Category: Corporate Relocation

Why Small Business Relocation Benefits Are Important

Post author By Nancy Kritzer | CRP
Post date January 25, 2022

small business owner working with employees

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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Tags Domestic Relocation, Domestic Relocation Tips, small business relocation

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States and Cities with Great Relocation Incentives

Post author By MIchael Hughes
Post date January 4, 2022

cityscape view at dusk — 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.

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Tags Domestic Relocation, Domestic Relocation Tips, Domestic Relocation Trends

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A Complete Guide to Relocation Services

Post author By MIchael Hughes
Post date December 1, 2021

Metropolitan cityscape at sunset — 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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Tags relocation companies, relocation package, relocation services

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The Core-Flex Employee Relocation Model Explained

Post author By MIchael Hughes
Post date November 9, 2021

two business people talking — Two serious caucasian men in suits discussing or planning business issues in the office. Colleagues or client and consultant are sitting at the table next to each other and talking.

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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Tags core-flex relocation, relocation packages, relocation services explained

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Understanding Third-Party Household Goods Shipping

Post author By Jules Matz | AHWD, ABR, CNE, CRP, GRI
Post date October 19, 2021

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.

Tags Domestic Relocation, Domestic Relocation Trends, global relocation, Global Relocation Tips

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

Post author By Jules Matz | AHWD, ABR, CNE, CRP, GRI
Post date September 28, 2021

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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Tags bvo, gpo, home sale assistance, Real Estate, reimbursement, relocation programs

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Advantages of Creating Competition Between Suppliers for Relocation Services

Post author By MIchael Hughes
Post date September 21, 2021

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.

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Tags relocation, relocation best practices, Relocation Costs, relocation programs

Career Services Corporate Relocation Corporate relocation tips Job Seekers Labor Force

2021 Best Cities to Live in the USA for Growth Opportunities

Post author By Global Mobility Solutions
Post date June 29, 2021

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.

The Woodlands, TX
Arlington, VA
Naperville, IL
Overland Park, KS
Cambridge, MA
Ann Arbor, MI
Plano, TX
Columbia, MD
Berkeley, CA
Bellevue, WA
Irvine, CA
Richardson, TX
Seattle, WA
Madison, WI
San Francisco, CA
Sunnyvale, CA
Raleigh, NC
Boulder, CO
Sandy Springs, GA
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

Tags 2021 best cities, moving tips, relocation, relocation management, Talent Management, Talent Mobility

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

Post author By MIchael Hughes
Post date June 1, 2021

manager explaining to team what's on computer screen — Closeup side view of group of software developers working late at IT office. There are three people gathered around two dual display computers. Back lit through large office window.

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!

Tags managing mobility costs, Mobility Cost Management, Relocation Cost Management, Relocation Costs

Business Services Corporate Relocation

Corporate Housing Trends for 2021

Post author By Global Mobility Solutions
Post date June 1, 2021

nice looking living room — 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

Tags corporate housing, short-term housing