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Corporate Relocation

2021 Housing Market and its Impact on Relocation

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.

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Corporate Relocation

Data Shows California Residents Move to Other Western States

California residents move to other Western states at a higher rate than other states. According to recently published State-to-State Migration Flows, the number of moves is in some cases dramatic. During the pandemic in 2020, many Californians benefitted from “work from home” and “work from anywhere” policies.  As a result, employees in California could work in almost any location as companies quickly adapted to the realities of the pandemic on their workforce.

Data from the United States Postal Service for address changes compiled by Bankrate during January through September 2020 shows several trends:

  1. States with highest number of moves include Texas, New York, Washington DC, North Carolina, and California
  2. Top destinations are suburbs and “exurbs” of larger cities
  3. Many people stayed in the same metropolitan area
  4. 4% of moves are out-of-county (including out-of-state)

Reasons for moving include avoiding public interaction in larger cities, buying larger homes for home offices and more space, and seeking lower-cost suburbs and smaller cities.

Top 10 States for Americans Moving State-to-State for Structural Reasons

Americans are moving state-to-state to the following top 10 US states:

  1. Wyoming
  2. North Dakota
  3. Alaska
  4. Idaho
  5. Nevada
  6. Colorado
  7. Delaware
  8. Montana
  9. New Hampshire
  10. Hawaii

Americans prefer to move to Western states over states in other areas such as the Midwest, South, or Northeast. Seven of the top states are considered Western states.

Large Number of California Residents Move to Other States

Looking at only the Western states in the list, it is easy to see that California residents move in larger numbers than other states’ residents:

Western StateGain from California Residents Move to StateTotal Moves from Other States% of California Residents Move to State
Wyoming3,21130,24710.62%
Alaska2,54734,0317.48%
Idaho17,72278,73022.51%
Nevada47,322132,95035.59%
Colorado29,350240,60012.20%
Montana5,29840,86212.97%
Hawaii10,95449,70822.04%

California Residents Move to Nevada for Several Structural Reasons

Proximity to The Golden State might give Nevada an edge in capturing Californians. Prior to the pandemic, The Silver State was noted as having a robust and growing economy with plentiful job opportunities, no state income tax, no business income tax, affordable housing, lower cost of living, and a desirable climate.

A “California Exodus” appears to be another driving force. Ex-Californians represent nearly 20% of Nevada’s population. Reasons cited for the exodus include high taxes, unaffordable home prices, excessive regulations, unfriendly business climate, and high cost of living. In 2019, over 650,000 Californians moved to another state, leaving the state with a negative net population change.

Trend Continues Post-Pandemic: California Residents Move for Structural Reasons

California residents move to other states for many structural reasons. It is likely this trend will continue. The state is considering a wide range of tax increases including:

  • Personal income tax increase on earnings over $1 million
  • Raise the state’s corporate income tax rate
  • Close tax loopholes

The California Tax Foundation’s Tax and Fee Report notes lawmakers have been seeking to increase the state’s fees and taxes by nearly $83 billion dollars. Some of the taxes under consideration include:

  • Value-added tax on goods and services similar to those in Europe
  • Employer tax increase
  • Wealth tax that would continue for years after someone leaves California

What Should Employers do as California Residents Move to Other States?

Employers in the top 10 states for Americans moving state-to-state stand to gain with an increase in the local skilled labor force. They should also expect a rise in the need for new employees, as incoming residents help generate a positive economic impact.

Employers in California should review their hiring needs, corporate facility requirements, and relocation programs. Employers should determine if a group move to a Western state would be beneficial for the company as well as its employees.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand the importance of examining multiple factors that affect business success, talent acquisition, and employee retention. Our team can help your company learn why California residents move to other states and how this trend will impact your company’s corporate initiatives.

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 continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Powered by GMS’ 2020 Mobility Benchmark, the innovative GMS Program/Policy Evaluation (PPE) Tool provides instant relocation policy reviews. It also helps users gain insight into how their company’s relocation program compares to their industry peers.

Learn more about why California residents move to other states and how a group move might be in your company’s best interest. Contact our experts online or call us at 800.617.1904 or 480.922.0700 today.

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

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Corporate Relocation Domestic Relocation Tips Global Relocation Relocation Policy Review Relocation Programs

Relocation Policy Benchmarking Delivers Results

As your company enters 2021, you should use relocation policy benchmarking to deliver much-needed results right from the start. The mobility industry strongly recommends that employers conduct a comparative policy review at an interval of 12 to 18 months. Waiting any longer to do this valuable exercise puts your company at great risk of losing significant ground to your industry competitors.

Do you think the relocation industry has not changed much in 12 months? Think again! The COVID-19 pandemic is still affecting all aspects of relocation. Whatever the issues are, a thorough relocation policy benchmarking will show you the solutions your company should implement.

Top 5 Results that Relocation Policy Benchmarking Delivers:

1. Increase Knowledge Across Your Organization

You must work with several internal stakeholders to implement successful relocations. All of these stakeholders should learn what is changing in the relocation industry. Cost issues, legal issues, and travel issues are still arising from the pandemic.

2. Examine Your Company’s Competitive Position Through Relocation Policy Benchmarking

How are your industry competitors using their relocation policies to attract and retain new hires and transferees? Relocation policy benchmarking provides clear information on how your industry peers leverage their relocation policies to succeed at talent acquisition and retention.

3. Adopt a Global Approach to Align Corporate Mobility Objectives

GMS has helped several companies avoid the pitfalls of decentralization. When companies take a decentralized approach to mobility, they end up with different policies and different experiences from location to location. Relocation policy benchmarking helps identify all of these differences. Recommendations to adopt the best solutions across the organization result in operational efficiencies, costs savings, and greater transferee satisfaction.

NOTE! View our Case Study on Decentralization. You will learn how we helped a large multinational client understand the benefits of a centralized approach for their relocation policies.

4. Innovative Solutions Solve Problems and Increase Efficiency

As fast as the world has changed over the past year, technology has changed at an even faster lightning speed. For example, conducting a relocation policy year end reconciliation can now be done in minutes with the touch of a few buttons. Relocation APIs such as those offered through GMS’ MyRelocation® Technology make managing your company’s relocation program a quick and easy process.

5. Save Costs with Relocation Policy Benchmarking

One of the biggest cost drivers for relocation policies are exceptions. By examining the best practices in your industry, your company can enhance your relocation policy to reduce these costly exceptions. Relocation policy benchmarking will identify cost issues and help your company institute solutions to keep costs and budgets in line.

What Should Employers Do?

Employers should initiate a relocation policy benchmarking with a qualified and knowledgeable Relocation Management Company (RMC). The project should include a full assessment of the company’s current relocation policy. It should also include a full review of corporate objectives and a complement of strategic recommendations.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand why they should initiate a relocation policy benchmarking. We can help your company understand how to create a relocation policy that reflects industry best practices, saves costs, and increases efficiency.

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 continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Powered by GMS’ 2020 Mobility Benchmark, the innovative GMS Program/Policy Evaluation (PPE) Tool provides instant relocation policy reviews. It also helps users gain insight into how their company’s relocation program compares to their industry peers.

Schedule your relocation policy benchmarking now. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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2020 Regional Competitiveness Score Shows Maricopa County Leads the Nation

In the fifth annual Talent Attraction Scorecard published by Emsi, Maricopa County ranks #1 for its 2020 regional competitiveness score. This ranking is among large counties in the US, defined as having a population of over 100,000 residents. Interestingly, Maricopa County also held the top spot for large counties in 2017 and 2018, and the second spot in 2019. The metropolitan Phoenix market is attracting both businesses and talent at a healthy and self-sustaining rate of growth.

Top 10 Ranking

The top 10 large counties ranking highest for their 2020 regional competitiveness score include:

  1. Maricopa (Phoenix, AZ)
  2. Clark (Las Vegas, NV)
  3. Collin (McKinney, TX)
  4. Williamson (Georgetown, TX)
  5. Riverside (Riverside, CA)
  6. Denton (Denton, TX)
  7. Fulton (Atlanta, GA)
  8. Wake (Raleigh, NC)
  9. Montgomery (Conroe, TX)
  10. Lee (For Myers, FL)

Source: Emsi Fifth Annual Talent Attraction Scorecard.

Note that all of the top 10 large counties ranking at the top for regional competitiveness are in southern or western states. Texas in particular has four large counties that rank high for regional competitiveness.

Emsi defines regional competitiveness as the “job change that occurs due to factors within a region.” This is as opposed to impacts from trends outside the region such as national economic performance or any other influences. With its return to the top spot for 2020, it is clear that locating and growing a business in Maricopa County is a winning proposition.

Data Included in 2020 Regional Competitiveness Score

Emsi’s data analysis focuses on several important measurable factors including:

  • Educational attainment
  • Growth of jobs
  • Growth of skilled workers
  • Migration
  • Population
  • Regional competitiveness

The report highlights several positive trends for Maricopa County, including current business expansions and a tremendous 18% in the growth of skilled jobs. Expansions in semiconductor manufacturing are highlighted, including Intel Corporation’s newest investment, the Fab 42 plant. This single investment accounts for over 10,000 jobs in Arizona, including 3,000 high-tech positions at the facility. Additional jobs include support engineering, equipment technicians, facility management and maintenance, transportation, and administration.

Success in Several Industries Supports Maricopa County’s 2020 Regional Competitiveness Score

However, the 2020 regional competitiveness score recognizes much more success in businesses than just in the semiconductor industry. The report notes that Maricopa County’s success spans a wide range and depth of industries. Ultimately, the report points to a “positive feedback loop” that supports growth:

Existing talent in Maricopa County

Attracts

Company relocations and investments

Attracts

Additional talent to relocate to Maricopa County

This feedback loop results in greater growth overall for Maricopa County and its several cities. For example, the city of Scottsdale has ranked at the top of the list for the 2020 USA job market. As business and jobs grow, so does the need for housing and infrastructure. According to Sperling’s Best Places, future job growth in Scottsdale is predicted to be higher than the US average.

What Should Employers do Regarding the 2020 Regional Competitiveness Score?

Employers should look into the data prepared by Emsi and other organizations such as the Greater Phoenix Economic Council (GPEC). The data may support a strategic relocation to Maricopa County or an expansion of current facilities located in the county. Recently GPEC reported 89 different companies looking to relocate to the Phoenix metropolitan area in their October 2020 Prospect Overview.

Many of these companies are looking to benefit from a lower cost of living, less taxes, and business-friendly policies. As a result of Maricopa County’s top ranking 2020 regional competitiveness score, these companies will also benefit from the county’s job growth, a growing and highly educated workforce, and positive inbound migration of skilled talent.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to find information on highly desirable areas for business relocations and group moves. Our team can help your company understand how the 2020 regional competitiveness score can lead to a successful business relocation with many benefits for both employers and employees.

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 continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning more about the 2020 regional competitiveness score for Maricopa County, or give us a call 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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Corporate Relocation

Future Workplaces: What Will They Look Like?

Many of us are wondering what future workplaces will look like. The effects of the COVID-19 pandemic ripple into virtually all aspects of businesses. Offices, manufacturing facilities, and headquarter locations are undergoing massive transformations that would have been almost unthinkable in the not-too-distant past. Beyond instituting policies for wearing a face mask and socially distancing, a seismic shift in how we actually work has altered our cities and our way of life. What will work look like a few years from now?

Larger U.S. Cities May Not be Part of Future Workplaces

In the latter half of 2020, surging COVID cases have led employers and employees to question whether they can return safely to workplaces. Many states and cities are reinstituting draconian measures meant to help slow the spread of the virus.

These restrictions are often seen as harmful to small businesses such as restaurants, salons, and gyms. However, a bigger issue looms as an even greater threat to small businesses: employees not returning to larger U.S. cities to work at all. A number of recent trends will result in changes to how companies will operate as an entity.

Central city business locations with hundreds or thousands of employees in close proximity often results in tremendous synergy and effective teamwork, as well as reduced overhead costs and effective communication. However, a return to this model remains elusive without an effective strategy to eliminate all risks of COVID transmission. With the rising number of COVID cases, many companies are encouraging employees to continue working remotely.

Are Single-Family Homes Going to be the Future Workplaces?

Many companies have expanded their work from home and work from anywhere policies to promote remote work during the pandemic. In turn, several employees have adjusted well to working from home, and in some cases productivity has increased. Other employees have learned about lower-cost cities and suburbs and have made the move. As a result, city dwellers on the move are helping to fuel a boom in suburban housing prices.

Questions still remain about such topics as remote worker expenses and how to effectively recruit talent in the “new normal” during and post-COVID-19. However, both employees and employers are adjusting to the new normal with new ways of doing business. For example, the Zoom video platform saw a tremendous increase in its subscriber base and growth in revenue due to the pandemic. For employees working from home, video has become their lifeline to work and other employees. Companies, however, are still missing all the benefits a centralized workforce provides. Thus, single-family homes are most likely a temporary phenomenon on the path toward future workplaces.

Are Suburbs Going to be the Future Workplaces?

With so many employees working from home, and many others relocating to suburbs and smaller cities to gain more space and enhance their lifestyle, it seems suburbs are poised to become the future workplaces.

City dwellers who do not want to reside in large cities now have more disposable income to buy a home or condominium. The National Association of Home Builders reports that “Suburbs of medium-sized cities posted the greatest single-family gains in the third quarter, with a 15% growth rate over the last four quarters.” While these former large-city residents may ultimately face a salary reduction due to a lower cost of living in their new location, overall the benefits of suburban living appear to outweigh any cost of living adjustment.

Companies can easily Capitalize on the Suburban Trend for Their Future Workplaces

Companies located in larger cities can easily develop their future workplaces with a move to a suburban area. By locating in the areas where their employees live, companies will gain many benefits. Employees living in close proximity often share several common interests and activities. For example, children may attend the same schools. Also, there may be shared membership in local organizations and participation in local events. These interests and activities may help build the camaraderie that enhances teamwork and corporate identity.

Making the Move to Phoenix and its Suburban Cities

Some companies are looking to move from larger cities to smaller cities with thriving suburbs. This will allow all employees to experience a better quality of life and lower cost of living. For example, the Greater Phoenix Economic Council reports that 25 companies are looking to relocate from the state of California to the Phoenix metropolitan area.

By relocating to a suburban area, companies can develop new facilities better designed to handle issues relating to pandemic requirements. Larger spaces, superior ventilation and filtration, and upgrading to the latest technologies will create an environment more conducive to working safely together as one corporate entity.

What Does This Mean for Larger Cities?

Are these trends due to the pandemic going to lead to a decline in larger cities? Various factors always lead to a dynamic working environment. For example, development of a successful COVID-19 vaccine could lead to full reopening of larger cities for companies, employees, and visitors.

Also, the draw of larger cities for the wealth of amenities they offer is hard to replace. After all, it would be impossible to replicate New York City’s Carnegie Hall or Washington D.C.’s Kennedy Center in some other location. And there is no other place in the U.S. like the French Quarter of New Orleans. The culture, arts, and vibe of larger cities is impossible to find anywhere else. Also, larger cities are often home to important functions such as government offices and financial markets. These points will help larger cities transform into desirable future workplaces in the long run.

Larger cities may become central hubs for corporate headquarters, while the majority of non-HQ functions may be situated in smaller cities and suburbs. Office buildings in larger cities can be retrofit to accommodate a smaller number of headquarters employees and ensure workplace safety.

What Should Companies do?

Companies should examine their need for office, manufacturing, and other spaces. They should also look into where employees are currently located. This information will help companies determine if they can leverage a move to a new location for their future workplaces. As a result, they might recapture critically important synergies and corporate identity among employees. They should also examine important headquarters functions. For example, companies might look at functions with an eye towards locating closer to important entities and markets. These might include financial markets, government entities, and regulatory bodies important to corporate initiatives.

Companies should work with a Relocation Management Company (RMC) that has knowledge and experience in managing relocation and group moves to future workplaces. Qualified RMCs will help companies understand the issues relating to current trends. They can also share valuable resources to guide policy decisions that follow industry best practices.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients with their relocation programs and group moves.  Our team can help your company understand the issues relating to future workplaces. We can also help your company consider the impact of work from home and work from anywhere policies on compensation issues as well as remote worker expenses.

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 continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online to learn more about how your company might leverage current trends to develop its future workplaces, or give us a call 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.

Categories
Corporate Relocation

UK Nationals Must Fulfill European Union Legal Residency Requirements

As the United Kingdom (UK) finally reaches the end of the Brexit transition period, UK nationals living in the European Union (EU) should affirm their EU residency. Apart from any requirements in the UK, many countries in the EU have specific requirements regarding residency. UK nationals may need to apply for residence in the country. Alternatively, they may need to register their residence.

Important Points for UK Nationals to Affirm Residency:

  • UK nationals may need to apply for a residence status to confirm they did in fact reside in the specific EU country prior to the end of the transition period (December 31, 2020)
  • Requirements and processes vary by country
  • According to the UK government, UK nationals have until June 30, 2021 to submit the application

What Happens to UK Nationals After December 31, 2020?

After December 31, immediate family members may travel to be with UK nationals. However, they may also need to submit an application prior to traveling.

The definition of immediate family members includes:

  • Spouses
  • Children/grandchildren who are dependents
  • Registered Partners
  • Parents/grandparents who are dependents

What Does This Mean?

For UK nationals living in the EU, it is important to understand their country of residence’s requirements relating to affirming residency status. Each country has specific forms and processes that should be followed. There are many complexities surrounding these requirements. Employers of UK nationals should take note to be sure their employees follow each specific requirement to ensure continued legal residency. The UK Government has a robust portal with a wealth of helpful information and resources. Here are three examples that show the wide disparity across various EU countries:

Greece

  • UK nationals must register as a resident if they plan to stay for more than 3 months. Guidance on how to register in Greece.
  • Those who are a legal resident before the transition period ends will be able to stay.
  • Rules on residency registration will change after December 31, 2020. For those already registered as a resident in Greece or those who register before December 31, 2020, their residence documents will be considered as temporary national residence permits.
  • UK nationals must further confirm their rights by obtaining a new residence document. (Note: Greece has not yet announced the process to obtain this new residency document.)
  • The Greek government has a helpful website for UK nationals living in Greece, and they may submit questions using the website’s contact form.
  • If you move to Greece after 31 December 2020, different immigration requirements will apply.

Luxembourg

  • UK nationals who move to Luxembourg before December 31, 2020 must first make a declaration of arrival at the local town hall (commune) in their locality within 8 days. Within 3 months of arrival, they must get an address registration certificate from the Commune. Following these steps and after they have received their address registration certificate, then they will need to get the new document.
  • If they require a criminal record check, they must apply for a police certificate from the ACRO Criminal Records Office. (Note: If they have never resided in the UK, they should record this in the “additional information” section on the application form.)
  • Guidance on registering in Luxembourg.
  • UK nationals who are residents in Luxembourg before the transition period ends will be able to stay.
  • They must obtain a new residence document by June 30, 2021.
  • Those who previously registered as a resident must complete an application form to obtain the new document from the Immigration Department in Luxembourg City. Guidance on the application process is provided online, along with the required application form.

Romania

What Should Employers of UK Nationals do?

Employers of UK nationals should provide guidance as to the employee’s country of residence requirements to ensure legal residency status is maintained. They should also work with a Relocation Management Company (RMC). An experienced and knowledgeable RMC will be able to help employers by identifying the specific country requirements.

The RMC will also help determine the best process to ensure all of the requirements are met. Meeting requirements will help secure legal residency status for the employee. As a result, both employers and employees will have peace of mind. They will also not face any disruptions relating to residency status.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients understand how to meet country requirements for residency. Our team can help your company understand how to help employees who are UK nationals establish legal residency in their specific EU country.

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 continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Contact our experts online to learn more about how GMS can help employees who are UK nationals establish residency in their EU country of choice, or give us a call at 800.617.1904 or 480.922.0700 today.

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

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

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

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Expedited Bidding Benefits: How Your Company Can Gain Immediate Results

If your company is seeking better results from your relocation program, expedited bidding benefits bring immediate savings. As many companies learn, outsourcing the management of their relocation program to a Relocation Management Company (RMC) provides several advantages. Doing so through a quick process helps the company achieve even greater results in the short term. Companies that use an expedited bidding process report significant savings in both time and costs.

GMS’ benchmark study of companies that leverage an expedited approach to bidding on the management of their relocation program show why this is a preferred process. Our team of global relocation experts has identified the top five expedited bidding benefits that companies can expect.

Top 5 Expedited Bidding Benefits

1. Cost Savings Right from the Start

Companies instituting an expedited approach create competition in the process. Relocation Management Companies pursuing their business will put forth their most competitive fee structures. Direct costs are likely to be the lowest in the quest to obtain the account. With these immediate savings from the expedited bidding process, companies are assured of cost effective solutions.

2. Complimentary Consulting

Some of the most valuable expedited bidding benefits related to mobility consulting. As part of the process, companies can request many of the following at no cost:

  1. Policy development and revisions
  2. Relocation program design
  3. Current policy reviews

As part of this process, companies can learn much about an RMC’s abilities, including:

  1. Knowledge of relocation processes
  2. Level of experience on points important to the company
  3. Consulting work quality and timeliness

3. Speedy Implementation Saves Time and Offers Quick Access to Expedited Bidding Benefits

Expedited bidding benefits relating to time savings can directly correlate to cost savings. The quicker a relocation program be implemented, the quicker the company achieves program savings and efficiencies. GMS’ data shows that on average, more than 90% of companies using expedited bidding complete their relocation program implementation in just 22 days. Given the amount of work that may be involved, including creating relocation APIs, policy documents, and communication, a shorter implementation timeframe lets the company quickly return its focus to other strategic objectives.

4. Process is a Better Fit for Buying Solutions

Companies that retain an RMC to manage its relocation program understand they are buying solutions that will help their employees. As a result, these solutions require a much different approach than the process they would use to purchase equipment parts or to source machinery. Ultimately, relocation management requires that the company ensures the right fit for the right reasons. The right fit ensures the company will maximize their expedited bidding benefits.

5. Frees up Administrative Burden of Formal Requests

Companies that fully understand their purchasing processes know the amount of administrative burdens and resources necessary to complete formal Requests for Information and/or Proposals. By foregoing these types of resource-intensive approaches that often create more problems for the company, employees can pursue value-added activities while RMCs carry the burden of responses.

What Should Companies do to Gain Expedited Bidding Benefits?

Companies should seek to gain expedited bidding benefits by utilizing an expedited process for outsourcing the management of their relocation program. Relocation Management Companies with extensive industry experience and knowledge will prove to be the best resources in this effort. Qualified RMCs will guide companies to successful results with a customized, right-fit program and greater expedited bidding benefits.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients with their relocation programs.  Our team can help your company gain the maximum amount of expedited bidding benefits by leveraging our expertise to present the most cost-effective and efficient relocation management solutions.

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 continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online to discuss your company’s interest in obtaining expedited bidding benefits, or give us a call 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.

Categories
Corporate Relocation

Companies Planning Their Return to Workplaces Safely Must Balance Several Issues

Many companies are currently planning their return to workplaces safely following the initial phases of the COVID-19 pandemic. In some cases, this may require a significant investment in new equipment, training, and development of new processes. A number of issues should be considered to ensure employee safety, clear communication, and business continuity. Ultimately, flexibility may be the key concept that helps keep everyone focused on several important considerations.

Changing Expectations Impact Return to Workplaces Safely

As recently as June 2020, many senior executives expected up to 50% of their employees or more would return to workplaces safely. At that time, several states, counties, and cities had begun to enter the latter stages of their coronavirus reopening plans.

However, new cases continue to rise in various parts of the nation. The Conference Board published a survey that finds that only 28% of U.S. employees believe they will return to workplaces safely by the end of this year. In fact, the survey reports that 31% of employees are not comfortable returning.

Trust is Another Major Issue

Trust in how companies can ensure safety as they arrange for employees to return to workplaces safely is a major issue. According to Edelman, only 50% of employees believe office spaces are safe for them to return. Additionally, large numbers of employees have significant concerns relating to using or visiting the following everyday common activities:

Many of the employees’ concerns relate to issues surrounding sanitation and cleanliness, as well as being in confined spaces with possible COVID-19 exposure.

Even though they may have concerns about their return to workplaces safely, many employees currently working from home do want to return. In a survey published at Digital.com, the majority of individuals working from home are eager to get back to their offices and facilities.

What Does This Mean for Companies Planning Their Return to Workplaces Safely?

Since many employees do want to return to workplaces safely, it is important for companies to address their concerns. There are many helpful resources that provide guidance for employers to ensure safety in all aspects of the working environment. The COVID-19 pandemic continues to be a major public health issue. As a result, employers should focus on communicating how they plan to keep employees safe in the workplace.

What Should Employers do?

Employers should create a project team that will develop plans for their return to workplaces safely. This team should research important resources and information in order to identify what will work best for their specific situation. Employers should retain flexibility in their plans to account for new information and changing expectations.

Employers should work with a Relocation Management Company (RMC) that has experience with corporate relocations and individual employee moves. RMCs with knowledge and experience can help employers identify valuable resources that will assist them with their planning efforts.

Conclusion

GMS’ team of domestic relocation experts understand how to arrange for group moves of offices, employees, and equipment. Our team can help your company understand how identify and address all of the issues involved in helping employees return to workplaces safely.

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 continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online to learn more about how companies can plan for their return to workplaces safely, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Corporate Relocation Corporate relocation tips

2020 Phoenix Relocation: Where are the Companies Coming From?

The Greater Phoenix Economic Council reports that many companies are considering a 2020 Phoenix relocation or expansion. In their October 2020 Prospect Overview, a number of significant data trends are clearly visible. Looking at the data relating to the prospects’ region of origin, we can see the following:

California2528%
New York67%
North Carolina44%
Colorado33%
Texas33%
Florida22%
Illinois22%
Washington22%
Georgia11%
Maryland11%
Nevada11%
New Jersey11%
Ohio11%
Pennsylvania11%
Tennessee11%
Virginia11%
Unknown1416%
International2022%
GRAND TOTAL89100%

One clear data trend is that there are a significant number of companies from the next-door state of California that are considering relocating to Phoenix. The number of companies coming from California is more than four times the number of companies coming from New York. There are usually a number of reasons that a company may desire to initiate a 2020 Phoenix relocation. However, there are some factors specific to California that may be influencing company’s decisions to accelerate their relocation.

What are the Major Factors Driving California Companies to a 2020 Phoenix Relocation?

In looking at the major factors that are driving companies to leave California, three of the most significant factors are:

  1. Cost of Living
  2. Taxes
  3. Business Regulations

Reviewing these major factors in California versus Arizona may show why many companies have a 2020 Phoenix relocation on their agenda.

Factor 1: Cost of Living

On average, the cost of living in Los Angeles versus Phoenix is 67% more expensive. This is a significant different between these two major cities. Nearly every category by comparison costs higher in Los Angeles. Housing costs are 188% more in Los Angeles than in Phoenix. Transportation costs are also significantly higher in Los Angeles, over 40% higher than in Phoenix. From a cost of living standpoint, both employers and employees can benefit with a 2020 Phoenix relocation.

Factor 2: Taxes Drive Many Companies to Plan for a 2020 Phoenix Relocation

Comparing the tax situation in California versus Arizona shows taxes are much higher in California. A comparison of the differences shows the following:

 CaliforniaArizona
Average State Income Tax Rate9.3%4.54%
State Sales Tax7.25%6.60%
Property Tax Per Capita$1,449$1,043

The top state income tax rate in California is an astonishing 13.3%, currently the highest in the nation.

24/7 Wall Street reports that of the states with the highest and lowest taxes, California ranks near the top at #14 on the list for highest taxes, while Arizona ranks near the bottom at #46.

The Tax Foundation noted in a previous study that the five highest state-local tax states (the combined effect of all state and local taxes) were:

  1. New York 12.7%
  2. Connecticut 12.6%
  3. New Jersey 12.2%
  4. Illinois 11.0%
  5. California and Wisconsin 11.0% (tie)

Certainly taxes are a major factor for any company considering a relocation. The significantly different tax rates between California and Arizona provide a strong incentive for a 2020 Phoenix relocation.

Factor 3: Business Regulations

Business regulations can cover a variety of issues, from the necessary permits required to construct office buildings to the number of parking spaces required in a shopping center. It could also include topics such as how workers are classified. For example, California recently passed the AB5 Law requiring many companies to classify “gig” workers as statutory employees, not independent contractors.

Recently Uber and Lyft were successful in their efforts to stop AB5 from impacting their businesses. However, some other businesses impacted by AB5 are not covered in this initiative. Also, there is the specter of continued and increasing regulations relating to how companies actually conduct their business. Locations, employees, products and more are all impacted by California’s extensive regulatory environment.

By comparison, Arizona has been successful in creating a welcoming business climate. The state’s economy continues to grow along with the national economy, and consistently exceeds 2% over time. This stable growth rate is appealing to many businesses. It is also very easy and inexpensive to establish a business in Arizona. The Arizona Commerce Authority notes several ways that the state has reduced regulations:

  1. Streamlining Tax Collections
  2. Eliminating the Need for Multiple (State & Local) Tax Licenses, Returns, and Audits
  3. Reducing Red Tape and Paperwork
  4. Right-to-Work State Ensuring Labor Peace and Business Stability

What Does This Mean for Companies Looking at a 2020 Phoenix Relocation?

As can be seen by the data from the Greater Phoenix Economic Council, the benefits of relocating from California to Arizona are driving many companies to consider a 2020 Phoenix relocation. Employers in California should look at the three major factors of cost of living, taxes, and business regulations to determine if their company, employees, and customers might benefit in multiple ways with a relocation to Phoenix.

Companies should work with a Relocation Management Company (RMC) that has direct experience with state-to-state relocations. RMCs will have knowledge and experience to help companies determine the best plan for a 2020 Phoenix relocation.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to approach a corporate relocation from one state to another state. Our team can help your company determine if a 2020 Phoenix relocation should be part of your future plans.

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 continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online to learn if your company should consider a 2020 Phoenix relocation as part of your corporate plans, or give us a call 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.

Categories
Corporate Relocation

Pre-Decision Tax Planning: 5 Steps You Should Take Now

Global Mobility Solutions knows the importance of pre-decision tax planning. As the pioneer of the benefits of pre-decision services, GMS understands how to identify the markers of success in relocations. Clients know that partnering with us early in the process helps increase relocation success. It also helps increase their transferee’s productivity on their new job. Our wide range of services help clients identify those employees who are the best fit and best suited for the assignment.

GMS spoke with Erika Beddow, Business Development Manager at Global Mobility Tax, LLP.  Erika has over 20 years’ experience in public accounting with the last 12 years specializing in the Global Mobility industry. Erika agreed to share her expert guidance on the issue of pre-decision tax planning.

What is Pre-Decision Tax Planning?

Whenever she is asked this question, Erika states that pre-decision tax planning is an extremely important consideration for relocation programs. Employers should be well-prepared for a successful global relocation. Relocating an employee globally can be beneficial to both the employer and employee. However, global relation can cause many issues if tax planning is insufficient.

Before sending an employee on a global assignment, employers should know the basics. This includes knowing how the host location will tax employees. It also includes understanding the taxes the company will need to pay. Whether the relocation is permanent or short-term, employers should understand the tax costs upfront. This will help them prepare accurate global relocation budgets. It will also help them avoid any possible tax compliance penalties.

COVID-19 Pandemic Puts the Brakes on Global Relocation

Many employers have found global relocations interrupted or halted during the COVID-19 pandemic. Erika believes that as countries start to recover and lift visa restrictions, employers will start considering international moves for employees. As companies look beyond the COVID-19 pandemic, pre-decision tax planning will be an essential part of relocating their employees.

Tax regulations are increasingly complicated and can increase the tax burden for both the company and employee. Pre-decision tax planning should be reviewed by assignment type to understand what the tax implications are in each location. This could vary depending on location, assignment type, and allowances paid. Some of the more common allowances offered may generate tax obligations.

Common Allowances for Global Assignments

  • Moving allowance for both the employee and family (includes airfare and shipping)
  • Housing allowances (either temporary or for the duration of the assignment)
  • Cost of Living Adjustment (COLA)
  • Home finding assistance
  • Home sale / lease break costs
  • Spousal support
  • Child tuition in the host location
  • Tax gross ups – increased tax costs typically know, as “tax on tax.” These are calculated to ensure the employee is not out of pocket for taxes on assignment-related expenses.

5 Steps to Take for Pre-Decision Tax Planning

Erika notes that employers should always be looking to reduce the tax impact that employee global assignments have on their company. Below are 5 steps employers should take now to ensure a simple, smooth, and successful global relocation.

1: Start global tax planning prior to the assignment—“pre-decision tax planning.” This will ensure you have the best type of assignment policy in place for this relocation for both the company and employee, while also minimizing global tax costs.

2: Review the global income and social tax treaties to minimize excess tax costs associated with each assignment.

3: Contact payroll to ensure set up and reporting is complete in both locations.

4: Educate employees on taxes in both locations to ensure the employee understands the implications in both countries via home and host tax consultations.

5: Provide tax assistance in both home and host locations for your employees. This will ensure proper compliance in both jurisdictions.

Proper Planning Saves Time, Money, and Provides Peace of Mind

Planning properly can save your company time and money. As a result, you can have peace of mind that tax issues will not arise from a global relocation. However, improper planning could cause damage to your company’s reputation, in addition to tax costs and compliance penalties.

Experts at Global Mobility Tax, LLP Understand the Importance of Pre-Decision Tax Planning

Global Mobility Tax, LLP has helped companies understand the overall cost of an assignment and its tax implications. We can help your company plan the assignment structure to have the best outcome for both the company and employee. Global Mobility Tax, LLP provides expert tax support, education, and awareness to clients and their employees in order to ensure corporate compliance and employee satisfaction.

Erika is always ready to meet to help employers learn more about being compliant and building internal processes to support their mobile workforce.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients learn the importance of pre-decision tax planning for their global relocations. Our mobility consulting team can help your company understand how to leverage pre-decision tax planning to reduce global tax compliance issues with the assistance of the experts at Global Mobility Tax, LLP.

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 continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Learn more about the importance of pre-decision tax planning. Contact our experts online or give us a call 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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