Category: Corporate Relocation

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Choosing a Relocation Company Corporate Relocation Domestic Relocation Global Mobility Global Relocation Relocation Best Practices Relocation Management

Advantages of Creating Competition Between Suppliers for Relocation Services

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GMS Always Fields Multiple Bids from Suppliers on Key Services

No one wants to pay more than they need to, this is especially true when it comes to the outsourcing of employee relocation services to a Relocation Management Company (RMC). Cost is generally the #1 driver of any procurement process, and it is wise to ensure you’re getting the most for your money before you sign on the dotted line. While saving money is a no-brainer, have you considered what steps your RMC is taking to ensure they deliver on cost savings for your relocation program?  

Many relocation companies have their own supplier base. These suppliers may consist of critical (and expensive) services, such as household goods transportation companies and temporary housing agencies. It is important to understand how your relocation company is leveraging these suppliers to reduce the impact of these services.

GMS Process to Keep Relocation Costs Down

Global Mobility Solutions, like most relocation companies, has its own, trusted network of suppliers. However, our network model is different due to our Multiple-Bid Process on key services. This process creates ongoing competition between our suppliers which ultimately results in lower prices and major relocation cost savings for our clients’ overall mobility spend. 

So how does it work? GMS analyzes each relocating employee’s unique needs, develops a service delivery plan, and then reaches out to at least two different suppliers for bids on key services. The suppliers’ estimates are audited for accuracy and submitted to you for final selection and approval based on the criteria most important to your organization. It should be noted that these are not just random or first-time suppliers who place bids with GMS. Each supplier is trusted and vetted by our network management team to ensure great service and competitive pricing. The process also allows us to develop creative service strategies to address every unique relocation need from each transferee. 

What makes GMS different is our independence and transparency in our supplier selection process. As we are not affiliated with any of our suppliers (van lines, corporate housing, real estate, destination services, immigration, or otherwise) we can subjectively vet our supplier base, ensuring the best possible quality for the best possible price across all of our key services. Some RMCs own or are owned by the suppliers they utilize which prevents the ability for true competition amongst the sub-suppliers servicing your account.

Additionally, GMS benchmarks and reviews our supplier pricing and negotiated rates on a quarterly to annual basis to ensure competitiveness by service in your specific relocating markets. These two features provide GMS clients with an umbrella of cost savings coverage while enhancing the quality of each relocation.

Let GMS Provide Relocation Services for Your Company

Operating a workforce relocation program can be expensive, but in many cases, it’s the best way to ensure your organization remains competitive in the acquisitions of talent to fuel your ongoing success. To have a better shot at cutting down relocation costs during the process, it is important to ensure your RMC utilizes a competitive bid process between suppliers on key services, such as household goods transportation, corporate housing, and more. Competition is always good for the consumer, driving down prices and increasing quality. GMS ensures the best price possible 100% of the time. For more information on corporate relocation services and program management from GMS, reach out today to schedule a call with one of our qualified team members.

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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Career Services Corporate Relocation Corporate relocation tips Job Seekers Labor Force

2021 Best Cities to Live in the USA for Growth Opportunities

Rosslyn, Arlington, Virginia, USA city skyline on the Potomac River.

Cities with Growth Opportunities

2021 is already halfway over. While this year has seen more normalcy than 2020 did, there are some permanent changes that will stay. One of those changes is companies allowing employees to work remotely. When the COVID19 pandemic first went into effect, almost all major companies set up employees to work from their homes to promote and protect the health and safety of their workforce and operations. 

Many companies now are looking into allowing their employees to work remotely full time, even as life begins to return to normal. Now that employees no longer have to commute to an office every day, it gives them the ability to live anywhere they want. This has people moving all over the country. But what are the best cities to move to those looking for a full-time change?

20 of the Best Cities to Move to for Growth

While most “best cities” lists rely on a certain level of subjectivity, many tools have attempted to perfect the art through evaluation, scoring systems, and other analysis. The following list looks at the overall livability of each area with a focus on positive economic activity. 

  1. The Woodlands, TX
  2. Arlington, VA
  3. Naperville, IL
  4. Overland Park, KS
  5. Cambridge, MA
  6. Ann Arbor, MI
  7. Plano, TX
  8. Columbia, MD
  9. Berkeley, CA
  10. Bellevue, WA
  11. Irvine, CA
  12. Richardson, TX
  13. Seattle, WA
  14. Madison, WI
  15. San Francisco, CA
  16. Sunnyvale, CA
  17. Raleigh, NC
  18. Boulder, CO
  19. Sandy Springs, GA
  20. Torrance, CA

While these cities all have different cultures, climates, and costs, they were chosen based on many different aspects of living. Factors include livability, job opportunities, homeownership rates, cost of living, and their track record of economic growth. Most of these cities have seen consistent growth for the better part of 10 years, making them some of the best cities to move to for growth opportunities. Many of these cities are considered mid-size, meaning that while they are growing, they are not yet the size of mega-cities such as Chicago, New York City, or Los Angeles. 

Midsize cities that are growing tend to offer some of the best job markets in the country. This could come into play if someone who is looking for change is unable to work remotely in their current career. Additionally, the availability of job opportunities is critical for trailing spouses or partners who wish to continue their own personal growth and achieve their career goals in their new destination.

Things to Consider When Moving to a New State

While it’s nice to be able to live anywhere because of the ability to work remotely, there are many factors that should be considered and questions that should be answered before relocating.

Cost of Living

Affordability is typically one of the biggest factors relating to the decision to relocate. Can your current salary or income keep up in the new city? Will you be able to afford the cost of fuel, groceries, and other basic living items that might be more expensive (or cheaper) in the new place. 

Healthcare costs, education, and culture should be other factors to look at when looking to move into a new city.

Real Estate Market

2020 and 2021 have resulted in a boom in real estate that shows no signs of stopping in the near term. The average cost of homes rose just over 11% nationally (its largest annual gain in 15 years) and should be brought to any conversation about the best cities to live in the USA. Will your current home sell for what it’s worth? Can you afford a nice enough home in the new area? While it is a great time for sellers, it is more expensive for buyers than before.

Quality of Life

When selecting the best cities to move to, local amenities and quality of life play an outsized role that many forget to include in their decision to relocate. Is there an availability of quality schooling at the new location? How are the average commute times? Is efficient public transportation available? Is there a good balance of shopping, climate, recreation, and dining available?

How We Can Help

GMS is a leader in the global mobility industry. We help companies draft relocation policies for their employees, helping them get from point A to point B while minimizing common pain points, where possible. It is our goal to make the relocation experience smooth for those trying to relocate to the best cities in the USA. GMS’ services can help every step of the way, from pre-decision to departure, to help getting settled in the new destination.

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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Business Services Choosing a Relocation Company Corporate Relocation Corporate relocation tips Domestic Relocation Challenges Domestic Relocation Tips Global Mobility Global Relocation Relocation Best Practices Relocation Challenges

Discover Your Potential Relocation Cost Savings

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Relocation Cost Savings

To have the most successful and efficient workforce mobility program, mobility specialists and HR professionals should regularly evaluate their company’s relocation costs, benefits, and policies in order to uncover cost savings or areas in your relocation policies that may need improvement. Many companies manage their relocation needs in-house while others use relocation management companies to mobilize their workforce. Relocation policies should be reviewed with regularity to assure the company is spending wisely and saving money where possible. 

 

GMS makes this process simple with our industry-leading MyRelocation® technology. In addition to its client and employee-facing portals, MyRelocation® offers a suite of tools designed with your needs in mind. 

 

GMS is happy to announce our new Relocation Cost Savings Calculator. This easy-to-use tool provides companies with insight as to how much they could be saving when it comes to their current relocation program. If it has been a while since your company’s policies have been reviewed, or you are just starting to look into mobility services, this calculator can help determine your organization’s potential cost savings. 

 

It is not uncommon for companies to go years without changing or updating their relocation policies. While common, this practice can add up to serious costs over time as the direct costs related to relocation benefits react to various factors. Transportation prices change, home prices fluctuate, temporary housing costs increase, and the cost of living is constantly changing. To assure that your company is saving the most money while giving your employees the best relocation experience possible, it is important to check in on how you can be saving.

Calculating your Relocation Cost Savings

The innovative GMS Relocation Cost Savings Calculator looks at a range of common relocation program areas for cost-saving opportunities. With a user-selectable option for companies who handle mobility in-house or with an outsourced relocation management company. Key mobility policy elements that the calculator can highlight include: 

  • Program Fees
  • Real Estate Services
  • Household Goods Transportation and Storage
  • Temporary Housing Programs
  • International Relocation Services
  • Program Funding

The Cost Savings Calculator is quick and easy to use, and once various data points are input, the relocation calculator will compute your potential savings in a downloadable PDF to allow you to easily compare your current relocation costs against your potential savings. After that, a GMS Mobility Pro will reach out personally to help validate your potential relocation costs savings estimate, provide no-pressure guidance, and answer any questions you may have.

Validate Your Savings Using Our Relocation Cost Calculator

Are you ready to discover how and where your mobility program may benefit from a reduction in relocation costs? Simply complete the form below and a GMS Mobility Pro will provide you with a link to work through the tool. It is easy to use and only takes a couple of minutes if you have the right information handy. 


The GMS Relocation Cost Savings Calculator is free to use and comes with no obligation and no pressure to use. Get started now to discover how much your organization could be saving today.

Ready to Calculate YOur Program Savings? Request Access Now!

Are you ready to calculate your potential relocation program savings? Request access to our easy-to-use Relocation Cost Savings Calculator. Your Mobility Pro will grant your access request within 1 business day.

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Business Services Corporate Relocation

Corporate Housing Trends for 2021

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Modern Living Room In The Evening

2021 Corporate Housing

GMS is here to make sure you keep up with all the latest trends in the corporate housing industry for 2021. As corporate housing needs are on the rise, is the inventory there to keep up? Here is a breakdown of some statistics around corporate housing trends for 2021:

North America

Estimated 30% overall reduction in the number of available corporate apartments due to:

  • Operators ending leases with apartment communities as demand dropped
    • Some operators broke their leases and handed keys back
    • Other operators could not pay rent, resulting in a default on their leases
    • May lead to strained relations between the higher-end apartment building owners where corporate housing providers place most rentals 
    • May stop some operators from acquiring additional inventory as demand increases

Globally

Most serviced apartment buildings remain in business. Being property-based and not leased has helped the inventory of corporate apartments to remain stable.

Major corporate housing companies exited the business in 2020, and other venture capital-backed brands also exited, further tightening supply. Several smaller and regional corporate housing operators are on the fence and may exit the business.

The outlook of trends in corporate housing for 2021 is for a rebound in business. While Q1 remained depressed, the volume should rise substantially in North America and globally during Q2 and Q3 as various markets continue to work towards reopening.

What Does This Mean Moving Forward?

With extremely tight and competitive real estate markets throughout the country, many companies are looking at corporate housing as an interim solution. Many states’ housing markets are projected to see continuous competition in the home purchase market through 2021. This is where corporate housing will play a big role in allowing companies to relocate employees to short-term rentals until the markets start to level out and transferees have a shot at purchasing a full-time home in their new destination. 

It is also worth noting that experts expect to see a 5-8% price rise in corporate housing costs from 2021-2025. Most temporary housing companies utilize a per-day pricing model or a bundled pricing model based on the number of employees.

Contact GMS Today

GMS’s certified team is always up to date on all the latest trends in corporate housing. Reach out today and we’ll ensure all of your relocation needs are met. We can help you relocate employees from anywhere in the world. Reach out to us online to get in touch.

What's Trending in Workforce Mobility for 2021?

This article is an excerpt from our 2021 Workforce Mobility Forecast. Download a complete copy today, or watch a recording of our latest Thought Leadership Series webinar on the trends that are shaping the industry.
Click Here
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Corporate Relocation Corporate relocation tips Global Relocation

Reaffirming the Importance of the Human Connection for Corporate Relocation Companies

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2020 has proven how important the human connection is for relocation companies, and we see clients recognizing this fact for 2021. Certain processes can easily leverage technology to increase efficiencies and performance. However, research indicates it is impossible for computers with artificial intelligence to replicate jobs that rely on humanistic and social skills. The role of the relocation coach far outweighs the technology that supports it.

Global Mobility Solutions (GMS) is a nationally ranked Relocation Management Company and a leader in the relocation industry that excels in providing superior service to clients. This level of service requires GMS Coaches to have significant measures of important human attributes and social skills including:

  • Adaptability
  • Coaching
  • Communication
  • Creativity
  • Critical Thinking
  • Complex Problem Solving
  • Curiosity
  • Emotional Intelligence
  • Empathy
  • Insight
  • Listening
  • Resilience

Clients recognize the importance of the entire relocation experience as an extremely important touchpoint for their talent acquisition programs. If they leave such an important experience to the vagaries of computer programs, employees and new hires are likely to feel less valuable to the client. Talent acquisition programs help clients ensure a greater likelihood of good hires, which in turn helps lower costs and saves time. A robust relocation management program fully supports client investments in sourcing and onboarding talent and helps ensure successful relocations.

Relocation Coaches and Their Impact

Our clients appreciate the service our Relocation Coaches provide to their employees, and their employees are grateful for the high-touch service that GMS provides. Here are several comments we have received over the past year that reaffirm the importance of the human connection in relocation services:

“I felt as though Tricia made this process very simple. She even walked through how to do expenses with me step by step. I never felt as though I was bothering her when I called which I prefer to do instead of email and that was never a problem for her. I also felt she was very informed on all aspects of the move. She let me know countless times to call whenever I needed anything, which I did. In closing, she also had such a great attitude and was 100% approachable. I am big on customer service and Tricia definitely provided the best.”

“Jennifer has been fantastic from beginning to end. I give her the highest marks possible. There’s no way to make relocation fun, but she made it as painless as I can possibly imagine.”

“Ana, through her incredible support, listening capacity and anticipation of my needs, always promptly resolved my doubts, additional unplanned requirements due to this pandemic by COVID. Definitely, Global Mobility Services is a company with the know-how, structure, personnel, and suppliers that provide excellent service for corporate mobility needs.”

“Carroll was the best part of my relocation process. She is professional, responsive, knowledgeable and most importantly sweet and so supportive. I moved during COVID after having lived in the same place my entire life so you can imagine this was traumatic and challenging. Carroll kept me on track and guided me the whole way with kindness humor and diligent follow-up. She called me just to check in and see how I was doing. She is a gem and you should know what a true professional and wonderful person she is- if I ever need to move again I will check with her first. I cannot sing her praises enough!  My experience was great.”

“Jen was a big help through this whole process. Being relocated is a stressful event. Being relocated during a global pandemic is even more stressful. She was a big help to find what we needed to help move.”

“Dear Jennifer, I want to extend my utmost gratitude for the care, professionalism, and passion you demonstrated during every step of my move. Your timely attention to detail, your communication, and your attitude toward your vocation as Relocation Coach made me feel that you were right there beside me from the beginning and onward. As a Hospital Chaplain, I work alongside hundreds of diverse staff and I can easily identify those who bring excellence, integrity, and compassion to their work, I am confident you are one of those people. Thank you again for you making my move easy.”

“Moving can be very stressful and even more so after coming out of a tornado a month ago and trying to relocate during a pandemic. Kim was always calm, reassuring, and timely in her responses. I am in the hospitality industry and have to treat guests this way all the time. It was certainly nice to be treated this way myself! It made the chaos of the move so much easier from a mental standpoint! THANK YOU!”

The Human Connection Makes the Difference

As you can see, a high-touch customer service approach has a dramatic impact on the lives of relocating employees and their families. The direct support that corporate relocation companies provide to relocating employees has a direct impact on the family’s ability to cope with the stress of their move and improves the readiness of an employee to focus on their position when they arrive at their destination. Through GMS’ high-touch customer service process, relocations are measurably more successful with our clients experiencing a reduction in the number of costly failed relocations. By working with a proven and effective company like Global Mobility Solutions, you can rest assured you’ve chosen a company that treats your employees with compassion and the dedicated attention they deserve.

What's Trending in Workforce Mobility for 2021?

This article is an excerpt from our 2021 Workforce Mobility Forecast. Download a complete copy today, or watch a recording of our latest Thought Leadership Series webinar on the trends that are shaping the industry.
Click Here

About GMS

GMS’ team of global relocation experts has helped thousands of organizations understand how to develop relocation programs that provide the best possible experience for new hires, transferees, and their family members. Our team wants to help your company understand how to review your relocation program and share how the GMS approach delivers consistent, high-quality relocation experiences on time and on budget.

Contact our experts online to learn more about the GMS difference, or give us a call at 800.617.1904 or 480.922.0700 today.

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Corporate Relocation Domestic Relocation Challenges Global Relocation Relocation Challenges

2021 Ushers in Fully Virtual Relocation from Start to Finish

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Woman watching business training or online webinar on laptop computer remote working

Virtual solutions in relocation management were well on their way to becoming the preferred choice long before the COVID-19 pandemic made them a requirement to do business. Supporting the working world’s “anytime, anywhere” focus, the relocation industry has been creating tools and resources to bring solutions to clients that are easy to use and do not require any physical contact. 2021 will see virtual solutions continue to grow in both popularity and functionality due to their convenience, speed, flexibility, and accuracy.

Virtual Relocation services span the relocation spectrum, including the following:

PRE-DECISION SERVICES

A valuable tool, pre-decision allows for a relocation management company to work with your new hires or transferees before an offer is extended or the decision to relocate is made. All of the following services can be provided through online solutions, reports, and electronic communications:

  • Candidate Assessment – Assess candidate expectation, skills, personal qualities, family circumstance, and financial preparedness
  • Cost of Living analysis – Cost of living comparison of origin and destination cities to help determine an acceptable or competitive salary range
  • Market analysis – Determine the likely home sale timeline and identify potential home sale challenges such as negative equity
  • School Reports – Public and Private School reports provided to the relocating employee to aid community selection
  • Moving Cost Estimates – Cost estimates on household goods transport to help budget for relocation costs
  • Community Search and Tours – Virtual Neighborhood Walks let buyers explore new neighborhoods and communities, and help them see nearby local features such as parks, schools, and shopping centers

VIRTUAL VISA AND IMMIGRATION SERVICES

In today’s new normal, the virtual experience extends to the visa application and immigration process:

  • A knowledge base of helpful information and resources
  • Virtual visa and legal consultation
  • Online application and form filing
  • Electronic fee payment
  • Online tools to track and manage case status and processing times

HOME SELLER VIRTUAL EXPERIENCE

The global pandemic forced home sellers, agents, and relocation companies to rethink the real estate process from beginning to end. Including the following.

Consultation, Digital Marketing

  • Virtual consultations using popular meeting platforms such as Zoom or Google Hangouts
  • Document signatures captured electronically using Dotloop real estate transaction management solution or other e-signature programs
  • Virtual walk-through and preparation for the home
  • Virtual staging using seller-provided photos combined with current furnishings and décor
  • Virtual experience “Open House” event with advertising and promotion
  • Virtual private showings

Offer, Contract, Deposit

  • Electronic offer submittal (once seller receives an acceptable offer, that specific buyer can see the property in person within 24 hours; following the viewing, the seller will execute the offer)
  • Contract to purchase the home is executed electronically
  • DepositLink or other financial service is used to electronically transfer the deposit

Inspections, Appraisal, Financing, Closing

  • Inspections are ordered and conducted (if not waived)
  • Purchase and Sale agreement is executed
  • Appraisal is completed
  • The buyer obtains financing commitment if applicable
  • Final in-person walk-through (if not waived)
  • Closing

HOME BUYER VIRTUAL EXPERIENCE

Like the home sale process, home purchases have traditionally been a very personal, in-person process. 2020 brought about rapid change as the real estate experience quickly adapted to provide a safe, virtual experience for prospective home buyers.

Consultation, Online Views

  • Virtual consultations using popular meeting platforms such as Zoom or Google Hangouts
  • Document signatures captured electronically using Dotloop real estate transaction management solution or other e-signature programs
  • Online searching for homes
  • Virtual experience tours of homes, either 3D virtual tour online, or a live interactive virtual tour (open house or private showing)
  • Live virtual buyer events
  • Video mail (v-mail) provide video directly to interested buyers

Offer, Contract, Deposit

  • Electronic offer submittal (once seller receives an acceptable offer, that specific buyer can see the property in person within 24 hours; following the viewing, the seller will execute the offer)
  • Contract to purchase the home is executed electronically
  • DepositLink or other financial service is used to electronically transfer the deposit

Inspections, Appraisal, Financing, Closing

  • Inspections are ordered and conducted (if not waived)
  • Appraisal is completed
  • The buyer obtains financing commitment if applicable
  • Final in-person walk-through (if not waived)
  • Closing

VIRTUAL HOUSEHOLD GOODS MOVES SERVICES

While the movement of personal property will always require a physical presence by moving crews, the household goods industry developed effective tools and processes to limit in-person interaction to protect both the transportation employee and the transferee’s family from unnecessary exposure:

  • Online, video, and virtual estimating surveys to document contents of homes
  • Online and electronic communications to arrange services and payments
  • Packing, moving, delivery, and setup services without requiring transferee to be present

VIRTUAL DESTINATION SERVICES

Virtual destination services are a great option for transferees and their family members. These include community tours and orientation, departure services and support, and area consultations. All of these services provide transferees with 1-on-1 consultation and support to ensure their comfort and peace of mind with the destination.

The services provide benefits such as:

  • Providing direct support when needed
  • Keeping assignments on track for success
  • Recruiting and retaining key employees
  • Assisting and supporting family members
  • Developing and growing relationships

For common services such as searching for schools, finding homes, and getting to know the new location, there are several new convenient formats that have risen in use:

  • Real-Time Video – Live video calls let transferees review specific areas, discuss their interests, and share their preferences. The local destination contact provides direct communication on specific points and can answer questions that may arise.
  • Webinar Presentations – Transferees access a 1-on-1 presentation through popular web-based platforms.
  • Pre-Recorded Video – A personalized video is recorded and shared with transferees. They are then free to review the recording at a time that is convenient to their schedule.

VIRTUAL LANGUAGE AND CULTURE TRAINING

A virtual trainer for language and culture allows candidates to access training anytime, anywhere. This access gives candidates the flexibility they need. Whether traveling or in a remote location, the virtual trainer lets candidates learn at their own pace.

Language Modules

  • Intuitive, straightforward interface
  • Self-paced lessons
  • Focus on conversation proficiency
  • Cultural insights and nuances that impact vocabulary and grammar
  • Mobile apps for quick brush-ups

Cultural Modules

  • One-on-one personal training via webcam
  • Coaches explain how to see cultural differences to promote synergy
  • Practical and actionable guidance to operate in business settings
  • Learning to leverage skill sets found in other cultures
  • Communicates values including mutual respect and understanding

VIRTUAL TUTORING FOR CHILDREN

Dedicated learning platforms deliver virtual instructor-led lessons in a fully professional, secure, and GDPR-compliant format. Features include:

  • Easy to use interface
  • Browser-based with no necessary downloads
  • Class reminders and notifications
  • Multiple-language support
  • Audio and video-based lessons
  • Online document sharing and lesson materials
  • Reporting for attendance, learning analytics, and more

The lesson content and methodology are adapted to the children’s needs. Books and materials are either virtual or delivered to the children through mail delivery services.

What's Trending in Workforce Mobility for 2021?

This article is an excerpt from our 2021 Workforce Mobility Forecast. Download a complete copy today, or watch a recording of our latest Thought Leadership Series webinar on the trends that are shaping the industry.
Click Here

GMS Is Here to Help

GMS is ready to help you with any relocation needs you may have. If you have questions or are ready to get started, please reach out to us online or call 1-800-617-1904 for US or 011-480-922-0700 for international. Our certified team is here to help.

Categories
Choosing a Relocation Company Corporate Relocation Domestic Relocation Global Relocation Tips

Corporate Relocation Incentives Driving Economic Development

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Downtown Denver, Colorado, USA Drone Skyline Aerial Panorama.

In the past year, the global mobility industry has seen noticeable increases in state and local governments offering enticing relocation incentives to draw economic development and add to growing employment numbers. But how are these incentives helping companies recruit new talent to relocate? And how do transferees and companies take advantage of these incentives? 

Working with a corporate relocation services company can help make sure that you are getting the most out of the available relocation incentives. There are various incentives for those looking to perform group moves or office moves from state to state. Understanding these plans and policies is the first step in taking advantage of them. 

Here we have broken down some of the relocation incentives in 3 quickly growing states. All of these states are seeing an increase in population due to incentives and business-friendly environments, and these numbers should continue to grow as work from home precautions begin to end for in-office positioned employees.

Attracting Companies and Talent

Many states have heavily invested in development strategies that are solely focused on attracting companies within specific industries into relocating their operations to their state. Commonly targeted organizations reside in high revenue/high wage industries, such as technology, R&D, and manufacturing companies. State relocation incentives are often rich with benefits, making it difficult for companies to ignore. Let’s use Colorado, Arizona, and Texas as gleaming examples. Each of these states has focused on developing partnerships focused on attracting and relocating companies to their particular states and municipalities, in hopes of bringing in more revenue and tax dollars to the state.

Key Colorado relocation incentives:

  • Job Growth Incentive Tax Credits – A performance-based state income tax credit equal to 50% of the FICA paid by a business, based on the net new growth from jobs created
  • Strategic Fund Incentives – A cash payout based on wage levels of the net new jobs created
  • Location Neutral Employment – An incentive that combines Job Growth Incentive Tax Credits and a Strategic Fund Incentive 
  • Training Grants – Reimbursement of job training designed to increase transferable skills to enhance long term employment opportunities
  • Industry Accelerated Grants – A collection of grants that promote growth and sustainability

Key Arizona relocation incentives:

  • Quality Job Credits – Up to $9,000 in tax credits over 3 years for each new qualifying job
  • Training Grants – Up to 75% reimbursement of job training per employee and up to $8,000 for each new employee in a rural area
  • Facility Tax Credits – 10% of capital investment, up to $20,000 per qualified job created in manufacturing or R&D
  • Research & Development – An income tax credit for R&D (24% for first $2.5M, plus 15% in excess of $2.5M) 

Key Texas relocation incentives:

  • Enterprise Project – If project investment is equal to or greater than $5 million or more,  then refund amount is up to $2,500 per job up to a maximum of 500 jobs created/retained
  • Double Jumbo Enterprise Project – If the project investment amount is equal to or greater than $150 million and less than $250 million, then the refund amount is $5,000 per job up to a maximum of 500 jobs created
  • Triple Jumbo Enterprise Project – If the project investment amount is equal to or greater than $250 million then the refund amount is $7,500 per job up to a minimum of 500 jobs created. The maximum refund available is $3.75 million

Weighing the Benefits

While most of these incentives are not lucrative enough to make a company want to move on the spot, they do serve as added bonuses to those companies that are actively looking to make a move within the next year or two. The next question becomes how do you know you’re making the best relocation decision for your company and employees? Working with a certified corporate relocation services company will help to ensure that state economic incentives and your relocation strategy provide your organization with the advantages it needs to thrive and grow. . But what has to be considered when drafting up relocation policies and operation decisions? 

Establishing new operations or relocating existing ones is not an easy decision. Companies must weigh the cost/benefit of moving operations, in addition to the impact on employees. At GMS, we make every effort to support companies with the necessary analysis for informed decision-making. This may include salary and cost of living comparisons, housing evaluations and site studies, educational comparisons, pre-decision services, and more!

Why GMS Is the Answer

If you’re looking to take advantage of incentives for these states, or just collecting information in general for relocating employees, it is always a good idea to sign on with a proven and experienced relocation company. You’ll want to use a company that specializes in group moves and office moves. 

Global Mobility Solutions (GMS) is here to help you with all of your relocation services needs. Our team of experts holds over 20 relocation certifications and can assist with any kind of corporate move, no matter the scale. We also won’t blindside you with hidden or non-disclosed fees. All of our pricing is upfront and honest. Not to mention, we will tailor your policies and procedures to make sure your employees are maximizing any available state incentives, along with ensuring all of their relocation needs are being met. Our team can help you move to or from not just Arizona, Colorado, or Texas, but globally as well. 

Reach out to GMS today online if you’re ready to start getting info about working with a certified relocation services company. Or to speak to a team member directly, call 1-800-617-1904. 

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
Corporate Relocation

2021 U.S. Real Estate Market Trends

Key Real Estate Metrics

Housing Indicator 2021 Forecast
Home price appreciation 5.7% increase
Mortgage rates 3.2% average; rising to 3.4%
Existing home sales 7.0% increase
Housing starts 9% increase
New home sales 5% increase
Homeownership rate Rise to 65.9%

Inventory

The 2021 National Housing Market Forecast and Predictions from Realtor.com is subtitled “Back to Normal” for good reason. Seasonality did not play a part in the 2020 home buying season. However, 2021 is expected to show a return to seasonality, with strong sales in spring and summer, and slower sales in fall and winter.

The home-buying season is expected to slow a bit from the record paces in 2020. The past year saw pent-up demand from a missed spring buying season combined with record-low mortgage rates lead to a strong seller’s market. Buyers faced low housing inventory, high prices, and in many cases bidding wars. For most real estate market trends in 2021, the underlying housing market demand will consist of:

  • Millennial and Gen-Z First-Time Buyers
  • Millennial and Older Generation Trade-Up Buyers

Inventory remains the housing market’s Achilles heel. Following the shortfall of over 4 million new homes in 2020, the upcoming year will still see inventories at relatively low levels. This is due in part to continuing strong buyer demand. However, increasing new home construction and a rise in newly listed homes will help lead to increases in home sales.

 

What's Trending in Workforce Mobility for 2021?

This article is an excerpt from our 2021 Workforce Mobility Forecast. Download a complete copy today, or watch a recording of our latest Thought Leadership Series webinar on the trends that are shaping the industry.
Click Here

Real Estate Market Trends Graph Results

  • There is growing demand for different housing (different from one’s current circumstances due to remote working)
    • Urban to suburban
    • More home offices
    • More private outdoor space
  • While this trend might hurt urban markets (in the short and medium-term) – There is an entire spectrum of wants/needs that can be satisfied in almost any market:
    • People with one-bedroom homes may be looking for two bedrooms for the sake of an office
    • People in the suburbs may be looking for more rural
    • To some city dwellers, a patio or deck is a big addition of “outdoor space”
    • Optimism about potential tax laws being revisited (particularly $10K SALT cap, which significantly affects carrying costs on high-end homes in high property tax/income tax states)
  • Look for a potential drop in price (and a glut of inventory) for investment property across the board due to:
    • Long term moratoriums on evictions resulting in many months of lost rent
    • End of mortgage abatement
    • Landlord fear of renewed eviction ban – The federal ban currently does not relieve tenants from payments but from eviction. As such, when evections/abatements are lifted, some owners and tenants may find themselves so deep in real estate debt that they may be motivated toward strategic defaults/accepting rental judgments against them in lieu of paying. This will result in a micro-foreclosure market of investment properties

Suburban Migration

Following the trends of remote work and homebuyers looking for affordability, suburbs stand to benefit. Workers are departing expensive urban core markets and seeking affordable homes in less expensive settings, often suburbs of larger and mid-sized cities. Small cities and towns will continue to draw new residents with incentives and programs. As workers migrate further into the suburbs, employers are likely to follow, further increasing home prices in certain areas based on incoming demand. Housing demand and price appreciation are likely to rise at strong paces in most metropolitan areas with a few notable exceptions (Detroit, New York City).

Leveraging Technology

Technology in the 2021 real estate space will continue to leverage virtual platforms. From virtual tours to virtually staging a home, technology has changed the real estate experience. Both Buyers and Sellers benefit from technologies that enhance the presentation of homes as well as the ease and speed of transactions.

iBuyer Platforms

Some home sellers might prefer the speed of using an iBuyer platform, and these services are forecast to continue to rise in use for 2021. However, they often do not understand the full cost of their choice. Important points to note:

  •  iBuyers don’t buy every home
  • Sellers get less than Fair Market Value for their home
  • Sellers are required to pay for repair costs they may not agree with
  • Not all iBuyers offer the same services
  • Home sellers are in essence paying to “not” play on the open market
  • In some cases, choosing to work with iBuyers may cost sellers up to 15% of their home’s sale price.

Our Real Estate Experts Are Here for You

At GMS, we take pride in knowing that we employ one of the most qualified and successful real estate teams in the relocation industry. We are here to answer any questions and ultimately help you and your employees with all of their relocation needs. We assist companies moving employees from all over the world. Contact us now with any questions you need answered.

Categories
Corporate Relocation Immigration Rules

Immigration Trends in the U.S. for 2021: Immigration Systems Respond to Political Dynamics

While the COVID-19 pandemic effectively clamped down on much immigration during 2020, there was still some level of movement across national borders. In the United States, the FY 2020 First Quarter saw the same number of foreign nationals arrive as during the same time period for FY 2019. Over 6,800 new arrivals in the employment-based preferences category indicate continued use of visas to hire skilled foreign national talent.

For these 2021 immigration trends, change is likely to be the dominant factor influencing immigration. Change will continue to impact immigration in the US as well as in other countries. Major factors that will impact immigration include:

  • COVID-19 Pandemic
    • Effective Vaccines
    • Vaccination Rates
  • Political Agendas
  • Social Dynamics

During the past several years in the US, the immigration process has been undergoing a significant transformation. This transformation aimed to ensure that sponsoring employers of the most highly qualified foreign nationals receive the opportunity to petition for the cap-subject H-1B visa.

Most recently the Department of Homeland Security (DHS) has also proposed a change in how the United States Citizenship and Immigration Services (USCIS) selects registrations for filing of cap-subject H-1B petitions. The change will result in:

  1. USCIS first selecting registrations based on the highest prevailing wage level
  2. Wage level ranking would apply to the regular cap
  3. The ranking would also apply to the advanced degree exemption

This proposed change follows a previous Department of Labor (DOL) restructuring of the prevailing wage system for foreign national talent. The DOL instituted an Interim Final Rule (IFR) called “Strengthening Wage Protections for the Temporary and Permanent Employment of Certain Aliens in the United States.” The DOL wage system restructuring was meant to reduce program abuses that appeared to undermine wages and opportunities for US workers. However, later rulings have resulted in legal challenges and court orders to set aside the DOL’s IRF. The DOL noted it is taking steps to comply with court orders.

In the US, the inauguration of the next US President on January 20, 2021 is likely to usher in a number of additional changes to the immigration system. With a new administration, a new focus on immigration is likely to also change processes for the FY 2022 H-1B visa lottery process. It is difficult to determine just how many changes there might be to the FY 2022 H-1B visa lottery process from the January 20 inauguration date to the lottery’s potential start date. However, the entire immigration system is likely to see several reforms relating to both the number and the qualifications of immigrants.

Travel Challenges and Mobility Restrictions Require Greater Level of Care

The COVID-19 pandemic reinforces the need for employers to know exactly where their employees are located, and how local restrictions may affect them. For example, employees traveling between countries where new travel restrictions are put in place may need special care from their employer to help them find local housing or reach a specific destination. The breadth and speed of travel changes, immigration limitations, and overall imposition of national safety measures served to highlight the importance of working with a highly qualified Relocation Management Company.

Employers should look to 2021 with a focus on ensuring:

  • Compliance with visa, immigration, travel, and national health initiatives
  • Health and safety of employees who are traveling or on assignment
  • Multiple means of communications to minimize no disruptions
  • Tracking important location information to remain compliant with immigration, compensation, and tax requirements

In 2021, Several Countries will Lead with Immigration

In 2020, the US further limited immigration due to issues surrounding COVID-19 and its impact on the US labor force. Proclamation 10014 is sometimes referred to as “Suspension of Entry of Immigrants Who Present a Risk to the United States Labor Market During the Economic Recovery Following the 2019 Novel Coronavirus Outbreak.” With this Proclamation, many foreign nationals were prevented entry under several classes of visas.

For 2021, countries that lead with immigration will continue to see gains in both employment and investment. One example is the country of Canada. US employers hindered in their hiring efforts by government regulations can leverage a “nearshoring” solution to bring jobs and foreign national hires to Canada in the short term. There are several benefits of nearshoring jobs and hires to Canada:

  • Ease of business travel to/from Canada
  • Lower costs and less time for business travel
  • Both countries share similar technology and economic profiles
  • Foreign nationals and their family members can become accustomed to life in North America
  • Canada’s pro-immigration stance may provide future opportunities for US employers
  • Several Canadian cities have a large base of highly skilled talent
  • Toronto ranks #3 in Tech Talent among the top 50 US and Canadian cities

Other nearby countries offer similar benefits for US employers. For example, Mexico has long been a favored location for US business interests in industries such as financial technology (“FinTech”), automotive manufacturing, aerospace manufacturing, and real estate. Also, both Canada and Mexico boast high-tech centers that have grown into spectacular talent hubs. Toronto, Canada tech talent ranks at #3 in the top fifty U.S. and Canadian cities for tech workers. Guadalajara, Mexico benefits from groups like Startup GDL that work to make Mexico’s second-largest city a leading technology center.

2021 Global Economic Rebound to Increase Demand for Skilled Workers, Foreign National Talent

The Organization for Economic Cooperation and Development (OECD) expects the world’s economy to rebound from the COVID-19 pandemic in 2021 with growth as high as 4.2%. Nearly all the world’s economies will be smaller at the end of 2021 than they were in 2019. However, a strong recovery in China will help lead the global growth. In the US, economic recovery has been torrid, with Gross Domestic Product (GDP) booming at a 33.1% rate in the Third Quarter. The US economy is benefitting from several strong sectors including surging business investment, residential home sales, and pent-up consumer demand.

What's Trending in Workforce Mobility for 2021?

This article is an excerpt from our 2021 Workforce Mobility Forecast. Download a complete copy today, or watch a recording of our latest Thought Leadership Series webinar on the trends that are shaping the industry.
Click Here

GMS Account Managers Stay Informed for Clients

The dynamic nature of global mobility combined with the hard realities of the COVID-19 pandemic to make 2020 a challenging year to keep abreast of trends. However, GMS Account Managers continually stay up to date with current information on behalf of their clients. As a result, clients always have timely information and recommendations to ensure the best possible solutions for any relocation issue. For 2021, GMS Account Managers will continue to focus on what is happening at the local, regional, national, and world levels so clients have the most current information as it relates to their relocation program. 

If you have any questions or need more information about immigration trends for 2021, or are ready to work with the best relocation company, contact us online, or give us a call at 800.617.1904 or 480.922.0700 today. We’re here to help you get your employees where they need to be.

Categories
Corporate Relocation

2021 Housing Market and its Impact on Relocation

Woman with dark hair, wearing white polka dot shirt, smiling, and man, wearing blue shirt and white t-shirt, smiling, both facing forward, woman has her arm around man’s shoulder, man holding keys to their new home which they bought during the 2021 housing market

What does the 2021 housing market look like, and how will it impact relocation? The 2020 housing market rose at a blistering rate, far outpacing initial forecasts. The rapid 2020 pace is attributable to several factors. These factors include historically low mortgage rates, work from anywhere policies, and demand for housing with more space away from crowded cities.

2020 Housing Market Performance

  • Home sales: 5.52 million, highest annual mark since 2006
  • Median home price: $293,000, record high

Source: National Association of Realtors®

Can the 2020 housing market produce a repeat in 2021? Several signs seem to suggest yes, a repeat is possible. The National Association of Realtors® (NAR) predicts the 2021 housing market is shaping up for a post-pandemic rebound. Relocation Management Companies (RMCs) strongly recommend that companies encourage transferees to buy a home instead of renting. Companies can also save money on relocation through a Buyer Value Option Program over direct reimbursements. Companies should be aware of how the 2021 housing market may impact their relocation program.

What Does the 2021 Housing Market Forecast Look Like?

Lawrence Yun, NAR Chief Economist and Vice President of Research, presented a consensus forecast of over 20 top U.S. economic and housing experts. The forecast covers several important points, including economic growth, unemployment rates, and mortgage rates.

Specific points in the 2021 forecast that will impact relocation include:

  • Average annual 30-year fixed mortgage rate: 3.0%
  • Annual median home price rise: 8%
  • Housing starts: 1.5 million
  • Federal funds rate: expect no change from current 0%

What Do the Forecast Numbers Mean?

Looking at the 2021 housing market forecast, it appears that low-interest rates will continue to fuel demand for houses. Builders have picked up the pace and new home construction is rising. Monthly new residential construction for December 2020 shows an annual rate of 1,417,000 completions. This rate is 15.9% above the revised November estimate, and 8% above the December 2019 rate of 1,312,000. However, builders are finding it difficult to hire workers due to a labor shortage in the construction industry. Therefore, increasing the supply of housing will not bring immediate relief to home buyers.

The annual median home price rise of 8% will have a direct impact on anyone buying a home. This includes transferees in a relocation process. Prior to the pandemic average annual home prices grew at a 3.9% rate, falling to 3.8% in 2019. For 2020, home prices rose 14.2%, far above the previous average. A forecast of 8% increase in annual median home prices indicates the 2021 housing marketing will be a robust seller’s market. Affordability will impact many markets, making it difficult for homebuyers to find and purchase homes.

What Should Companies do About the 2021 Housing Market?

Companies should work with RMCs that use top real estate agents to navigate the home buying and selling process. RMCs can also help companies understand how to gain all the benefits of a Buyer Value Option Program. Many home buyers and sellers have been successful during the COVID-19 pandemic by leveraging virtual agent services. In fact, the entire real estate experience can be successfully conducted virtually. These virtual services are often preferred by home buyers and sellers. They also help speed the home buying and selling process.

By leveraging technology to enhance the home buying and selling process, top real estate agents help ensure transferees are able to buy homes in their new location. Also, RMCs can show companies how to save costs and reduce risks with a Buyer Value Option Program. As a result, relocations will be successful, and transferees will have a satisfactory experience.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to navigate the housing market to ensure transferee’s successful relocation. Our team can help your company understand how the 2021 housing market will impact your relocation program.

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

Contact our experts now to learn how the 2021 housing market will impact your company’s relocation program, or call us at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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