Category: Global Relocation Tips

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Advantages of Using an RMC for International Relocation

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Learn the Advantages of working with an international relocation management company

Interviewing and hiring international job candidates can be the best way to open up your company’s talent pool. When jobs are only offered to local or domestic candidates, it can be hard to assure that the most qualified employee is filling the seat. But when your company can field applications from all over the world, it can give countless more options for getting the person with the best skill set for the position. 

There is also the case of global assignments; companies with multiple international entities, multinational projects, or in expansion mode often need to fill specialized roles with knowledge and skills that may not be readily available locally. So, the company may need to send them to another location for a set period. Additionally, foreign assignments provide employee development and career pathing.

So, what’s the best route of action to take for international relocation services? The first recommendation would be to work with a relocation management company (RMC) to hash out the global relocation benefits that your company is willing to offer new employees. Working with a qualified and experienced RMC covers your bases for bringing on a new employee from another country. It’s not just a domestic move where the company can pay movers on the employee’s behalf. There are tax rules, immigration compliances, and other factors to be covered. 

When conducting global mobility practices, teaming up with an RMC is the best way to go. Here are some vital relocation services that an RMC can provide:

1) International Relocation Policies

Each international relocation assignment is different. Each employee will have other wants and needs. So, there is no one-fits-all relocation package. That does not mean making up a process as you go for each new hire. It’s essential to have policies set in place to ensure some order when the new employee signs.


The process starts with an unbiased needs assessment where the RMC conducts the initial call to determine the employee’s and family’s needs. From there,  a policy review is conducted, and proper expectations for the assignment are set for international transfer. Suppose there is no assignment or transfer policy in place. In that case, it is highly recommended to work with an RMC to develop an international assignment letter, which serves as a written agreement on salary and benefits for the transfer process.

A qualified RMC will be able to assist in setting up some common relocation policies to include benefits and services aligned with your policy objectives and budgetary and compliance requirements. For example, key services within a typical assignment or transfer policy may consist of:

  • Corporate housing options
  • Home-sale/home-buying assistance programs 
  • A vetted list of moving companies
  • Spousal and family support initiatives 
  • Visa and immigration
  • Travel coordination booking
  • International expense and compensation
  • Language and cultural training

2) International Relocation Costs

One of the most significant advantages of working with an RMC is cost control. It’s no secret that getting an employee from point A to point B can be expensive, even more so for an international move. When you work with an RMC, they can help keep costs in line because they provide a list of experienced vendors. Any great relocation service provider will have this list of vendors vetted and verified for top service. But the best way to save on relocation costs is to work with an RMC that accepts multiple bids in the pre-decision stage. If an RMC gets multiple bids from vendors on moving services, they can help assure that your company can provide relocation benefits without breaking the bank.

3) Immigration Compliance

A critical service for any international assignment or transfer is Visa and Immigration. Effectively managing and maneuvering through compliance laws can save your company time and money. Most RMCs will have a team that can handle all of the immigration services needed for your new employee and their family. 

Working with a top-ranked RMC can help you make sure you’re covered when it comes to: 

  • Passport application assistance
  • Document procurement and conditioning services
  • Post-arrival filing services
  • Work permit applications
  • Business visa applications
  • Entry clearances
  • Derivative family permits
  • Extensions of any of the documents mentioned above

4) Tax Compliance

Effective tax planning requires an understanding of international tax laws and how these laws apply to the employee’s new destination. This is why working with an RMC for global tax compliance needs gives your company the advantage of having experienced experts on hand. In addition, relocation tax professionals dedicated exclusively to the tax issues impacted by global mobility will know precisely how to handle the new employee’s tax needs. 

5) Household Goods Shipping

Moving an employee’s household goods to another country is not an easy task. When it comes to household goods shipping, teaming up with an RMC can make everyone’s life easier. There is a lot to handle when it comes to moving personal belongings. But an RMC can assist in handling all the details from start to finish. Including, as mentioned before, gathering multiple quotes to find the most cost-efficient company to hire for moving services. Most RMCs will also have relocation technology that may even help track where the employee’s household goods are in the process.

GMS Specializes in International Relocation Services

Global Mobility Solutions (GMS) is happy to assist your company with its global mobility policies. There are numerous advantages to partnering with GMS as your RMC. For over thirty years, we have been helping companies build successful employee mobility programs. We are here to provide international relocation services that meet the challenges of today with solutions for tomorrow. 

As the global mobility industry leader, GMS takes the time to understand your business’s needs, then customize comprehensive relocation packages based on your business needs. From pre-decision to destination arrival and beyond, GMS is here to address your needs with world-class services and industry-leading technology. Reach out to us today to schedule a free consultation with one of our relocation experts, or check out our cost savings calculators to see how GMS can save money while adding significant quality.

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What Is Global Mobility?

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A Definition of Global Mobility and Why It’s Important

Global Mobility refers to a company’s ability to make its workforce mobile. You will also hear it commonly referred to as talent mobility and can even be better categorized as relocation assignments. 

Nowadays, countless companies are trying to expand globally due to leveraging technology to reach new audiences. However, if businesses want to succeed in expanding internationally, they will have to manage their talent pool. The best way to do that is to have global mobility policies set in place. 

There are various assignment types for companies setting up for global mobility, from permanent country moves to short-term international assignments. The ability to mobilize your workforce and provide relocation services for new employees widens talent pools to further depths. That assures your company is obtaining top talent.

Common Services Included in Global Mobility Policies

Any company looking to work with international relocation specialists to set up talent mobility policies should know that each company’s talent mobility needs are different. And should be handled as so. There is no short-cut method for handling global assignments; each needs to be tailored specifically. 

Each global mobility provider will have a different range of services. But here is an overview of the standard services most relocation management companies (RMC) provide: 

Pre-Decision Services:

– Needs Assessment/Pre-Decision Counseling

– Security Briefings

– Cost Projections and Tax Calculations

– Cost of Living Analysis

– Goods & Services Tables

– School Reports

– Virtual and Video Destination

– Mobility Assessments

– Pre-Hire/Decision Travel Booking

– Area Tour & Orientation

– Candidate Expenses

– Assignment Letter Development

– HR/Recruiter Debrief

 Pre-Departure Services:

– Program Counseling & Management

– Global Expense & Compensation Management

– Visa & Immigration Services

– Home Disposition Assistance

– Auto Shipment & Disposition Assistance

– Tax Equalization & Consultation

– Medical Coordination

– Assignment Travel Booking

– Area Tour & Orientation

– Global Home Finding

– Schooling Assistance

– Spouse/Partner Career Assistance

– Cultural Training

 Destination Services:

– Settling In

– Auto Lease/Purchase

– Language Training

– Air, Sea, & Surface Shipment

– Storage Management

– Global Banking

– Driver’s Education

– Temporary Living

– Career Assistance

– Education Assistance & Placement

 Ongoing/Repatriation Support:

– Ongoing Tax Consultation & Filings

– Security Monitoring and Alerts

– Global Travel Tracking

– Tenancy Management Services

– Emergency Services

– VAT Recovery

– Repatriation Program Counseling & Management

– Repayment Collections

Why Are Global Mobility Strategies Important?

Talent mobility is highly beneficial for international growth-focused organizations. However, before moving staff members overseas, it’s essential to consider various mobilizing factors, such as immigration requirements. A strategy set in place with a qualified global mobility service provider ensures that each employee’s international deployment process is seamless.

It should also be noted that the global marketplace is constantly changing for each industry. Therefore, you should work with your human resources team and global mobility consultants to review and update your strategy annually to reflect the current international mobility offerings of your competitors.

Once a global mobility strategy is created and implemented, global deployment is more cost-efficient, consistent, and compliant. All this leads to the best possible relocation process for your employees.

GMS Provides Excellent Global Mobility Service

Global Mobility Solutions (GMS), an international relocation management company, is the industry leader in global mobility consulting. Since 1987, our relocation experts have assisted companies and put talent mobility strategies in place for their businesses and employees to succeed in new countries. 

When you set up a free consultation with us, we will listen to all of your needs, wants, and goals. Then help you construct comprehensive global mobility service packages that will help your business thrive. Contact us today with any questions regarding international relocation or domestic relocation.  

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

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2022 Gas Prices Impact Relocation Costs and Estimates

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Learn how higher fuel prices impact the shipment of household goods

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

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

Shipment of Household Goods

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

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

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

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

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

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

Do Companies Need to Update Relocation Policies?

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

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

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

GMS Is Here with Explanations on Relocation Costs

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

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Are you ready to calculate your potential relocation program savings? Request access to our easy-to-use Relocation Cost Savings Calculator. Your Mobility Pro will grant your access request within 1 business day.

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Zoom Town Options for International Relocation

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Check Out These Countries That Offer Relocation Incentives

Countless companies are continuing to allow their teams to work remotely. These changes have primarily been due to the COVID-19 pandemic and the resulting shift in corporate culture. Working remotely from home has become a new normal for numerous industries. It has gotten to the point where “home” can be somewhere new almost every year. Employees are relocating to where they are most comfortable for their personal life as they no longer need to report to a physical office on a daily basis. Because of this, many cities and provinces are seeing an influx of new workers (and new taxpayers) as their populations grow.

What Are Zoom Towns?

A Zoom Town can be loosely defined as a town or province seeing an increase in population due to remote employees opting to move in. The phrase was coined from the broadly popular corporate movement to allow people to work remotely during the pandemic and the meteoric rise of “Zoom” as the virtual meeting platform of choice. 

 

Due to this phenomenon, various local and regional governments around the globe are getting creative in their competition for new wage earners. It has gotten to the point where these destinations are offering relocation incentives to remote workers considering a move within their borders. Many of these towns are looking to revitalize and compete by growing their population and gaining more working professionals. 

 

Now that people are accustomed to working remotely, many are looking into international relocation. There are Zoom Towns in other countries, some offering lucrative relocation incentives. If you’re looking to relocate internationally within the next year, here are some of the fastest-growing Zoom Towns abroad:

Switzerland

The village of Alibnen in the mountains of Switzerland is offering a rich relocation incentive. The town will shell out USD 25,200 to newcomers. On top of that, the Swiss government will give USD 10,000 per child that relocates with the family. Of course, there is some fine print for this great incentive. First off, applicants have to be under the age of 45. The property purchased in Alibnen has to be a permanent home, not a secondary residence. Also, the property has to hold a minimum value of 200,000 francs (about USD 201,600).

Italy

When many people think about Italy, they think about gorgeous landscapes and delicious food. This is why it is a popular destination for remote workers researching international relocation destinations. If you are considering Italy, it is worth looking at the town of Candela. This small town is offering grants of €800 euros per person and up to €2,000 for couples with children. Applicants of the grant can also take advantage of tax breaks. The only major requirement for this program is that the relocating workers have to live in Candela full-time, rent a house, and have a job with a minimum yearly salary of €7,500.

Greece

Another example of a creative incentive program is the Greek island of Antikythera. The program is closed as of the time of this article, but the island of Antikythera was trying hard to boost and revitalize it’s population number of 50 residents by offering relocation incentives. Those willing to relocate there could apply to receive housing, land, and an allowance of 500 euros a month for the three years from the Greek Orthodox Church, approximately USD 20,000 in incentives. 

 

Fortunately, Antikythera’s incentives worked! The island has seen an influx of young families and is now home to a climate research center.

Croatia

Legrad is a small town in northern Croatia that is looking to increase its population of just over 2,000 residents. In doing so, anyone looking to relocate to Legrad can bid on a house starting at just $0.16 (1 kuna). While an entire home for only 16 cents sounds great, there is a drawback. There are a limited number of homes in the town that can be purchased at the incentive price. However, there is good news – the mayor of Legrad pledged up to $3,979 (25,000 kuna) towards any refurbishments that newcomers would like to make to their houses. 

GMS Can Help with International Relocation

Global Mobility Solutions (GMS) is the industry leader in the corporate mobility market. Since 1987 we have been helping companies relocate their employees both domestically and internationally. Our relocation-specialized team stays up-to-date on all the government-provided relocation incentives offered in various cities, states/provinces, and countries. 


Our team also can help with any visa and immigration questions you may have when it comes to moving an employee to a new destination. You can contact us today with any questions or book a free consultation with one of our experienced consultants who can provide you with a courtesy review of your current relocation program and provide feedback on how to maintain a competitive talent mobility program.

We're Here to Help! Request a Courtesy Consultation

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

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2023 H-1B Registration Details

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Get more details on H-1B Cap registration

Looking to file a new H-1B case? With some updated guidelines, employers must complete registrations using the U.S. Citizenship and Immigration Services (USCIS) online H-1B registration system. This online process is a simple way to complete H-1B registrations, where employers submit details for their desired candidates who they intend to sponsor for a new H-1B in 2022 or 2023. The online form avoids manual paperwork and can cut down on costs for employers. The cost for registration is $10 per sponsored candidate.

New H-1B case registrations are capped at an annual quota of 85,000. From that number, 20,000 are available to candidates who have earned an advanced degree from a U.S. college or university, making the remaining 65,000 available for other qualified candidates.

USCIS introduced the concept of H-1B registration in 2020. There were just over 380,000 registrations filed for FY 2022 and about 275,000 registrations filed for FY 2021.

H-1B Lottery

When USCIS receives more than 85,000 registration cases, a random lottery will be run on the pool of registrations. Once the lottery is finalized, USCIS notifies those chosen. From there, successful selectors then file a full H-1B petition. One for each candidate must be filled out.

Cap-subject petitioners looking to get H-1B, or their representatives, will be able to create accounts starting at noon Eastern on Feb. 21, 2022. Candidate submissions open March 1, 2022, for any company that is set up in the system. 

It is highly anticipated that USCIS will receive more than 85,000 registrations by the March 18th, 2022 deadline, from there they will plan to run a lottery then notify successful registrants by March 31, 2022.

H-1B cap-subject petitions include those for beneficiaries eligible for the advanced degree exemption. Only those with a valid registration number selected during the H-1B registration process may petition.

GMS Can Help with Any Visa & Immigration Needs

Global Mobility Solutions is a full-fledged international relocation services company. Our goal is to help companies get their employees to their new destinations as easily as possible. GMS works with the most knowledgeable people in the industry when it comes to visa and immigration needs. We can help your employees get all of their paperwork done and questions answered. Feel free to reach out to us today to get started the process of fulfilling all your global mobility needs.

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Properly managing a visa and immigration program involves meticulous coordination, precise communication, and worldwide interaction with government agencies, corporate personnel, and relocating employees.

At GMS, we provide you with peace of mind in knowing your mobility program is fully compliant and being managed by the best in the industry.

Request a no-pressure, courtesy consultation from a GMS Mobility Pro. We’ll be in touch within 1 business day.

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Relocation Policy Review: Anticipating Changes and Challenges

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Why Companies should review their Relocation Policies?

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

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

 

Address Strategic Objectives in Your Relocation Policy Review

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

Cost Reductions and Process Improvements Can Be Found

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

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

Maintaining Your Company’s Competitive Market Position

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

Ensures Company Policy Remains Compliant

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

When Should Relocation Benefits Be Reviewed?

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

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

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

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

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

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The Core-Flex Employee Relocation Model Explained

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How Core-Flex Policies Work

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

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

What Should a Core-Flex Policy Include?

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

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

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

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

Advantages of Core-Flex Relocation Policies

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

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

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

Constructing Solid Core-Flex Relocation Policies

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

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.

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The Shipment of Household Goods

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Shipment of Household Goods Explained

When planning a family move or relocating for a new job, one of the main points that may come to mind is how to move everything in one’s home. Looking around the house to take stock of your many possessions can cause stress. From clothes to dishes, artwork to vehicles, office equipment to bedroom furniture – decisions must be made on what stays and what goes. Working with a reliable moving company that can promptly and safely pack, and then move your household goods can make that process easier. 

 

What are household goods? While there is no exact definition, household goods (commonly abbreviated as HHG) are most often referred to as a mix of items, utensils, clothing, and furniture that reside in your house. Because there is such a wide range of what fits into the concept of “household goods” it can be difficult (mentally and physically), risky, and time-consuming for an individual or family to move on their own. 

 

If the move is taking place because of a new job or a personnel transfer, many corporate relocation benefit packages include some form of provision for the shipment of the employee’s household goods. In many cases, the relocation management company (RMC) that is managing the employee’s move has access to a reliable HHG transportation company to perform the heavy lifting related to the move. Conversely, some organizations may leave their relocating employees to their own devices to find an appropriate moving company. In these situations, some limited financial support or reimbursement is provided to the employee once the move is complete.

Why You Should Use a Professional Moving Company

Let’s start by pointing out the obvious. If household items are not packed by professionals there is a risk of items being broken or damaged upon delivery. Companies that specialize in household goods shipping can properly pack items to assure reduced risk of the item being broken. Many reliable moving companies will also have insurance for items if something is broken, damaged, or misplaced. In fact, eligibility for shipment coverage may be predicated on the movers performing the complete packing of the household goods.

 

It is also worth stating that if the relocating employee attempts to pack, move, and transport their household goods in a rental truck, there runs a risk of serious injury. The movement of larger items, improper lifting techniques, and repetitive movements can lead to an injury. This may impact the timeline of the relocation, or possibly result in a workers compensation claim if the move is company-sponsored.

 

Another fact that many might overlook is the transfer of these personal goods to the new city or state. Traveling cross country in an unfamiliar truck or pulling a trailer is not easy, and can take more time than many might realize. If the relocation is international, the logistics become increasingly complicated and out of the reach of the majority of transferees.

 

Allowing a professional moving company to pack, handle, and ship the employee’s household goods is more time-efficient. Every relocation consists of many moving parts. Stressing about the packing and moving of the transferee’s household goods doesn’t need to be a complicating factor. Additionally, if moving for a new job or position, there might be a short timeframe in which the relocation has to be completed due to a job start date. Hiring a moving company can help ensure that the household goods are moved quickly and will not hold up the relocation.

The Networks That Support Household Goods Shipping

Unlike the local movers many might think of when discussing moving, relocations generally occur over great distances. The van lines that are contracted to perform these types of moves will use larger trucks and a sophisticated logistics network to move the goods across the nation, or even around the world. Components of this network will include semi-trucks, train/rail cars, airlift vans (special containers for air shipments), and even ocean containers loaded onto vast ocean-based vessels. These networks are used to consolidate shipments and speed the overall transportation process. Commonly, local agents of the transportation company on both sides of the move will be called upon to assist with the loading and unloading process. 

 

Additionally, specialty companies may be called in to perform special crating services, remove and package wall-mounted televisions, prepare sensitive items for transport, or even ship your automobile. Storage solutions are also on tap in the event you need temporary storage at your destination while you find a home, or if you are on an overseas assignment.

 

Lastly, animal shipments are a commonly overlooked necessity for those relocating. Pets are more than just animals, they are beloved members of anyone’s family. As such, specialized animal transport companies help to ensure the transferee’s pets are traveling under safe conditions. Transporting pets can require additional documents, immunizations, quarantines, and specialized kennels/crates. Transportation methods geared towards animals significantly reduce the amount of stress on the pet as well as instill confidence in the employee’s knowledge that their beloved family member is being well-cared for.

Why You Should Use a Corporate Relocation Company

Working with a corporate relocation company like Global Mobility Solutions can help reduce the stress of household goods shipping. We provide access to our vetted, certified, and highly competitive network of household goods specialists. By including HHG services in a thoughtfully designed relocation policy and moving process, you can ensure that your transferees arrive at their destination on time and with as little distraction as possible, ready to focus on their new position. GMS can be contacted as early as today to discuss the shipment of household goods to any location in the world.

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How to Relocate During the Rush Moving Season

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Tips for Staying Ahead of Peak Moving Season

The middle of May until about Labor Day weekend marks the peak moving season in America. During these months, moving companies and relocation specialists see substantial increases in those looking to relocate. During this time, thousands of people try to get their families moved into their new homes as quickly as possible. Many factors come into play, but the primary two are summer weather and summer vacation. It’s tough to argue that it’s much easier to move when the weather is great. Additionally, summer break is an ideal time for those moving as a family to get the kids settled into their new home before the new school year kicks off. 

When relocating for work, it is not always up to the transferee when their household goods move can take place. Many employees have a firm “report to work” date that drives their relocation timeline. It could also come down to their relocation policies and the benefits that are provided to them by their employer. 

When it comes to summer moves, it is best to get ahead of the busy moving season. Here are some tips on how to get a headstart.

The Advantages of Planning Ahead

With so many Americans moving within this tight timeframe, there are several advantages to getting a head start on this rushed window: 

  • Less stress: staying ahead of the curve when it comes to moving can help alleviate some of the stress that comes with moving. If everything is planned out, it helps assure that things will go more smoothly.
  • Cost savings: if you can book ahead of time, or move out before the busy season, moving companies are more likely to work out better pricing with both customers and suppliers. 
  • Time: while relocating dates are not always up to the transferee, trying to get a jumpstart on the process can help assure the transferee’s household goods and vehicles can be transported, by the moving company, on dates that work for them. 
  • Flexibility: If dates, costs, or anything else needs to be changed or canceled, having time to do so is key.

What to Do If Moving Dates Are Not Up to the Transferee

Moving for a new job or promotion does not always give the transferee the power of when to plan for a move. Oftentimes, relocators might be forced to ship out during the peak moving season. When this happens there are some options, first off it is highly recommended to work with a relocation services company. Employers who have built out stable relocation policies typically already have these services available and many relocation companies provide moving employees with relocation coaches to aid the move. If the employee does not have access to such services, they should review their company’s relocation policies and offer letters to understand what moving costs may be covered. 

Work with the Best to Avoid Stress

Moving is a stressful process just to go across town, but relocating to a new city and state can be an extremely complicated process, not to mention doing so during moving companies’ busy seasons. Working with an experienced relocation service company can do much more than just getting your household goods from point A to point B, they can assist in real estate needs and other relocation services. Connect with GMS today to discuss how we can help move employees and their families in a safe, timely fashion.

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

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What Is Tax Gross-Up & How Do You Calculate It?

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How to Handle Tax Gross-Up Methods When Relocating

The relocation process can be hard to understand. Relocation policies and rules may seem like insurance terms that don’t always make sense to those who are utilizing the policies. Tax gross-up is one of the more common aspects of a solid relocation policy offered by companies to employees. 

Tax gross-up (when it comes to relocation terms) refers to money that an employer can add to an employee’s payroll records to help offset federal ,state, OASDI or Medicare taxes. These taxes come into play as the majority of moving expense reimbursements, or payments to service providers on the employee’s behalf, are seen as taxable income to the employee in the eyes of the government. 

In simplest terms, tax gross-up is a benefit included in an employee’s relocation package, and there is no right or wrong way to calculate it. Employers can add as much as needed to make the relocation policy appealing for the employee to relocate. However, payroll withholding is a requirement and companies should remit payroll taxes on taxable relocation expenses. The calculated amount of tax gross-up is used to pay a solid portion of the required payroll taxes on that company’s payroll. 

How Should Relocation Tax Gross-Up Methods Be Applied on Policies?

Global Mobility Solutions advises our clients to keep gross-up simple, allowing employees to understand the method used and verify the amount. Also, GMS cautions companies from telling transferees that they can completely avoid any tax liability resulting from their move. Instead, companies should refer to tax gross-up as a “tax assistance” program. This way relocating employees do not get the impression that they will be “made whole” and avoid paying taxes altogether.

The Different Methods of How to Calculate Tax Gross-Up

There are a few different tax gross-up methods that companies can utilize when it comes to helping employees. Here are some of the more common methods used for relocation policies:

Inverse Supplemental: Tax on Tax

This is the most common method to calculate tax gross-up. This method uses the current Federal and State supplemental rates for calculation. This method is the easiest to administer and explain to relocating employees.

Typical methodology includes:

  • Federal Rate: Supplemental Rate (currently 22%)
  • State Rate: Supplemental rate of applicable payroll state
  • OASDI: 6.2% up to the applicable annual cap
  • Medicare: 1.45% + Surtax when applicable

Total to be added – 34.65% assuming a 5% State. But remember that this is also taxed so it is a complex situation that GMS can help with.

Marginal Rate: Tax on Tax

This calculates the employee’s estimated taxable income before receiving the relocation expense reimbursement and then compares the estimated taxable income to the IRS Tax Tables. The tax table rate is then used to determine the tax assistance amount. The tax rate will not change for the expense and therefore is not blended.

While this method provides for additional tax protection by considering the employee’s actual income level, it will typically add to the gross-up cost for the company.

Typical methodology includes:

  • Federal Rate: Based on the higher annualized actual salary. Includes company source income only
  • State Rate: Supplemental rate of applicable payroll state
  • OASDI: 6.2% up to the applicable annual cap
  • Medicare: 1.45% + Surtax when applicable

Flat Rate

This method determines a fixed percentage to be used in the tax-assistance calculation. This option does not take deductions, exemptions, or child credits into account.

Client Directed

Because gross up is a policy decision, there are other methods available. If the methods above do not align with your objectives, we can work with you to create a custom gross-up policy that satisfies both your needs and those of your relocating workforce.

Questions Companies Should Ask When Selecting a Gross-Up Methodology

  • Why are we asking employees to relocate? Are we recruiting or downsizing? 
    • Downsizing may be saving jobs by offering employees an opportunity to relocate and remain employed with the company. Thus, a company may not need to be as generous. 
    • Recruiting may require a company to provide a more generous gross-up benefit.
  • What is the typical income of the relocating employee population?
  • What is the company gross-up philosophy?
  • Did the company request the employee to relocate or is relocation a mutually beneficial partnership?

GMS Can Help with your Tax Gross-Up Policies

At GMS, our financial services offer employees access to tools and technologies including gross-up calculators that our competitors don’t offer. On top of that, our financial team is qualified to help you implement a tax gross-up methodology that works best for your needs. Our team is always willing to field questions or concerns relating to our service offerings, including how to effectively utilize tax assistance policies for relocation programs. Reach out to GMS for any of your relocation-related tax needs.

We're Here to Help! Request a Courtesy Consultation

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

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