Category: Global Relocation Tips

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HR Teams Should Prepare for FY 2019 H-1B Visa Lottery Opening on April 2, 2018

HR Teams Should Prepare for FY 2019 H-1B Visa Lottery Opening on April 2, 2018

H-1B Visa Lottery: Many US employers relying on foreign national talent to fill highly technical positions offer H-1B visa sponsorship to prospective employees. Hundreds of thousands of applications are submitted each year, but only 85,000 petitions are accepted due to the government cap on H-1B visas. For FY 2018, 199,000 applications were submitted. The cutoff date for applications submitted to the lottery is not defined, so unprepared employers might miss the cap and not be able to fill their position.

Thousands of employers who miss the cutoff must wait until next year’s lottery or consider an alternative visa for the foreign national, subject to qualification. The cap for FY 2018 was reached in four days, indicating the importance of submitting applications for the H-1B cap-subject visas as soon as the lottery opens.

What does this mean for you?

As the FY 2018 process has shown, unprepared HR teams thinking they had seven days to file were not given the opportunity to hire the foreign national employee they hoped to sponsor. With issues such as prevailing wages, Labor Condition Applications (LCAs), and possible site visits, the process should start as soon as possible so HR teams can submit applications at the start of the lottery.

Where can you get started with the H-1B Visa Lottery?

Global Mobility Solutions has a team of global relocation experts who can help you with the H-1B Visa Lottery process. Our team’s knowledge and access to visa and immigration resources is unparalleled in the industry, and we have helped thousands of companies with visa processes to reach successful results.

Conclusion

Global Mobility Solutions’ team of global relocation experts can help HR teams prepare for the FY 2019 H-1B Visa Lottery. Contact us online or give us a call at 800.617.1904 or 480.922.0700 today to learn about our extensive range of industry-leading resources for global relocation.

Request your complimentary Visa Program Assessment

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Switzerland Enforces Quotas on Category B Permits for Persons from Romania and Bulgaria

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Switzerland enforces quotas on Category B Permits for persons from Romania and Bulgaria. This enforcement action is a result of the Federal Council’s decision to invoke a safeguard clause within the European Union’s Agreement on the Free Movement of Persons, which allows for restriction of movement to control migration. The quota enforcement began June 1, 2017 and will last for a period of twelve months. A total of 996 Category B Permits will be distributed on a quarterly basis. Category B Permits allow for five year residency.

Why Switzerland enforces quotas

Switzerland notes that Romanian and Bulgarian workers have been increasingly migrating for seasonal jobs in sectors with higher-than-average unemployment rates. The quota is one of the tools at the country’s disposal to control migration and mitigate adverse impacts.

What is the Switzerland quota?

Each quarter since June 1, 2017, the quota is 249 Category B Permits for workers from Romania and Bulgaria. With the quota enforcement, the number of Category B Permits has been exhausted each quarter. The third quarter, which started on December 1, has already exceeded its quota. The fourth quarter will release the last installment of 249 Category B Permits on March 1, 2018. Based on demand, the fourth quarter quota is expected to be reached only a few days after release.

Who does this impact?

  • Clients with transferees who are Romanian and Bulgarian citizens and who are planning to submit Category B Permit applications.
  • Clients who are planning to hire Romanian and Bulgarian citizens who are not currently in possession of a Switzerland work permit.

What does this mean for you?

Clients who have transferees planning to submit Category B Permit applications but who do not meet the quota limit may have other options such as Category L Permits, which are for short-term (one year) residency and are not subject to quotas. In any case, clients should ensure their transferees or new hires submit their Category B Permit applications as soon as possible at the start of each quarter.

Conclusion

Global Mobility Solutions’ team of global relocation experts can help HR teams understand and prepare as Switzerland enforces quotas on Category B Permits, as well as other visa, work permit, and immigration issues.

Contact us online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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Shanghai China: Changes to Applications for China Working Visas and Working Permits

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The Shanghai Municipal Human Resources and Social Security Bureau has implemented several rule changes to the processes for obtaining China Working Visas and Work Permits. These changes should make the process easier and quicker for applicants.

Who Does This Affect?

  • Companies currently planning to send a transferee to China
  • Companies with transferring employees in the process of submitting applications for working visas and work permits

What are the Documents a Transferring Employee Needs to Have to Enter China?

A Working Visa is required to enter China for working purposes, and is valid for only 30 days. Upon entry, the Working Visa document must be replaced within 30 days by a Resident Permit, which allows foreigners to reside in China. A Resident Permit replaces the Working Visa on the transferring employee’s passport and allows them to remain in China legally, as well as travel abroad without any restrictions during their employment. A Foreigner’s Work Permit is a document that is delivered to the transferring employee after they have contacted and proceeded accordingly with the local Chinese authorities.

What are the Changes to the Process?

In April 2017, two previous types of Work Permits were combined into a single and unique Foreigner’s Work Permit. The Foreigner’s Work Permits are divided into three distinct categories: A, B, and C.

Foreigner’s Work Permit Categories

  • A: High-End Foreign Talents, professionals including scientists, science and technology leading talents, international entrepreneurs, special talents, and other foreign high-end talents urgently needed for economic and social development.
  • B: Foreign Professional Talents, in line with the Foreigners Employed in China Guide Catalog and the corresponding demands of economic and social development.
  • C: Other Foreigners, employed to meet the demand of the domestic labor market in line with the state policies and regulations.

The process changes work in tandem with China’s new Working Permits Points System, which allows applicants to apply online, a simple and quick process. In November 2017, further adjustments were made to the Working Permits Points System, along with a new segmentation of working areas in China.

What Does This Mean?

The new online application system should make the process simpler and easier for applicants to apply for China Working Visas and Work Permits. The Working Permits Points System is easy to understand and helps applicants quickly understand if they fall into one of the three distinct categories.

Conclusion

Global Mobility Solutions’ team of global relocation experts can help HR teams determine the best plan and course of action on how to submit applications for China Working Visas and Work Permits. Global Mobility Solutions can also help you pursue additional options if the Working Permits Points System is not viable for a transferring employee. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment for China Working Visas and Work Permits

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5 Easy Steps for Year-End Relocation Expense Reporting

While most people are busy preparing for the holidays, you’re scrambling through the year-end reconciliation of your relocation expense data. Well, even though it’s only November, here is a gift that will help you navigate your year-end process this year and for years to come.

Though many relocation managers might prefer holiday gift shopping to year-end reporting, the process tends to go more smoothly when run by the relocation department. To maximize efficiency, be sure to follow these five steps:

1. Checklist

Create a year-end checklist. A detailed checklist will identify the information you need to accurately report year-end compensation. Your checklist should include due dates, responsible individuals, and departments. Establishing the responsibility for reporting relevant compensation data is critical and may include several components such as wages, imputed income, benefits, equity, and taxes. This year-end checklist will help you identify all the resources you need to create a complete and accurate report. Your itemized checklist should include items such as early cutoff dates, all employees who will receive the tax filing services (employees on the tax eligibility list), and provide for the time needed for verification, approval, and processing. A well-developed checklist will also set firm deadlines for reporting and tax filings.

2. Preparation Call

Set up a year-end preparation call. When setting due dates, remember the mandatory vacation times required by some countries toward the end of December. During the call, review your year-end checklist with all involved parties to ensure they are aware of their role and deadlines. Use this call as an opportunity to build understanding and develop relationships that will make year-end reporting easier in the future. If you have not already held a year-end preparation call, schedule one as soon as you finish reading the rest of this article!

3. Verify Data

Verify all of your data. Accuracy is vital, especially for compensation reporting. Data such as addresses and tax ID numbers/Social Security numbers should be confirmed, as well as wages, benefits, sick days, and vacation time. Verifying relocation expense data eliminates backtracking and costly errors.

4. Finalize Data

Finalize your relocation expense data. Make sure that the final payroll reports of the year have been included, plus any end-of-the-year benefits. Be sure to back up the program data again and save it in a secure location for easy future reference.

5. Submit Report

Get ready to submit your report. Double-check the deadlines for all the countries on your list and be prepared to provide specific data for each country. Tax providers may ask for data for different assignee/transferee populations. Be sure to adhere to your year-end deadlines and, whenever possible, send the data ahead of time. Some international locations may have very tight turnaround times to make that final tax payment of the year.

Modern Mobility Made Easy™

What this means for you and your relocating employees

As with anything, practice makes perfect. The more you follow these five steps, the easier your year-end reporting will become. Global Mobility Solutions – a leader in mobility management since 1987 – has expert relocation consultants who can help you quickly implement relocation policies custom-tailored for your needs, as well as expense reporting to make your year-end reconciliation easier. Request a professional audit of your year-end process.

Request your complimentary relocation program audit

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Top 3 Considerations When Implementing Relocation

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Keys to working smarter, faster, and more cost-effectively

HR, Recruitment, Payroll, Accounts Payable, IT Security, and other relocation stakeholders commonly face a never-ending variety of evolving and often overwhelming challenges when it comes to the implementation of benefits administration, which includes relocation outsourcing decisions.

As employee benefits become more complex, critical, and increasingly subject to regulatory compliance requirements, employers must accurately assess their team’s capacity when it comes to implementing relocation programs.

Global Mobility Solutions (GMS) recently compiled the data on thirty four (34) recent implementations it managed, representing key industries and includes several multinational companies (including and not limited to manufacturing, technology, healthcare, and energy). This study was derived from initial and post-implementation surveys that are focused on implementation Critical Success Factors (CSF).

Top 3 Critical Success Factors

  1. Implementation Management
    Assessing an organization’s goals and creating a realistic road map of key milestones is a critical part of delivering an effective implementation. The process begins by identifying the right mix of internal/external resources and flexible technology that support a collaborative approach to implementation that stays on track. This study confirms that proper planning and management is an essential to any successful relocation implementation.
  2. Cycle Times
    All organizations, large and small, have finite resources, making the maximization of productivity and cycle times a CSF. Properly planned and executed implementations reduce typical and customary cycle times.
  3. Time Investment = Real Dollars
    The old adage of “time is money” has a direct association to relocation program implementation. This is evident by the time investment required to complete implementation by multiple disciplines within an organization, such as Human Resources, Payroll, Accounts Payable, preferred vendors and the RMC.

Modern Mobility Made Easy™
What this means for you and your relocating employees
Our findings conclude that organizations with solid implementation oversight and supporting technology experience shorter cycle times, spend less and have a better overall experience. Global Mobility Solutions, a leader in corporate relocation since 1987, provides companies like yours with proven leadership, time tested procedures and advanced technology to ensure that no more than 10% of their time is spent on implementing a relocation management program. GMS completes new implementations within 5 to 22 days, while maintaining 98% planning accuracy and 100% implementation satisfaction. To learn how to quickly and easily implement your relocation program, all within your planned budget, by requesting an implementation demo.

Request a relocation implementation demo from Global Mobility Solutions

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Relocation Models for 5 Major Industries

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Traditional vs. Lump Sum Relocation Programs

Which is best model for your company?

There is more than one way to get your relocating employees to their new assignments. Many companies opt for either a traditional relocation program, a lump sum/managed cap program, or a combination of the two, depending on the position of the transferee and other special circumstances.

What are the Differences?

With a lump sum or managed cap model, relocating employees are given a pre-determined amount of money to cover all aspects of their move. From the shipping of goods to temporary housing, the transferees are responsible for researching and obtaining all the services needed to get them to their new destinations. There is no tracking or reporting available to HR or finance departments to let them know whether their relocation policies are too generous, costing the company more money than necessary to relocate their employees, or too limited, forcing transferees to pay out of pocket unnecessarily. This approach leaves the entire move is managed by the transferees, many who might not have any prior moving experience.

Conversely, a traditional relocation model is managed by a relocation management company (RMC). The RMC coordinates everything for the transferees. This includes, but is not limited to, home selling, household goods movement, temporary living, and home purchasing. The RMC sets up the various services with reputable, vetted network partners. Since the RMCs use direct billing back to the client companies, the transferees rarely have to open their wallets. HR and finance departments receive detailed expense reports from the RMCs that capture all the costs related to relocating their transferees.

Based on comprehensive relocation surveys, here are findings of how companies in five different industries utilize either traditional, managed cap/lump sum, or a combination of these relocation programs:

Relocation Models by Industry: Energy, Healthcare/Medical, Manufacturing, Retail, Technology

The figures above illustrate that across all the industries in this survey, traditional relocation programs are used more frequently than lump sum or managed cap programs. However, in all the industries, there is a large percentage of companies that utilize a combined approach. A best practice consideration is to adopt a combination of traditional and managed cap relocation models.

Modern Mobility Made Easy™
Helping you manage your relocating employees

Global Mobility Solutions, an innovative leader in corporate relocations since 1987, can analyze and create mobility management programs customized for your unique needs. Additionally, we have compiled benchmarking studies and relocation best practices for numerous industries. To learn more about what type of relocation model would fit best with your company, get the full relocation benchmarking study for your specific industry:

Download your industry benchmarking study

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The Real Truth: Managed Cap vs. Lump Sum

Managed Cap vs Lump Sum – Key Things You Need to Consider

As a mobility manager, lump sum payments might seem like the fastest and easiest method of providing your employees with the funds they need to move. However, when looking at managed cap vs lump sum, lump sum payments come with their own unique set of problems. Some of the challenges include:

  • Transferees often left alone in the relocation process
  • No cost controls and often budgetary overages
  • Limited process or service structure
  • Non-taxable benefits are lost
  • Frustrated transferees mean elevated HR involvement and escalations

Fortunately, a managed cap program alleviates many of the problems associated with a lump sum. It also provides:

  • The desired simplicity and predictability of a lump sum program
  • Enhanced employee tax benefits, resulting in more dollars for relocation.

Let’s see the difference between a $15,000 lump sum payment and the same $15,000 from a managed cap program:

GMS-Managed-Cap-vs-Lump-Sum-Chart

A Winning Scenario

The Managed Cap Program provides the transferee with $4,351 more for relocation services!

 

Modern Mobility Made Easy™

What this means for you and your relocating employees

A Managed Cap program will ensure that your transferees get the most out of their relocation dollars and that you will reduce the amount of administrative burden dealing with exceptions. Global Mobility Solutions – a leader in mobility management since 1987 – has expert relocation consultants who understand how a Managed Cap program can benefit you and your company. Contact Global Mobility Solutions and learn how we can quickly implement a managed cap program custom-tailored for your needs. Request your complimentary managed cap program demo to see how much you can be saving.

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Managing Mobility Costs

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Department heads all over the globe are constantly asked to identify cost-saving opportunities within their departments. Human resources, employee mobility, talent acquisition, and procurement are no exceptions. As you scrutinize your budget, try utilizing these three steps to help better manage and ultimately reduce your relocation expenses:

Cost Estimates

Managing mobility costs starts with understanding what those expenses are. First estimate what costs should be involved with your vision of a successful mobility program. A cost estimate will provide you with a clear picture of the potential costs of individual relocation assignments. You can then use these cost estimates to correctly establish a budget prior to initiating any relocations.

One effective way to determine your cost estimates is by utilizing cost estimate technology. There are many software programs that by using the latest upgrades will help you:

  • Save time
  • Reduce human error
  • Ensure compliance

Policy Reviews

By reviewing your relocation policies, either internally or with an outside relocation management company (RMC), you will be able to identify cost-saving opportunities and eliminate expensive exceptions. When reviewing your mobility management policies, you should:

  • Do so in conjunction with cost
  • Benchmark against other companies within your industry
  • Leverage technology for key services (i.e. Virtual destination tours, online school reports, etc.)

Example:

Using online language tools can reduce relocation costs by roughly $5,000 - $20,000.

Tracking and Reporting

Lastly, you want to ensure that you are continuously tracking all expenses and reporting any overages or savings. Get a detailed account of how your cost estimates match up with your actual spending. Then the whole process repeats itself. Once you have your data:

  • Take action – Make any necessary adjustments to your budget, policy, or both
  • Review – Go over the detailed reports to identify more cost-saving opportunities
  • Incorporate technology – Save time and money by offering key services online

Global Mobility Solutions (GMS) is an award-winning RMC and, since 1987, has been helping companies save time and money with regard to their corporate relocations. As a courtesy service, GMS will review your current relocation policies and provide expert feedback to ensure that your policies are competitive within your industry and to identify any cost-saving opportunities, so you can focus on managing mobility costs.

Click here for your free relocation policy review

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Pre-Decision and Best Practices for Global Mobility

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Pre-decision Best Practices: Why do many companies have a 50% rate for assignment rejection? It is primarily because the potential transferees do not have a clear understanding of the destination location and the support available for their families.

The top 3 reasons cited for rejecting relocation assignments are housing/mortgage concerns, trailing spouse/partner employment concerns, and overall family concerns. Pre-Decision Best Practices

Assignment rejection and failure can be very costly to a company. Firms spend an average of half a year’s salary in recruiting and training when onboarding a new employee. For high-level executives, the expense can be six to nine months of their salaries. However, according to the ERC, it can be as high as three-times an annual salary for international executives. If assignments are rejected, or fail after a move – which adds much more to the financial loss – companies must go through the expense of onboarding and training new staff.

 

How can companies ensure that they get the right people in the right place at the right time and for the right price?

The answer is to use pre-decision programs. Global Mobility Solutions (GMS) is the pre-decision pioneer and we continue to develop new, innovative features for pre-decision programs.

Although the number is growing, currently only 22 percent of companies around the world are utilizing pre-decision programs. However, when working with an RMC, nearly 60 percent choose to incorporate pre-decision into their mobility management solutions.

Employees decline relocation assignments due to housing, family, and spousal/partner employment concerns. Many firms had a 50% rate for assignment rejection. 32% housing/mortgage, 55% spouse/partner employment, 69% family issues. By using pre-decision, companies increase assignment acceptance, reduce failed relocations, save money, and project a progressive and employee-friendly image.

Going back to the reasons cited for assignment rejection, let’s see how the in-depth questioning and available services of pre-decision can address each of those concerns.

 

Housing

Candidates are interviewed to learn about community and lifestyle preferences. Candidates are presented with destination spotlights that highlight the cost of living and attractions of the assignment location. Area tours are arranged. Candidates are pre-approved by participating mortgage lenders. Candidates are provided with home selling and home buying assistance.

Spouse/Partner Employment

The pre-decision interview includes an employee’s spouse or partner. Pre-decision best practices programs offer a career assessment to develop an action plan that will help the spouse or partner adjust to the new location. This can include resume services, aggressive job searching, and more.

Family

Through the pre-decision interview process, the specific needs of the family are determined. To help candidates better understand the new location before moving, they are presented with school reports and detailed community information. Community tours are arranged so that transferees and their families can see schools, hospitals, and centers of culture and entertainment prior to moving.

 

The talent acquisition program manager of a large healthcare company said, “By using pre-decision to initiate relocations prior to the face-to-face interview, we know that transferees have arrived more quickly, have settled better, and stayed longer.”

Benefits of utilizing pre-decision programs include reduced time to acceptance, reduced overall costs to the company, an increased acceptance rate, and an increase in successful assignments.

Because of how it engages relocation candidates and their families, increases assignment acceptance and success, and saves companies time and money, pre-decision best practices should be utilized when it comes to mobility management.

Learn more about how pre-decision programs can benefit both you and your transferees.

 

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Strategic Tax Reimbursement and Best Practices for Global Mobility

There are five steps you should employ when developing a global program for strategic tax reimbursement that balances the needs of both the company and employees with regard to managing tax costs:

  1. Strategically Align Company Objectives and Employee Values
  1. Consider Tax Impacts of Likely Host Locations
  1. Choose a Tax Reimbursement Method that Best Fits, for example:
  1. Tax Reimbursement Policy Design
  1. Tax Reimbursement Policy Launch & Implementation

By following the five-step process outlined, you can develop a global mobility program that keeps your company compliant, reduces tax burdens, and, by saving them money, demonstrates to your relocating employees how much you appreciate them. At Global Mobility Solution (GMS), we like to think that there is a sixth step – contacting an expert for help. Outsourcing your workforce mobility program provides an expert partner in relocation.

Workforce mobility consulting at Global Mobility Solutions means our consultants focus on reducing organizational costs and minimizing relocation timelines in order to increase assignment success. Our in depth consultation includes competitor benchmarking, policy analysis, and relocation evaluations.

Global Mobility Solutions will perform a full review of your existing policies, to ensure the goals of your organization are properly aligned with the policy. If necessary, we will write new or change existing relocation policies and coordinate the implementation of the changes. If no policy currently exists, GMS will work with you to determine what your relocation needs are and develop new policies that best fit them. Your dedicated account manager will advise and counsel you throughout the relationship to ensure your relocation policy is the most cost effective.

In order to reach an experienced relocation policy expert who can help your company plan for strategic tax reimbursement and best practices, please contact us now.

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