Category: Global Relocation Tips

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Singapore Tech Talent Demand Exceeds Supply

young asian business woman working in office using laptop computer.

The demand for Singapore tech talent is far exceeding the supply of workers. Singapore has been increasing its focus on growing this sector of its economy. Singapore is recognized as an excellent location for business startups and tech companies. The nation desires to become a hub for the global tech sector. Several tech companies are currently located in Singapore, including major global companies such as:

Singapore Tech Talent Grows with Tech@SG Plan

Tech@SG is a new plan to help companies hire foreign national employees to expand their Singapore tech talent. The plan is for companies with the commitment and ability to build local workforces and manufacture products in Singapore. Qualifying technology firms will have the Employment Pass applications of “core team members” facilitated by the government. To participate in Tech@SG, tech companies must meet the following requirements:

  1. Secured over US$10 Million in cumulative venture capital funding
  2. Received funding from Tech@SG-recognized venture capital in the past 3 years
  3. Be incorporated in Singapore
  4. Offer digital or technology products
  5. Have a business model built around proprietary technologies, hardware, or research

Current Economic Weakness Propels Singapore Tech Talent Demand

Singapore has cut its 2019 economic growth forecast range for Gross Domestic Product (GDP). Previous forecasts ranged from 1.5% to 2.5% for GDP growth. As of August, this forecast is now 0% to 1% for GDP growth. Many factors are negatively impacting the nation’s potential for growth, including:

  • Brexit uncertainty depressing economic activity
  • China’s slower economic growth
  • Japan and Korean trade disputes
  • United States and China escalating tariffs on trade

Trade Minister Chan Chun Sing supports the push to develop Singapore tech talent, even as economic growth forecasts begin to decline. He noted that growing the nation’s tech sector is a positive response to Singapore’s economic uncertainties. The goal is to create a foundation for future economic growth. Foreign workers will complement the local Singaporean workforce with new and updated skills. Welcoming foreign national talent with high levels of digital, tech, and engineering skills is critical to Singapore’s long-term success.

What Does This Mean?

Singapore is actively seeking foreign national workers with high levels of skills. Singapore tech talent is seen by the nation as critical to its future economic growth. Many global tech firms maintain facilities in Singapore, and the nation is looking to leverage this presence to cement its position as a global hub for technology companies and technological innovation.

What Should Employers do About Singapore Tech Talent?

Employers currently in Singapore should continue to stay informed about the nation’s increasing push to welcome foreign workers with plans such as Tech@SG. They should expect to see an increase in the number of foreign workers as companies seek to capitalize on Singapore’s investments in growing the tech sector.

Employers should be prepared to apply for Tech@SG and fulfill all of the program requirements.

Employers not currently in Singapore might consider the country as a strategic location for corporate expansion. The services of an International Professional Employer Organization (PEO) may be useful to help an employer enter Singapore and quickly test the local market.

Work with a Qualified and Experienced Relocation Management Company

Employers looking to transfer workers to Singapore or hire new foreign workers should also provide as much information about the country as possible. They should work with a qualified and experienced Relocation Management Company (RMC) that can provide a wealth of valuable resources to assist relocating employees and their family members. RMCs have experience with overcoming challenges in relocation programs. They also have knowledge about the challenges that relocating employees face with their move to a new location.

Destination spotlights that highlight many aspects of Singapore are helpful resources to share with transferees during their pre-decision process. Video destination spotlights are excellent resources to visually show employees and their family members their new location.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to grow their company’s international employment. Our team can also help your company understand how to respond to Singapore’s new Tech@SG plan. We can also help your company understand the importance of leveraging Singapore tech talent for future economic growth.

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

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

Contact our experts online to discuss your company’s interest in learning more about how to grow with Singapore tech talent and the nation’s focus on the tech sector, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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Japan Public Certification System to Support Influx of Foreign Workers

A new Japan Public Certification System is under consideration by the Immigration Services Agency (ISA). The ISA is responding to an increasing number of foreign workers in the nation. Japan recently instituted new visas to increase the number of foreign workers and expand its supply of skilled labor. As a result, the ISA has been providing support services to a rising number of foreign workers.

Current Requirements as Precursor to Japan Public Certification System

Currently, a number of entities, businesses, and individuals have registered as support organizations for foreign workers. The ISA now requires these organizations and individuals to:

  1. Arrange employment for the foreign worker that matches their skills and needs
  2. Provide adequate support for the foreign worker

Japan does not currently have much infrastructure in place to support foreign workers. As a result, the need to support foreign workers will continue to increase. However, the ISA’s current priority remains the registration of support organizations.

What is the ISA’s Vision for the Japan Public Certification System?

The ISA envisions the Japan Public Certification System as part of a larger foreign worker support system. Certification of a dedicated profession to provide support for foreign workers is seen as a step in the right direction. ISA Commissioner Shoko Sasaki notes that such a system may become a central pillar of the nation’s visa programs for foreign workers.

Why is Japan Seeking Foreign Workers?

Japan issued a new work permit and two new visas specifically to address the country’s severe labor shortage. The work permit and both of the two new visas are seen as solutions to assist up to 14 designated employment sectors that are in extreme need of foreign workers. These employment sectors include agriculture, construction, and nursing.

Type 1 Visa

  • Renewable for five years
  • Requires successful completion of Japanese test
  • Must possess specific skill level in work field
  • Cannot bring family members into Japan

Type 2 Visa

  • Renewable indefinitely contingent on employment status
  • Skill level significantly higher than Type 1 Visa skill level
  • Allowed to bring family members into Japan

What Does This Mean?

The ISA recognizes that foreign workers need support as they enter the country and believes the Japan Public Certification System is the correct solution. Prime Minister Shinzo Abe adopted an action plan in December 2018 with several measures designed to help foreign workers obtain the support they need to better assimilate in Japan. This action plans notes 126 steps the Japanese government plans to take, including:

  • Improving Japanese language education
  • Increasing multilingual services at public institutions and municipal offices
  • Encouraging foreign workers to enroll in social insurance programs

What Should Employers do About the Japan Public Certification System?

Employers currently in Japan should continue to stay informed about the country’s changing and expanding work permit and visa programs. They should expect to see an increase in the number of foreign workers seeking jobs as part of the new work permit and visa programs.

Employers should be prepared to register as a support organization with the ISA. They should also stay informed about the ISA’s progress with developing the Japan Public Certification System.

Employers not currently in Japan might consider the country as a strategic location for corporate expansion. The services of an International Professional Employer Organization (PEO) may be useful to help an employer enter Japan and quickly test the local market.

Work with a Qualified and Experienced Relocation Management Company

Employers looking to transfer workers to the country or hire new foreign workers should also provide as much information about Japan as possible. They should work with a qualified and experienced Relocation Management Company (RMC) that can provide a wealth of valuable resources to assist relocating employees and their family members. RMCs have experience with overcoming challenges in relocation programs. They also have knowledge about the challenges that relocating employees face with their move to a new location.

Destination spotlights that highlight many aspects of Japan are helpful resources to share with transferees during their pre-decision process. Video destination spotlights are an excellent resource to visually show employees and their family members their new location.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to grow their company’s international employment. Our team can also help your company understand how to respond to Japan’s new working permit and visas. We can also help your company understand the importance of being fully prepared to participate in the Japan Public Certification System.

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

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

Contact our experts online to discuss your company’s interest in learning more about the Japan Public Certification System, working permit, and two new visas, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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Global Mobility Solutions Wins MRINetwork® Award: Best in Category for Placement Support Services

Global Mobility Solutions is pleased to announce it has won the Best in Category Award for Placement Support Services from MRINetwork®. Management Recruiters International, Inc., branded as MRINetwork®, is one of the world’s largest executive search and recruitment organizations. The organization has approximately 400 offices spread over four continents.

MRINetwork® franchise owners rate vendors in a survey and the scores determine the award winners. GMS received the award at the MRINetwork® 2019 United Conference, held September 10-13 in Orlando, Florida.

Placement Support Services Award Reflects GMS’ Commitment to Providing Superior Service

“We are honored to receive this award from our customers and industry colleagues,” stated Steven Wester, President of Global Mobility Solutions. “Our team’s continuing commitment to providing superior service and technology shows in the exceptionally high level of satisfaction across all areas of our performance, and as recognized by MRINetwork® this year and for nearly two and a half decades.”

Work with a Relocation Management Company That Understands Placement Support Services

Employers looking for superior placement support services should work with a qualified and experienced Relocation Management Company (RMC). RMCs understand the importance of providing superior placement support services to ensure the success of new hires and relocating employees.

RMCs have experience with overcoming challenges in relocation programs. They also have knowledge about the challenges that relocating employees face with their move to a new location.

Additional Resources Enhance Placement Support Services

Destination spotlights that highlight many aspects of a location are helpful resources to share with new hires and transferees during their pre-decision process. Video destination spotlights are an excellent resource to visually show employees and their family members their new location. Pre-decision, origin, and destination services provide new hires, transferees, and their family members with peace of mind during their relocation process.

Industry Benchmarking Studies Help Employers Compare Their Relocation Program

GMS has recently published several Industry Benchmarking Studies to help employers learn whether their company’s relocation program is designed following industry-specific best practices. There are many benefits to a corporate relocation policy benchmarking. For example, employers can learn more about the placement support services offered in their relocation program. Also, they can compare these services to those offered by competitors in their specific industry.

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. This review will also help your company learn about how the relocation industry is evolving to meet increased employee demands.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to develop successful talent acquisition and management programs. Our team can also help your company understand how to leverage placement support services. As a result, this will ensure successful new hires and relocations.

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

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

Contact our experts online to discuss your company’s interest in learning more about placement support services, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Changing European Demographics due to Migration Patterns

Migration between countries is changing European demographics. Young workers are leaving certain countries at higher rates, and moving to other countries for a variety of reasons. As a result, the phenomenon known as “brain drain” has been cited in a report produced by the Commission for Social Policy, Education, Employment, Research and Culture of European Committee of the Regions.

Brain Drain Leads to Changing European Demographics

“Addressing brain drain: The local and regional dimension” notes that the fundamental right of free movement of European Union (EU) workers results in several disparate effects. Freedom of movement and residence for persons in the EU was established in 1992 by the Treaty of Maastricht. This Treaty, officially known as the Treaty on European Union, was originally signed by 12 countries in the city of Maastrict. Maastricht is located in the Netherlands near this country’s border with Belgium and Germany.

The report examines data that shows changing European demographics due in part to migration patterns. As a result of free movement, highly educated workers in some countries are moving to other countries to live and work. The “sending” countries often do not have the capacity to develop better conditions that will keep and attract workers with high levels of education and skills. Some of these countries are resorting to changes such as eliminating income taxes on young workers in order to entice them to remain.

Countries Gaining from Changing European Demographics due to Migration

The main destination countries that gain from changing European demographics due to migration are:

  • Germany
  • United Kingdom (UK)

During 2017, nearly 17 million workers moved within the EU. Of these 17 million workers, nearly one third were between the ages of 15-34. Generally, young mobile workers in the EU migrate towards the two largest and most economically stable countries.

Workers with higher degrees from universities and trade schools also move to countries and cities that offer great opportunities and a more attractive lifestyle. Generally, about a quarter of the nearly 17 million workers who moved in 2017 are within this bracket, between the ages of 15 and 64. Adding to the changing European demographics, these workers migrate to countries including:

Highlight on Estonia

Estonia is one of the fastest growing economies in the EU. In 2017, this country’s Gross Domestic Product (GDP) grew by 4.9%. Growth has been broadly spread across the economy’s various sectors:

  • Manufacturing 3.9%
  • Mining and Quarrying 46.1% (fastest-growing)
  • Construction 17.8% (largest contributor to GDP)
  • Information 15.6%
  • Communications 0.8%
  • Professional, Scientific 13.9%
  • Technical Activities 0.6%
  • Trade 1.8%

Estonia supplies over 90% of its electricity requirements through locally mined oil shale. The country’s four main trading partners are Finland, Germany, Russia, and Sweden. As a result, much of Estonia’s fortunes depend on developments in these countries.

The country has a shortage of skilled workers. Therefore, Estonia increased the working visa quota for non-EEA citizens to promote migration to the nation. Some of the largest companies in Estonia are Tallink Group, Ericsson Eesti, Eesti Energia, Tallinna Kaubamaja, and Maxima Eesti.

Countries Losing from Changing European Demographics due to Migration

Several countries in the EU are facing the loss of educated workers due to migration patterns. These countries experience brain drain, the loss of skilled and talented workers who are critical to a nation’s economic success. Often these countries experience problems that are compounded by the loss of high income-producing workers. European countries facing out-migration include:

Highlight on Romania

Romania’s economy continues to experience setbacks. The nation has some of the EU’s highest income inequalities, as well as an aging and shrinking population. Romania’s population is declining at a rate of over 0.32% per year. However, this rate rose to 0.50% in 2018, indicating a faster rate of decline. In the early 1990s, the population peaked at 23,372,101 residents. Currently, Romania’s population is approximately 19,348,013 residents, a loss of over 4 million people since its peak year.

Bucharest Stock Exchange in 2018 reports 249 trading sessions, for 87 companies with listed shares. By comparison, the New York Stock Exchange trades stocks for nearly 2,800 companies, illustrating the relatively small size of the nation’s economy. The Romania economy is also more highly dependent on manufacturing industries tied to export growth. Both the industry and exports are increasingly dependent on the automotive industry. As a result, Romania’s industry is highly dependent on the activity and consumer confidence of its European trading partners.

What Should Employers Impacted by Changing European Demographics do?

Employers in EU countries impacted by changing European demographics should consider highlighting their relocation program’s benefits in their recruiting materials. A good example to follow is the healthcare industry. The healthcare industry has been facing a critical talent shortage for several years. Healthcare employers have responded in several ways, including:

  • Creating Exceptional Candidate Experiences
  • Leveraging Data to Enhance Their Recruiting Programs
  • Focusing on Cultural Fit in Their Recruiting
  • Developing a Superior Employer Brand so New Hires Develop Favorable Impressions
  • Increasing the Process Speed so Candidates Stay Engaged with the Employer

Relocation Management Companies (RMCs) are ideal sources for information on global candidate recruitment and relocation. Pre-Decision Services are critical for employers as they provide valuable information about a candidate’s ability to accept a position and be successful in the new location. Assessment data can be paired with structured interview questions to better understand the candidate’s interests, goals, and motivations.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients understand how to leverage global relocation to counter the effects of changing European demographics. Our team can help your company by using industry best practices to design your relocation program. This will increase your company’s ability to attract and retain new employees and mitigate the effects of talent shortage.

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

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning how to mitigate the impact of changing European demographics, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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What is the European Employment Strategy?

Companies with an interest in global growth should investigate the European employment strategy. In 1997, European Union (EU) member states worked to establish joint objectives and goals for the EU’s policy on employment. The goal is to create a greater number of jobs throughout the EU, and to ensure they are good jobs with potential for growth. The European employment strategy is part of the larger decade-long Europe 2020 strategy.

What is the Europe 2020 Strategy?

The Europe 2020 strategy set the EU’s agenda for growth and jobs to be achieved by 2020. Goals of the strategy are:

  1. Improve the EU’s global competitiveness
  2. Enhance worker productivity
  3. Create a foundation for a sustainable social market economy
  4. Overcome the region’s structural economic weakness

National Targets Support the European Employment Strategy

Each EU member state has the same national targets covering jobs, energy, poverty, and other measures. Many of the measures support the European employment strategy. Targets related to jobs, education, and investment include:

  1. 75% employment for those aged 20-64 to support the European employment strategy
  2. Investment in research and development at 3% of the member state’s Gross Domestic Product
  3. 40% or more of the population in the age range of 30-34 having degrees in higher education

EU member states provide data to the EU to report on their progress. As a result, progress reports have a wealth of information showing how each state is performing to the targets.

Leveraging the European Employment Strategy across 28 Member States

EU employment law protects worker rights across all of the region. However, within each member state, the employment laws often work differently. As a result, companies looking for growth in the EU must navigate differences and nuances in employment law across 28 member states. Navigating so many different member state laws can be challenging. Also, it may require a significant amount of resources to set up entities in any given region. Administrative resources must be in place to ensure compliance with EU and member state laws.

What Should Employers do About the European Employment Strategy?

Companies currently in the EU that want to leverage the European employment strategy should look into the various member state employment laws to ensure compliance. They should also look into several support programs for job creation. EU Structural Funds are in place to support employment growth, including:

  1. European Regional Development Fund

Promotes jobs at the provincial level and increases regional labor market attractiveness.

  1. European Social Fund

Supports job growth at companies and organizations, as well as new job creation. Develops resources to help workers find jobs.

Companies not currently in the EU that want to grow quickly should look into the services of an International Professional Employer Organization (PEO). International PEOs provide an employer of record solution for companies to expand quickly into new markets. The PEO will manage all aspects of the employment relationship in the EU, from onboarding to pension arrangements. Companies may be able to achieve significant savings compared to the cost of setting up their own foreign entity in the EU.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to grow their company’s international employment. Our team can also help your company understand how to work with an International PEO. Whether through global relocation or the services of an International PEO, our team can help your company leverage the European employment strategy.

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

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

Contact our experts online to discuss your company’s interest in leveraging the European employment strategy, or give us a call at 800.617.1904 or 480.922.0700 today.

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Several Countries to Experience an Increase in Working Age Population

According to the Population Division of the United Nations Department of Economic and Social Affairs, several countries will experience an increase in working age population through 2050. In its report entitled “The World Population Prospects 2019: Highlights,” the Population Division identifies the following areas will experience working age population growth:

  • Most of sub-Saharan Africa
  • Some areas of Asia
  • Sections of Latin America
  • Parts of the Caribbean

One of the main driving forces behind this growth is actually a reduction in birth rates. Lower growth rates for the non-working age population results in a favorable age distribution for other demographic populations.

Demographic trends resulting in this growth should help create benefits for these economies. With a growing workforce, governments should invest in training programs and education. As a result, this will position these economies well for future success and continual economic progress.

Overall Population Growth

According to the Population Division, the greatest increases in overall population between 2019 and 2050 will take place in the following nine countries:

  1. Democratic Republic of the Congo
  2. Egypt
  3. Ethiopia
  4. India
  5. Indonesia
  6. Nigeria
  7. Pakistan
  8. United Republic of Tanzania
  9. United States

Nigeria is expected to have the highest increase during this timeframe. However, the report notes that India is projected to become the world’s most populous country by the year 2027, overtaking China.

Focus on Nigeria Working Age Population

Nigeria (officially the Federal Republic of Nigeria) is in West Africa, on the Gulf of Guinea. The nation has a large population, estimated at over 191 million residents. The nation’s population grew at a rate of over 60% from 1990 through 2008. The United Nations reports that Nigeria has been experiencing tremendous population growth. The country has one of the highest growth rates in the world, along with high growth in population aged 14 years or younger. The country’s median age is approximately 18 years old.

Nigeria’s working age population has been growing and is estimated at 115.5 million people through Q3 2018. However, the unemployment rate has been rising as well, with a calculated rate through Q3 2018 of 23.1%. The largest industries that drive Nigeria’s economy include:

  • Agriculture
  • Mining
  • Petroleum
  • Tourism

These industries also drive most of Nigeria’s exports, consisting of:

  • Chemicals
  • Cocoa
  • Palm Oil
  • Petroleum

Focus on India Working Age Population

India (officially the Republic of India) is in South Asia. While the country is the seventh largest by area, it is currently the second largest by population, behind China. India’s population is currently estimated at approximately 1.37 billion residents. The rate of India’s population growth, 15 million per year, is the largest in the world. The country’s median age is approximately 27 years old.

India’s working age population will grow to more than 1 billion by the year 2050. However, unemployment is rising as well. Labor force participation in India has been declining, with 50% of the working age population out of the workforce. The top sectors that drive India’s economy include:

  • Automobiles
  • Aviation
  • Fast Moving Consumer Goods (household and personal care items)
  • Oil and Gas
  • Steel and Cement

These same industries also drive most of India’s Top 10 exports:

  • Automobiles
  • Chemicals
  • Clothing
  • Cotton
  • Electrical Machinery and Equipment
  • Gems and Metals
  • Machinery and Computers
  • Oil, Mineral Fuels
  • Pharmaceuticals
  • Steel and Iron

What Does This Mean?

Several countries that have a growing working age population may offer opportunities for future economic growth. Companies not currently located in these countries should review their future plans. Employers may be able to leverage growing labor forces either locally or through global relocation. Also, companies may benefit from the increasing population within countries that might fit within their global expansion plans.

What Should Employers do if a Country has a Growing Working Age Population?

Review Expansion Plans

Companies currently in a country with a growing working age population should examine their plans for corporate expansion. They should also review their talent acquisition programs to ensure alignment with corporate objectives. Pre-decision services offer critical tools to help companies retain organization talent.

Leverage Relocation Benefits

Companies that are experiencing a talent shortage should consider looking at countries with a growing working age population. They can leverage relocation benefits to attract and retain international talent.

International PEO

Companies not currently in a country with a growing working age population but who want to enter it might consider the services of an International Professional Employer Organization (PEO). International PEOs help companies quickly grow and expand into new markets with an employer of record solution. The PEO will manage all aspects of the employment relationship in the EU, from onboarding to pension arrangements. Companies may be able to achieve significant savings compared to the cost of setting up their own foreign entity in these countries.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to grow their company’s international employment. Our team can also help your company understand how to work with an International PEO. Whether through global relocation or the services of an International PEO, our team can help your company leverage the growth of countries with a growing working age population.

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

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

Contact our experts online to discuss your company’s interest in learning how it can leverage opportunities in a country with a growing working age population, or give us a call at 800.617.1904 or 480.922.0700 today.

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USCIS Revises EB-5 Immigrant Investor Program

A new rule from the U.S. Department of Homeland Security to change the employment-based EB-5 Immigrant Investor Program will take effect on November 21, 2019. The rule includes a number of changes meant to modernize the program. The rule originated prior to the current Administration. As a result, immigrant investors should take note to determine if they must take action related to their EB-5 petition.

Employment-Based Immigration Preferences

The EB-5 Immigrant Investor Program is one of several employment-based immigration preferences that the U.S. Citizenship and Immigration Services (USCIS) administers. These employment-based immigration preferences include:

  • First Preference EB-1: for persons of extraordinary skill and ability
  • Second Preference EB-2: for persons of extraordinary skill and ability, requires Labor Certification (unless petitioner obtains waiver)
  • Third Preference EB-3: for professionals, skilled workers, and other workers, requires Labor Certification
  • Fourth Preference EB-4: for “special immigrants” including religious workers
  • Fifth Preference EB-5: for business investors

What are the Requirements of the EB-5 Immigrant Investor Program?

The USCIS administers the EB-5 Immigrant Investor Program. Within this program, immigrant investors, as well as their spouses and children, become eligible to apply for a Green Card (permanent residence in the US) as long as the following conditions are met:

  1. Invest in a commercial operation as per the program’s requirements
  2. Plan to create or allow the preservation of up to 10 permanent full-time jobs

The EB-5 Immigrant Investor Program was created by the US Congress as one part of broader economic stimulus initiatives in 1990. The program was meant to help counteract the effects of the US economic recession during that time period.

EB-5 Immigrant Investor Program Results

The current EB-5 Immigrant Investor Program accounts for a significant amount of direct economic investment. The American Action Forum notes that immigrant investors account for:

  • Up to $20 billion in investments in the US economy since 2008
  • Over $5 billion in investments during 2017
  • Creation of over 174,000 jobs, equating to 16 jobs for each investor (60% more than the program requires)

Changes to the EB-5 Immigrant Investor Program

USCIS will implement five distinct changes. These changes will update the program and clarify processes and procedures:

  1. Increase minimum investment amounts from $1 million to $1.8 million.
  2. Increase minimum investment amounts in a Targeted Employment Area (TEA) from $500,000 to $900,000.
  3. Tie minimum investment amounts to inflation with the Consumer Price Index for All Urban Consumers (CPI-U), at five-year intervals.
  4. Allow certain investors to keep the priority date of their previously approved EB-5 petition when they file a new petition.
  5. Clarify rules on when family members must independently file to remove conditions on their permanent residence.
  6. Change certain TEA designations in order to direct investment to those areas that are in most need of the program.
  7. Increase consistency of definitions for areas of high unemployment.

What Does This Mean?

Immigrant Investors with EB-5 petitions on file should review the new requirements to determine if changes to their petition might be necessary. Also, immigrants looking at filing an EB-5 petition should be aware of the new requirements. Companies that are currently planning for investments as a result of the EB-5 Immigrant Investor Program should take note of the new rule’s minimum investment amounts as well as TEA designations.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients manage their visa requirements. Our team can help your company understand the EB-5 Immigrant Investor Program requirements and how it might benefit your company’s corporate objectives.

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

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning more about the EB-5 Immigrant Investor Program, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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European Central Bank Urges Banks to Proceed with Relocating UK Workers and Processes

The European Central Bank (ECB) is urging banks in the United Kingdom (UK) to prepare for a possible no-deal Brexit scenario by relocating UK workers and processes to the European Union (EU). Although the ECB believes risks to the overall EU financial stability should be manageable, it still expects banks to develop contingencies for all possibilities.

ECB Areas of Concern

The ECB notes several specific areas of concern that UK banks should address. These areas may present a number of issues that pose significant challenges for the UK banks, such as:

  • Relocating UK workers
  • Developing internal processes and systems
  • Transferring clients
  • Building local risk management capacities
  • Creating local structures of governance
  • Changing capital requirements

Need for Relocating UK Workers due to No-Deal Brexit Scenario

A no-deal Brexit scenario means EU law would no longer apply to the UK. On February 8, 2018, the European Commission Notice to Stakeholders noted several consequences in specific areas, such as:

  1. Authorizations
    1. Authorization to provide banking, payment services, and electronic money issuing will cease
    2. UK entities will need to become authorized in the EU member states they operate in
    3. EU entities with branches in the UK must comply with their operation programs
  2. Arrangements and Exposures
    1. Autonomous risk management and control frameworks
    2. Treatment of exposures to UK third parties
  3. Contracts
    1. Continuity for contract relationships will lose the EU single passport
    2. EU rules on conflicts of law and jurisdictions no longer apply to the UK

UK Banks can Mitigate the Impact of a No-Deal Brexit by Relocating UK Workers

UK banks should be able to mitigate the impact of these consequences if they prepare accordingly. These banks should proceed with relocating UK workers to the EU member states where they have operations. Also, they should examine their internal processes and controls. This will help them ensure the impact of falling out of the EU will not hinder the banking services they provide to clients.

Brexit has already impacted the UK labor market. As a result of the uncertainty, job seekers from the EU have been reducing their search for positions in the UK. These workers may also be a potential resource for new hires and talent acquisition for UK banks relocating processes to the EU.

What Does This Mean?

Banks in the UK that have clients and operations in the EU should accelerate their preparations for a no-deal Brexit scenario. They should consider relocating UK workers to EU member states. Also, they should examine internal processes and controls to ensure proper functionality within the applicable legal and regulatory environments they will operate under in such as a scenario.

GMS’ team of global experts provides analysis and guidance on several relocation industry topics in our White Paper: 2019 Industry Update. With respect to Brexit, companies should identify employees and their family members in the UK and the EU who might face issues related to their:

  • Documents
  • Visas
  • Work Permits
  • Work Authorizations
  • Travel Documents
  • Health Insurance Requirements
  • Living Arrangements

The UK has published several helpful sources of information and Brexit guidance for business. The guidance covers a wide range of topics, from “Importing after Brexit: check what you need to do” to “Prepare to work and operate in the European aviation sector after Brexit.” Companies should be sure to review the UK’s guidance to ensure they prepare accordingly, especially if they will be relocating UK workers.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients manage their need to relocate workers. Our team can help your company understand how a no-deal Brexit scenario may impact your need for relocating UK workers to the EU.

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

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

Learn best practices from Global Mobility Solutions. GMS relocation industry and technology experts are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning more about relocating UK workers to the EU, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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Brexit will Impact Free Movement Between UK and EU

Brexit will impact the free movement of people between the United Kingdom (UK) and the European Union (EU). The UK’s upcoming exit from the EU is increasingly looking to occur as a no-deal Brexit scenario. Many EU nationals are no longer looking for work in the UK. Although EU nationals are declining in the UK workforce, over 3 million, or 5% of the UK’s total population of approximately 64 million are from Europe.

UK Government to End Free Movement with Brexit

The UK government has announced that free movement will end on October 31. EU nationals who currently reside in the UK might have some uncertainty about how this will impact them. Currently EU nationals do not require documentation to live and work in the UK, other than having a valid passport. Following Brexit, EU nationals will need proof of legal status in the country for a wide range of issues such as employment, finance, and health insurance. With no current documentation yet in place to prove legal status, EU nationals in the UK prior to Brexit may not be distinguishable from those who arrive post-Brexit.

UK Government Assures EU Nationals are Welcome to Stay After Free Movement Ends

The UK government has issued assurances that EU nationals and their families are welcome to stay in the UK and apply for the EU Settlement Scheme. The UK government is currently determining how EU nationals will provide proof of their current legal status in the UK following a no-deal Brexit that also ends free movement. It has also reaffirmed the Settled Status for EU nationals and their family members even as the deadline for Brexit has been extended to October 31. As a result, the government is urging EU nationals to apply for the EU Settlement Scheme.

How can EU Nationals in the UK Apply for the EU Settlement Scheme?

The UK government has created an online portal for EU nationals who want to apply for the EU Settlement Scheme. Applicants for the new Settled Status must prove their identity and nationality. They must also demonstrate proof they live in the UK, and must declare any criminal convictions on their records. Under a no-deal Brexit scenario and the end of free movement, the deadline for EU nationals to apply is December 31, 2020.

Acceptable documents to prove identity and nationality include:

  • Current passport
  • Identification card
  • Recent photograph

UK Government Assistance for EU Nationals and their Families with the EU Settlement Scheme

The UK government is offering a wide range of assistance and support to help EU nationals and their families with the EU Settlement Scheme and application process, including:

What Does This Mean?

The UK government is working to determine how to provide EU nationals with documentation of their legal status. Also, it has set October 31 as the date for Brexit and the end of free movement, either with a deal or with a no-deal Brexit scenario. However, the UK government has also reaffirmed that EU nationals and their family members are welcome to stay in the UK. It has also encouraged EU nationals and their families to submit applications for the EU Settlement Scheme.

Of particular importance, the UK government notes that for those who have not applied by the date free movement ends on October 31, they will be able to continue living and working as they do now. EU nationals will be able to obtain employment, benefits, and services using the same method they currently employ to confirm their status and entitlement to receive such benefits. EU nationals should verify that all of their current documents such as passports and identification cards are valid and have not expired.

What Should Employers do About Free Movement Ending with Brexit?

Employers in the UK that have EU nationals as employees should provide guidance on the UK government’s efforts to assist them with applications for the EU Settlement Scheme. The UK government notes that over one million people have already received Settled or Pre-Settled Status under the Scheme. Employers should encourage EU national employees to verify all of their current documents such as passports are valid and in order, as well as for their family members.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to respond effectively to changing government regulations especially as they apply to visa and immigration issues. Our team can help your company understand how to communicate important points such as the end of free movement that may impact your EU national employees and their family members. We can also assist your company in identifying helpful guidance to provide your EU national employees regarding steps to take under Brexit such as applying for the EU Settlement Scheme.

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

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning how to communicate issues regarding Brexit and the end of free movement to your employees, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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UK Employers Seek to Lower Salary Threshold for Foreign Workers

Despite continuing uncertainty over Brexit, UK employers are seeking a lower salary threshold for foreign workers. Currently, all non-European Union (EU) citizens who work in the UK must earn a minimum salary of £30,000. Proposals under consideration will extend this requirement to EU citizens following Brexit.

Former UK Secretary of State for the Home Department Sajid Javid unveiled these proposals in December 2018 in a white paper on immigration, “The UK’s future skills-based immigration system.” This white paper describes proposals on new laws that may become the foundation for a government bill. Specific points in the white paper cover topics on immigrant employment such as:

  1. Skilled foreign workers seeking visas that cover a five-year period must earn a minimum salary of £30,000.
  2. Eliminating all caps on highly-skilled workers from both the EU and non-EU countries

Coalition Notes Need for Lower Salary Threshold

A coalition consisting of employers and educational institutions notes that over 60% of all jobs in the UK are currently below the £30,000 threshold. This coalition includes, among others:

The coalition supports measures that create a lower salary threshold for foreign workers. As a result, the group proposes a lower salary threshold of £20,000. Other measures the coalition supports include increases in the amount and length for temporary visas and post-education work visas.

What Does This Mean?

Impending implementation of some sort of Brexit plan has already led job seekers from the EU to reduce their search for positions in the UK. As a result, a great number of positions are being filled by British workers. However, this is a temporary solution, at best. The UK is experiencing several trends that combine to leave employers without workers:

  1. Declining UK labor force participation by EU nationals.
  2. Self-employment continues to increase to record high levels.
  3. Unemployment rate in the UK continues to decline.
  4. Job openings in the UK are rising to levels that continue to set records.

What Should Employers Seeking a Lower Salary Threshold do?

Employers and coalition members should continue their efforts to promote a lower salary threshold for foreign workers. Many of the coalition members represent industries that employ large numbers of workers in lower wage occupations. Competition for workers across all industries and skill levels continues to increase, so the coalition will continue its efforts.

Employers in the UK should examine their employment needs. They should review their relocation program to determine if it benefits their talent acquisition goals during times of extremely tight labor markets and continued economic growth.

Employers should work with a Relocation Management Company (RMC) that has the knowledge and expertise to help them design a relocation program that promotes global talent acquisition. RMCs with knowledge and experience will provide expert guidance on designing a relocation program to attract qualified new hires and relocating employees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop hiring and recruiting programs to attract highly skilled job seekers in the UK. Our team can help your company determine how to attract job seekers looking for employment opportunities. We can help your company attract workers whether or not the coalition succeeds with the lower salary threshold for foreign workers.

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

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

Contact our experts online to discuss your company’s recruiting, hiring, and relocation program needs as the UK continues to examine the possibility of a lower salary threshold for foreign workers, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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