Category: Domestic Relocation Tips

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Domestic Relocation Tips Employee Development Global Relocation Tips

Pre-Hire Assessment is a Valuable Talent Recruiting Tool

Business meeting on the train

Global Mobility Solutions (GMS) is the original pioneer of the benefits of pre-decision services such as a pre-hire assessment for relocation. Our clients know that partnering with us at the start of the relocation process helps identify the markers of a successful relocation. It also greatly enhances transferee productivity.

Our team of global relocation experts also knows that assessments are valuable tools for our clients. Working with clients to review their relocation policies, we often find areas where we recommend improvements. If clients are not using assessments, we recommend adopting this valuable tool.

What is a Pre-Hire Assessment?

A pre-hire assessment is a recruiting tool that is used to help identify qualified candidates for open positions. Competency analysis is one of the most common features of a pre-hire assessment. Another feature is the tool’s ability to summarize and interpret results of the assessment. Most companies use assessments for positions that require a high level of skills, are professional in nature, or are executive positions.

What are the Benefits for the Client?

Clients receive a number of benefits by using pre-hire assessments, including:

  1. Pool of candidates that possess requisite skills
  2. Talent assessment notes skill gaps
  3. Results may indicate candidates’ viability for additional positions like management
  4. Help predict new employee’s future performance
  5. Reduction in administrative time devoted to the recruiting process

What are the Benefits for the Candidate?

Candidates also receive a number of benefits by participating in pre-hire assessments, including:

  1. Candidate can easily assess whether they have the skills for the position
  2. Assessment tool may give candidate an indication of corporate culture and expectations
  3. Ability to present additional skills and qualifications beyond resume and cover letter
  4. Objective data in specific areas may help candidate’s overall presentation
  5. Quicker determination for candidate’s ability to proceed in recruiting process

What Should Employers Expect When Using a Pre-Hire Assessment?

Employers should expect that assessments will help their organizations recruit qualified candidates more quickly and efficiently. The ability to select from a pool of qualified candidates that have completed the assessment will reduce administrative time and increase the speed of the talent recruitment process.

What Should Employers Do?

Employers should review their talent recruitment programs to determine if they need to add a pre-hire assessment. Employers with pre-hire assessments should review the tool to determine if they should add additional features or invest in new technology that will enhance the process.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients with their talent recruitment programs and pre-hire assessment needs. We can help your company understand how to identify good assessment tools and incorporate them into your talent recruitment process.

Learn how your company can benefit from pre-hire assessments and pre-decision services 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.

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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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Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Employee Development Talent Management Talent Mobility

Fastest Growing Jobs in the USA Can Be Filled Using Relocation Services

Portrait of young software engineers using digital tablet

The fastest growing jobs in the USA are within several industries. Many of these jobs have education, training, certification, or experience requirements for new hires.  Employers seeking to find candidates with the requisite qualifications benefit from using pre-hire assessments in their talent recruiting process. Pre-hire assessment tools may identify viable candidates in other parts of the country, or even outside the USA. Employers can use relocation services to attract viable candidates who might need to relocate for the position.

Fastest Growing Jobs in the USA for 2018

The Occupational Outlook Handbook published by the United States Department of Labor, Bureau of Labor Statistics, lists the fastest growing occupations. According to the Handbook, 20 occupations will experience the highest increase in growth over the time period 2016-26.

Major industries that have the fastest growing jobs include:

  • Renewable Energy
  • Medical
  • Mathematics
  • Information Technology
  • Operations Research

The fastest growing jobs include several within the Medical and Science, Technology, Engineering, and Math (STEM) industries. These jobs often feature the ability to work flexible schedules, or to work on a limited assignment.

In fact, the rise in short term assignments in healthcare has been due in part to the challenge of finding candidates with the requisite qualifications. Many healthcare companies have been able to attract highly qualified candidates who want to travel to new locations on a regular basis with short term assignments.

Often, the fastest growing jobs are also those that have the highest rates of pay. For example, many Information Technology jobs offer exceptionally high salaries. Within Information Technology, jobs may feature data insight or engineering functions, indicating a wide range of opportunity in this industry.

Labor Force Dynamics Reinforce the Fastest Growing Jobs

The USA’s labor force is undergoing changes that create demand for several of the fastest growing jobs. Slower labor force growth means the labor force will continue to increase in age. Workers who are 55 or older are projected to grow to nearly 25% of the entire labor force by 2026. The increasing age of the labor force and the nation’s population means healthcare practitioners, support, and technical occupations will be the fastest growing jobs through 2026. The aging population along with longer life expectancies and growing rates of illness will continue to increase demand for healthcare services, and in turn, healthcare jobs.

Other occupations outside of the Medical and STEM industries that are also on the list of the fastest growing jobs include:

  • Social & Community Service Manager
  • Fundraiser
  • Pile-Driver Operator
  • Market Research Analyst

What Should Employers Expect?

Employers should expect that the fastest growing jobs will lead to greater competition for qualified candidates. Employers should also expect that they may need to expand their talent recruiting programs to search beyond traditional venues, including outside the USA.

What Should Employers Do?

Employers should review their talent recruitment programs to determine if they need to enhance their relocation policy to better focus on attracting new hires to open positions. Employers should ensure their relocation policies reflect industry best practices. In industries experiencing significant growth, employers should review their talent recruitment programs and relocation policies. They should look into enhancements that highlight the organization’s growth and opportunities. They should also review their programs and policies to highlight the potential for the candidate’s future career growth and success.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients with their talent recruitment programs and relocation policy needs. We can help your company understand how to design your relocation policy to reflect industry best practices and highlight your organization’s growth and opportunities to attract new hires.

Learn how your company can benefit from programs and policies that are designed to attract qualified candidates from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed. Contact our experts online 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 Tips Global Relocation Tips

New Construction Loan for Relocation

finical advisor showing couple their options
Meeting with financial adviser

What is a New Construction Loan for Relocation?

Many of Global Mobility Solutions’ clients have transferees who want to build a new home as part of their relocation and need a new construction loan. GMS spoke with two experts at TIAA Bank who agreed to share their advice and guidance on this topic:

Matt Canfield, Senior Vice President, Relocation and Affinity Lending

Tim Hofmann, Vice President, Construction Lending Administration Manager

New Construction Loan

A new construction loan for a transferee who will be relocating is not the same as a traditional home loan, or mortgage. These are two different lending vehicles that are used for very different purposes.

Mortgage versus New Construction Loan

A mortgage generally features the following:

  1. Finances the purchase of an existing home.
  2. Length may be 15, 20, or 30 years.
  3. Interest rate may be fixed or variable.
  4. Borrower makes principle and interest payments for the life of the mortgage.
  5. Lenders may sell mortgages to investors in the bond market.

A new construction loan generally features the following:

  1. Length is the time it takes to build a home (usually 12 months).
  2. Is similar to a line of credit for a specific amount.
  3. Borrowers/builders submit draw requests to lenders.
  4. Interest is paid only on what is drawn starting at the time of the draw.
  5. Loan remains in the lender’s portfolio and is not sold to investors.
  6. At completion, a mortgage is granted for the new home.
  7. New mortgage pays off the balance of the construction loan.

How Should a Transferee Start the Construction Loan Process?

According to Tim Hofmann at TIAA Bank, transferees should:

  1. Obtain preliminary approval from their lender.
  2. Submit an application for a construction loan.
  3. Transferees should determine if they want to lock their rate in.
    1. TIAA offers an extended rate lock option.
    2. This may be helpful if interest rates are expected to rise.
  4. Choose a contractor and a building plan

What does a Transferee Need to Obtain Approval for a New Construction Loan?

Tim shared the following three items required for approval:

  1. The contractor must be acceptable to the lender. They should have the requisite experience to build a home according to the plans.
  2. The lender will review the contractor and the budget. The budget must:
    1. Be reasonable for the proposed project.
    2. The home’s square footage/size is normal for the area.
    3. Construction costs are reasonable for the quality, size of the home, and the general area.
  3. Lenders approve credit files for the amount of the loan.
    1. If transferee will rent their former home, what is the rental?
    2. For the transferee who will carry both mortgages for the former and the new home, can they carry that debt?
    3. If transferee plans to sell the former home to help finance construction, what is the viability of having the sale occur in the necessary time?

Tim notes that there are a lot of factors to consider for new home construction. Important areas that may impact the process and the timing include:

  1. Will the new home require tearing down an older structure?
  2. Is the building lot included in the cost of the new home?
  3. Will the construction be an extensive renovation of an older structure such as a center-city townhouse?
  4. Are there specific architectural guidelines the project must follow?

Do Transferees Need to Sell Their Current Home Before Applying for a New Construction Loan?

Transferees who are relocating and who currently own a home may want to build a new home. They may want to keep living in their current home until their new home is ready for occupation. Everyone’s situation is different, and what is possible depends on a number of factors:

  1. Is there a mortgage on the current home?
  2. If yes, what is the amount of the current home mortgage?
  3. Will the transferee also be buying the land, or do they already own the land?
  4. What are the amount and terms of the new construction loan?
  5. Can the transferee receive approval for the total debt load of their current mortgage and the new construction loan?

TIAA Bank offers a unique product for new construction loans: OTC. OTC is TIAA Bank’s “One-Time Close” new construction mortgage loan (available only in AZ, CA, CO, CT, DC, DE, FL, IA, IL, IN, MA, MD, MI, MO, MT, NC, NJ, NV, NY, OH,OR, PA, SC, UT, VA, and WA.; other restrictions and limitations may apply).

With OTC from TIAA Bank, the customer only goes through one closing process. During construction, the customer and builder request draws to fund the project. At completion of the home, TIAA Bank only requires a two-page conversion. The customer is able to quickly move into their new home without having to wait for a second closing process. If the customer requires an extension, the two-page extension only requires notarization. TIAA Bank’s OTC new construction mortgage loan speeds the process for customers, and keeps them from having to go through a second, time-consuming closing.

What does this mean?

Transferees who want to obtain a new construction loan to build a home should review their current financial arrangements with a qualified lender. Transferees who have a mortgage on their current home may be able to obtain a new construction loan. However, this depends on their financial circumstances. Importantly, transferees should understand that they must receive approval for the total amount of current mortgage debt and new construction loan amount.

What should employers do?

Employers with transferees looking to build a new home as part of their relocation should direct them to speak with qualified lenders and financial advisors for guidance. They should also direct them to speak with a qualified Realtor® who can assist the employee in determining where they want to live in the new location. Employers should also review their relocation policies to determine if enhancements can be made to allow for exceptions that may arise from transferees who want to obtain a new construction loan.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to communicate issues related to obtaining a new construction loan and various alternatives that might be up for consideration. Our team can help your company understand how best to proceed by providing guidance to transferees on obtaining information from qualified lenders and financial advisors.

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 needs, or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is sharing public knowledge and can help companies more clearly understand new construction loans for relocations. However, GMS is not a CPA firm or a lender, and is not giving financial advice. Everyone’s financial situation is different; individuals and employers should consult their lenders and financial advisors prior to making any decisions.

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Domestic Relocation Tips Household Goods Relocation Best Practices Relocation Challenges

Household Goods Moves and Your Relocation Management Company

Household Goods Moves and Your Relocation Management Company

Transferees and new hires often require household goods moves from their current location to their new location. Usually this move must adhere to a specific time schedule. It is in the employer’s best interest to ensure that the transferee has a positive and successful relocation experience. A qualified Relocation Management Company (RMC) can ensure that household goods moves are conducted professionally within specific timeframes, and provide service guarantees.

What might transferees and new hires experience by arranging their own household goods moves?

Transferees and new hires that arrange their own household goods moves face several challenges. They may need to set aside a significant amount of time to research qualified transportation options. Once they complete this research, they must obtain estimates for their move. While the Federal Motor Carrier Safety Administration has a number of excellent resources, tips, and guidelines to help people as they look into household goods moves, many employees have little time to spare doing the requisite amount of work to choose a reputable moving company. Additionally, while helpful checklists are useful to understand the basic processes, it may be challenging for an employee to fully understand and be able to compare the information and responses they receive from several moving companies. In some cases, employees may be inadvertently exposed to less than professional services by disreputable moving companies.

How can your RMC help with household goods moves?

Employers should work with a qualified RMC that can provide guidance and assistance for household goods moves. Transferees and new hires should be able to focus on their new position. Also, they should take care of their family and professional responsibilities. A qualified RMC should obtain multiple bids for household goods moves, to ensure best pricing. Also, RMCs should have programs in place to ensure they meet service levels and suppliers meet specific performance criteria.

Global Mobility Solutions’ team of global relocation experts, in a major corporate initiative led by Ann Knapp, Director of Transportation Services, created Curbside Manner™, which is the standard of quality that all GMS Transportation Partners are measured against. Curbside Manner™ requires transportation partners to always treat each customer with the utmost fairness and respect throughout their relocation process. Also, every member of the transportation team must treat each move with the highest level of professionalism, decorum, and service.

What should employers do?

Employers should ensure that transferees and new hires have access to a qualified RMC. The RMC can obtain multiple transportation estimates and arrange household goods moves. They can ensure the highest level of professional courtesy and performance. The RMC will manage household goods moves, so the employee can focus on their new responsibilities.

Conclusion

Global Mobility Solutions’ team of global relocation experts helps thousands of our clients with household goods moves for transferees and new hires. As a result, we can help your company understand how to utilize the full range of Pre-Decision Services, including moving cost estimates, to help ensure successful 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.

Request your complimentary relocation policy review

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Buy a Home Corporate relocation tips Domestic Relocation Tips Domestic Relocation Trends Global Relocation Tips Global Relocation Trends Home Purchase Relocation Policy Review Relocation Programs

Why Companies Should Encourage Transferees to Buy Instead of Rent

Happy couple in front of their new home
Shot of a happy young couple holding the keys to their new home

Why should your company encourage transferees to buy instead of rent? Our team of global relocation experts review thousands of relocation policies on a regular basis. We work with our clients to incorporate best practices, so they can gain a competitive edge with their relocation policies and attract the highest caliber of talent.

Consistently, many relocation policies have not offered home purchase benefits to current renters. Instead, current renters received benefits that directed them to remain as renters. Recent consultation with several clients provides new insight into this practice.

Many clients are now offering home purchase benefits to current renters, to encourage transferees to buy instead of rent. This trend is increasing, as clients are learning that home purchase benefits for current renters return several benefits back to the client in terms of employee retention. As we examine this trend, a new best practice is appearing in relocation policies.

There are 7 distinct benefits for clients when they encourage transferees to buy instead of rent:

1. Transferees establish strong roots in a neighborhood and community.

Think of the time you may have taken a job and moved to a new location. You may have spent time finding a new home and exploring neighborhoods. Your family members may have expressed what was important for their needs as well. Factors may include nearby schools, or amenities like parks and shopping centers.

Each facet of a community becomes a part of a transferee’s life. As a result, those who put down strong roots by establishing home ownership are more likely to remain committed to their neighborhood, their city, and their employer.

2. Transferees can personalize a home so they can settle in comfortably, so encourage transferees to buy.

Transferees who buy can easily personalize a home to meet their distinct preferences. Everything from painting their front door to match a favorite color to decorating interior spaces to their liking can lead to greater transferee satisfaction with their living arrangements. Satisfaction with their home is more likely to lead transferees to feel satisfied with their relocation as well.

Renters, on the other hand, often are limited to moving into an apartment, and cannot easily customize the space. Even if they do some customization such as interior painting, they often must return the apartment to its original condition if they were to vacate. Renters face a strong disincentive when it comes to personalizing their living space. Living in a space they cannot personalize often makes renters feel as if they are nomads. The end of their lease is already defined, which seems to put a mark on their time in a specific location. This may lead transferees to believe they can easily move to another apartment, or another position.

Corporate talent acquisition should work in tandem with employee retention so relocation policies offer home purchase benefits. This will help encourage transferees to feel as if their relocation is permanent, and not a temporary state.

3. Monthly mortgage costs are consistent year to year, while rents can increase dramatically.

One of the benefits to buying a home versus renting is the stability of mortgage payments. Monthly costs for a mortgage tend to be consistent year to year, defined by the terms of the mortgage upfront. As a result, this allows buyers to know their monthly housing costs and provides for better budgeting and financial planning.

Renters could face a rent increase as soon as their lease expires. There are many reasons why landlords would increase rent, including higher property taxes, inflation, or higher building maintenance costs. They might just want to make more money, and if demand for rentals in the area is high, then rent increases are easy to implement because those who move are easily replaced with other renters. Increases in rent could be exceptionally high. Therefore, renters need to make a decision on a regular basis if they want to absorb the cost of the rent increase, or take on the additional expense of searching for a new rental, and paying to move their belongings.

Overall, transferees who rent often are subject to somewhat volatile conditions that can impair their job performance. If they must worry about their housing options in the face of rent increases on a regular basis, transferees certainly cannot easily focus on corporate objectives.

4. Home mortgages are similar to saving plans and investments, and owners can more easily move up to a larger home at a later date.

There are numerous benefits to home ownership, and transferees can gain greater satisfaction with their relocation with home purchase benefits. Home ownership lets transferees build financial equity, and a home is an investment that will increase over time. Homeowners have tax benefits they can claim as well. Mortgage interest, property taxes, and other items may provide tax deductions on an annual basis. As a home gains value over time, and as the homeowner builds greater equity each year as their mortgage balance declines, homeowners have a built-in savings and investment vehicle in real estate they can use in the future.

Employers benefit if they encourage transferees to buy instead of rent by reinforcing the high value homeownership returns to the transferee, cementing their interest in staying in a location.

5. In many markets, rentals are extremely competitive to secure and the costs exceed homeownership. Security deposits can often exceed a home purchase down payment.

Brooklyn

Several markets have seen the cost of rentals rise far beyond the cost of homeownership. A recent example can be found in Brooklyn, New York. A three bedroom, one bathroom apartment at 378 Grand Avenue is listed on Zillow at $3,900 per month (not including renter’s insurance costs).

A house located at 575 Jerome Street with five bedrooms and two bathrooms is listed for $599,000. Using a mortgage calculator, over a 30 year time period at a rate of 3.92%, with a mortgage balance of $575,000, taxes of $6,000, insurance of $1,500, and Private Mortgage Insurance (PMI) of 0.5%, the monthly mortgage costs for the house are $3,583.27.

In Brooklyn, a renter at 378 Grand Avenue can get a receipt for the rent they pay each month. Also, they may face a rent increase at the end of their lease. A homeowner can get more space, tax benefits, and an equity-building investment vehicle with a home on Jerome Street. It is easy to see how offering home purchase benefits can help transferees feel more satisfaction with their relocation.

Denver

Another recent example can be found in Denver, Colorado. A three bedroom, three bathroom apartment at 2590 Welton Street is listed on Zillow at $3,855 per month (not including renter’s insurance costs). A house located at 90 N. Lincoln Street with three bedrooms and two bathrooms lists for $610,000. Using similar parameters as the other example, with a mortgage balance of $585,559, taxes of $6,000, insurance costs of $1,500, and PMI of 0.5%, the monthly mortgage costs for the house are $3,637.59

6. If a transferee does not commit to their new community, they often view their opportunity as a job and not as a career.

Companies go to great lengths to acquire highly skilled talent. Often companies design relocation packages to highlight the benefits of an employment opportunity, to encourage prospects to accept job offers. In reality, it is in the company’s best interest to have the transferee think of the opportunity as a career offer. Finding and acquiring talent can be challenging.

Companies should have a career plan for the new hire, so they view the opportunity as a career, not as a job. This perception helps transferees commit to staying with their employer. Home purchase benefits let transferees commit to staying in their new community. Transferees that commit to their community are more likely to commit to their career.

7. A transferee who buys is more committed than a transferee who rents. Also, if a client offers home purchase benefits, then the employee knows the company is more committed to the employee.

A company can reinforce employee retention by showing employees they commit to them and their future. Employers should encourage transferees to buy instead of rent. This sends the message that the company wants the transferee to stay. If a company gives the impression to a transferee that they are temporary by only providing rental assistance, the transferee will get that message and feel as if they are a temporary employee.

Employers that give the impression to the transferee that they want them to join their company and their community by putting down roots and buying a home, will have transferees who believe they are part of the company’s future. In talent acquisition and employee retention, the message from the company should always be one of acceptance, inclusion, and permanence. Acquiring highly skilled talent is a difficult challenge. Companies that are successful in this endeavor should make employee retention efforts even more successful by offering home purchase benefits to transferees.

Rent Versus Buy Calculator Will Help Encourage Transferees 

Global Mobility Solutions has a wide range of online tools and resources for clients and transferees. GMS’ Rent Versus Buy Calculator is an easy to use, step-by-step program. This program compares the cost of renting versus the cost of buying a home. Employers that encourage transferees to buy instead of rent can use this online tool to encourage homeownership. This in turn helps the transferee make the decision to buy in their new community. This decision will help the transferee feel like a part of the company. As a result, they will be more willing to stay with the company on a long term basis.

What Should Employers do to Encourage Transferees to Buy Instead of Rent?

Employers should work with an RMC that has the qualifications, knowledge, and experience to ensure their relocation policies provide home purchase benefits to transferees who are current renters. As a result, this will promote stronger employee retention as transferees put down roots in communities and gain greater satisfaction with their relocation.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients design relocation policies that reflect best practices to promote employee retention. We can help your company understand how to leverage home purchase benefits for current renters to encourage transferees to buy and help ensure successful relocations.

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 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 Tips Domestic Relocation Trends Global Relocation Global Relocation Tips Household Goods Relocation Best Practices Relocation Management Relocation Programs

What are the Critical Questions to ask a Relocation Management Company?

Business meeting on the train

Many companies approach their relocation program without a full understanding of what questions they should ask of a Relocation Management Company (RMC). Knowing which critical questions to ask is highly important for a company to get a full understanding of how the RMC will manage their relocation program. Missing critical questions can lead to a large gap in expectations and performance. It is in each party’s best interests to be sure the most important questions are asked, and answers returned for review and decision-making.

Global Mobility Solutions’ team of global relocation experts have identified 28 critical questions that they believe companies should ask an RMC. Answers to these questions will provide the company with the most critical knowledge they need in order to make confident and fully informed choices for their relocation program’s design and functionality.

The following five critical questions are representative samples of the types of questions that you should ask an RMC.

Five Representative Critical Questions:

1. What is your service delivery model?

Fully understanding the RMC’s service delivery model is of paramount importance to understanding how the RMC will manage your company’s relocation program. Purchasing relocation management is a much different process than sourcing parts or equipment. Ensuring the right fit for the right reasons is the most important factor when sourcing employee-facing services.

2. Describe your supplier network. Do you own or are obligated to provide business to your suppliers?

It is important to understand if the RMC owns their suppliers, or are in some way obligated to provide business to their suppliers. If this is the case, transferees may not have the ability to choose the provider they want for their relocation process. In some cases, fully qualified suppliers who would provide lower costs might not be able to provide services.

3. How do you ensure competitive pricing from your supplier base?

This is one of the critical questions that will provide great insight into how the RMC operates. In some cases, RMCs will provide for competitive pricing by opening up bidding to multiple suppliers. In other cases, an RMC will try to explain that they can provide competitive pricing by leveraging their own network and spreading costs over a large number of transferee relocations. Be sure you understand what these different responses actually mean. Either the RMC ensures competitive pricing by promoting competitive bidding, or they do not promote competitive bidding.

4. What metrics and service level agreements do you track and report on?

Service level agreements (SLAs) should be a standard part of an RMC’s quality program. Service quality promises might include on time delivery guarantee of household goods, or specific performance guarantees based on transferee ratings. SLAs might cover real estate services, household goods moving, destination services, and financial and reporting services.

5. How do you utilize technology in your approach to relocation management?

RMCs should have technology to complement their service models. Companies, their transferees, and their candidates should expect a seamless relocation experience. Look for RMCs that can provide a superior, proprietary, cross-platform, online relocation management suite. Systems should provide clients and their transferees an array of decision-making, tracking, and expense management tools, with anywhere, anytime access 365 days a year and 24 hours a day.

What should companies do with the answers they receive?

Companies should compare the answers they receive from each RMC to ensure they provide the desired result. Information should be complete, and the answers should be direct and clear without any cause for confusion. Good responses will help the company determine how the RMC will manage their relocation program. Companies should be sure to ask all 28 Critical Questions in order to get the best overall responses.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their relocation programs. We can help your company understand which critical questions to ask of an RMC. These questions will help ensure you address the most critical relocation program points. Learn how to choose the best Relocation Management Company 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.

Download the 28 Critical Questions to ask an RMC when submitting an RFP

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Corporate relocation tips Domestic Relocation Tips Global Relocation Challenges Global Relocation Tips Relocation Challenges Relocation Programs

Why Choose Traditional Temporary Housing?

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With all of the housing options available to you, why should you choose traditional temporary housing provided through a Relocation Management Company (RMC)? Newer providers like online “bnb” websites or rentals offered by owners seem to offer so much more flexibility to meet your travel needs. From studio apartments and lofts in artsy places, to luxurious vacation rentals, the supply of interesting and exotic abodes seems endless. Also, the draw of quick and easy rentals as well as anecdotal stories of great bargains make these places seem irresistible to savvy travelers and transferees alike. With so much to choose from, what could traditional temporary housing offer in comparison?

Before you book yourself and your family into a rental through online providers, look into these four specific areas to be sure the rental meets your full requirements:

1. Security Standards

Do you know if there is a security system at the location? Is the rental’s location in a safe and family-friendly neighborhood? What about the Wi-Fi System? Traditional temporary housing locations receive evaluations on several criteria. Employees must undergo background checks. Building security undergoes an assessment. Even if a rental location is advertised as having good security, or is claimed to be in a safe neighborhood, has this been verified? Do you know if the area changes character depending on the day or hour?

2. Cleanliness

Temporary housing must meet specific cleanliness and quality standards, and undergoes professional cleaning prior to rentals. Is this what you will find through an online rental provider? Travelers often see and remark on the differences in cleanliness standards among hotel chains. Do you know if there are any cleanliness standards at the online provider’s rental unit? Will you have to perform cleaning services yourself? How would you know if surfaces are clean and sanitary? Would you be able to determine if surfaces have simply been wiped down with a single cleaning rag throughout the entire rental unit?

3. Move-in Inspection

Traditional temporary housing provided by an RMC includes a full move-in inspection covering several points. This inspection is to ensure the renters can verify the state of the unit. They also have an opportunity to note any discrepancies within the rental paperwork before moving in to the unit. However, many online rental providers are not onsite to greet renters and may not offer a move-in inspection. As such, renters are often at risk if something is not in working order, missing, or broken, and they are unable to provide proof the item was in that condition prior to their moving in.

4. Maintenance and Emergencies

Traditional temporary housing provided by an RMC includes information and processes for renters to follow should any item require maintenance, or should an emergency arise. Major equipment receives maintenance and service on a regular schedule. However, online rental providers may not provide specific instructions and processes for maintenance. Also, they may not be in a position to assist the renters during emergencies. Major equipment may not be maintained by professionals on a regular basis. Also, there are usually no guarantees in place should the renter determine the unit no longer meets their needs even if major equipment does not work properly.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients find traditional temporary housing that fully meets transferring employees and their family member’s requirements for security, cleanliness, and move-in readiness. As a result, we can help your company find the best temporary housing options for your relocation program. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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Domestic Relocation Tips Domestic Relocation Trends Global Relocation Tips Global Relocation Trends Household Goods Talent Mobility

Five Tips to Help Your Company Move Employees to Remote and Challenging Locations

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What is the best method to help an employee agree to take a relocation assignment at remote or challenging locations? Or to help a candidate accept a new job offer at a similarly challenging location?

Companies that are not familiar with the relocation process may not realize how important it is to put in the extra effort early on to gain acceptance for assignments while also reducing overall relocation costs. Look for a Relocation Management Company (RMC) that has experience working with clients to place employees in remote and challenging locations. The RMC will provide valuable insight to help your company increase job acceptance rates.

Here are five tips that will help your company move employees to remote and challenging locations:

Five Tips to Help Move Employees to Remote and Challenging Locations

1. Pre-Decision Services

GMS is recognized as the RMC that pioneered the development and usage of many of today’s most effective “pre decision” services.

The use of pre-decision services has emerged in the mobility industry as a critical tool in the retention of an organization’s talent and helping employees relocate to challenging locations. Our corporate clients will tell you that the implementation of this program for both a domestic move and a global assignment results in employees that start work sooner, stay longer, and are a better fit in the corporate culture.

Our systems and processes including high-touch customer service, policy expertise, benchmarking, and flexible reporting options allow clients to manage employee relocation programs with better ease and efficiency.

Pre-decision services include the following:

  • Candidate Assessment – Assess candidate expectation, skills, personal qualities, family circumstance, and financial preparedness.
  • Cost of Living analysis – Cost of living comparison of origin and destination cities to help determine acceptable or competitive salary range.
  • Market analysis – Determines the likely home sale timeline and identifies potential home sale challenges such as negative equity.
  • School Reports – Public and Private School reports provided to the relocating employee to aid community selection.
  • Moving Cost Estimates – Cost estimates on household goods transport, helps budget for relocation costs.
  • Community Search and Tours – Coordinates community orientation tours to familiarize relocating employees to their new location, and assist in selecting an area that fits their particular interests.

2. Community Tour of Challenging Locations During Interview

Companies should work with an RMC to set up a community tour during an interview. The focus should be on the many positive aspects of the location. This will help position the company and the location in the best light possible.

For example, a client might be experiencing a loss of candidates due solely to the fact that the candidate arranged their own transportation from their hotel to the company’s facility. If the candidate’s hotel is located near an airport and the surrounding area is not scenic, the candidate will not see any desirable neighborhoods and local points of interest. Partnering with an RMC to provide community tours can address this issue. RMCs provide upfront education on the area to help the candidate see the many positive aspects of the location. As a result, the RMC will help the client increase job acceptance ratios.

3. Include the Family

When a company has determined a candidate is a good fit for the position after the initial interview, a second interview should help finalize the decision process. Companies should consider flying the candidate and their family out for the second interview, before finalizing the job offer.

Including the candidate’s family shows them that the company cares about their well-being, and wants them to feel comfortable in the new location. Work with an RMC that can help the family members learn more about the community, schools, activities, and other points of interest. The RMC will learn what is important to the candidate and their family members during the pre-decision process. The RMC can use this information to highlight the new location in the best manner.

4. Offer Spousal or Partner Assistance

When an employee is offered a relocation opportunity in challenging locations, their spouse or partner’s needs should be considered as well. Often a new job for a transferee may mean a job change for their spouse or partner, in addition to relocating to a new location. The more support and information a company provides for spouses and partners, the more likely the relocation will be successful.

Companies should consider offering services that will help the candidate’s spouse or partner and their family members during the relocation process. Such services can include spouse or partner employment support, counseling services, and stress management assistance.

Spouse and partner career support programs promote successful relocations. Employees expect their company’s relocation programs to provide a wide range of services, technology, and tools. These resources will help make for an easy and smooth relocation process. Along with services targeted specifically for the transferee, the most successful company relocation programs also provide support programs for spouses and partners. Employee’s family members participate in the relocation process, and as such their buy-in and support can ensure a successful assignment.

5. Destination Spotlights for Challenging Locations

Employees considering a relocation assignment are looking for information to help convince them that a relocation assignment will be a valuable experience. Companies with successful relocation programs provide as much information about new and challenging locations as possible. This helps their employees and family members gain a favorable impression and acceptance of a relocation assignment.

A destination spotlight showing highlights and exciting activities provides peace of mind. Also, it boosts the confidence of employees considering a relocation assignment. RMCs can provide information on North America and Global destinations that will help employees learn the best features about the new location.

Conclusion

Global Mobility Solutions’ team of global relocation experts have helped thousands of our clients move employees and candidates to remote and challenging locations. We can help your company understand how to design your relocation program. As a result, your program will highlight the best features of a location, and increase job acceptance ratios.

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 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 Tips Global Relocation Tips Household Goods Relocation Management Talent Management Talent Mobility

What is the Best Way to Recruit Top Talent in a Tight Job Market?

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What is the best way to recruit top talent in a tight job market? Many recruiters and human resource professionals face this question on a daily basis. When an economy is growing, employment opportunities are plentiful. This in turn increases the difficulty of finding top talent for open positions. Competition for highly skilled and talented employees means employers must examine their processes and find new ways to gain an advantage in tight job markets.

Some employers have found unique ways to expand their recruiting efforts. Others have found advantages in offering programs that appeal to job seekers as well as their families. Often, employers must look inward to determine the specific reasons why employees choose to accept or decline their job offers. With this knowledge, employers can improve their recruiting processes to appeal to a larger number of candidates.

Here are five ways employers recruit top talent during a tight job market:

1. Leverage Social Media to Recruit Top Talent

The Society for Human Resource Management’s survey of HR professionals on whether they are using social media for talent acquisition shows that 84% of organizations are currently using social media for recruiting, and an additional 9% have plans to do so. Also, over 30% of organizations are targeting smartphone users with mobile recruiting efforts.

Most of these recruiting programs focus on passive job candidates. Efforts may be as simple as sharing job openings on company Linkedin pages, or digital advertisements targeted to appear when job seekers enter specific terms into a search engine. 71% of companies report these efforts are effective in decreasing the time to fill non-management salaried positions. Interestingly, companies report that these efforts are not as effective for recruiting executive and upper management positions, nor are they as effective for non-management, hourly employees. This divergence may be due to a number of factors including access to social media, interest in maintaining such connections, and overall time commitments impacting these groups in different ways.

2. Pre-Decision Services

Companies that are considering job candidates who may require relocation assistance can gain many benefits from using pre-decision services. Putting in the extra effort early in the relocation process delivers quantifiable results for productivity and cost reduction.

Pre-decision services include:

  • Candidate Assessment – Assess candidate expectations, skills, personal qualities, family circumstance, and financial preparedness.
  • Cost of Living Analysis – Cost of living comparison of origin and destination cities to help determine acceptable or competitive salary range.
  • Market Analysis – Determines the likely home sale timeline and identifies potential home sale challenges such as negative equity.
  • School Reports – Public and Private School reports provided to the relocating employee to aid community selection.
  • Moving Cost Estimates – Cost estimates on household goods transport helps budget for relocation costs.
  • Community Search and Tours – Coordinates community orientation tours to familiarize relocating employees to their new location, and assist in selecting an area that fits their particular interests.

Companies benefit from using pre-decision services in many ways:

  • Job acceptance ratios increase; failed relocations decrease.
  • Budget accuracy increases.
  • Eliminates the risk of non-acceptance by the transferee/assignee.
  • Streamline new location orientations.
  • Minimizes policy exceptions.
  • Identifies candidates unable or unwilling to relocate so efforts are re-focused on viable options.
  • Reveals concerns and issues prior to relocation, such as cultural differences or family concerns.
  • Proven overall cost savings.

3. Leverage Relocation Package in the Hiring Process to Recruit Top Talent

Companies that struggle to fill positions using traditional hiring methods may not understand how to use their relocation program to attract qualified candidates. In industries with many competitors all trying to attract the same candidates, it is often difficult for a smaller or less well-known company to be seen as an employer of choice. Also, the company may not be able to offer the same level of perks and amenities to job candidates. However, offering benefits such as more flexible work arrangements might help a company attract new hires.

Relocation programs are great vehicles to clearly demonstrate to job candidates how much a company values them and their families, as we have shown in our Case Study on Technology Industry Relocation Programs. Companies can communicate specific relocation program areas that reflect industry best practices, as well as highlight their job offer and relocation assistance package in the best manner to recruit top talent. Depending on the relocation program’s specific features, companies might highlight the package’s home buying assistance, spouse and partner assistance, and full destination services for the transferee’s needs.

4. Policy Exceptions for Relocation Packages

The moving process can be challenging, time-consuming, and result in significant delays for candidates to start their new position. When moving to a new location, house-hunting might require a number of trips to search for homes, neighborhoods, schools, and nearby amenities. Relocation packages should offer some flexibility so that candidates can more easily accept a job offer without having concerns about their ability to successfully complete their relocation.

Companies should have a defined process in their relocation policy that tells candidates how to request a policy exception. Candidates with special needs and requests will feel more comfortable knowing how they should proceed. Companies can also use this information to learn whether their relocation program might need adjustments in certain areas to reduce exceptions as well as to attract new hires.

5. Increase Compensation

Companies may need to increase compensation as a way to recruit top talent that is highly skilled and experienced. Depending on the industry, length of assignment, and job requirements, higher levels of pay that are reflective of the critical need for talent might help a company attract new hires.

Industry growth and increases in employment opportunities may also lead to a rise in compensation, as can be seen in the computer/information technology and healthcare industries. Positions requiring extensive skills, technical training, and significant investment in education and internships often result in higher wages than the median annual wage for all occupations. An increasingly important specialism in IT is cybersecurity, and salaries reflect high demand for new hires who possess the requisite skills and experience.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients design relocation programs and market them effectively to enhance the attractiveness of their employment offerings and recruit top talent. As a result, we can help your company understand how to increase your recruiting program’s success by using best practices to design a relocation program that provides a clear and distinct competitive advantage.

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.

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 or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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