Category: Domestic Relocation Challenges

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New Los Angeles City Regulations Every Relocating Employee Should Know

Several new Los Angeles city regulations have a direct impact on residents. Some of the most recent regulations cover topics such as short-term rentals (also referred to as “AirBnB”), Accessory Dwelling Units (ADUs), Street Vending, and Ride-share Scooters (“e-scooters”). Companies planning to relocate new hires and transferees to the city should provide information about these regulations. Providing city reports and information including new regulations will help ensure compliance and increase transferee satisfaction.

What are the New Los Angeles City Regulations?

GMS spoke with Erik R. Brown of Douglas Elliman Real Estate, Realtor®, TV host, speaker, and author of “One in a Million: Everything You Need to Know to Find the Best Realtor®.” Erik agreed to share his knowledge of new Los Angeles city regulations that every relocating employee should know.

Several of the new Los Angeles city regulations will directly impact relocating employees. They include changes to temporary and rental housing, sales of food and goods on city streets, and new forms of shared transportation.

1. Short-Term Rentals (AirBnB) Los Angeles City Regulations

This is Los Angeles’ first attempt to regulate the market for short-term rentals. Sometimes referred to as “AirBnB,” (a popular website that lists short-term rentals and allows guests to rent them), hosts who want to arrange for short-term rentals must:

  1. Register their short-term rental with the city’s planning department, at a cost of $89
  2. Provide a code of conduct to guests with rules and regulations regarding noise, sound, and nighttime events

There are several restrictions as to what type of residence can participate in these rentals. Also, time limits apply, and renters cannot participate without permission of their landlord. An option exists for longer home sharing beyond the 120 days in a calendar year, with higher fees and additional requirements for hosts.

2. Accessory Dwelling Units (ADUs) Los Angeles City Regulations

ADUs allow homeowners to apply for a permit to add an accessory use for their main single family residence. The ADU must have a full kitchen and bathroom, as well as:

  1. Be in a property that is zoned R-A, R-1, R-2, R-3, R-4, A-1 or A-2 (or any other zone that allows single-family residences by right)
  2. One single family residence (legal) exists on site
  3. The ADU complies with the development standards of the Los Angeles County Department of Regional Planning Accessory Dwelling Unit (ADU) Ordinance

Homeowners who apply for an ADU must also:

  1. Provide a site plan application to the Los Angeles Department of Regional Planning
  2. Submit copies of the Building Description Blank/Slip from Los Angeles County Assessor’s office
  3. Submit copies of the building permits from the Los Angeles County Building & Safety office

3. Street Vending Los Angeles City Regulations

For several years, small business owners and entrepreneurs have been selling food and products from sites along streets, known as street vending. Most of these activities have not been legal. As a result, those selling could face fines, citations, and confiscation of their equipment.

Following a multi-year effort and spurred by a change in California state law, street vending has now become legal in Los Angeles. Cities are responding by creating licensing and permitting requirements. Santa Monica passed an emergency ordinance establishing its Comprehensive Sidewalk Vending Program in April of this year. Los Angeles created its Sidewalk Vending Permit System in November of 2018. Some street vendors must leave newly created no-vending zones where they have previously set up shop. Also, street vendors must apply for permits to legally operate within the city.

4. Ride-Share Scooters (“e-scooters”) Los Angeles City Regulations

Los Angeles is currently experimenting with e-scooters. These scooters are part of the city’s one-year “Dockless Mobility Program.” The program is the city’s pilot effort to regulate and manage dockless scooters and bicycles.

Los Angeles has over 30,000 scooters that may be part of its pilot program, with around 20,000 total vehicles in deployment. The Los Angeles Department of Transportation is collecting data and working to make operators follow rules, including:

  1. Citywide cap of 3,000 scooters per company
  2. Potential to add 2,500 more scooters if the companies operate in disadvantaged locations
  3. Potential to add 5,000 more scooters if operating in San Fernando Valley disadvantaged communities
  4. Speed limit of 15 mph for all scooters
  5. All companies must carry commercial general liability insurance in the amount of $5 million dollars
  6. Companies must work with local council offices to “geo-fence” scooters to prevent parking in certain areas, if requested

There have been reports of injuries, with data showing the following trends:

  1. Most common injuries are to rider’s heads
  2. Large numbers of riders who receive injuries are minors
  3. Low rate of helmet usage for all riders

What Does This Mean?

Companies operating in Los Angeles with new hires or relocating employees to the city should be aware of new Los Angeles city regulations. These regulations may impact transferees and their family members who relocate to the city.

New hires and employees relocating to Los Angeles should have access to as much information as possible about the destination. Employers should ensure they provide a number of resources to assist transferees relocating to the city who may not be familiar with local laws, rules, and regulations.

What Should Employers do About New Los Angeles City Regulations?

Employers with transferees who are moving to Los Angeles should share the new Los Angeles city regulations. This will help transferees and their family members learn about how the city is addressing issues that may be important to them.

Employers should also provide as much information about Los Angeles as possible. They should work with a qualified and experienced Relocation Management Company (RMC) that can provide a wealth of valuable resources to assist relocating employees and their family members. Destination spotlights that highlight many aspects of Los Angeles are helpful resources to share with transferees during their pre-decision process. Video destination spotlights are an excellent resources to visually show employees and their family members their new location.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to identify and share valuable information with transferees. Our team can help your company share useful information on new Los Angeles city regulations so transferees to the city will have peace of mind as they go through their relocation process.

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.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

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 need for information on new Los Angeles city regulations to share with your transferees, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Buy a Home Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Home Purchase

Los Angeles Housing Options for Relocating Employees: Part 2, Single Family Homes

In part 2 of our series on Los Angeles Housing Options for relocating employees, we focus on single family homes. For transferees moving to Los Angeles, there are many advantages to buying a single family home as opposed to renting. While there are many housing options including condominiums and apartments, those who buy single family homes often enjoy significant benefits compared to renting.

Advantages to Buying Single Family Homes in Los Angeles

Rents in some markets exceed the cost of home ownership, so buyers can save money each month if they buy instead of rent. Also, mortgages are similar to savings plans and investments, and buyers often gain equity in the home. Buying single family homes may help transferees move up to larger homes at a later date. Transferees looking at buying single family homes will gain the most compared to renting if they plan to live in the home more than seven years. The ability to claim home mortgage interest as a deduction is a major benefit to owning single family homes with a mortgage less than a million dollars.  Employees should consult their tax advisor.

Companies should encourage transferees to buy instead of rent, in order to help them establish roots in their community. Relocating employees will be more likely to view their opportunity as a career if they commit to their new location. Companies that offer home purchase benefits are more likely to be seen as committed to the transferee. They can also save money with the Buyer Value Option Program to avoid paying tax gross-ups on commissions and closing costs.

Los Angeles Single Family Homes

Highlights of Los Angeles Neighborhoods with Single Family Homes

Los Angeles has hundreds of neighborhoods and districts. Choosing where to buy single family homes can be a daunting task. Many helpful resources are available to help home buyers learn about the history and features of locations in and around the city. If a home buyer has a few general ideas of what they are seeking, chances are they will be able to find it in Los Angeles.

Comparison of five different neighborhoods:

Santa Monica and Venice Beach: Close to the beach, thriving restaurant scene, weather about 10 degrees cooler than in the city, and the funky Venice Beach Boardwalk with street performers and public art.

Hollywood: One of the most famous neighborhoods in the world, with iconic locations like TCL Chinese Theatre, star-studded Walk of Fame, the capital of the entertainment industry, and the huge Hollywood sign on the hills above so you always know where you are.

Elysian Valley, also known as Frogtown: An up-and-coming spot along the Los Angeles River and its Bike Path, home to artists, manufacturers, several warehouses, and innovative entrepreneurs.

Beverly Hills: Featuring legendary Rodeo Drive shopping, ultra-luxury glamour, exemplary of the Los Angeles dream of making it big in the entertainment industry.

Silver Lake: East-side trendy spot with green spaces, the Silver Lake Reservoir and Dog Park for recreation, hipster-friendly lifestyle, and famous Sunset Boulevard.

What You Should Know About Buying Single Family Homes in Los Angeles

Los Angeles neighborhoods have much to offer residents and visitors. Transferees looking to buy single family homes should work with a Realtor®. A qualified local Realtor® will have knowledge of the city and the market for single family homes.

GMS spoke with Erik R. Brown of Douglas Elliman Real Estate, Realtor®, TV host, speaker, and author of “One in a Million: Everything You Need to Know to Find the Best Realtor®.” Erik agreed to share his industry knowledge and market expertise on Los Angeles housing options for relocating employees.

Erik notes that Los Angeles is enjoying a strong seller’s market right now, so what is a potential buyer to do? In part 2 of a 3 part series, Erik shares his 9 tips and ideas for buying single family homes in Los Angeles.

Los Angeles Housing Options: Single Family Homes

9 Tips and Ideas for Buying Single Family Homes in Los Angeles

1. Know What You Want

Know what you want before you start looking. What you want (and where you want to live) will play a huge role in the cost as well. Beyond the type of home, decide on what features you want, from the home style to the neighborhood. If you have non-negotiables, identify those from the beginning.

2. Be Realistic

Related to the tip above, you do need to be realistic. Tons of square footage, updated fixtures, and a pool might not be realistic in your budget. Or, you might need to broaden where you are looking to find single family homes that fit into your budget. The first home you purchase in Los Angeles might not be your dream home, but buying any home in Los Angeles is a big deal, given the high cost and competitive market.

3. Obtain Pre-Approval for a Mortgage

Before you even go look at a house, get your finances in order. Decide on your budget, how much you can put down, and obtain pre-approval for a mortgage. A pre-approval doesn’t guarantee that you will get the mortgage. However, it does mean that the bank determines that you are a good borrower. As a result, they will make a commitment to finance your home once you find one. In a market as competitive as Los Angeles, there is a good chance that sellers won’t even consider an offer if a buyer can’t provide a pre-approval letter from their lender.

4. Offer Cash

If you want to sweeten your offer, you should make a cash offer. A cash offer is more attractive to a seller because they don’t have to worry about dealing with your mortgage lender or appraisals. Cash offers can usually close quicker as well, making it much more likely that a seller will choose a cash offer over one where the buyer is financing the home purchase.

5. Shop Around and Have Options

Because the market is so competitive, single family homes aren’t on the market very long. As a result, you have to be ready to put in a bid right away. You will also want to make sure you have backup choices. Bidding wars are becoming more and more common, so you can’t assume that you are going to get the house. Make sure you have other single family homes that you like in the event that your bid is not selected.

6. Personal Enjoyment versus Investment

A buyer may also consider an area that fits their lifestyle versus an area that is gentrifying or improving. Gentrifying areas can be on the rise, but may not have all the established amenities of a more established neighborhood or area. However, this is often reflected in the price of the homes.

7. Consider a Fixer-Upper

If you are really tied to a certain location but can’t find an updated home with everything you want, consider buying a fixer-upper and put in the work to get it to what you want. This is a great way to get a home in a pricier neighborhood and give you a home that has what you want by building or renovating. Envision what a dated or non-updated home could look like with your updates, rather than focusing on what they look like currently.

8. Compromise on the Area

If you want a home less than $1 million in Los Angeles, you might have to look outside of the more upscale neighborhoods. You can explore outside of the greater Los Angeles area, but still stay in Los Angeles County, and find single family homes for much less money. The median home price in Los Angeles County is around $600,000, making it more affordable for you if you are willing to be flexible. Outlying communities still give you a close proximity to the city, but at a much lower cost.

9. The Bottom Line

Buying single family homes in Los Angeles requires you to do some work ahead of time. You need to get your finances in order. You will also need patience, and the ability to move quickly if you find a home that you like. With the right Realtor® helping you navigate the real estate market, you can make it out of the process with your sanity intact.

What Should Employers do?

Employers should share helpful information about single family homes in Los Angeles with their relocating employees. This will help transferees and their family members learn about the housing market in the city. As a result, relocating employees will have valuable information to help them easily find single family homes that meet their requirements.

Employers should also provide as much information about the new location as possible. They should work with a qualified and experienced Relocation Management Company (RMC) that can provide many useful resources to assist relocating employees and their family members. Destination spotlights that highlight many aspects of a location are helpful reference materials to share with transferees during their pre-decision process. Video destination spotlights are a great resource to visually show employees and their family members their new location in Los Angeles.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to identify and share valuable real estate and neighborhood information with transferees. Our team can help your company share helpful information on single family homes in Los Angeles that will give transferees peace of mind as they go through their relocation process.

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.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts. GMS is dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s need for information about single family homes in Los Angeles to share with your transferees, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Buy a Home Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Household Goods

Van Line Survey Notes Several Transferee Moving Challenges

man smiling while moving boxes into his new home
Portrait of a young man carrying a box while moving house

Allied Van Lines conducts a regular “On the Move” survey of employees who move for work to determine the transferee moving challenges from their viewpoint. Survey responses from over 1,000 people provide helpful insight into the impact of workforce relocation. The findings reveal specific points that companies should address in their relocation programs.

The Top 3 transferee moving challenges identified in the survey show points companies should address to improve employee retention and satisfaction. Companies should choose to work with a qualified Relocation Management Company (RMC). RMCs have knowledge and experience to help clients design robust relocation programs that provide the best relocation experience for transferees.

What are the Top 3 Transferee Moving Challenges?

1. Short Timeframes for Moves

The majority of survey respondents were given 0 to 30 days for their move, and the next largest group were given 31 to 60 days. Increasing market competition and evolving dynamics require corporate speed and flexibility. Companies often must act quickly to hire qualified staff and move them to where they can be the most productive.

RMCs have resources and solutions to help companies maintain responsiveness while providing a positive relocation experience for employees. Transferee moving challenges related to short timeframes can be addressed with a robust relocation policy that is designed to provide solutions that benefit both clients and relocating employees.

2. Finding a New Home

One of the most difficult and time-consuming transferee moving challenges is finding a home in the new location. Choices can vary, and may include some of the following:

  1. Short-term corporate housing
  2. Renting before buying
  3. City/suburb/neighborhood location
  4. Apartment
  5. Condominium
  6. House
  7. New construction loan for relocation

RMCs have a number of solutions for transferee moving challenges related to finding a new home. Many transferees are relocating to a new location they know very little about, and will then search for a new home to purchase. A Realtor® working with the RMC should ask a number of questions to help the transferee clarify and express their preferences and interests.

3. Making Friends in the New Location

Transferee moving challenges are often amplified by the effects of the move on spouses and family members. While the transferee may have a built-in network of work colleagues in the new location to help them with their transition at work, they and their family will need to settle into the new community and make new friends.

One of the first challenges a transferee faces is career support for their spouse. Successful relocations often hinge on the spouse or partner’s career needs also being addressed. Transferees expect career support for spouses and partners as part of their relocation experience. In our Case Study on Educational Institution Relocation Programs, GMS helped a client learn that their biggest challenge in retaining new hires was due to not having career support for spouses and partners moving to the new location.

Pre-Decision Services Help Transferees

Companies should provide Pre-Decision Services in their relocation policy for transferees to help them learn about their new location. Candidate assessments and family pre-decision evaluations help companies determine the employee’s expectations, skills, personal qualities, family situation, and their financial readiness for the relocation. Helpful information an RMC can provide to the employee and their family for their decision-making process includes:

  • Cost of living analysis for the new area
  • Market analysis for home sales
  • School reports and information about activities
  • Moving cost estimates
  • Community tours to help familiarize employees and their family members with the new location

Provide Support for Spouses, Partners, and Family Members

Family member support is as critical to a transferee’s relocation success as to career support for spouses and partners. RMCs should provide a number of resources to help families settle in to their new area and reduce transferee moving challenges, including:

  • Helpful online resources for families to learn about local amenities
  • Community networks in the new location
  • Assistance in obtaining a local driver’s license
  • Arrangements for child care
  • Utility connections and installations
  • Ensuring health insurance coverage during the interim period
  • Identifying nearby medical resources and primary care physicians

What Should Employers do to Address Transferee Moving Challenges?

Transferee moving challenges should be addressed with robust solutions. Companies should work with a qualified and experienced RMC that can help them design a relocation policy that promotes successful relocations. The career needs of spouses and partners should be included in the transferee’s relocation experience. Family support is also critical to reduce any disruption from the move and provide peace of mind for the transferee, their spouse or partner, and their family members.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop relocation policies and programs that address transferee moving challenges. Our team can help your company determine how to design a robust relocation program that provides the best relocation experience for your company’s transferees and their family members.

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.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss your company’s relocation program and the need to reduce transferee moving challenges, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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What Should You Know About a Pet Move?

With 68% of American households owning a pet, chances are high that a relocating employee will include a pet move. There are many benefits to owning a pet. According to Animal Planet, some health benefits to owning a pet include:

  • Enhanced social skills
  • Less likelihood for children to develop related allergies
  • Decreased risk of heart attack and lower blood pressure
  • Healthier lifestyle from taking care of pets (walking dogs)
  • Increased companionship improves overall state of mind

What is a Pet?

A pet can be almost any kind of domesticated animal that is kept for companionship or pleasure, and may require a pet move, including:

Service Animals

Pets are distinct from Service Animals. Service Animals, according to the Americans with Disabilities Act regulations as published by the Department of Justice, are defined as any dog that is trained to do work or perform tasks that benefit an individual who has a disability.

Emotional Support Animals

Pets are also distinct from Emotional Support Animals, Therapy Animals, or Comfort Animals. These types of animals may be used as part of a medical treatment plan to treat conditions such as depression, anxiety, and phobias.

Points to Consider on a Pet Move

There may be times when a relocating employee must arrange for a pet move. This can be due to timing issues related to work travel or other business needs. A number of solutions are available depending on what is required. However, it is important to investigate the options as soon as possible and understand everything that is required in order to arrange the transport. With enough notice, a range of solutions may be available that provide the best option for a pet’s care and well-being during a pet move. It may also help relocating employees to look into training for their pets that might be traveling with them.

Ground Transport Points to Consider on a Pet Move

Shared Ride or Private Transportation

Ground transport for a pet move usually includes pickup at origin and delivery to destination. Usually, animal transportation services require a minimum of 4-6 week notice. Also, ground transport may be in a share-ride format, where pets are in transport with other pets. Should an employee’s pet not interact well with other pets, this may cause stress for the animal. Costs may be higher for private transportation.

Health Certificates and Microchips

Most ground transport firms require some form of interstate health certificate, verification of appropriate vaccinations, and other documentation to ensure the animal is in good health. Veterinarians should microchip all animals for identification. Some ground transport firms will send a complimentary microchip to the relocating employee’s veterinarian to implant during the examination needed for the health certificate. The International Pet and Animal Transportation Association has a number of helpful resources to review for a pet move. Many pet owners also choose to invest in pet insurance to cover the rising costs of veterinary care.

Air Transport Points to Consider on a Pet Move

Temperature Issues

While air transport may be available, it may be highly dependent on temperatures. Some airlines do not have temperature-controlled vehicles to take pets to and from the cargo hold on the aircraft.

Restrictions on Cargo Transport

Also, each airline has its own restrictions on whether pets can be transported in cargo. Costs are variable, as are space and type of transport. Some airlines have restrictions on the breeds of dog they will accept for cargo transport. Health certificates and vaccination records are usually required, and some airlines require the use of a U.S. Department of Agriculture (USDA) or International Air Transport Association (IATA) approved kennel. Even the size of a kennel may be an issue; some airlines will not accept large kennels, so air transport for larger animals may not be possible.

What Should Employers do About a Pet Move?

It is important for employers with relocating employees to know and understand issues relating to the concept of pets, Service Animals, and any other designations such as Therapy Animals, as they relate to the transferee. Relocating Employees with Service Animals may not be able to travel alone, so the relocation process must take the Service Animal into account.

Similarly, for all pets and non-Service Animals, employers should exercise care and concern on behalf of the relocating employee for these animals. Transferees and their family members usually consider pets and Comfort or Therapy Animals as a member of their family. Employers should extend the same level of service to these animals as they would to any other member of the relocating employee’s family. They should ensure safe transportation options are available, and consider all issues including health certificates.

Employers should work with a qualified and experienced Relocation Management Company (RMC) that can provide guidance for a pet move.  RMCs can help clients and transferees understand how to arrange for the best pet move transportation options and determine how to comply with pet shipping requirements for health certificates and other issues.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to help transferees arrange for safe and secure transportation for a pet move. Our team can help your company understand the issues involved with a pet move, and use appropriate pre-decision services to identify needs and requirements to ensure a smooth relocation process for the transferee and their pet.

GMS was the first relocation company to register as a .com, 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.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts. Contact our experts online to discuss your company’s interest in learning about solutions for a pet move, or give us a call at 800.617.1904 or 480.922.0700 today.

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Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Household Goods

Why You Should Plan Ahead for Summertime Household Goods Moves

Relocating employees often face the prospect of summertime household goods moves. Families with children prefer to move while schools are not in session. Moving during the summer means children will not miss any classes, and the move will not disrupt schoolwork. Also, many home buyers and sellers believe that spring and summer are the best seasons for real estate sales. As a result, over 70% of all moves occur between Memorial Day and Labor Day weekend.

During summer, most moving companies are extremely busy with full schedules. Also, transferees often compete with others who move during this timeframe. College students, seasonal workers, and many other people prefer to move when weather is usually warm and pleasant. As a result, they compete with transferees for space in moving company vans and trucks for summertime household goods moves.

Best Practices for Summertime Household Goods Moves

Companies should plan ahead for summertime household goods moves. Best practices for companies that need to move relocating employees during summer include:

1. Contact your Relocation Management Company (RMC) as early in the process as possible.

Best practice is to integrate your company’s pre-decision process with your RMC. This allows the RMC to have visibility for any potential summertime household goods moves.

2. RMCs should provide companies with options to obtain the lowest cost for moves.

Best practice is to provide multiple bids for summertime household goods moves. However, the RMC will not be able to obtain multiple bids if time does not permit. The busiest week for moves is the last week of June. Companies should be aware that contacting an RMC to arrange moves without enough notice may prevent them from obtaining competitive bids. As a result, the RMC will not be able to find lower costs for the move. Generally, the ability to obtain multiple bids will save companies a significant amount for each move.

3. Best practice is to provide flexibility on dates for summertime household goods moves.

Flexibility on dates helps the moving company with their scheduling. It is also beneficial for transferees since they have many things to take care of related to their relocation. To obtain the lowest cost bids on moves, transferees should provide alternate pickup and delivery dates. Moving companies try to meet preferred dates or nearest alternative dates for relocations.

4. Timing can be a significant issue for some transferees.

Critical delivery dates due to expiring leases, home sale closings, and company requirements to be on site in a new location may require an extra-cost service. Companies that need a transferee to be in a new location by a specific date must provide enough time for them to make the move.

Transferees that are given very short notice for their summertime household goods moves often face significant issues in terms of cost to move and space for their goods on moving company vans and trucks. Last minute requests for space may result in a moving company providing space but only for a specific size such as 10,000 pounds of goods. Transferees with 2,500 pounds of goods may have no choice except to pay for the extra unused space in order to meet the due date set by the company. Best practice is to provide a quote that covers only the space needed for the goods. As a result, transferees would not pay extra for space they cannot use.

What Should Employers do About Summertime Household Goods Moves?

Employers should engage their RMC as early in the relocation process as possible, preferably at the pre-decision stage. An easy way to ensure this engagement starts as early as possible is to create an Application Programming Interface, or relocation API. An API provides a framework for different computer systems to communicate and share information. Employers with a relocation API will have their internal Human Resource Information System (HRIS) integrated with their RMC’s relocation technology. RMCs with industry-leading relocation technology solutions have designed their platforms to quickly and easily integrate with each client’s HRIS.

Employers should work with a qualified and experienced Relocation Management Company (RMC). RMCs provide guidance and insight as to best practices for obtaining multiple bids and arranging for summertime household goods moves. RMCs can help clients and transferees understand how to communicate important dates and other information relating to summertime household goods moves with moving companies.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to leverage the multiple bid process to save on summertime household goods moves. Our team can help your company follow industry best practices to communicate early and incorporate flexibility. We can also help your company understand options that are available for relocating employees facing a summertime move.

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.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts. GMS is dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning best practices relating to summertime household goods moves, or give us a call at 800.617.1904 or 480.922.0700 today.

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Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Talent Mobility

2019 Corporate Relocation Survey Results Show Greater Demand for Spouse and Partner Assistance

Atlas World Group’s 52nd Annual Atlas 2019 Corporate Relocation Survey provides a wealth of information on relocation trends. The survey analyzes several responses from over 400 decision makers who have responsibility for their company’s relocation. Survey responses are representative of a wide range of industries including manufacturing, financial services, and retail trade. Responses were also received from companies of various sizes. They ranged in size from small (with less than 500 employees) to large (over 5,000 employees).

2019 Corporate Relocation Survey Results Show Impact of Spouse and Partner Employment

65% of respondents indicate that spouse and partner employment frequently or nearly always directly affects an employee’s relocation. This figure is the highest level recorded over more than a decade’s worth of data. As a result, various types of industries as well as small, medium, and large companies feel the impact. Also, small companies reported the highest percentage, at 68%.

A new job for a transferee often may result in a job change for their spouse or partner. When an employee is offered a relocation opportunity, it is important to consider their spouse or partner’s needs.

What Does This Mean for Spouse and Partner Assistance?

With historically high levels of spouse and partner employment impacting employee’s relocation, demand for employment assistance is high. The 2019 Corporate Relocation Survey notes several types of assistance including:

  1. Job Networking
  2. Outplacement Services
  3. Career Services
  4. Resume Preparation
  5. Interviewing Skills Training
  6. Finding Employment Within/Without Company
  7. Reimbursement for Career Transition Expenses
  8. Pay for Work Visa in New Location

Importantly, usage trends range from 25% to 33%. More companies are offering this benefit, and usage is now comparable across all companies regardless of size.

The United States Bureau of Labor Statistics reports that among married-couple families, both spouses were employed in 48.8% of families. Therefore, the possibility of a relocation impacting a working couple is high.

What Challenge Does the 2019 Corporate Relocation Survey Illustrate?

Companies should understand that relocation decisions are often family matters and require input and buy-in from spouses and partners. Global Mobility Solutions’ Case Study on Education Institution Relocation Programs describes the challenge clients face when spouses of transferees feel left out of the decision-making process. Our experts helped our client learn that many dual career couples that moved to their new location had a difficult time adapting if there was no job for the spouse. Many newly hired employees would leave the client after several months of employment because their family could not settle into life in the new location.

What Should Companies do About The 2019 Corporate Relocation Survey Results?

Companies should review their relocation programs to ensure they provide employment assistance for spouses and partners. A well-designed relocation policy will include Pre-Decision Services. As a result, spouses and partners will receive consultation on a range of topics including location, job market information, and nearby companies and organizations that may align with their career goals.

Also, structured programs help spouses and partners create online personal brands with Linkedin profiles and job search engines. As the 2019 Corporate Relocation Survey shows, successful relocation programs include a number of resources. Direct job search assistance, resume writing, professional development, and entrepreneur support are helpful tools. Relocation Management Companies (RMCs) can provide expert assistance to companies looking to benchmark their relocation program to learn best practices for spouse and partner assistance.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees and provide spouse and partner assistance. Our team can help your company determine how to ensure successful relocations by providing spouse and partner assistance programs as noted in the 2019 Corporate Relocation Survey.

GMS was the first relocation company to register as a .com, 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.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts. Our experts dedicate themselves to informing and connecting our clients with highlights from the 2019 Corporate Relocation Survey. Contact our experts online to discuss your company’s relocation program. We can help you determine if your program provides industry-leading spouse and partner assistance resources to ensure successful relocations, or give us a call at 800.617.1904 or 480.922.0700 today.

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Domestic Relocation Domestic Relocation Challenges

What is the Best Way to Overcome Reluctance to Moving?

Employers must find ways for transferees to overcome reluctance to moving. Relocation to a new home, city, state, or country may be stressful for transferees and their family members. During periods of strong economic growth and tight labor markets with plentiful jobs, job seekers may not have to leave their homes for new employment. Employers should have access to a range of tools and resources to help overcome reluctance to moving.

How Talent Acquisition Programs can Help Overcome Reluctance to Moving

A strong talent acquisition program will include pre-decision services. Global Mobility Solutions is the pioneer of pre-decision services. GMS experts know that putting in the extra effort upfront helps employers as well as transferees in the relocation process. These services are an important tool to help retain new hires and ensure successful relocations. Relocating employees benefit from pre-decision services and are more likely to report being highly engaged with their company and new home.

Family Does Matter in Helping to Overcome Reluctance to Moving

For employees with families, the decision to relocate is a family matter. Many families have both spouses working, so any relocation should include career support for spouses and partners. GMS recently published a Case Study on Educational Institution Relocation Programs. In this Case Study, GMS describes how working with the client to engage spouses in the relocation process increases relocation success. In fact, the client’s biggest challenge in their hiring process was that spouses felt left out of the decision-making process. As a result, many dual career couples moving to the new location had a difficult time adapting if there was no job for the spouse.

Pre-decision Services for Transferees

Pre-decision services assist both the employee and the company in determining the benefits and challenges of a potential relocation to help overcome reluctance to moving. The general process is:

  1. Relocation Management Company (RMC) engages the transferee early in the process.
  2. RMC identifies points that are important to the transferee and their family members.
  3. The RMC arranges community tours, housing information, and cost of living analyses.

Pre-decision services help remove all of the unknowns, and generate positive excitement for the transferee and their family members to help overcome reluctance to moving.

Organizational Benefits of Pre-Decision Services

For employers, pre-decision services are proven to increase offer acceptance and decrease time to acceptance. Also, built-in programs like Candidate Expense Management help reduce the final cost of relocation. Employers can more accurately budget for relocations. They can also eliminate the cost of non-acceptance by the transferee.

What Does This Mean?

Employers can help overcome reluctance to moving by utilizing pre-decision services. Transferees who have access to pre-decision services are more likely to accept offers for relocation. Relocating employees report higher levels of engagement when they have access to pre-decision services.

What Should Employers do to Help Overcome Reluctance to Moving?

Employers should work with a qualified Relocation Management Company (RMC) that can provide a full range of pre-decision services. Employers considering relocating new hires or transferees should provide them and their family members with as many valuable resources as possible. This will help increase relocation success.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how they can gain the benefits of using pre-decision services to overcome reluctance to moving. Our team can help your company understand how to provide your relocating employees and their family members with pre-decision services. As a result, relocation success rates will increase, and transferees’ satisfaction will improve.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

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 need for pre-decision services to overcome reluctance to moving, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends

Top 5 Points an Employer Should Consider When Employees Choose to Self-Move

What are the Top 5 points an employer should consider with a self-move by a relocating employee? Usually a self-move occurs when an employer offers a Lump Sum payment in their relocation program. In traditional Lump Sum relocation programs, relocating employees receive a specific amount of funds for relocation. They also work with a Relocation Management Company (RMC) to select the services they want to use for relocation, within the parameters of their employer’s relocation policy. Some relocating employees may choose to use their lump sum payment to arrange a self-move.

What does a Self-Move Entail?

A self-move may include the relocating employee and others such as their family members doing any number of the following physical tasks:

  1. Packing boxes
  2. Disconnecting appliances and electrical equipment
  3. Lifting and moving furniture and appliances
  4. Loading items into a truck or vehicle
  5. Driving long distances
  6. Unloading items from a truck or vehicle
  7. Unpacking boxes
  8. Reconnecting appliances and electrical equipment

Considering these tasks, any number of them could result in injuries. According to the Bureau of Labor Statistics Nonfatal Occupational Injuries and Illness by Industry, most occupational injuries that employers log and report fall into one of these three categories:

  1. Sprains
  2. Cuts
  3. Fractures

A self-move could easily result in similar injuries to a transferee or one of their family members. It is easy to imagine such injuries if you have any experience with moving anything yourself.

Top 5 Points an Employer Should Consider About Self-Move

Looking at the tasks and logistics of a self-move, an employer should consider whether it is a good option to allow relocating employees to direct their own moves. Points to consider include:

  1. Potential for injury to the employee or their family member and resulting claims
  2. Loss of employee productivity due to the self-move
  3. Liability against the company that may result from unforeseen incidents
  4. Declining employee morale if company culture is seen as uncaring
  5. Public relations issues for any catastrophic occurrences

What Does This Mean?

Employees and their family members may be at risk of injury during a self-move. Employers may have liability for any issues that otherwise could have been preventable. Morale may decline if employees perceive the company does not care for their well-being.

What Should Employers do?

Employers should consider the potential for any risks that may arise if a transferee chooses to self-move as part of their Lump Sum relocation program. They should consider the duty of care they owe to employees who are managing a self-move. Employers should work with a qualified RMC with the knowledge and experience to help them examine issues, risks, and concerns. As a result, employers will reduce risks to relocating employees and their family members.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop relocation programs to ensure successful moves for transferring employees. Our team can help your company understand how to reduce risks to employees and their family members that may result from a self-move.

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.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss your company’s relocation program and issues relating to employee self-move, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Buy a Home Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends

Changes in Rules for Home Tax Deductions

A yellow note pad rests on top of a 1040 tax form with a reminder of the new tax laws implemented for 2018.

Homeowners in the United States should be aware of changes to home tax deductions. These changes are important to understand for when they prepare their 2018 tax returns during the 2019 tax preparation season. They stem from the federal Tax Cuts and Jobs Act of 2017. Changes to home tax deductions were implemented to reduce the ability of homeowners to deduct interest on Home Equity Lines of Credit (HELOC) Loans. When HELOC loans are not used for home purchases, building, or substantial improvements, the interest on these loans will no longer be deductible. There are also dollar limits on the total qualified residential loan balances allowable for deductions, an increase in the standard deduction, and a $10,000 limit on the federal deduction of state and local taxes.

What is Home Equity?

Home Equity is the portion of a home that the owner actually “owns” either through paying down their mortgage or growth in the property value of the home. Homeowners who build equity in their home can help increase their net worth. As a result, home equity may offer homeowners a useful source of funds to borrow from in times of need, such as during a home renovation.

Internal Revenue Service (IRS) Issues Clarification for HELOC Loans

The IRS issued a clarification on February 21 of this year in response to several questions from taxpayers and tax professions. IR-2018-32: Interest on Home Equity Loans Often Still Deductible under New Law describes several examples to demonstrate the effects of the new rule. Important points of clarification include the following:

  • Interest on a home equity loan used to build an addition to an existing home is typically deductible
  • Interest on a home equity loan used to pay personal living expenses, such as credit card debts, is not deductible
  • The loan must be secured by the taxpayer’s main home or second home (known as a qualified residence)
  • The loan must not exceed the cost of the home and meet other requirements

Additionally, the new tax reform law imposes lower dollar limits on mortgages in order to qualify for the home mortgage interest deduction. The IRS notes that starting in 2018:

  • Taxpayers may deduct interest on $750,000 of qualified residence loans, down from the previous $1 million limit
  • There is a limit of $375,000 for a married taxpayer who files a separate return. This is down from the previous $500,000 limit
  • The new limits apply to the combined amount of all loans used to buy, build, or substantially improve the taxpayer’s main home and second home

Itemizations Must Exceed New Standard Deduction

To itemize for 2018 taxes, taxpayers must understand the impact of the new standard deduction. The tax reform law states that total home tax deductions must exceed the new standard deduction. The new standard deduction amounts are:

  • $12,000 for singles
  • $18,000 for heads of household
  • $24,000 for married couples who file jointly
  • $1,600 additional deduction for singles 65 and older
  • $2,600 additional deduction for married couples both 65 and older

Limit on State and Local Tax Deductions

The tax reform law places a limit on the federal deduction of state and local taxes to only $10.000. Homeowners in areas of the United States which experience high taxes include those in the Northeast and the West Coast. As a result, these homeowners may experience an increase in their tax liability.

What Should Homeowners Do?

Homeowners planning to file for home tax deductions on their 2018 tax returns should be aware of the changes to allowable deductions on their HELOC loans. They should also be aware of the new lower dollar limits on qualifying mortgages imposed by the tax reform law. Homeowners should be aware of the requirement that deductions must exceed the new standard deduction if they plan to itemize. Homeowners in states with high taxes should be aware of the new $10,000 limit on federal deduction of state and local taxes. In all cases, homeowners should consult a qualified tax professional for guidance on this issue.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand the importance of obtaining professional guidance when it comes to changing tax regulations. We can help your company understand how to communicate the potential impact of these changes to your new hires and transferees. This will ensure they have relevant information as it applies to their relocations.

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 or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is not a tax advisor and is only disseminating public information.  You should always consult your own tax professional prior to making any decisions.

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Understanding Why Traditional and Self-Service Relocation Program Models Stay Relevant in Healthcare

There are various relocation program models that companies can use to provide transferees and their families a range of benefits to ensure a successful relocation. Global Mobility Solutions’ Medical Industry Benchmarking Report shows that among healthcare companies:

  • 86% offer a traditional program
  • 14% offer a lump sum/managed cap (self-service) program
  • 22% offer both types of programs

A best practice consideration is to adopt a combination of traditional and managed cap programming models. Reviewing the basic features and benefits of traditional and self-service relocation program models can help companies understand which programming model is the right choice for their unique requirements.

What is a Traditional Relocation Model?

A traditional relocation program generally provides for ongoing employee support services, supplier management, candidate selection, relocation benefits, and expense management. Corporate relocation programs frequently vary by company due to size, need, or destination. The overall process of employee relocation is usually divided into one of four service brackets including:

A robust pre-decision process is one of the most important things that contribute to high satisfaction rates among relocating employees. Recognizing its importance to overall satisfaction, there has been a significant increase in pre-decision service usage within the healthcare industry.

Additionally, 84% to 90% of healthcare companies utilize a tiered policy approach to relocation. The most common are by position level or homeowner versus renter status.

Providing additional benefits in a relocation program to attract highly skilled new hires will give a healthcare company a competitive advantage. For example, home selling and buying assistance might be a very attractive benefit for a talented healthcare professional who is considering a relocation offer from a prospective employer. Levels of assistance in this area can vary based on position. A relocation policy with a strong communication plan will clearly define and describe the exceptional value that this benefit provides to new hires.

What are Self-Service Relocation Program Models?

Self-service relocation models include lump sum and managed cap programs. The point is that employees direct their own relocation process. The difference between lump sum and managed cap programs is whether the employee or the RMC manages the relocation process.

Lump Sum Program

In a lump sum program, companies provide employees with an allocated lump sum payment and let the employee choose their relocation providers and process. Some Relocation Management Companies (RMCs) offer programs such as a dedicated debit card where funds are electronically transferred to the employee after their expense report is audited. The employee has immediate access 24/7/365 via ATMs and point-of sale retailers nationwide. In addition, funds can also be electronically transferred from the card to their personal checking account.

The success of a lump sum program rests solely upon the relocating employee. They do not have the benefit of expert guidance and counseling that an RMC can provide.

Managed Cap Program

In a managed cap program, companies provide employees a specific amount of funds to spend. Employees benefit from the support services offered by the RMC. These services include policy counseling to the employee on the best allocation of their funds when choosing from an array of relocation services. In addition, they receive guidance on the taxation of particular components, saving the company a FICA tax match and gross-up on particular benefits, such as the household goods shipment and final move trip.

A managed cap program contributes to fewer budget overages and higher satisfaction levels than the lump-sum option, maximizing the benefit for both the company and the employee. Consider tiered policies by level, under a managed cap methodology. This will inherently produce greater efficiencies than other relocation program models, provide employees choice, enhance quality, and contain costs.

Healthcare Industry Talent Recruiting Trends

According to Healthcare Source’s Healthcare Talent Management Trends for 2018, healthcare companies increasingly face skilled labor shortages in several employment fields. The aging population leads to increasing demand for healthcare talent. Also, the number of retiring healthcare professionals leads to a declining talent pool, creating a gap. Traditional employment recruiting strategies are not effective in closing the talent gap. Healthcare companies can attract employees by offering relocation programs with attractive benefits.

Leveraging Relocation Program Models to Attract Healthcare Talent

Most healthcare companies report a willingness to pay for relocation. In order to get the best results from their talent recruiting efforts, healthcare companies should promote their relocation program as a highly valuable benefit. This will help the company attract and retain talent that is looking for assignments in new locations.

Communicating their interest in attracting new hires and their willingness to help employees during their relocation process helps strengthen and broaden a healthcare company’s employer branding efforts. Many healthcare companies are investing significantly in building their employer brands to attract and engage top quality talent. A well-defined and attractive relocation program that follows industry best practices tells prospective employees the company is an employer of choice within the industry.

Healthcare talent acquisition programs must attract a variety of new hires, with many different skill levels. Offering a combination of traditional and managed cap programming models, along with a tiered policy approach, provides healthcare companies with a wide range of options to attract new hires.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts have helped thousands of our clients develop relocation program models that attract and retain qualified employees. Our team can help your healthcare company by using industry best practices to design a relocation program that combines traditional and managed cap models within a tiered policy to provide the widest range of options, increasing your company’s ability to attract and retain new employees.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss your healthcare company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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