Category: Domestic Relocation Trends

Categories
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

Shot of a group of colleagues having a meeting in a modern office

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.

Categories
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

cityscape view at dusk
Madrid, Spain financial district skyline at twilight.

These Cities Are Offering Government Relocation Incentives

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

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

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

Topeka, KS

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

Newton, IA

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

Chattanooga, TN

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

Alaska

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

GMS Relocation Programs

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

We're Here to Help! Request a Courtesy Consultation

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

Categories
Buy a Home Domestic Relocation Trends Home Purchase

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

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.

Categories
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

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

How Core-Flex Policies Work

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

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

What Should a Core-Flex Policy Include?

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

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

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

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

Advantages of Core-Flex Relocation Policies

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

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

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

Constructing Solid Core-Flex Relocation Policies

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

What's happening in your industry? Request a Courtesy Benchmark report

At GMS, we make it a priority to know how talent mobility is changing in each major industry. What are the best practices? How are other companies changing their programs to retain a competitive edge? Your Mobility Pro will be in touch within 1 business day to help answer your questions and benchmark your industry.

Categories
Domestic Relocation Domestic Relocation Trends Labor Force Relocation Best Practices Relocation Challenges Relocation Management

What Is a Zoom Town?

Mature businessman working at home using lap top and smart phone
Mature businessman working at home using lap top and smart phone

Learn More About Communities Growing Thanks to Remote Workers

Zoom Town is a new term used for spots around the country that are seeing increases in the populations of people who work remotely on a permanent basis. It’s a play on words from the old term “boomtown” which was used to describe towns and cities in the United States that saw huge population increases due to oil discovery. The term also stems from numerous companies using the popular Zoom meeting app, implying that people who work from home “zoom” into work instead of commuting.

This trend of Zoom Towns has grown as more and more companies are providing employees the ability to work from home full-time or even part-time. Now that employees no longer have to show their face in an office space regularly, it gives them the freedom to choose to live wherever suits their lifestyle and budget.

Cost of Living and Housing Market Shifts Helped Form Zoom Towns

Many would say that working remotely was becoming more common even before the Covid-19 pandemic forced businesses to ask employees to work from home for health and safety reasons. Now that remote positions are becoming the new normal across all industries, people are finding it harder to justify moving to, and remaining in, some of the larger or more expensive cities in the country.

It was reported in a survey given out to employees who were in-office before the pandemic that 91% of employees hope to become full-time remote workers at their current position moving forward. This shift to working online has had an impact on the cities that people want to live in. Smaller towns and cities now seem to be favored by remote workers as the cost of living and real estate prices are more appealing than the major cities that used to be some of the best job hubs in the country.

Top Growing Zoom Towns for Remote Workers

While the below list of growing Zoom Towns may not have an obvious connection, there is a series of running themes between them. If workers do not have to commute into an office five times per week, and they have the option to live with great scenery and weather, who wouldn’t? An additional theme running through this list of towns is that these destinations are all outside of major cities. As stated before, remote workers are looking to escape big city life for smaller cities and towns with more affordable housing, lower cost of living, better traffic, and an improved sense of “livability”. 

Here are some of the fastest-growing Zoom Towns in the US (in no particular order): 

  1. Gilbert, Arizona
  2. Frisco, Texas
  3. League City Texas
  4. Bellevue, Washington
  5. Olathe, Kansas 
  6. Henderson, Nevada 
  7. Roseville, California 
  8. Sandy Springs, Georgia 
  9. Centennial, Colorado 
  10. Cary, North Carolina

Relocating to a Zoom Town

It should go without saying that while most companies who hire for remote positions will allow employees to work from anywhere, there might be a chance that employees are asked to make an appearance in the office quarterly or annually. Maintaining well-optioned travel policies and remote work policies will go a long way in ensuring your remote jobs are successful for your workers and effective for your organization.

As remote work has exploded in popularity, we have found that many companies do not offer remote workers with relocation benefits. Commonly due to the fact that the decision on where to live for a remote worker boils down to personal choice. However, there are numerous government relocation incentive programs to help reduce the financial burden on remote workers who are looking for a change in scenery. 

It is important to note that in the modern war for talent, for companies to attract and retain the best talent it takes great recruiting benefits. Since 1987, GMS has specialized in helping businesses build successful workforce relocation programs, develop competitive relocation policies, and assist in the design of remote worker programs. Do you have questions regarding relocation, remote workers, or any facet of corporate mobility? Speak with one of our relocation experts today.

We’re Here to Help! Request a Courtesy Consultation

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

Categories
Domestic Relocation Challenges Domestic Relocation Trends Global Relocation Trends Relocation Best Practices

Housing Market Headaches Now Hurting Rental Market

Nice apartment complex pictured in sunshine
Exterior view of modern apartment building offering luxury rental units in Silicon Valley; Redwood City, San Francisco bay area, California

The fierce real estate market is now having an impact on renters as well

The past year or so has been a trying time for would-be homeowners. Some of the quickest rising prices in history along with a shrinking number of options made it difficult for many hopeful buyers who didn’t have enough cash in hand to pay on the spot. As prices start to come back to reality and a bit more inventory has hit the markets, home buyers might start to see some relief. 

 

While homebuyers are beginning to benefit from a stabilizing market, renters are dealing with similar challenges their home-owning counterparts have dealt with. Market experts predict that rent prices trends will continue to rise over the next year. 

 

There are three main factors that are likely to contribute to rental prices rising over the next year:

1) The Return to “Normal"

It might not be the “old normal,” but people all over the country seem to be grasping the concept of the “new normal” with work from home being an option for many jobs. Many companies hope to get their office buildings reopened after the latest COVID-19 variant has slowed down, while other companies will remain working from homes permanently. But what these two points have in common, despite being complete opposites, is that they both contribute to the rising number of renters seeking housing in the larger metro areas, which in many states will create competition. Nationally, market data shows rent prices are already 8% higher than they were last year. This has created three interesting renter markets:
  1. Those returning to offices who like to be in the metro area (typically where most major corporate offices are located) to be close to their office and public transportation. 
  2. Renters that are working from home who like to live in metro areas for nightlife and social activities.
  3. People who work remotely permanently can choose to live where they want because there is no need to live within the same region as their corporate offices.

2) Hot Real Estate Market Driving Increased Rental Need

The second factor creating more renting competition is how the hot housing market trends of 2020-2021 have changed the mindset of some buyers. With such sky-high prices to purchase a home, many buyers dropped out of their purchase searches and signed leases to rent. Many are doing to “wait out the market” in the hopes of a cooler market in the future. These prospective “homebuyers turned renters” have placed additional pressure on rental demand. Until these future home buyers stop renting to continue their search, renter numbers will stay higher than usual.

3) Wage Increases & Renewed Confidence

The third factor for predicting a rise in rent prices is wage increases across the country. Additionally, as restrictions end around the world, many younger workers are moving to for job opportunities in growing economies. Many states are raising the minimum wage and large companies like Amazon and Costco are willing to pay more in order to fill positions that were vacated during the pandemic. Landlords see rising wages and increased demand for their properties as a reason to upcharge on rent prices, especially in desirable and high-demand markets.

Trying to Keep Up in Hot Renter’s Market

With rising rent prices and increased competition to get into rental units, what can renters do to secure an apartment? First and foremost it is important to be open, honest, and in clear communication with significant others or roommates. Rental units come and go quickly, so the key here is to be ready when a property becomes available. 

 

It is also equally important to have finances in order. Most rental properties will require some sort of security deposit down to even start the move-in process. Try to have enough cash stored away for deposits in order to move quickly. Landlords will usually always ask for proof of income from potential renters, so try to keep the two most recent pay stubs handy when applying for apartments, single-family homes, and other rental units. When budgeting, it is best practice to have the amount of first month’s rent and any renters insurance coverage ready to go. 

 

Cleaning up credit history, if possible, is another great way to outshine other renters. Applicants with the strongest financial background will oftentimes be considered first when units become available. 

 

One last tip, reference letters can be helpful too. Asking a past or current landlord to write a letter stating the excellence of the family or individuals renting can go a long way in the application process with the owner or manager of the newly desired rental spot.

What This Means for Those Looking to Relocate

It can seem like a no-win situation for individuals or families looking to move as it is currently difficult to buy a home and is becoming more expensive to rent a house or apartment. 

 

If relocating for a job opportunity, it would be a good idea to take advantage of any relocation packages the company may offer. In many cases, relocation benefits offer corporate housing options for short-term stays where the mover and their family can stay for a few months while getting settled. This period of time provides the employee with some breathing room and valuable time to find the right place to live within their budgetary and lifestyle requirements.

 

In the event that the company doesn’t offer relocation benefits, there is a chance that the state the transferee is heading to does. Many states and cities are offering government subsidized relocation incentives to draw talent to improve their workforce. A good number of these incentives have rent benefits that movers can capitalize on. 

 

Global Mobility Solutions has been helping organizations with their relocation programs for over 34 years, even in the toughest real estate markets. There are ways around the tight market and high rent prices. Reach out today for more info on how GMS can provide the tools to develop a competitive relocation program.

What's happening in your industry? Request a Courtesy Benchmark report

At GMS, we make it a priority to know how talent mobility is changing in each major industry. What are the best practices? How are other companies changing their programs to retain a competitive edge? Your Mobility Pro will be in touch within 1 business day to help answer your questions and benchmark your industry.

Categories
Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Relocation Best Practices Relocation Challenges

Top 5 Challenges Facing Companies with 1 to 25 Annual Relocations in the Post-COVID Era

delivery man lifting cardboard boxes from the back of his truck
Photo of a delivery man lifting cardboard boxes from the back of his truck.

Companies with 1 to 25 annual relocations face a number of challenges for their relocation requirements. Many full-scale Relocation Management Companies (RMCs) provide a limited range of services for companies that annually move less than 25 employees. As a result, companies may face higher costs and lower levels of service for their relocation programs.

By comparison, GMS has extensive experience in working with clients that move less than 25 employees each year, making GMS the relocation industry expert. Choosing a relocation partner that specializes in working with companies that have lower volume programs will ensure successful relocations and the best possible employee experiences.

What are the Top 5 Challenges for Companies with 1 to 25 Annual Relocations?

The top 5 challenges facing companies with 1 to 25 annual relocations span the entire relocation process. Many of these challenges arise because some RMCs focus solely on companies that have large numbers of employee relocations.

Challenge #1 Lack of Performance Guarantees and No Quality Performance Metrics

Service level guarantees ensure clients receive the service they expect for their relocations. Some RMCs do not provide these guarantees to clients that move less than 25 employees

GMS SOLUTION: GMS provides a range of service metrics across all services, for all clients.

Challenge #2 High Fee Structures

Some RMCs charge companies that move less than 25 employees much higher fees to make up for lower margins and lower profits than they receive on their larger clients. Companies with 1 to 25 annual relocations are also less likely to need additional services. This results in lower revenues on additional services.

GMS SOLUTION: GMS offers a “One Fee Promise” for clients, ensuring fair and equal treatment.

Challenge #3 1 to 25 Annual Relocations Receive No Choice in Supplier Vendors

Many RMCs require their clients to use the RMC’s own network of suppliers under the guise of “economies of scale.” What this really does is drive more revenue and profit to the RMC, while the client ends up with no choice.

GMS SOLUTION: GMS features a Freedom of Choice™ model for all clients. GMS is not affiliated with any service provide, so clients have choices based on performance and savings.

Challenge #4 Limited Services

Some RMCs limit services to companies with 1 to 25 annual relocations. As a result, these clients must pay fees to other service providers to obtain valuable and necessary mobility services such as pre-decision/pre-hire, expense management, and travel coordination.

GMS SOLUTION: All GMS clients receive the same high level of service quality.

Challenge #5 Limited Funding Solutions

Most companies with 1 to 25 annual relocations must pay all (or most) of their relocation costs upfront. Then employees submit expenses for reimbursement. This process can take several weeks.

GMS SOLUTION: GMS lets clients determine the funding solution best fits their needs, including zero-interest options. Also, GMS provides a customizable invoicing schedule.

What Should Companies with 1 to 25 Annual Relocations do?

Companies with 1 to 25 annual relocations should choose to work with an RMC that has experience with clients who move less than 25 employees. GMS has ideal solutions that meet the common challenges these companies face.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of companies with 1 to 25 annual relocations understand why they should work with a relocation industry expert. We can help your company understand how benefit from all of the GMS solutions for your relocation program.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

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

Learn how GMS’ experience is best suited for your company’s 1 to 25 annual relocations. 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.

Categories
Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends

Northwest Arkansas Moving Incentive Aims to Attract Talent

The Northwest Arkansas moving incentive is in place to attract top talent to the region. The Northwest Arkansas Council is investing over $1 million during a six month timeframe through their Life Works Here initiative. This initiative shows the types of desirable lifestyles and career opportunities available to residents of this region.

What is the Life Works Here Initiative?

The Life Works Here initiative is the Northwest Arkansas Council’s program to leverage the COVID-19 pandemic to benefit the region. Many companies with work from anywhere policies allow workers to relocate and work remotely. As more employees consider relocating away from high cost cities to lower cost cities, the Council believes the region has much to offer.

The initiative is funded by philanthropic support from the Walton Family Foundation. Remote workers will receive up to $10,000 to relocate to the region, along with some additional perks. The goal is to attract remote worker talent who have jobs in Science, Technology, Engineering, and Mathematics (STEM). However, that is a not a formal requirement for the Northwest Arkansas moving incentive.

What are the Eligibility Requirements for the Life Works Here Initiative?

Eligibility requirements for the Life Works Here initiative include:

  • Ability to relocate to Northwest Arkansas within 6 months of acceptance
  • Full-time remote employment or self-employed outside of Northwest Arkansas
  • Currently live outside of Northwest Arkansas
  • At least 24 years old
  • Eligible to work and live in the US

Career Opportunities Supported by the Northwest Arkansas Moving Incentive

Northwest Arkansas is home to the headquarters of three Fortune 500 companies:

J.B. Hunt: Lowell, Arkansas

Tyson Foods: Springdale, Arkansas

Walmart: Bentonville, Arkansas

In addition to these three major companies, there are thousands of smaller companies in the region that serve as suppliers.

Northwest Arkansas Moving Incentive Promotes Region’s Low Cost of Living

The cost of living in Northwest Arkansas is one of the lowest in the nation. By comparison, the cost of living in a major west coast city such as San Francisco is 169.3% higher than the US average.

For cities in Northwest Arkansas, the cost of living is much lower than San Francisco.

CityCost of Living
Lowell, Aransas12.1% lower than US average
Springdale, Arkansas14.0% lower than US average
Bentonville, Arkansas4.8% lower than US average

Source: Sperling’s Best Places: bestplace.net

With the cost of living lower than the US average, the region also has personal income per capita at 14% higher than the national average. The region also has over seven times the number of employees who work in management positions or at a corporate headquarters compared to the rest of the nation.

Smaller Regions Have More to Offer beyond the Incentives

The Northwest Arkansas moving incentive is one of many programs throughout the US designed to attract talent to regions far from major metropolitan centers. With more companies offering work from anywhere policies and more employees making the move, smaller regions stand to benefit. Many smaller regions in the US have burgeoning cultural centers and highly desirable outdoor lifestyles similar to Northwest Arkansas.

What Should Companies do about the Northwest Arkansas Moving Incentive?

Companies should work with a Relocation Management Company (RMC) that has knowledge and experience in managing relocation. Qualified RMCs will help companies understand the issues relating to work from anywhere policies. They will also provide useful resources to guide policy decisions and understand industry best practices relating to remote workers.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to design a relocation policy that follows industry best practices that also promotes talent acquisition and retention. Our team can help your company determine how to address the Northwest Arkansas moving incentive as it impacts corporate initiatives.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. As a result, GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

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

Contact our experts online to learn more about how the Northwest Arkansas moving incentive might impact your company and its workers, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

Categories
Corporate Relocation Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Job Market

2020 Regional Competitiveness Score Shows Maricopa County Leads the Nation

Unemployed beautiful young woman looking for a job online from home using laptop and writing down the notes in her notebook

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

Top 10 Ranking

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

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

Source: Emsi Fifth Annual Talent Attraction Scorecard.

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

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

Data Included in 2020 Regional Competitiveness Score

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

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

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

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

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

Existing talent in Maricopa County

Attracts

Company relocations and investments

Attracts

Additional talent to relocate to Maricopa County

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

What Should Employers do Regarding the 2020 Regional Competitiveness Score?

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

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

Conclusion

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

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

New SafeRelo™ COVID-19 Knowledge Portal

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

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning more about the 2020 regional competitiveness score for Maricopa County, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

Categories
Domestic Relocation Domestic Relocation Trends Job Market Job Seekers

What are the 2020 Fastest Growing Industries in the US?

Autonomous underwater rov with manipulators or robotic arms. Modern remotely operated underwater vehicle. Fictitious subsea drone or robot for deep underwater exploration and monitoring sea bottom.

What are the 2020 fastest growing industries in the US? Although the COVID-19 pandemic dampens business and social activities, US economic growth continues its blistering pace. With 3rd Quarter 2020 Gross Domestic Product (GDP) increasing by a record-breaking 33.1%, the US economy has been gaining ground lost to the pandemic. The initial pandemic closures resulted in significant economic losses with 2nd Quarter 2020 GDP declining by 31.4%.

The United States Department of Commerce Bureau of Economic Analysis attributes 3rd Quarter 2020 growth to businesses reopening and resuming activities that were postponed or restricted due to COVID-19.

Several industries also act as growth engines for the US economy. The 2020 fastest growing industries in the US reflect the impact of the COVID-19 pandemic, and to a lesser extent technology trends. IbisWorld reports that the top 10 as measured by revenue growth include:

Consumer Market

  • Massage Business Franchises
  • Grocery Store Sales via Online Portals
  • Pet Food and Supply Store Sales via Online Portals

Energy

  • Hydraulic Fracturing Services (also known as “fracking”)

Finance

  • US Stock Exchanges and Commodity Markets

Manufacturing

  • Autonomous Underwater Vehicles
  • 3D Printing and Prototype Services

Medical

  • Medical and Recreational Marijuana Farms
  • Thermometer Manufacturing
  • Medicines for Colds and Coughs

2020 Fastest Growing Industries on both 2019 and 2020 Lists

Interestingly, the only two industries that were at the top of the list in both 2019 and 2020 are:

  • Massage Business Franchises
  • Medical and Recreational Marijuana Farms

These two industries benefit from consumer’s shifts in perceptions. Many consumers spend more on luxury goods, and enjoy the therapeutic benefits of massage therapy. Consumers are also more accepting of legal access to medical marijuana.

The 2019 industries that dropped off the list in 2020 include:

  • Social Networking Platforms
  • Solar Power Installation and Production
  • Wind Turbine Installation
  • Online Mortgage Brokers
  • Peer-to-Peer Lending Platforms
  • Automated Guided Vehicle Manufacturing
  • Telehealth Services
  • Medical and Recreational Marijuana Retail Stores

What Trends Drive the 2020 Fastest Growing Industries?

One major trend drives most of the 2020 fastest growing industries: the COVID-19 pandemic. Online shopping accelerated dramatically in 2020. As retail stores closed or limited hours, consumers turned to online portals. Online shopping lets them avoid contact with other people. They can also find products that could be delivered right to their front door, so there is no need to travel to retail locations.

Medical product sales rose as consumers stocked up on medicines, thermometers, and other items to help them with illnesses as they avoided going to doctor offices. A major trend is for businesses and offices to take temperatures of staff and visitors, since that is an early sign of exposure to coronavirus.

Highlight on Autonomous Underwater Vehicles

What is an Autonomous Underwater Vehicle (AUV)? These are vehicles for conducting underwater research that are not manned by a pilot, and are not physically connected to another vessel with a line or tether. They operate independently, and some fully autonomous vehicles carry their own power in the form of batteries, fuel cells, or rechargeable solar power

The top AUV manufacturers include several with US locations, such as:

Boston Engineering Corporation (Waltham, Massachusetts, US)

Fugro (Nootdorp, the Netherlands)

General Dynamics Corporation (Reston, Virginia, US)

Graal Tech Srl (Genoa, Italy)

International Submarine Engineering Limited (Port Coquitlam, British Columbia, Canada)

Kongsberg Maritime (Kongsberg, Norway)

Lockheed Martin Corporation (Bethesda, Maryland, US)

Teledyne Technologies Incorporated (Thousand Oaks, California, US)

The ECA Group (La Garde, France)

What Should Job Seekers do About the 2020 Fastest Growing Industries?

People seeking a job should look into the 2020 fastest growing industries opportunities. A number of resources are available to learn about jobs in the AUV Industry. Professional networks such as Linkedin also have useful information on companies and contacts in this industry.

Job seekers may want to focus on a specific location such as Boston or Washington, and then target companies in those cities. It is a good idea to leverage professional career services to enhance job searches. Job seekers are more likely to find success in their search and objectives.

What Should Employers in the 2020 Fastest Growing Industries do?

Employers in the 2020 fastest growing industries should look into their needs for employees. Continuing economic growth creates stiff competition for job seekers with the necessary experience, education, skills, and training. They should review their relocation program to determine if the program supports their specific talent acquisition goals and corporate objectives.

Employers should work with a Relocation Management Company (RMC) that has knowledge and experience helping companies in the 2020 fastest growing industries. RMCs will help employers develop a relocation program that follows industry best practices and promotes their talent acquisition goals.

Industry Benchmarking Studies Help Employers Ensure Competitiveness

GMS has several Industry Benchmarking Studies that describe industry-specific best practices. These studies will help employers in the 2020 fastest growing industries learn if their company’s relocation program is designed to support their corporate objectives.

Corporate relocation policy benchmarking provides many benefits for employers. By benchmarking their relocation policy, employers can ensure their policy is comparable to their industry competitors. As a result, this will help them attract and retain talent with the highest level of skills and experience.

Industry best practice is to schedule a relocation program and policy review every 12 to 18 months to ensure your company maintains its competitive position. A thorough policy review will help your company learn how the relocation industry continues to evolve to meet increased employee demands. During the COVID-19 pandemic, the demands of compliance for safety leads to rapidly changing requirements for both employers and employees.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop hiring and recruiting programs to attract highly skilled job seekers. As a result, our team can help your company determine how to attract job seekers looking for employment opportunities in the 2020 fastest growing industries.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Contact our experts online to discuss your company’s recruiting, hiring, and relocation program needs as they relate to the 2020 fastest growing industries, 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.

Accessibility by WAH

Looking for something?