarely a single answer or a simple guide for a company seeking to do business in China. Research, education, and understanding the importance of business relationships and good guanxi will help companies determine how to proceed with their strategic objectives.

What Should Employers Do?

Companies with plans for business expansion should work with an experienced and knowledgeable Relocation Management Company (RMC). RMCs provide the necessary insight and solutions, including cultural and language training. A trusted RMC can help companies understand China’s culture, history, government, and industrial sectors. Companies should also learn the concept of guanxi and examine how to develop a network of business relationships.

Companies looking to test their expansion efforts in China might benefit from an International Professional Employer Organization. This is a global employment solution where a third party in a foreign country hires employees on your company’s behalf.

Companies contemplating the relocation of newly hired employees or transferees to China ought to assess their relocation schemes to guarantee their competitive edge and ensure that their employees receive top-notch relocation benefits and services.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how they can quickly expand their business operations to new locations. Our team can help your company understand how to develop in China, focusing on good guanxi through relocation or utilizing an International PEO.

Learn best practices from Global Mobility Solutions, the relocation industry, and technology experts dedicated to keeping you informed and connected. Contact our experts online to set up a free consultation.

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Properly managing a visa and immigration program involves meticulous coordination, precise communication, and worldwide interaction with government agencies, corporate personnel, and relocating employees.

At GMS, we provide you with peace of mind in knowing your mobility program is fully compliant and being managed by the best in the industry.

Request a no-pressure, courtesy consultation from a GMS Mobility Pro. We’ll be in touch within 1 business day.

Categories
Corporate Relocation Corporate relocation tips Relocation Best Practices Relocation Management

Reports Show Corporate Relocation Numbers Way Up

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reports and studies are showing that corporate relocation numbers and spending are as high as in 2017

Since the COVID-19 pandemic hit the US, many companies are still trying to return to their old numbers and ways. While we are now coming up on three years since the initial pandemic wave, one sector is finally starting to see the light at the end of the tunnel: the relocation industry.

Many employers or employees might need to learn about such an industry. But relocation management companies (RMC) are vital for businesses getting their employees from point A to point B. To sum it up, an RMC is hired by a company to assist employees in handling all the logistics of their move when they accept a job that requires relocation. From real estate needs to helping ship household goods, there are various services that an RMC can provide.

But like most other sectors, the relocation industry was hit hard when companies had to restrict employees moving around the country for the past few years. On top of that, with so many companies choosing a full-time remote setting, the need to move employees wasn’t as high.

The truth is now that numerous companies need talent and are back to be willing to move that new or promoted employee. As more and more companies and sectors shift back to standard quarterly numbers, so does the relocation industry. Many reports show corporate relocation numbers are back up to where they were in 2017.

Where are these employees moving to?

A recent report by Hire a Helper revealed that Florida has become the most attractive state for corporations to move their headquarters. The Sunshine State saw an 86% increase in corporations relocating their HQ, a record-breaking figure since 2017. The report analyzed Securities and Exchange Commission filings and found that 9% of American corporations shifted their HQ in the past fiscal year. This was mainly due to cost-cutting, favorable tax rates, or closer proximity to target markets. While cities like New York and Seattle have seen a decline in corporate headquarters, smaller towns outside metropolitan areas have become new homes for tech and pharma giants.

New data from the SEC shows that nearly 9% of publicly traded corporations in America, or 593 companies, moved their headquarters in the last fiscal year spanning March 2022 to March 2023. This marks the highest relocation rate in seven years, following a dip to below 7% in 2020 due to the pandemic. Comparing year-over-year figures, the number of corporations relocating their headquarters has increased by 29% from 458 in 2021-22. The trend of corporate headquarters relocation has increased, with more companies choosing to move their offices for various reasons. The figures indicate a significant shift in the corporate landscape and business operations.

According to Hire a Helper’s findings, the current increase in companies relocating their headquarters is the most significant in a decade, surpassing even the rebound seen after the pandemic in 2021-22. This year is proving remarkable, with a 25% rise in the number of corporations moving their HQs

Top Destination Cities for those relocating

Regarding favored locations for corporate headquarters, Waltham, MA, I experienced the most significant increase in corporate net growth among cities during the last fiscal year (+175%). Five companies relocated to this relatively small city near Boston, and none left. Waltham, MA, is home to several remarkable new corporate inhabitants, including biotech and pharmaceutical firms Cogent Biosciences and CinCor Pharma.

Burlington, MA, and Spring, TX, ranked second and third in growth, with a surge of 133% and 100%. Burlington has seen a boom in software and biotech firms, while Spring, TX, grabbed headlines when Hewlett-Packard relocated its headquarters. Additionally, three Florida cities made it to the top 10 list, with Jacksonville, FL recording a net gain of 67%, followed by Tampa, FL at 49%, and Miami, FL at 33%. Which U.S. cities are corporations leaving?

Surprisingly, Cambridge, MA, the renowned university town near Boston, has experienced a significant loss of corporate headquarters compared to the number of new ones gained (40%). The city’s thriving biotech and pharmaceutical industry has left little space for previous industry leaders. Seattle (-37.5%) and several cities in the Bay Area of California have also suffered considerable losses in company headquarters during the past fiscal year. New York City (-13.4%) is among the top 12 cities to have lost corporate HQs.

Reasons Companies are looking to relocate headquarters

Hire a Helper’s research indicates that the primary reasons for Americans to relocate are to find better housing or a new job. However, what motivates corporate relocations? One common assumption is that companies move to reduce expenses, which may entail relocating to areas with lower taxes. This could explain why more businesses are moving into Florida and Nevada rather than leaving. The Tax Foundation’s 2023 State Business Tax Climate Index measures how taxing state taxes are for businesses, and Florida and Nevada are among the ten states with the least tax burden. Meanwhile, Texas, which does not have a corporate tax, is in the 12th position.

Corporate relocation can be motivated by the high cost of office space, particularly in cities with expensive business rental costs. This is evident in the net losses of corporate HQs in cities like New York City and San Jose, where office rent levels are among the highest in the country. The pandemic-induced rise of remote work has further compounded the issue of high office space costs. As a result, major cities in America are grappling with high office vacancy rates as companies either continue to operate remotely or adopt a hybrid work model. To address this challenge, these cities require support and innovative solutions.

According to Hire a Helper’s examination of SEC filings from 2022-23, 62% of companies that relocated their headquarters in the past year chose to move to cities with smaller populations, which typically have lower rental costs. This trend is gaining momentum.

GMS Is Ready If You Are

Global Mobility Solutions (GMS) is here to assist you with relocating your headquarters or employees. Since 1987, GMS has been there to help employees get from point A to point B.  Our wide range of services and expert relocation specialists allow your company to get the necessary package. GMS will assist your company in putting together a global relocation plan that makes sense for your company and employees, all while staying within a realistic budget. If you’re ready to hear more about how GMS can help save your company money on relocation costs, contact us today to schedule a free consultation.

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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

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