Category: Domestic Relocation Trends

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HR’s Role in Managing Employee Relocation

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A photo of playful parents holding sons's hands in new house. Happy and playful family are with cardboard boxes. They are in casuals.

Here is an overview of everything you need to know about getting an employee from point A to point B

Any company’s human resource department has countless staff relationship tasks, from approving vacation days to helping employees during their relocation process. The HR team is the company’s glue, holding together all the company’s processes and the backend paperwork regarding every employee. 

In most cases, the HR team is responsible for working with relocation services providers to work with the company to assist moving employees who accept a relocation assignment. HR teams will usually be in charge of getting quotes from relocation management companies (RMC), then working with the chosen RMC to set up the global mobility benefits that employees can utilize. If not taken care of properly, a lousy relocation process can hinder the hiring or retaining of skilled employees. A competitive and comprehensive relocation package is necessary to encourage employees to accept domestic and international relocation assignments.

HR’s role in employee relocations is significant; they must ensure a smooth transition by providing support. Global relocations are critical to every company’s success and should be taken seriously.

Setting Goals for Relocation Services

The HR team needs to come up with more innovative ideas when it comes to global mobility and employee relocation. In multinational companies, specific programs and procedures are in place to ensure employee hassle-free relocation. 

Any relocation plan that addresses and minimizes stress on employees and HR professionals must be appealing to transferring employees at any level on the organization chart. The employee must be able to relocate and be familiar with the process, often resolving questions regarding relocation and relocation issues.

Key Elements of Relocation Policies

There is no doubt that relocating employees can be a hectic process for all involved. But none more so than the employee and their family. That is why the HR team must cover as many benefits as possible so that the employee has the best chance of a smooth transition. It is a big ask for an employee to move states, or even countries, to work for a new company, which is why they should be taken care of. Here are some standard relocation services that should be covered in even the most standard packages:

  • Fair compensation adjustments are made if the living cost of the new location is higher than the transferee’s base.
  • Working with expert relocation coaches to assist relocating employees to guarantee low-stress, effective location change.
  • Paid trips to look for a house, multiple if possible, allow the employee and spouse to see homes that would work and get to know new neighborhoods that would be acceptable.
  • Moving and travel expenses are reimbursed to ensure that the shipping of the employee’s household goods is appropriately performed and minimizes the family’s costs to relocate to the new location.
  • Short-term housing options so the employee and their family can adjust to their new destination for a short period before buying a new home.

It’s HR’s Job to Introduce and Education New Employees about Relocation

As stated before, the HR manager and their team have countless tasks and processes to keep employees up to date on. But walking through the relocation policies with a new-hired employee is a vital task that should be considered. There should be a set company process setup for onboarding a relocating employee.

It is crucial to go over how, when, and where the relocation process occurs. Also, be honest and upfront with the employee on what they can expect during the move. Lastly, if working with an RMC that provides relocation coaches or one-on-one contact with a global mobility specialist, a company HR representative should introduce the employee to that assigned coach. On top of that, the company’s HR team should also act as a backup, best they can, if the relocation coach is unavailable for more than a few business days.

Need Help Updating or Creating Relocation Services?

Global Mobility Solutions (GMS) knows first-hand how busy HR teams can be. We want to help you and your team update or create your company’s relocation policies. Since 1987, GMS has been hiring the top relocation experts in the industry to ensure we can provide award-winning relocation services to our clients. 

Let us help you remove all the stress and concerns of relocating employees. We will listen to all of your needs and, from there, help you construct comprehensive relocation packages that employees will have a hard time turning down. But it is not only our goal to assist your employees’ move, but to keep relocation policies cost-efficient for your company. 

Our initiative technology helps employees, HR reps, and relocation coaches track the relocation process from start to finish. We have a cloud-based system that helps track everything from payments and recipients to household goods shipping. 

If your HR team is ready to discuss how to set up an excellent relocation process for both employees and the company, then set up a free consultation with one of our relocation experts, who will get you on the right track.

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

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3 FAQs About Working with a Relocation Specialist

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Here are some common questions about working with a global relocation provider

Moving to a new state for a new job isn’t easy. The relocation process alone can be a daunting task just to think about. All the packing and planning can make anyone stressed out. But to make the process go by with as little fuss as possible, it is highly recommended to work with a relocation specialist. 

If the new job you are moving for provides a relocation package, then there is a good chance that the opportunity to work with a relocation specialist is included. If talent mobility coaching is not provided in your package, it may be worth asking the relocation management company (RMC) that you are working with if one-on-one relocation management is possible to add on. Either way, working with a designated specialist has numerous advantages. 

Here are 3 FAQs and answers about working with a relocation specialist:

1) What Is a Relocation Specialist?

In simple terms, a relocation specialist is assigned to help an employee handle all of the logistics of their move as they prepare to work for their new company. There are a lot of moving pieces when it comes to executing a successful relocation process. A relocation specialist will bring knowledge, expertise, and experience in talent mobility. 

A reliable relocation specialist will be able to explain all aspects of the new company’s relocation package. They can help you review real estate programs, including home buying and selling assistance. As well as assist in coordinating with a moving company to get multiple quotes and schedule which day the movers can show up to move household goods.

2) How Much Do Relocation Specialists Charge?

There is no easy or short answer to this question. It depends upon each employee’s needs and wants when it comes time to move. Global relocation service providers offer a long list of services that can be covered, but it depends on the relocation package the hiring company offers their new employees to move. 

This should be asked by the employee in the negotiation stage of hiring. If the company mentions a move is mandatory for the position, the employee should follow up by requesting a list of relocation costs and services that the company will cover fully or partially. It’s also worth asking how the costs are covered because there are different types of relocation policies. Some companies may offer lump sum relocation packages, others may go the route of old-school reimbursement policies.

3) What’s the Process Like to Work with a Relocation Specialist?

Each RMC will have a different process for domestic and international relocation services. Most relocation specialists will start by hearing all of the employees’ pain points about the move, then proceed swiftly to assist in overcoming those pain points. Each relocation expert will have their own checklist on how to go about handling predestination stages all the way to getting the employee to their first day at the new position, from listing the employee’s current home to getting corporate housing in order, to helping with all the formal paperwork needed for a move. 

The relocation specialist’s main job is to keep the move smooth while keeping the employee’s relocation process on a timeline.

GMS Has Relocation Specialists Ready to Help

Global Mobility Solutions (GMS) has been leading the international relocation services industry since 1987. We only hire and work with the best relocation specialists in the business. Our team is thoroughly trained and qualified to help get employees from their current homes to their new destinations. 

GMS provides companies with relocation packages that have options to give each transferee their own relocation coach. This coach will provide one-on-one assistance to the employee they are assigned to in order to make the most seamless relocation experience possible. If you are ready to hear more about our relocation coaching options, please reach out to schedule a free consultation today and always feel free to check out our blog in our Knowledge Base to get any other relocation questions answered.

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Household Goods Summer Update

Big truck of delivery company with cargo is driving on forest road in the mountains at sunset.

The HHG Industry & The Summer of 2022

While the summer household goods moving season is heating up, 2022 is shaping to be hotter than usual. The summer of ‘22 is the perfect storm which includes a range of issues the industry has been battling for some time, such as driver and labor shortages, not to mention the high gas prices as of late. Today, there is a range of new challenges, compounded by the lingering events of the pandemic and higher fuel costs.

These factors boil down to several key areas:

  • Increased Volume
  • New Storage Challenges
  • Challenges with Materials & Supply
  • Air & Sea Freight Cost Volatility
  • International Port Delays
  • Continuing Driver & Labor Shortages

It is important to remember that many of these challenges are beyond the control of the relocation and household goods (HHG) industries. So let’s dive into today’s major challenges facing the household goods transportation industry.

Increased Household Goods Move Volume

Move volume is up across the industry, an increase over currently elevated levels that have been present for the past year. Corporate relocation volume is up over 2022 and has been approaching pre-pandemic figures from 2020 and 2021. 

Additionally, U.S. military moves have been restarted, accounting for a large portion of typical HHG traffic. Previously, these moves were on hold throughout 2020, with few exceptions for emergency or national security moves. As a result, military relocation volume has suddenly jumped, nearing its typical summer volume.

COD/Consumer business

Volume began to skyrocket in 2020, with consumers deciding that they wanted to make significant life changes during the pandemic. This was accelerated by work-from-home policies, with companies allowing their workforce to live and work from anywhere with an internet connection.

Due to increased demand, COD pricing has become elevated. This increase in consumer pricing will continue to harm those relocating employees that are provided a lump sum benefit in place of a comprehensive relocation package. Their moving budget will no longer stretch as far as it may have in previous years, placing these transferees in a tight spot.

Heightened increases in consumer moves have caused a resurgence of “rogue movers,” fly-by-night moving companies who prey on individuals looking for cheaper moving options. This increases the risk that transferees who receive lump sums as their sole relocation benefit may fall victim to similar scams as they try to conserve their funds for moving.

HHG Storage Challenges

Household goods storage capacity is not something that the industry worries about very often. As a result, few in the business today have encountered it before. Well, hello, summer 2022, we’ve got ourselves a shortage of storage!

Storage Capacity for Personal Property

HHG shipments that required storage options have declined for more than a decade. In the past, the real estate market was well balanced, and most shipments were delivered directly to the transferees’ new homes, bypassing the need for storage entirely. 

This decline in storage needs pushed many in the industry to downsize their warehouse spaces to lower overhead costs, shifting to smaller, less costly facilities.

Today’s red hot real estate market has caused an increased overlap rate for the typical transferee’s relocation timeline. In 2022, homes are still selling quickly, forcing employees to move out sooner than anticipated. Once at their destination, the highly competitive market prevents employees from finding suitable housing promptly. It has become common for homes to be sold before the family can even view the property. This translates to extended stays in temporary housing for the family while their household goods are put into storage until a home can be secured. While many around the country expect the real estate frenzy to cool off, there’s no way to level out numbers until that happens.

Additionally, some shipments must be stored further away from the transferee’s ultimate destination, leading to potential costs beyond what would typically have occurred with a closer storage facility.

HHG Labor Constraints

Storage in transit deliveries for corporate relocations is typically handled by local labor that the local destination agent arranges. The existing labor shortage that the industry has been dealing with has been compounded by the effects of the pandemic, further restricting supply. This limited labor pool specifies the development of creative solutions for operating trucks.

Materials & Their Impact on Household Goods

As many have seen in the news, the cost of simple building materials at your local hardware store has almost quadrupled over the last year. This is another excellent example of supply and demand playing out in real time.

Lumber

The cost of lumber is up, spiking as high as 347%! Primarily, this has impacted the housing sector, with builders and consumers taking a hit on the cost of new builds. In addition, the household goods and storage industry has dramatically increased the cost of 3rd party crating.

Additionally, as new storage vaults and warehouses are being built/bought to meet demand, higher costs, limited availability of materials, and a slower building pace result.


source: tradingeconomics.com

Corrugated Cardboard

The ideal packing material for most household goods moves, the cardboard box, has been steadily increasing in price for a decade now, thanks to the rise of the eCommerce and flat-pack furniture giants.

Costs have continued to rise in concert with the rise in demand for household goods. However, there is good news – While the price is rising, supply currently appears to be meeting the demand for packing materials.

Fuel Costs

Another newsworthy item is extremely high gasoline costs have risen in recent months, exemplified by the interruption of supply pipelines on the East Coast. As a result, clients have raised concerns regarding gasoline prices and how this would translate to HHG move costs. However, the rise in gasoline costs does not directly correlate to the price of diesel, which the household goods industry runs on.

  • Most household goods transportation equipment runs on diesel and not gasoline.
  • Diesel pricing was rising until February and has leveled off considerably since then.
  • There are fuel surcharges on all interstate HHG moves, a process that has been in place for over two decades.

Fuel surcharges are determined by the average price of a gallon of diesel as calculated by the U.S. Department of Energy on the first Monday of every month. The new fuel surcharge (if a change is required) goes into effect for shipments loading from the 15th of that same month through the 14th of the following month. This helps to level off any volatility in fuel prices.

Blog - Chart - Gas Diesel Prices

HHG Air/Sea Freight Pricing Volatility

Supply and demand have caused air and sea freight pricing to remain volatile around the globe. This has been compounded by the overall reduction of flights, leading to limited availability to air freight transport. However, many in the industry are hopeful that we’ll be back on track within the next 12 months. 

Also, lift vans, a typical wooden container used in international shipping, are in short supply. These containers wear out over time and need to be replaced. However, with the ongoing lumber shortage, replacements are more costly and more challenging to come by.

Continuing HHG Driver & Labor Shortages

Driver and labor shortages continue to plague the moving and storage industry. The HHG industry has made sustained attempts to attract talent with varied results. The uptick in volume and the increased costs of doing business have led to a more acute awareness of these shortages. As a result, the industry has explored the need for alternative modes of transport (such as small containerized shipments) and continues to utilize these methods.

What Can Companies with Household Goods Shipments Do?

Many of the relocation industry’s HHG transportation challenges are simply out of anyone’s control. Simply put, TIME has become the critical factor for many of these challenges. It will take time for these issues to unravel themselves:

  • Material supply will catch up with demand
  • The housing market will cool which will lessen storage demand
  • Over time, international ports will catch up with their backlog

However, for companies that need to relocate their employees, time is a powerful ally. Now, more than ever, companies should work to initiate their employees’ HHG services as early in the move process as possible.

  • This will allow your relocation team to set the right expectations upfront and help ensure your employees arrive at their destination as quickly as possible, ready to work.
  • The earlier companies can initiate relocations for their transferees, the sooner HHG services can be scheduled and coordinated.
  • The more accurately a transferee can project their final move date, the more quickly the move can be added to the list of summer moves.

GMS Is Prepared, Let's Talk!

Do you have questions about the household goods industry? Let’s talk!   Global Mobility Solutions (GMS) is a leader in global workforce mobility. We help companies build and operate competitive relocation programs for talent acquisition and retention strategies. 

Our goal is to make every relocation experience smooth for those moving. Our services can help every step of the way, from pre-decision, to moving day, to getting settled in the new destination – GMS is here for you.

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

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2022 Gas Prices Impact Relocation Costs and Estimates

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Large semi truck hauling freight on the open highway in the western USA under an evening sky.

Learn how higher fuel prices impact the shipment of household goods

There is no question that the recent rise in fuel prices has had an impact across the board on many industries. From pain at the fuel pump to increases in prices at the local grocery stores, people are spending more on a weekly basis. The talent mobility industry hasn’t been immune to the effects of increased fuel prices. However, the industry is making strides in developing more accurate estimates that account for higher gas prices. In the relocation industry, these costs are typically passed down from vendors to relocation management companies (RMCs) which, in turn, results in increased direct costs for companies relocating their employees.

In a typical relocation or assignment, anticipated relocation costs are calculated via a needs-based estimate. Meaning each relocation assignment is unique and could cost a different amount, depending on the employee’s needs. But just how much does the price of gas affect how much it is to move an employee? Which aspect of the relocation process is hit the hardest when fuel is expensive? Here is a breakdown has to why relocation costs go up when fuel prices increase:

Shipment of Household Goods

The largest impact of high fuel prices on relocation naturally resides within the process to ship household goods (HHG) from point A to point B. The packing and transporting of furniture and other belongings is a critical component of any relocation program. Companies that offer relocation benefits often will make sure to include covering, or at least reimbursing, an employee’s need to have their household goods shipped to their new destination. Industry-leading RMCs will obtain multiple bids from moving vendors to help ensure the best possible cost. In most cases, the RMC will have established partnerships with numerous vendors who are vetted and reliable, but they could reach out to a newer vendor for a better deal if need be. These bids from transportation companies are largely estimated on how many pounds of household goods need to be moved and how many miles away the destination is. These are two of the more obvious figures that are directly connected to gas prices and the total cost of the move.

What is the Impact of Fuel Surcharges on the Shipment of Household Goods?

With fuel prices quickly on the rise, take this opportunity to learn how fuel surcharges are calculated for domestic relocation HHG shipping. On the first Monday (or Tuesday) of every month, the van lines each go to the US Department of Energy’s (DOE) database to access the average cost of diesel for the entire United States. The average price has a corresponding number on a chart that most HHG vendors use, which will indicate what percentage to use for the fuel surcharge. 

For example: If diesel is at an average of $4.84 per gallon, then the common surcharge would be 16%. The new fuel surcharge will be applied to any shipments loading after the 15th of that month. 

HHG estimates are completed using the current fuel surcharge. The difference between the fuel surcharge when the estimate is completed and the load day fuel surcharge will result, sometimes ending in an increased amount, depending on market conditions. Relocation experts have seen this happen before when fuel surcharges spiked in 2009 and impacted moving expenses. 

It is worth mentioning that fuel surcharges are always non-binding, even on talent mobility policies that may hold some type of guarantee not to exceed cost estimates. This type of HHG estimate is commonly used by RMCs as part of an overarching, comprehensive cost estimate that is used to help companies gain a clearer picture of the total projected cost of relocation.

Do Companies Need to Update Relocation Policies?

Many companies look into what are called “Capped Relocation Policies.” Meaning, there is a pre-approved, maximum budget the company is willing to pay up to for moving the new employee. Working with an RMC helps companies to stay within that cap for each employee who is transferred. This policy design method is effective in helping to contain runaway costs and can provide a measure of consistency with your total mobility program spend.

However, in today’s environment, some capped policies are quickly eaten up by increased fuel surcharges. This is making it difficult for companies to stay within the approved budget while relocating. In some cases, the budgeted amount isn’t enough to fully execute the move and is leaving the employee to make up the difference. If a company finds this to be occurring frequently, a review of your policy caps might be in order.

This is another great advantage of working with an experienced RMC to ensure that your company is not overpaying for relocation costs while offering competitive relocation benefits within your industry.

GMS Is Here with Explanations on Relocation Costs

We know that the relocation process and the costs associated with it can be confusing. That’s why Global Mobility Solutions (GMS) offers free consultations to anyone who has questions about talent mobility. Our relocation experts will walk you through a common outline of relocation packages and their structure during this online or in-person consultation. From there, you make the decision if you would like us to help you either create or rewrite your relocation policies. When a company offers relocation policies to job candidates, they open their hiring field to a wider range of top candidates for any given position. Let GMS assist you in all of your relocation needs, contact us to start getting all of your questions answered. 

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4 Products in Low Supply: Impact on Relocating Employees

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Pricing on these products could affect relocation

It can be more complicated than just hiring a moving company to ship their household goods when relocating an employee. Many factors need to be taken into consideration when getting a transferee to their new destination. One of the significant factors to think about is the cost of living difference between their current home and the new destination. When certain products or materials are harder to get or are experiencing pricing increases, it can place additional pressure on the employee and jeopardize the relocation. 

Since the COVID-19 pandemic began, there have been supply chain issues and shipping delays around the world. Some products are back-ordered for months at a time, ultimately increasing prices on many products, further complicated by lack of manufacturing productivity. This can affect those moving for a new job through increased prices on common cost of living items such as food and fuel, potentially increasing employees’ wage requirements. While companies can’t always raise salary expectations right away, keeping the cost of living changes in mind when sending the employee an offer letter is recommended. 

If your company relocates employees, these four product shortages might affect their lives in their new destination:

Food Costs

This one probably hits close to home for a lot of people. With grocery stores also having labor challenges and with problems in food production, grocery prices may stay higher than usual in 2022. COVID-19 and its variants upended operations in food manufacturing plants around the world. As workers called in sick or day-to-day production policies had to be changed to keep workers safe, many fell behind in their order fulfillment and still have not caught up yet. Food product shortages are also due to the trucker driver shortage that the US and Canada are experiencing right now. 

When you look at the difference in food costs from city to city, that alone creates a cost of living increase or decrease. Typically, groceries are more expensive in high-end markets such as San Fransico, CA than in Topeka, KS. The addition of product shortages and shipping problems adds to the total price for someone moving from a mid-sized or small city to a larger one.

Lumber

Lumber prices have soured as of late to the point where homebuilders are increasing prices in an attempt to offset the demand. Many lumber mills were forced to shut down during the pandemic due to safety concerns. Then when the mills reopened, they were already behind in producing enough lumber to fulfill the extreme housing market needs. The real estate trends in calls for lumber were not just new-build homes either. As many workers started working from home and mortgage rates dropped to new lows, there was a rise in home remodeling. 

Many people might not realize that the price of wood also impacts moving supplies such as paper and cardboard. Lumber prices for the shipping industry also impact items such as shipping crates and pallets, which are produced for moving companies. Increases in material prices are naturally passed along to the end-customers who are moving.

Furniture

Always known as the “hidden cost of moving,” buying furniture for a new home is something that most people don’t calculate when making offers on houses. The furniture industry saw a boom when work from home became the new normal for many workers. People were more likely to spend more updating their furniture in order to be comfortable while spending most of their days from home. Because many U.S. furniture parts come from China, the global shipping container shortage has delayed many shipments that have some furniture companies months behind on orders. Once again, because of all the issues with shipping containers, the furniture industry can only ship out so many sets each month.

Semiconductors

Demand for computer chips has naturally lowered supply. Many companies are shifting their workforce remotely, meaning more laptops and computer products are needed for employees working from home. Semiconductor manufacturers are trying to ramp up production, but with sky-high demand, it is hard to see them catching up to the curve before the end of 2022. 

Additionally, semiconductors are used in vast swathes of products these days, including vehicles. Near the onset of the pandemic, rental car companies sold perceived excesses in their fleets. Demand surprisingly skyrocketed, but due to shortages in semiconductors, vehicle manufacturers couldn’t keep up with rental fleet production demand which, in turn, caused shortages of rental vehicles. This has caused significant increases in rental car costs for employees who are relocating and need temporary transportation while traveling.

GMS Keeps You Up to Date with Industry News

At Global Mobility Solutions (GMS) we take pride in being the industry leader for providing global mobility services. Our team assists companies in relocating employees and providing benchmarking studies specific to our clients’ industries. We also keep our customers on top of industry trends in relocation, real estate, transportation, and more. Fill out the form below to receive courtesy information on your particular industry today!

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The Most Googled Questions About Relocation Services

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Answering common questions about relocation packages and the global mobility process

Companies that are just starting to research information about relocation services may need to get some of their basic questions answered. Global Mobility Solutions (GMS) has been a leading relocation company for over 34 years. Our team members are all highly qualified for their positions and are experts in their specialty regarding relocation services. As there are a lot of moving parts when it comes to relocating employees, our team put this guide together in hopes of providing some answers to the most Googled questions. Most of these questions are commonly asked when companies with in-house programs (or no program) are considering outsourcing their mobility programs to an experienced relocation management company.

Here are those Q & A’s:

What Are Relocation Services?

Also known as talent mobility or global mobility, corporate relocation services are benefits provided by an employer or agency to an employee who has to move for a new position or promotion. In simple terms, relocation services are “moving perks.” When the employee accepts the position, they are provided with some different options to help them get to their destination smoothly in time for their start date. Depending on what type of benefits are offered, relocation services usually can be applied to individuals and families alike. International relocation and domestic relocation services are slightly different, but the idea remains the same. 

In most instances, the hiring company will have already signed on with a relocation management company (RMC) to construct and deliver comprehensive relocation packages in order to ensure their talent acquisition program is as competitive as possible.

What’s Included with Relocation Services?

Relocation packages offered to employees should be tailored to fit the company’s objectives, along with employees’ wants and needs. Relocation services can vary in what is offered to, and utilized by, the employee. Common benefits range from assistance in selling a home to temporary housing assistance, school/area tours, and more.

Often, the most common theme among talent mobility perks is financial help with moving costs and shipping of household goods. Sometimes, the company will even offer to cover the cost of hiring moving services completely. Other companies may offer reimbursement options for relocation costs, meaning the employee foots the bills upfront to get to their new destination and the company repays them usually via check or EFT payment. 

Side note: GMS recommends that companies offer employees relocation packages instead of reimbursement options. At GMS, we assign each moving employee a dedicated single point of coordination (a U.S. Domestic Relocation Coach or a Global Assignment Manager). This certified GMS team member is highly experienced in their field and will provide guidance to your employee every step of the way during the relocation process.

How Much Can You Expect to Spend on Relocation Services?

That’s an excellent question. From the hiring company’s standpoint, paying to provide relocation services will depend on a number of variables. How many employees need to be relocated? Are these employees individuals or moving a family with them? Is the company willing to cover the costs of the entire move or just partial support? Are real estate perks offered in the package? 

Going back to the idea that relocation benefits should be tailored to fit the company’s objectives and employees’ needs, it’s hard to put a price range on just how much relocation services cost. Relocation costs are typically worth it in the long run because it increases the chances of getting the right candidate in the right seat for the vacant position. These employees arrive stress-free and ready to work, and are shown to stick around longer. Without global mobility benefits, your company runs the risk of having to hire and train multiple people over because only local talent is applying for the job.

What’s the Average Timeline for Relocating?

When helping companies create their relocation benefits, GMS usually recommends that there be a designated timeframe in which the policies can be utilized. This timeline will vary from company to company, or position to position. In many cases, a 90-day window for employees to start their relocation process does the trick. Employers need to keep in mind that these new-hire employees may have families, and trying to move a family with children is something that cannot always be done within a few weeks. Additional factors should be taken into account as well, such as the time it takes to sell the employees home, or the availability of transportation services for their household goods.

In extreme cases, the company might give the employee a start date within a month of the offer. But the downfall with this approach might be the employee may decline the offer, or the company’s relocation costs will increase if services are needed ASAP and not planned out.

What if an Employee Doesn’t Use/Need Every Relocation Benefit Offered?

GMS prides itself in our proactive relocation coaching. By having a Relocation Coach or Global Assignment Manager assigned to each employee, GMS helps to ensure the relocator is using the right mix of benefits for their unique situations. This can help them to get the most out of their available and applicable benefits, whether it be helping with moving costs, spousal support, or language training. GMS’ relocation experts help to pinpoint why employees may or may not utilize certain benefits to make sure the employee is getting the support they need without contributing to inflated mobility program costs due to the use of unnecessary services.

What Is Corporate Housing?

When thinking about accepting a job out of state, one of the most sought-after relocation benefits is corporate housing. Also known as short-term housing, this benefit is recommended for employers to provide as it might seal the deal for the new hire to sign on.

Corporate housing is usually a 30, 60, or 90-day stay in a furnished apartment or townhome that is covered by the employer. The reason this is such a draw for relocating employees is because it gives the employee and their family a transitional period to get their feet wet and learn a little bit about the lifestyle of their new destination. This period of time is also valuable as it provides the employee a place to live during the period of time it takes for them to secure a new place to live and await the delivery of their household goods. It also can be used for a situation where the employee has to go ahead of their family for the job, while their family finishes up any loose ends before the relocation completely takes place such as kids finishing the school semester.

How Often Should We Review Relocation Benefits?

GMS urges companies who are offering relocation packages to look into reviewing or updating those benefits every 12 to 18 months. The reason being, industries become more competitive and employee needs can evolve. If a competing company in your industry is offering more money or benefits to new hires, it could make it harder for your company to attract the top talent you need.

GMS Is Here to Answer All of Your Relocation Questions

When it comes to your talent mobility strategy, there are thousands of questions about where to begin or how to improve. The relocation experts at GMS have been helping companies move their employees for over three decades. If you have any questions about creating, reviewing, or improving your mobility program or relocation services, please reach out today. Our team can answer any questions you may have while offering insight into alternatives and enhancements to already existing relocation packages.

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

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Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Relocation Policy Review Relocation Programs

Relocation Policy Review: Anticipating Changes and Challenges

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Why Companies should review their Relocation Policies?

It is important, and highly recommended, that companies review their relocation policies at the start of each year. This will help your company remain at the forefront of your industry, ahead of your competitors, and in line with best practice recommendations. Most companies are not completely immune to global forces, market changes, and unique challenges such as the COVID-19 global pandemic. Often these issues directly impact employees on international assignments.

There are several reasons why companies need relocation benefits. Often, relocation perks are used for hiring a recruit for an open position. Other times, companies may use relocation to transfer knowable employees to different job sites or as part of a development program offered through the company when promoting an existing employee. But no matter the reason, all sizes of company who offer talent mobility should have their relocation policies reviewed with some regularity. Here is a breakdown of why relocation policy review is important:

 

Address Strategic Objectives in Your Relocation Policy Review

Growing companies often have strategic plans that guide activities and investments. Many of these plans lay out specific goals and actions. For example, a company that wants to grow into a new market might leverage their relocation policy review in several ways to achieve this goal. This may include investigating the services of an International Professional Employer Organization (PEO). PEOs can help a company establish a presence in a new market within a very short timeframe and with no direct investment. As a result, companies can focus on achieving strategic objectives and responding nimbly to market changes. In return, the company saves time, effort, and resources. Also, the overall costs of service fees and financing international employees’ payroll are significantly lower than the cost of establishing a foreign entity.

Cost Reductions and Process Improvements Can Be Found

Relocation Management Companies (RMCs) with extensive industry knowledge and experience can help identify cost reductions. There may be several areas that offer cost reduction opportunities during a relocation policy review. Also, the mobility industry often changes rapidly in response to needs, preferences, and regulations. As a result, knowledgeable RMCs can easily identify and share new ideas for cost reductions.

RMCs are often drivers in the mobility industry for process improvements. Technology can lead to dramatic increases in productivity. For example, a Relocation API can replace many time-consuming data entry tasks and responsibilities. In turn, valuable resources are freed up to focus on critical business and department issues.

Maintaining Your Company’s Competitive Market Position

Every relocation policy review should include and reference benchmarking studies. These studies should show what your company’s industry competitors are providing in their policies. Your company should have information to know whether its relocation policy provides benefits that at least match the competition. A thorough relocation policy review can help identify areas that need to change in order to maintain your organization’s competitive position.

Ensures Company Policy Remains Compliant

National and international regulations can frequently change. Constant changes in visa requirements, immigration, tax laws, health recommendations, and other regulations directly impact relocation programs and employees. Conducting a relocation policy review helps your company learn what is changing, what may change in the future, and how to adjust your relocation policy accordingly. The review also provides information that your company can share with internal company stakeholders and employees who utilize the policy.

When Should Relocation Benefits Be Reviewed?

Companies should arrange a relocation policy review about every 12 months. As markets and global dynamic forces change at an ever faster pace, transferees are often some of the first employees to face direct impacts. As a result, the company’s relocation policy should be current and provide industry-leading solutions. This will result in greater employee satisfaction, and enhance talent acquisition and retention efforts.

GMS’ team of global relocation experts has helped thousands of our clients with their relocation policy review. Our mobility consulting team understands the dynamic nature of the corporate relocation market. GMS provides expert guidance for relocation policies, as a result, our team ensures that our clients’ transferees receive immediate assistance as required, clients remain competitive, their relocation programs maximize efficiencies, and they can leverage several cost reduction opportunities.

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.

To schedule your relocation policy review or to receive an industry-specific policy benchmarking overview, contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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Career Services Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends

States and Cities with Great Relocation Incentives

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Madrid, Spain financial district skyline at twilight.

These Cities Are Offering Government Relocation Incentives

New Year’s is the time for new beginnings. It’s usually around this time of year people start to reflect and make major changes. For many, there is no life change larger than moving to a new city or state. If you’re moving for a job offer, hopefully, the new company is offering a competitive relocation package to help with moving costs. But what about the people who were informed this year that they will be working remotely full time moving forward? If you could live and work anywhere, where would you go?

Many companies announced in 2021 that they do not plan to ask employees to come back to work in an office building with any regularity. With that said, now that many employees no longer have a daily commute to a cubicle, they are starting to think about where to live. Places with good weather and affordable housing are, of course, on top of everyone’s list. Since many of these moves are the personal choice of the employee, very few companies are providing relocation benefits. However, there are numerous relocation incentives being offered by cities and states that can help reduce relocation costs. The list below is a follow-up to our previous blog about reducing moving costs through relocation incentives that are being offered by certain cities. 

Moving can be expensive but taking advantage of these government relocation incentives can help ease the financial hit. Check out what these cities are offering:

Topeka, KS

A very lucrative relocation incentive deal, Choose Topeka is offering those who move to the city to work on-site up to $15,000 in funds for the purchase of a home and as much as $10,000 in funds for renters. There is also an option for remote workers who move to the area that equals $10,000 in home purchase assistance and up to $5,000 for those looking to rent.

Newton, IA

For most, one of the most costly needs involved when moving is buying a new home. Newton, Iowa is willing to help with that cost. If you move to Newton, you can receive up to $10,000 cash plus a “Get to Know Newton” package. This offer is for single-family homes that begin construction before 2023. This program is for new-build homes. Unfortunately, renters do not benefit from this relocation incentive.

Chattanooga, TN

Chattanooga, Tennessee is quickly becoming a well-known hub for entrepreneurs and innovators. GeekMove is a program designed to assist computer developers in relocating to Chattanooga. The biggest perk of this package is GeekMove’s offer to offset the initial costs of homeownership by providing a second, forgivable mortgage. This should provide more housing options for prospective buyers as it will make houses more affordable to the average buyer. The catch is that this offer is only good in pre-defined neighborhoods. On the flip-side, there are plenty of great neighborhoods to choose from, including some revitalized historic areas.

Alaska

Alaska has long been known for offering incentives to move there. There are numerous programs that help future residents reduce the cost of their move to the state. One of the more sought-after relocation programs is the Trade Act. The Trade Act offers allowances to help people move to Alaska once a position is accepted. In some cases, up to 90% of relocation costs can be covered for the employee and the immediate family. This allowance can be used towards the shipping of your household goods, one of the most expensive facets of any relocation. As a bonus, most people can qualify for a lump sum payment of $1,250 to help them get settled into their new Alaskan home.

GMS Relocation Programs

GMS is here to help you craft competitive relocation policies while taking advantage of the relocation incentives programs offered by various state and local governments mentioned above. Contact us today to talk about how your company can obtain and retain the best talent from anywhere. Don’t let location prevent your company from having the best candidate in the right position.

We're Here to Help! Request a Courtesy Consultation

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

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Buy a Home Domestic Relocation Trends Home Purchase

Real Estate Trends: iBuyer Looks to Sell 7,000 Homes

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African descent family moving into a new home. Mother, father and daughter. Real estate sign. Home in background. Spring or summer season.

Zillow Is Done Flipping Homes with iBuying Methods

Over the last two years, many U.S. states saw a large surge in their housing market. In some cases, those selling houses, condos, and townhomes were asking more than double what they originally paid. Those prices were met by a frenzy of buyers who were looking to buy anything they could as quickly as possible. In many cases, the typical home resulted in a bidding war. 2021 was a great year to sell a home, and for many investors, it was a great year to flip a home. 

Flipping homes has been a money maker for those who know what they’re doing for a long time now. Buy a property, put some money into repairs or upgrades, then sell the home six months later at a sizable profit. As the real estate market was so fierce this year, some real estate companies started buying up properties just for the sake of selling them. 

However, as markets across the country have shown signs of leveling out, some real estate organizations have been caught with an overstock of inventory. A major name making recent news on this front is Zillow Group Inc.

Better known as simply Zillow, the online home buying and selling site is looking to unload about 7,000 houses after buying too many properties to flip. Zillow is seeking about $2.8 million in total for all 7,000 homes, which are being shown to investors now. If all these houses can be sold, it would put a huge dent in Zillow’s overflow inventory. 

The company also stated that they will try to sell the houses to several different buyers instead of in a single bulk transaction. It is yet to be seen what this challenge could do to Zillow financially, but a report from KeyBanc Capital Markets noted that 650 of the homes for sale showed an asking price of about two-thirds what they were purchased for.

What is an iBuyer?

The premise of iBuying is to purchase low, renovate quickly, and sell for a profit. Zillow, along with competitors Opendoor and Offerpad, leads the real estate market in iBuying. iBuyers work directly with home sellers to offer an instant cash amount for the home with the idea that it removes the stress and hassle of home selling from the homeowner. Additionally, the homeowner no longer needs to deal with the traditional real estate process.

However, while an instant cash offer on your property sounds like a win, it should be noted that the seller does get stuck with some fees that can range up to 7 or 8 percent of the sale price. Additionally, as the iBuyer needs to remain profitable, their instant cash offers may be lower than what an independent sale might raise on the market. On average, iBuyer costs can be higher than the home sale costs from the typical home sale model that many are familiar with, resulting in less money in your pocket once all is said and done.

Housing Inventory Overstocked through iBuying

So how did Zillow get too many homes in their inventory? 

Zillow attempted to obtain as many properties as possible to take advantage of the inventory-starved real estate market that many states have been dealing with. In many of these markets, prices were rising quickly at record-breaking speeds. 

As iBuying can be a very quick home-sale process, Zillow quickly went beyond their limits as many people were more than happy with the cash offers that were being quoted during the high housing market spike. Zillow spokespeople have suggested that it was a faulty algorithmic model used for iBuying homes quickly and selling them even quicker, the reason why the company was so quick to purchase so many properties. 

Today, due to this overstock of properties and a loss of net dollars, Zillow has made multiple announcements that they will no longer partake in iBuying practices. This means no more home flipping for the company. It will take several business quarters for Zillow to fully step out of the iBuying markets. 

However, while an instant cash offer on your property sounds like a win, it should be noted that the seller does get stuck with some fees that can range up to 7 or 8 percent of the sale price. Additionally, as the iBuyer needs to remain profitable, their instant cash offers may be lower than what an independent sale might raise on the market. On average, iBuyer costs can be higher than the home sale costs from the typical home sale model that many are familiar with, resulting in less money in your pocket once all is said and done.

How Does Housing Inventory Affect Relocation?

When moving to a new city, housing market prices and inventory will have an impact on an employee’s ability to purchase a home. Due to the hot housing market, homes are still selling quickly and at industry high prices, causing some relocating employees to be either outbid or outpriced from purchasing a home. This is causing some buyers to spend longer periods of time finding a home that meets their needs and raises concerns about temporary living accommodations during the home finding process.

For those that receive relocation benefits from their employer, the option of short-term temporary/corporate housing can serve as an important stepping stone during the move. Industry best practice shows that providing temporary housing benefits for 30, 60, or 90 days is a critical benefit that allows your transferee to find a more permanent home. 

Global Mobility Solutions team of workforce mobility experts are ready to help analyze your relocation program and assist in the development of competitive policies. Our real estate program and comprehensive home-sale assistance programs provide a balance of excellent service quality and increased selling prices. Our trustworthy network of relocation real estate agents are relocation certified and are skilled in working with employees that are relocating for professional reasons. Contact us today with any questions you may have about real estate trends or relocation services.

We're Here to Help! Request a Courtesy Consultation

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

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Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Employee Development Global Relocation Tips

The Core-Flex Employee Relocation Model Explained

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How Core-Flex Policies Work

When relocating for a new position, a company may offer relocation benefits to help the employee with moving expenses and to help ease the relocation process altogether. Oftentimes, larger companies will have several tiers of relocation packages to offer their new employee, depending on the employee’s level, the size of the move, and if family members are involved. A relocation policy type that is becoming more popular with companies is the core-flex model. Core-flex relocation policies incorporate a core relocation benefit section, along with a list of flexible, optional benefits that can be used depending on the relocating employee’s needs. 

Core-flex relocation programs do not give relocating employees free range on moving expenses as most lump-sum global mobility packages do. However, core-flex options eliminate some of the stress from the relocating employee. For example: the hassle of hiring suppliers, service quality, expense, and tax overruns.

What Should a Core-Flex Policy Include?

While each relocation management company (RMC) will help companies customize and construct different relocation packages, the main, or “core”, components of a typical U.S. domestic relocation policy might include: 

  • Relocation coaching – a certified relocation specialist is assigned to each employee who is moving to help guide them throughout the entire process. 
  • Home-sale assistance – typically included in most relocation packages, RMCs usually help transferees sell their current house with a range of home disposal options that include the Buyer Value Option (BVO), Guarantee Purchase Offer (GPO), direct reimbursement, and home marketing assistance.
  • Corporate housing options – also known as short-term or temporary housing options. This benefit gives the transferee the opportunity to stay in a furnished apartment or townhome for 30, 60, or 90 days while they adjust to their new area and are on the hunt for a new place to call home. 
  • Travel expenses – Most times, companies will cover a variety of travel expenses for the employee and their family as they travel to the final destination to begin the new position or promotion.
  • Shipment of household goods – this one seems like the most obvious. This generally includes the packing and shipping of household goods and is usually included in relocation packages.

Flexible add-ons that can enhance a Core-Flex policy include, but are not limited to:

  • Home purchase assistance
  • Storage of household goods at the destination
  • Spouse/partner career transition assistance
  • Mortgage assistance
  • Child/elder care assistance
  • Miscellaneous allowance
  • and more

Advantages of Core-Flex Relocation Policies

A major advantage of core-flex policies is that they give the employee just enough decision-making ability to feel like their needs are being met. Making a new or current employee feel valued and heard goes a long way when trying to attract the best person for the open position. 

It gives the employee more freedom, which in turn can make the relocation process go quicker. The employee can select from a menu of services that are provided by competitive and vetted vendors, empowering the employee and providing them the flexibility to put the mobility process in motion on their own.

There is also a huge potential for cost savings using the core-flex approach when relocating employees. In most standard relocation packages the company might try to utilize a “one size fits all” approach. This could mean that there are benefits that employees either won’t utilize or might not even need. With core-flex policies, the company can better align relocation benefits to each employee while putting a cap on flexible benefit spending amounts. 

Constructing Solid Core-Flex Relocation Policies

GMS has been helping companies put together the best relocation packages since 1987. Our highly experienced team can assist in the moving of new or current employees in any industry. Team members at GMS have over 50 years of combined experience helping companies create and benchmark their core-flex relocation policies. GMS specializes in and is happy to help companies construct competitive core-flex relocation policies that offer both employee choice and company control. Reach out today with any questions regarding the core-flex model for relocation benefits.

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About

Contact Us

About Us

GMS Client Login

Privacy Policy

Other Services

Our Technology

Global Relocation

Group Moves

U.S. & Canadian Relocation

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

About

Contact Us

About Us

GMS Client Login

Privacy Policy

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

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