Category: Corporate Relocation

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Rising Interest Rates Impact Job Relocation Transferees

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Couple discussing new financial strategy

Some options to include in relocation packages to help offset high-interest rates costs

As we enter peak move season, many are taking notice of the rising interest rates on mortgages. There is no doubt that this affects anyone who is relocating for a new position. In addition, interest rates have a significant say in the bottom line of monthly mortgage costs, which could sway a transferee’s decision on a home purchase. 

Add rising interest rates to the significant increase in average home prices, and the impact on purchase power shifts for many who are relocating to a new state. But why is this happening? And what can companies do about it to help employees in their relocation process? 

While there’s no magic relocation package that can include a lower interest rate or first dibs at bidding on a home, there are a few workarounds that might be able to ease the process for the transferee.

Will Interest Rates Continue to Rise?

Many real estate experts would predict that interest rates will continue to rise in the immediate future. With rates going up, the Federal Reserve has begun to pull back on the purchase of mortgage-backed securities (MBS). This will likely hike up interest rates because the return rate on mortgage bonds has to be higher to bring in investors. 

The Federal Reserve controls the percentage of the Fed funds rate. But that does not mean there is a direct correlation between short-term interest rates on funds from banks and consumer interest rates. If it becomes more expensive for banks to borrow, they are more likely to pass that cost on to consumers through higher interest rates. This is the main reason for those predicting interest rates to rise in the coming month.

It’s worth mentioning that interest rates were low for so long to boost the economy while the world dealt with the COVID-19 pandemic. This favored higher home prices because lower interest rates meant that buyers’ budgets could be stretched further.

Updating Relocation Policies Can Help Offset Higher Interest Rates Costs

Hiring and maintaining top-level employees can be challenging. To get the right person in the right seat, companies should look into offering relocation packages to ensure they have the best chance of landing top talent. But what should be included in a talent mobility package to help offset these higher interest rates? 


Here is a breakdown of some different relocation policies that can help transferees on the real estate front.

Please note that all numbers and figures used are for example purposes only and not to be used as quotes for the home buying process.

Offer to Pay for Points

It is common for companies to include prepaid interest assistance in their relocation benefits. Buying points is a way of lowering the interest rate on a loan by putting money down upfront. If companies can include this option in their relocation packages, it could save thousands of dollars over the course of the loan. 

For example, let’s say the home the moving employee is looking at is $300,000. To keep the example easy we’ll just say the loan rate is 4%. If the company is willing to add prepaid interest assistance in their benefits, the company could pay $6,000 upfront to buy two points, which gets the interest rate down to 3.5%. While this doesn’t sound like such a difference-maker, it could save the home buyer just over $30,000 on a 30-year loan. 

Add a MIDA to the Relocation Package

Another great option to help transferees deal with high interest rates is to have a Mortgage Interest Deferral Assistance (MIDA) program included in the relocation benefits. This is another form of buying points down, but instead of paying for the decreased points upfront, the company would offer to pay the difference in interest between the former mortgage and the new mortgage. 

How this works is let’s say the moving employee has a current interest rate of 5%, but due to the market conditions when they move for the job, the interest rate they get locked into is 6.5%. The business could pay the employee the price difference on the monthly payment. This can help the employee stay afloat financially and still have some wiggle room when searching for a home in their new destination. Typically MIDA has a cutoff of about 1-3 years once the transferee’s relocation process is complete.

Include a Dollar-Based Mortgage Subsidy

This option works best for companies who want or need to know how much they will spend on mortgage assistance for moving employees. A dollar-based mortgage subsidy works because the organization is willing to pay a total of $25,000 to help the transferee with mortgage and interest rates. Instead of giving all the money upfront, the company could provide the employee 40% in the first year, 30% in the second year, then 20% in the third year, and finally, give them the last 10% in the fourth year. 

This strategy is popular for relocation managers because it lowers the transferee’s monthly mortgage payment while the company knows precisely how much they are spending upfront for the four-year option.

Work with GMS for Relocation Needs

Global Mobility Solutions (GMS) has been the relocation industry leader since 1987. Our expert team of relocation specialists has helped countless transferring employees get from point A to point B. In addition, we take pride in offering companies a way to tie in real estate programs into their relocation policies that provide options to help with rising interest rates. 

Many pre-decision services can also help the moving employee gain some buying power for their new home. For example, when working with GMS, clients have access to the best relocation technology, such as our mortgage calculator. 

When working with GMS, companies and transferees are not tied down to work with one mortgage broker. Instead, we work with a long list of vetted and qualified lenders to ensure moving employees get the best rates. In most cases, transferees can get lower interest rates than if they shop independently. In addition, our extensive lender list gives transferees different home buying and selling options for relocation. 

GMS knows firsthand how hard it can be to hire and retain top talent, so we want to help create competitive relocation packages that make the talent mobility process seamless for employees. Reach out to us today to schedule a free consultation on how our team can help set up mobility programs.

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Why Relocation Services Should Include Spousal & Partner Support

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Happy couple carrying cardboard box and pot plant in new house

The Importance of Providing Spouse & Family Support for a Successful Relocation Process

Relocating for a job can bring many new opportunities to one’s professional career. But moving to a new destination for a job can also mean uprooting a partner, or even an entire family. When a candidate accepts a new position and agrees to move for the job, many negotiate to get relocation costs covered by the new company. Companies that are regularly involved in the talent mobility process work with relocation management companies (RMC) to construct relocation packages that are enticing and helpful to employees. 

But do these relocation benefits ever include any support for the transferee’s spouse or family? Any modern RMC representative would highly recommend including partner/spousal support and family support offerings to recently hired employees. There are many reasons companies should be happy to help ease the transition for their new employees’ families. For example, if the employee knows their family will have an easier time moving, they are more likely to accept the position. Finding the right candidate quickly cuts down on the time of the job search. Also, knowing their family will be taken care of during the relocation process because of special relocation benefits, the employee can have their mind on their work. 

There is no one size fits all relocation package. Each talent mobility assignment is different and should be treated as so. With that being said, there are numerous relocation services that RMCs can provide to moving employees’ spouses and other family members. Let’s look at some of the more common programs worked into the relocation process.

Area Orientation Trips

Orientation trips are a relocation benefit that tends to get overlooked. Many RMCs would recommend that companies cover at least one or two (if not more) orientation trips for the employee and their partner/spouse. The main reason to add this into a relocation package for the employee to utilize it as a house-hunting trip. Including this service helps the employee and their family get somewhat familiar with the lay of the land for their new destination. These trips can also be used to check out different schools and activities for those relocating with children. Taking a tour of a local school might help the family decide which neighborhood they might want to settle in. If the transferee’s kids play sports or participate in other after-school activities, then take advantage of the trips to meet and greet with coaches and directors so that they are not starting from square one once arriving in the new city. Area orientation trips can give kids and spouses a new, exciting spin on the move if a dream house is discovered while house hunting.

Spousal Career Services

Another perk that should be included in relocation packages is career services for the moving employee’s spouse or partner. It’s not unusual for a domestic partnership to make up a dual-career household; this means if the family is moving for one person’s job, there is a chance the other will have to quit or alter their career. But there are ways that companies can work with RMCs to include spousal career services in their talent mobility benefits. These programs can offer comprehensive career assistance along the lines of: 

  • Quick Start Job Search Preparation (marketing tools, job search assistance manual)
  • Job Search Assistance (market information, access to searchable data)
  • Personal Branding (online profiles, personal website, blog, video)
  • Partnering Services (online courses for job search execution)
  • Resume Writing Services (resumes, cover letters, LinkedIn profile)

Spouses who are moving with their partner can use this time to their advantage. Some people hold off on a career change, but right after a relocation could be a perfect time. If the moving spouse has to resign from their current position anyway, then it could be a new beginning they need to switch industries or positions, maybe even start their own business. In very lucrative relocation offerings, there may even be grants and financial support benefits for the employee’s spouse to get special training for a new job. And sometimes, some RMCs might even work in entrepreneurial opportunities for relocating partners.

Language Training

For international relocation services, language training might be one of the most essential benefits needed. Those who relocate to a new country with a spouse and children will more than likely have to learn a new language. Learning a new language can be difficult if the family has not been preparing for it for a few years leading up to the move. Companies that plan to interview, and ultimately hire, global candidates should seriously consider covering or reimbursing for classes and tutoring for the employee and their family members to learn the language of their new home. Language training programs give the spouse and family a better chance of adjusting and liking their new surroundings making it more likely that the employee can succeed at their new job as well.

GMS Offers Relocation Services with Spousal Support

For international relocation services, language training might be one of the most essential benefits needed. Those who relocate to a new country with a spouse and children will more than likely have to learn a new language. Learning a new language can be difficult if the family has not been preparing for it for a few years leading up to the move. Companies that plan to interview, and ultimately hire, global candidates should seriously consider covering or reimbursing for classes and tutoring for the employee and their family members to learn the language of their new home. Language training programs give the spouse and family a better chance of adjusting and liking their new surroundings making it more likely that the employee can succeed at their new job as well.

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How to Overcome Relocation Challenges

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Downtown Denver, Colorado, USA Drone Skyline Aerial Panorama.

The most significant obstacles when relocating an employee

Relocating employees can be a trying process. There are lots of moving parts involved. From handling the company’s needs to the employees’ wants, along with the vendors’ schedules, there are various pieces to fit perfectly to make the relocation process as seamless as possible. Like with any other corporate process, some challenges may occur. Relocation challenges can affect both the company and the relocating employee in many ways. 

While each talent mobility assignment is different, companies can stay ahead of these obstacles by setting relocation policies. These policies are typically built in collaboration with and managed by a relocation management company (RMC), which provides the services through a vetted vendor network. Having relocation packages ready to go can help, but that does not mean that relocation challenges will not arise through the employee’s move. 

Global Mobility Solutions (GMS) has provided companies with comprehensive and award-winning relocation services for employees since 1987. With that said, we’ve overcome our fair share of challenges while assisting people through the relocation process. Our qualified team developed unique solutions to these challenges in each case, ensuring a stress-free move for our transferees and their families. These challenges listed below are not a definitive list for potential issues that may pop up, but are some of the more common relocation challenges:

Relocation Costs

Probably the most direct challenge to point out is providing new hires or promoted employees with relocation benefits will cost the company money. But, again, working with an RMC can help assure that the company offers the right amount of benefits while paying an affordable amount. You have to spend money to run a business. If you do not provide any financial backing to an employee for a move, you are only shrinking your talent pool because only local candidates will apply. This makes spending money to relocate employees worth it, knowing your company can get the right person in the right seat.

Buying and Selling Homes

A primary concern many employees have before moving is selling their current home and buying a new house. While the real estate market is up right now in most major cities around the US, there is still a chance that the employee may need time to prepare their home to be sold, or it could be on the market for a while. This may affect the employee’s available start date. Additionally, when relocating to a new state, it can be difficult for most people to buy a new house without freeing up the equity from their current home.

When putting together relocation packages for your relocating employees, including real estate sale programs such as a Direct Reimbursement or Buyer Value Option program is strongly recommended. These special home selling programs give employees more options during their move and are an excellent way to overcome this relocation challenge.

Job Start Date

Another tricky situation many run into when hiring out of state is knowing when to set the employee’s job start date. Because each relocating employee will have different needs, it can be hard to know precisely how long the process will take. Once the job offer letter is signed, employees typically put their two-week notice in with their current employer. Then the question becomes, what period of time is reasonable to expect the employee to be at their destination? Timeline differences may arise between a college graduate who is a renter and a VP homeowner with a large family. Consideration should be given to each employee and their situation.

A good workaround for employees moving with families is to offer corporate housing options. This allows the employee to get to their new destination to start work and have a reliable place to live for about 30-90 days while their family is given more time to finish the move at the origin location.

Household Goods Shipping

When an employee has to move, they’ll need their household goods to get from point A to point B. This step of the relocation process can be a headache if not handled correctly. The last thing the employee wants or needs is to have their belongings show up late due to a kink in the system. If working with an RMC, it is worth asking how they vet their moving companies and what they look for when assigning movers to employees. Significant cost savings can be realized through a competitive bidding process where the RMC gathers multiple quotes from moving companies for company approval.

GMS Can Help Overcome Relocation Challenges

While all of these relocation challenges widely vary, the best way to cover all of them is to work with a qualified RMC such as GMS to help write and manage your relocation policies. Our team’s goal is to help make your employees’ relocation process as stress-free as possible. We have team members who specialize in both domestic and international relocation. 

Feel free to reach out to us today to get started on a courtesy consultation with our industry experts, where we can review and provide feedback on your current relocation programming. If your company does not currently offer talent mobility benefits, we can also help you in your efforts to create a competitive relocation benefits program. Don’t let relocation challenges keep you from hiring and obtaining the top talent in your industry.

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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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The Most Googled Questions About Relocation Services

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Answering common questions about relocation packages and the global mobility process

Companies that are just starting to research information about relocation services may need to get some of their basic questions answered. Global Mobility Solutions (GMS) has been a leading relocation company for over 34 years. Our team members are all highly qualified for their positions and are experts in their specialty regarding relocation services. As there are a lot of moving parts when it comes to relocating employees, our team put this guide together in hopes of providing some answers to the most Googled questions. Most of these questions are commonly asked when companies with in-house programs (or no program) are considering outsourcing their mobility programs to an experienced relocation management company.

Here are those Q & A’s:

What Are Relocation Services?

Also known as talent mobility or global mobility, corporate relocation services are benefits provided by an employer or agency to an employee who has to move for a new position or promotion. In simple terms, relocation services are “moving perks.” When the employee accepts the position, they are provided with some different options to help them get to their destination smoothly in time for their start date. Depending on what type of benefits are offered, relocation services usually can be applied to individuals and families alike. International relocation and domestic relocation services are slightly different, but the idea remains the same. 

In most instances, the hiring company will have already signed on with a relocation management company (RMC) to construct and deliver comprehensive relocation packages in order to ensure their talent acquisition program is as competitive as possible.

What’s Included with Relocation Services?

Relocation packages offered to employees should be tailored to fit the company’s objectives, along with employees’ wants and needs. Relocation services can vary in what is offered to, and utilized by, the employee. Common benefits range from assistance in selling a home to temporary housing assistance, school/area tours, and more.

Often, the most common theme among talent mobility perks is financial help with moving costs and shipping of household goods. Sometimes, the company will even offer to cover the cost of hiring moving services completely. Other companies may offer reimbursement options for relocation costs, meaning the employee foots the bills upfront to get to their new destination and the company repays them usually via check or EFT payment. 

Side note: GMS recommends that companies offer employees relocation packages instead of reimbursement options. At GMS, we assign each moving employee a dedicated single point of coordination (a U.S. Domestic Relocation Coach or a Global Assignment Manager). This certified GMS team member is highly experienced in their field and will provide guidance to your employee every step of the way during the relocation process.

How Much Can You Expect to Spend on Relocation Services?

That’s an excellent question. From the hiring company’s standpoint, paying to provide relocation services will depend on a number of variables. How many employees need to be relocated? Are these employees individuals or moving a family with them? Is the company willing to cover the costs of the entire move or just partial support? Are real estate perks offered in the package? 

Going back to the idea that relocation benefits should be tailored to fit the company’s objectives and employees’ needs, it’s hard to put a price range on just how much relocation services cost. Relocation costs are typically worth it in the long run because it increases the chances of getting the right candidate in the right seat for the vacant position. These employees arrive stress-free and ready to work, and are shown to stick around longer. Without global mobility benefits, your company runs the risk of having to hire and train multiple people over because only local talent is applying for the job.

What’s the Average Timeline for Relocating?

When helping companies create their relocation benefits, GMS usually recommends that there be a designated timeframe in which the policies can be utilized. This timeline will vary from company to company, or position to position. In many cases, a 90-day window for employees to start their relocation process does the trick. Employers need to keep in mind that these new-hire employees may have families, and trying to move a family with children is something that cannot always be done within a few weeks. Additional factors should be taken into account as well, such as the time it takes to sell the employees home, or the availability of transportation services for their household goods.

In extreme cases, the company might give the employee a start date within a month of the offer. But the downfall with this approach might be the employee may decline the offer, or the company’s relocation costs will increase if services are needed ASAP and not planned out.

What if an Employee Doesn’t Use/Need Every Relocation Benefit Offered?

GMS prides itself in our proactive relocation coaching. By having a Relocation Coach or Global Assignment Manager assigned to each employee, GMS helps to ensure the relocator is using the right mix of benefits for their unique situations. This can help them to get the most out of their available and applicable benefits, whether it be helping with moving costs, spousal support, or language training. GMS’ relocation experts help to pinpoint why employees may or may not utilize certain benefits to make sure the employee is getting the support they need without contributing to inflated mobility program costs due to the use of unnecessary services.

What Is Corporate Housing?

When thinking about accepting a job out of state, one of the most sought-after relocation benefits is corporate housing. Also known as short-term housing, this benefit is recommended for employers to provide as it might seal the deal for the new hire to sign on.

Corporate housing is usually a 30, 60, or 90-day stay in a furnished apartment or townhome that is covered by the employer. The reason this is such a draw for relocating employees is because it gives the employee and their family a transitional period to get their feet wet and learn a little bit about the lifestyle of their new destination. This period of time is also valuable as it provides the employee a place to live during the period of time it takes for them to secure a new place to live and await the delivery of their household goods. It also can be used for a situation where the employee has to go ahead of their family for the job, while their family finishes up any loose ends before the relocation completely takes place such as kids finishing the school semester.

How Often Should We Review Relocation Benefits?

GMS urges companies who are offering relocation packages to look into reviewing or updating those benefits every 12 to 18 months. The reason being, industries become more competitive and employee needs can evolve. If a competing company in your industry is offering more money or benefits to new hires, it could make it harder for your company to attract the top talent you need.

GMS Is Here to Answer All of Your Relocation Questions

When it comes to your talent mobility strategy, there are thousands of questions about where to begin or how to improve. The relocation experts at GMS have been helping companies move their employees for over three decades. If you have any questions about creating, reviewing, or improving your mobility program or relocation services, please reach out today. Our team can answer any questions you may have while offering insight into alternatives and enhancements to already existing relocation packages.

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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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Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Employee Development Talent Mobility

Why Small Business Relocation Benefits Are Important

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What Small-To-Medium Sized Businesses Need To Know About Offering Relocation Services To Candidates

Small to midsize businesses offer employees different advantages from larger corporate entities. Many employees gravitate towards smaller organizations because they feel like they’re treated as a person instead of a number. They may also feel that the job at hand is making a difference and feel included in major decisions. However, many smaller companies often have a tough fight to get top talent when hiring. When a highly qualified candidate is available for a position, it’s common for a larger company to out-match any offer the smaller company can muster. From salary and benefits, companies with deep pockets can spend what is needed to attract and retain their talent. This includes benefits such as relocation services for attracting candidates who might live outside of your immediate region.

When a company, no matter the size, can provide relocation services to their employees through a relocation management company (RMC), it opens up the talent pool for job openings. Most HR reps from smaller companies will probably just assume that their company cannot afford to offer relocation packages to interview employees. But when working with a qualified and experienced RMC, balanced relocation policies can be developed that are both affordable for the company and help your HR team find the best candidate for the job. 

Let’s take a look at how offering relocation services to job candidates can help smaller companies when hiring for an open position:

Relocation Services Open Up the Talent Pool

When posting an open position, companies want the highest qualified candidates to apply. If the company is willing to relocate employees for new positions or promotions, then the talent pool is much wider since they’re able to cast a wide net that can include candidates from out-of-state or even internationally. Being able to choose from numerous resumes for an option position is a good problem to have and will give the hiring manager a wide range of skills and experience to consider for the role.

Reduce Vacancies with Relocation Services

Not every open position is filled within a few business days. If your company is only able to hire candidates from your local metropolitan area, it could take longer to find the right person. When anyone, from anywhere, is able to throw their name in the ring it can help with a quicker hiring timeline.

It Speaks Well to the Company's Culture and Brand

If a company were to just promote a position in the state where they have operations, and hire with whatever applications they were given (even if they are not the best possible talent), it may come across as a cost-saving measure. The offering of relocation benefits goes a long way to show that the company values its workforce and will do whatever it takes to get the right person in the right seat to ensure success for the entire team.

Improving Employee Retention with Relocation Services

Relocation benefits often are associated with new employees, which might be true in most cases. Many companies don’t realize that if they offer relocation packages it can also help existing employees and their ability to develop and move up within the company to new roles. For example, if an employee outgrows their current position and into a leadership role, the company can move that employee to a new location for the new position. This can also help improve your company culture because employees can be confident that they can grow within the company and that the company isn’t afraid to invest in their workforce. 

It’s also a benefit to the company because they can move existing employees to varying locations to fill any skill/capability gaps instead of always needing to hire from the outside. Relocation services open up new possibilities for small to medium-sized businesses through capabilities such as short-term and long-term assignments, allowing your employees to oversee temporary projects in other company locations, open new offices supporting your company expansion, or perform other valuable functions that require a long-term (but not permanent) presence.

GMS Is Here to Help Small Businesses Compete with Relocation Packages

Global Mobility Solutions (GMS) has been helping companies of all sizes create competitive relocation policies for companies for almost 30 years. A full service relocation company, we listen to your wants and needs, then help develop a mix of the best relocation services possible for your organization. Our consulting team will make sure you are keeping up in your industry and offering the best perks possible to get the best candidate. 

If you’re a small or midsize business owner or business HR manager and have questions about global mobility policies, please reach out to GMS today. Our relocation experts can help you through the entire process of creating or updating your relocation program.

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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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States and Cities with Great Relocation Incentives

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Madrid, Spain financial district skyline at twilight.

These Cities Are Offering Government Relocation Incentives

New Year’s is the time for new beginnings. It’s usually around this time of year people start to reflect and make major changes. For many, there is no life change larger than moving to a new city or state. If you’re moving for a job offer, hopefully, the new company is offering a competitive relocation package to help with moving costs. But what about the people who were informed this year that they will be working remotely full time moving forward? If you could live and work anywhere, where would you go?

Many companies announced in 2021 that they do not plan to ask employees to come back to work in an office building with any regularity. With that said, now that many employees no longer have a daily commute to a cubicle, they are starting to think about where to live. Places with good weather and affordable housing are, of course, on top of everyone’s list. Since many of these moves are the personal choice of the employee, very few companies are providing relocation benefits. However, there are numerous relocation incentives being offered by cities and states that can help reduce relocation costs. The list below is a follow-up to our previous blog about reducing moving costs through relocation incentives that are being offered by certain cities. 

Moving can be expensive but taking advantage of these government relocation incentives can help ease the financial hit. Check out what these cities are offering:

Topeka, KS

A very lucrative relocation incentive deal, Choose Topeka is offering those who move to the city to work on-site up to $15,000 in funds for the purchase of a home and as much as $10,000 in funds for renters. There is also an option for remote workers who move to the area that equals $10,000 in home purchase assistance and up to $5,000 for those looking to rent.

Newton, IA

For most, one of the most costly needs involved when moving is buying a new home. Newton, Iowa is willing to help with that cost. If you move to Newton, you can receive up to $10,000 cash plus a “Get to Know Newton” package. This offer is for single-family homes that begin construction before 2023. This program is for new-build homes. Unfortunately, renters do not benefit from this relocation incentive.

Chattanooga, TN

Chattanooga, Tennessee is quickly becoming a well-known hub for entrepreneurs and innovators. GeekMove is a program designed to assist computer developers in relocating to Chattanooga. The biggest perk of this package is GeekMove’s offer to offset the initial costs of homeownership by providing a second, forgivable mortgage. This should provide more housing options for prospective buyers as it will make houses more affordable to the average buyer. The catch is that this offer is only good in pre-defined neighborhoods. On the flip-side, there are plenty of great neighborhoods to choose from, including some revitalized historic areas.

Alaska

Alaska has long been known for offering incentives to move there. There are numerous programs that help future residents reduce the cost of their move to the state. One of the more sought-after relocation programs is the Trade Act. The Trade Act offers allowances to help people move to Alaska once a position is accepted. In some cases, up to 90% of relocation costs can be covered for the employee and the immediate family. This allowance can be used towards the shipping of your household goods, one of the most expensive facets of any relocation. As a bonus, most people can qualify for a lump sum payment of $1,250 to help them get settled into their new Alaskan home.

GMS Relocation Programs

GMS is here to help you craft competitive relocation policies while taking advantage of the relocation incentives programs offered by various state and local governments mentioned above. Contact us today to talk about how your company can obtain and retain the best talent from anywhere. Don’t let location prevent your company from having the best candidate in the right position.

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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Choosing a Relocation Company Corporate Relocation Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Global Mobility Relocation Best Practices Talent Mobility

A Complete Guide to Relocation Services

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The City of London, financial district of the Metropole, just after sunset with illuminated buildings and cloudy sky, United Kingdom

Moving Out-of-State for Work? Everything You Need to Know About Relocation Services

There’s little question that today’s job market is becoming more competitive. Many qualified job seekers receive multiple job offers, weighing the pros and cons of each. Employers who can offer the best compensation and benefits typically land the best talent. Typically, many people think of common benefits, such as health coverage, dental insurance, or 401k options. However, a benefit that is often overlooked when extending an offer to out-of-state job seekers is relocation assistance.

 

When sending out offer letters to job candidates, companies should consider including relocation services. Relocation benefits may be the deciding factor for your preferred candidate as moving their family out-of-state is not cheap. With the right relocation package available to them, the employee can feel at ease knowing the company has their best interests in mind. HR departments that help relieve the employee of the burden of moving by including relocation services in the hiring process note increased job acceptance rates and employees that arrive at their destination ready to work. 

 

Oftentimes, companies will work with a relocation management company (RMC) to develop and manage their relocation programs while delivering a wide range of relocation services. From the packing and shipping household goods to the delivery of visa or real estate assistance, there is a lot that goes into family moves. A reliable RMC can help companies have competitive relocation packages ready and will coach the moving employee and their family through the entire process. 

 

Additionally, for companies that provide their employees a lump-sum relocation package (in lieu of a comprehensive relocation policy), having an RMC on your side can be a great benefit. The relocation company can provide value-added assistance to the employee by helping them manage their lump sum budget, source vetted vendors, such as household goods movers, and provide access to technology that will assist the employee with their self-managed relocation.

Advantages of Relocation Services

There are plenty of advantages to leveraging relocation experts when utilizing relocation services in your talent acquisition efforts. The first and foremost benefit is a reduction of stress on your workforce. Moving across town is hard enough to coordinate but managing an out-of-state move while trying to start a new job is even more difficult. Relocation Consultants (Relocation Coaches at GMS) can help with the coordination of the move, allowing the employee to focus on their new job position and the onboarding process.  

 

Cost savings is also another advantage that both the company and the employee will enjoy. For the employee, relocation costs can represent a significant financial burden. Largely, companies that offer relocation benefits include expense management as a core portion of their relocation policies, essentially providing financial assistance for a range of approved benefits related to the move. 

 

Additionally, companies themselves can realize savings on the cost of relocation services through the usage of an RMC with a vetted and competitive network of providers. The usage of a multiple-bid process allows the RMC to “shop around” to obtain competing quotes of key services, such as household goods transportation. This results in a more cost-efficient program and increased customer satisfaction. 

 

Time management is another huge advantage. RMCs have helped thousands of people move before with established processes and technology, so they are prepared to make it as time efficient as possible. The RMC will perform the coordination of services, such as booking short-term housing, setting dates with movers, and assisting with the sale of the employee’s home. 

 

This time savings is beneficial to a relocating employee as they may only have a few weeks to get to their new destination. By allowing a quality relocation management company to orchestrate the relocation, you can mitigate the risk of delays, which could potentially push back an employee’s start date.

What Is a Relocation Package?

Relocation packages, also known as relocation policies, are benefits and support that companies offer employees who are transferring to a location for a position. These policies cover a range of supporting benefits spanning a wide range of relocation-related services. These may include visa/immigration assistance, real estate/rental assistance, the shipment of the employee’s household goods, global tax services, culture/language training, temporary housing assistance, spouse/partner career support, miscellaneous expense allowances, and more. 

 

There are a variety of different relocation packages that a company may offer an employee, with differing levels of support that are aligned by the employee’s position, their assignment, or other factors, as determined by the employer. As every company has differing needs and objectives related to their workforce mobility program, the specific structure and benefits offered in their policies will vary from company to company. However, it is common practice across many industries to utilize a multi-tier program, generally separated by employee level.

What Should a Relocation Package Include?

The most common relocation services will include most of the basic relocation needs including:

 

Moving services: The transportation of the employee’s household goods is one of the most needed relocation services. Safely packing, shipping, and storing the employee’s household goods is a critical relocation benefit offering. 

 

Short-term housing: Also known as corporate housing or temporary housing is a benefit that typically includes 30, 60, or 90 days in a furnished apartment while the relocating employee finds a full-time home in their new area.

 

Real estate & rental support: Buying and selling houses can be a confusing process. Most relocation service providers urge companies to include real estate assistance in their packages. Home sale programs allow employees to have options when it comes to selling their current home. Assistance with home finding is also commonly provided, allowing the employee to tour their destination and look at properties that align with their needs. For renters, benefits may include lease break assistance with their current apartment, tours of communities at their destination, and lease negotiation services.

 

Visa and immigration support: For companies that move employees internationally, assistance with the visa and immigration process is important. With the complex range of laws, visa types, and reporting rules, leveraging your RMC’s immigration experience will ensure your company is compliant with international laws.

 

Other benefits: Apart from the above, most companies decide to include the following relocation services: pet moving specialists, automotive transportation, destination services, travel assistance, family support programs for spouses and school-aged children, expense management services, and more.

How Much Do Relocation Services Cost?

The cost of relocation services and packages will depend on the policies that the company is willing to offer for new or promoting employees. It can also depend on the specific needs of the employee who is moving. How many family members is the employee relocating with? What size is their home and what support is needed to move their personal items? Does the company feel the need to cover auto transportation? Does the employee have a home to sell or a lease to break? Is the employee receiving a comprehensive benefits package or a streamlined lump sum?

 

Depending on the answers, the total costs can vary. It is important to have a conversation with your relocation management company regarding program costs, methods of cost control, and when and where to use certain relocation benefits. Robust and detailed reporting should be provided by your RMC to ensure you have complete visibility into your program’s total spend and where that money is being spent.

How to Address Relocation Costs

Relocation packages have a range of what they can and cannot cover. Some of the more common methods used to address relocation expenses include:  

 

Direct Billing: The RMC will source, coordinate, and pay the vendors hired in the relocation process. Invoices are handled and later paid by the employee’s company. This type of expense management can be pricey for the company but ensures the moving employee gets the most bang for their buck. 

 

Expense Reimbursement: This solution is set up to where the employee pays for all relocation expenses upfront, then receives compensation checks from their employer after the move is complete. This type of package can be tricky to handle if the benefit is not written by a professional RMC. 

It is also common to see a blend of direct billing (for large-ticket items, such as HHG transportation costs) and expense reimbursements (for smaller relocation expenses that may be covered by a miscellaneous allowance provided by the company).

 

Lump Sum: A lump sum relocation policy is basically a set amount of money given to the moving employee upfront to handle any moving costs as they see fit. Usually, the most popular type of relocation package due to its ability to provide simple controls over costs and easy budgeting, this method also provides the least amount of support to the employee and exposes them to potential risk.

 

Core-Flex: Some RMCs can offer core-flex relocation packages, where the relocation policies incorporate a core relocation benefit section, along with a menu of optional benefits. For example, a core relocation benefit may be HHG moving assistance. An optional “flex” benefit might include spouse/partner career transition assistance.

GMS Specializes in Relocation Services

Since 1987, Global Mobility Solutions has assisted companies and employees with all their relocation service needs. From creating relocation policies to coaching employees through the process, our experienced and talented team can assist in any way. We are always available to field your questions, contact us today to get all your corporate relocation or international relocation questions answered.

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The Core-Flex Employee Relocation Model Explained

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How Core-Flex Policies Work

When relocating for a new position, a company may offer relocation benefits to help the employee with moving expenses and to help ease the relocation process altogether. Oftentimes, larger companies will have several tiers of relocation packages to offer their new employee, depending on the employee’s level, the size of the move, and if family members are involved. A relocation policy type that is becoming more popular with companies is the core-flex model. Core-flex relocation policies incorporate a core relocation benefit section, along with a list of flexible, optional benefits that can be used depending on the relocating employee’s needs. 

Core-flex relocation programs do not give relocating employees free range on moving expenses as most lump-sum global mobility packages do. However, core-flex options eliminate some of the stress from the relocating employee. For example: the hassle of hiring suppliers, service quality, expense, and tax overruns.

What Should a Core-Flex Policy Include?

While each relocation management company (RMC) will help companies customize and construct different relocation packages, the main, or “core”, components of a typical U.S. domestic relocation policy might include: 

  • Relocation coaching – a certified relocation specialist is assigned to each employee who is moving to help guide them throughout the entire process. 
  • Home-sale assistance – typically included in most relocation packages, RMCs usually help transferees sell their current house with a range of home disposal options that include the Buyer Value Option (BVO), Guarantee Purchase Offer (GPO), direct reimbursement, and home marketing assistance.
  • Corporate housing options – also known as short-term or temporary housing options. This benefit gives the transferee the opportunity to stay in a furnished apartment or townhome for 30, 60, or 90 days while they adjust to their new area and are on the hunt for a new place to call home. 
  • Travel expenses – Most times, companies will cover a variety of travel expenses for the employee and their family as they travel to the final destination to begin the new position or promotion.
  • Shipment of household goods – this one seems like the most obvious. This generally includes the packing and shipping of household goods and is usually included in relocation packages.

Flexible add-ons that can enhance a Core-Flex policy include, but are not limited to:

  • Home purchase assistance
  • Storage of household goods at the destination
  • Spouse/partner career transition assistance
  • Mortgage assistance
  • Child/elder care assistance
  • Miscellaneous allowance
  • and more

Advantages of Core-Flex Relocation Policies

A major advantage of core-flex policies is that they give the employee just enough decision-making ability to feel like their needs are being met. Making a new or current employee feel valued and heard goes a long way when trying to attract the best person for the open position. 

It gives the employee more freedom, which in turn can make the relocation process go quicker. The employee can select from a menu of services that are provided by competitive and vetted vendors, empowering the employee and providing them the flexibility to put the mobility process in motion on their own.

There is also a huge potential for cost savings using the core-flex approach when relocating employees. In most standard relocation packages the company might try to utilize a “one size fits all” approach. This could mean that there are benefits that employees either won’t utilize or might not even need. With core-flex policies, the company can better align relocation benefits to each employee while putting a cap on flexible benefit spending amounts. 

Constructing Solid Core-Flex Relocation Policies

GMS has been helping companies put together the best relocation packages since 1987. Our highly experienced team can assist in the moving of new or current employees in any industry. Team members at GMS have over 50 years of combined experience helping companies create and benchmark their core-flex relocation policies. GMS specializes in and is happy to help companies construct competitive core-flex relocation policies that offer both employee choice and company control. Reach out today with any questions regarding the core-flex model for relocation benefits.

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Understanding Third-Party Household Goods Shipping

Why Relocation Service Providers Use Third-Party Moving Companies

Relocating for a new job can be a great opportunity for an individual or family. It can lead to new job opportunities, new friends, and new beginnings. Most people who have moved to a new area know that along with the excitement comes stress. Companies that provide their relocating employees with mobility benefits through a relocation management company (RMC) can help reduce the stress of the move. 

The RMC assists the company in providing all the services that one might need to move for their new job. Shipping one’s household goods from their current home to their new place is usually a key benefit that is included for those who are taking advantage of their company’s relocation policies. 

If you are an employee that is about to go through the relocation process, you might have already noticed that the RMC you are working with uses a third-party moving company to handle the shipping of all household goods. But why are third-party transportation companies used and what does the typical move process look like? 

What Role Does the Third-Party Moving Company Play?

Typically, the RMC will reach out to the relocating employee to gather information on the employee’s household goods that need to be shipped to their location. The RMC will use that information to set the employee up with a trusted, high-quality moving company from an already vetted network of providers. In some cases, some RMCs will get multiple quotes before choosing third-party services for a relocating employee. This is also the stage where the mover can note if they have any items that need special attention before being moved, like being taken apart or packed in a specific manner. These items usually consist of artwork, glass items, TVs, pianos, and other higher valued items. 

From there, the moving company will coordinate with the transferring employee to set up packing days, loading, transit, and delivery days. To assure the household goods can arrive on time for the employee, RMCs will often assign a relocation specialist or coach to aid the employee in coordinating the various moving parts of their relocation, including the shipment of their household goods. The employee’s Relocation Coach will help coordinate with the moving company and ensure that the employee is maximizing their benefits and that they are being used properly. This point of contact will also typically provide check-ins with the employee during the pack and load process, tracking updates, and shipment status information.

Third-party Specialty Services Might Have to Be Used

Another advantage that the RMC’s third-party service provider network can help with is if custom crating and specialty moving services are needed to move the employee’s household goods. Many fragile and high-valued items will require specialized crating due to the unique nature of each individual item. Crating provides the highest level of damage protection during the moving process. These specialty services are used for items such as pianos, billiard tables, televisions, and more. Many local moving companies may not be qualified to manage the movement of these types of items. 

These specialty services can support the move process by disassembling furniture to safe shipment and the reduction of space needed on the moving truck or shipping container. Unmounting/mounting wall-mounted televisions, the removal and packaging of chandeliers, and the movement of bulky or heavy items (such as exercise equipment or safes) can also fall under the purview of a moving specialist. The use of these specialists helps to add an extra layer of protection to the employee’s household goods, ensuring that their belongings will be moved properly with little to no damage or loss.

GMS Ensures Quality with Third-Party Household Goods Shipping

Global Mobility Solutions has a vast network of reputable moving, storage, and specialty companies that we work with when helping employees move. It is our goal at GMS to only work with 3rd-party service providers who deliver guaranteed customer service and competitive market rates. On top of that, GMS emphasizes the overall customer experience and constantly monitors feedback through our surveys to identify what is working and what may need improvement.

Relocation can seem like a long process, but in working with an RMC like GMS, we can help streamline your program, help develop competitive workforce mobility policies and manage a worldwide network of mobility professionals on your behalf. If you have any questions about corporate relocation or are looking to update your company’s relocation policies, reach out to us today. 

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Buy a Home Corporate Relocation Domestic Relocation Relocation Management Relocation Programs Talent Mobility

Relocation Home Sale Programs: BVO, GPO, or Direct Reimbursement

Keep your Program Competitive with Home Sale Assistance Benefits

When a new or existing employee accepts a position in a different location and is willing to move, some of the main concerns they will have right off the bat are real estate concerns. Selling their current home, then buying a new house in the new city can cause anxiety. But if the company relocating the employee offers benefits with home sale assistance or real estate sale programs, it can make the relocation process much easier for both the employee and the company. 

 

One of the most sought-after benefits to include in relocation packages is a home sale program. In basic terms, relocation home sale programs offer assistance to homeowners so that they can quickly move to their new city for the desired start date. While each relocation management company (RMC) will have different terms on their offered real estate programs, most usually include payments to cover real estate commissions and closing costs. Again, each home selling assistance program is different so it will depend on the seller’s/buyer’s situation on what can and cannot be covered or reimbursed. The type of program offered also depends on your company’s specific relocation policies and the level of support you offer to your relocating employees. Direct Reimbursement, Buyer Value Option (BVO), and Guaranteed Purchase Offer (GPO) are three of the most commonly offered relocation home sale programs. Here is a breakdown of each:

Direct Reimbursement

In most cases, this might be the simplest home sale assistance program for the company and the most involved for the employee. Under a typical direct reimbursement program, the employee is responsible for the sale and closing of their own home. This means they have to hire their own real estate agent and list the home (however many RMCs, like GMS, offer comprehensive home marketing assistance to help sell the property quickly and for top dollar). Once the property sale is complete, the employee then goes through the employer’s process of submitting expenses to be later reimbursed – generally these expenses cover the cost of the agent’s commission, closing costs, and the miscellaneous fees associated with selling a home.

 

With direct reimbursement, the payment to the employee is viewed by the IRS as income and is subject to income tax. This can result in the employee receiving a reduced overall amount of support due to their unique tax situation. However, If the employer is offering the employee tax gross-up options, this could help offset the amount of tax dollars that the employee is having to pay, providing them with an elevated level of financial assistance.

Buyer Value Option (BVO)

Known as a 3-party transaction, the Buyer Value Option program can seem a little confusing to those who are not in the industry. Under a BVO home sale assistance program the employee lists their home for sale until a competitive outside offer is received. Then, the RMC will purchase the home from the employee based on a set sales contract amount. The RMC will then immediately sell the property to the outside buyer. Unlike the single transaction reimbursement program, this option has two transactions. 

 

The main reason companies choose to offer BVOs in their relocation program has to do with the tax benefits, tax protection, and the reduced overall costs of this program. Under a Direct Reimbursement program (as described above), if the employee were to sell the home directly to the buyer, without the RMC middleman, then the IRS would view the reimbursement of expenses to the employee as taxable income. Companies help to offset this by grossing up the reimbursement, which drives up the total cost.

 

Under the advantageous BVO program, the home sale is tax-protected, occurs between the RMC/Company and the buyer, and no reimbursement or gross-up to the employee is required as the company pays the selling expenses. This reduces the tax liability for both the employee and their new company. The BVO home sale assistance program also helps cover the cost of the real estate broker’s commission and closing costs on the home sale. Lastly, the expense of an appraisal is mitigated, as the price of the home is driven by the offer received in the market.

Guaranteed Purchase Offer (GPO)

Sometimes called a Guaranteed Buyout (GBO), the GPO home selling assistance program is a popular one because it gives the moving employee a guaranteed home sale. Under this program, the employee lists the property for a set amount of days (typically 60-120 days) to try to sell on their own. If their home is not sold in the allotted time frame, the RMC/Company will then purchase the home from the employee, allowing them to move on to their ultimate destination without the stress of selling their property. The property then goes into the RMC/Company’s inventory and is now their responsibility to sell.

 

If the employee does get a qualified offer from a buyer within the specified timeframe, then the sale is completed similar to the BVO program (often called an Amended Value under these circumstances), where the RMC buys the home from the employee then sells it to the buyer for tax purposes. Again, making for two home sale transactions. 

 

The major difference between the Guaranteed Purchase Offer program and the BVO is that in a GPO program, an appraisal is completed on the property to establish a fair market value of the property to establish the purchase offer price. 

Choosing the Right Relocation Home Sale Program

Global Mobility Solutions has been helping relocating employees since 1987. Our team is always on hand to help your organization develop competitive and cost-effective home sale assistance programs. Reach out to us today with any questions regarding direct reimbursement programs, BVOs, or GPO. Our team is more than happy to help your company come up with the best relocation home sale programs possible to assist with meeting your talent acquisition objectives and improve the overall relocation experience for your transferees and their families.

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