Category: Global Relocation Tips

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Totalization Agreements Help Employers Avoid Paying Duplicate Social Security Taxes

Business woman in the City of London
A confident business woman in the City of London holding a cup of coffee and a tablet device

Totalization Agreements between the United States and other countries help employers avoid paying duplicate social security taxes. But how can such a situation arise? First, ask these questions:

  • Are you a U.S. employer with operations in other foreign countries?
  • Are you sending your employees to work temporarily across borders?

If the answer is yes to these questions, your company and its employees may benefit from bilateral social security agreements. These are agreements that the U.S. has concluded with certain other countries to address social security taxes. As a result, these agreements are usually called Totalization Agreements, and they eliminate dual country social security taxation.

GMS spoke with Erika Beddow, Business Development Manager at Global Mobility Tax, LLP (GMT).  Erika has over 20 years of experience in public accounting and in the global mobility industry. Erika agreed to share her expert guidance on this issue.

What are Bilateral Social Security Totalization Agreements – and Who is Covered?

Sending employees to work on a temporary assignment outside of the U.S. can trigger social security taxation in the other country in addition to income taxation. The employer and employee will likely have social security tax liabilities in both the home and host country on the same earnings causing double taxation. The U.S. has entered into Totalization Agreements with several countries designed to eliminate the double taxation that can occur with respect to social security taxes.

How Does an Employer Apply for Relief Under U.S. Totalization Agreements?

While both employer and employee are responsible for reporting income and remitting social security taxes in both home and host countries, there is relief for double taxation for social security taxes. If the U.S. has a Totalization Agreement with the country your employee is working in, the company can apply for a “Certificate of Coverage” from the United States Social Security Administration.

The Certificate of Coverage serves as evidence that the employee temporarily working in another country meets the requirements of a Totalization Agreement shared by both countries. As a result, it allows both the company and the individual to be exempt from paying social security taxes in the country where they are working.

How long is a Certificate of Coverage Good For?

Once a Certificate of Coverage has been issued, it is good for the length of the assignment. It will typically max out at 5 years.

Are There Risks for Non-Compliance?

Yes, there are risks for non-compliance. Similar to the risks associated with not paying income tax, a company and/or individual may face corporate or individual fees, interest and other charges for not being compliant in paying social security taxes.

How Should an Employer Identify Their Specific Risks and Plan Strategically?

Employers should begin to identify their specific risks by planning early in the process. They should also engage with experts that understand Totalization Agreements. GMT can assess whether a Certificate of Coverage is beneficial. This will help employers to plan strategically, and ensure compliance while providing tax savings opportunities.

A thorough review of the assignment details and documents will help unlock opportunities. Applying for a Certificate of Coverage eliminates double taxation of social security taxes. This allows both the employer and employee to remain on the home country social security tax program. As a result, this also minimizes worldwide social security taxes.

What Does an Action Plan for Dealing With Totalization Agreements Consist of?

Employers should identify the employees that are eligible to apply for the Certificate of Coverage. Then, the next step is to submit the application for the Certificate of Coverage with the Social Security Administration. Employers should plan for how they will track the duration of the Certificate of Coverage. A company may need to send an employee to a location where there is no Totalization Agreement in place. In these situations, GMT can provide social security tax cost estimates and other advice. This will help employers to strategize and remain compliant.

GMT can assist employers with tracking employee information, including:

  • Assignment location
  • Duration
  • Certificate of Coverage availability

Employers would have ready access to this information through GMT. It is also used to ensure timely filing and renewal of the Certificate of Coverage, as needed.

GMT has a quick guide in PDF form for employers to help them understand some of the tax issues surrounding Certificates of Coverage and Totalization Agreements. GMT is always ready to help employers learn more about tax compliance and building internal processes to support their mobile workforce, and Erika states that she is available for preliminary consultations.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients learn about important issues such as tax compliance for their organization. Our mobility consulting team can help your company understand if it can eliminate double taxation for social security taxes through the benefit of Totalization Agreements with the assistance of the experts at Global Mobility Tax, LLP.

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

Contact our experts online to learn more about Totalization Agreements and Certificates of Coverage, 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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Immigration Application Fees May Increase to Cover USCIS Anticipated Shortfall

An Indian husband and wife are indoors in a new home. They are wearing Indian-style clothing. They are using a laptop computer and writing with a pen and paper.

U.S. Citizenship and Immigration Services (USCIS) is requesting to have a 10% surcharge added to immigration application fees. As a result of the COVID-19 pandemic, USCIS is experiencing a large decline in revenue from processing applications. The agency believes receipts will decline by over 60% through 2020. The U.S. restrictions on immigration due to COVID-19 has dramatically limited the number of applicants. However, USCIS is nearly entirely funded by these fees.

USCIS FY 2019 Final Statistics

For the FY 2019, USCIS breadth of services shows the expansive reach of the agency. Receiving immigration application fees is just one part of the agency’s mission.

Overall, in FY 2019 USCIS:

  • Granted lawful permanent residence to 577,000 individuals
  • Naturalized 834,000 new citizens
  • Received 2.2 million employment authorization applications
  • Approved 500,000 petitions for non-immigrant workers
  • Processed 40 million cases through E-Verify
  • Granted immigration relief to over 25,000 individuals

FY 2019 represents an 11-year high in new oaths of citizenship for the USCIS. However, the number of applications pending for green cards declined by 14%, and the number of applications for naturalizations declined by 12%.

What are Green Cards?

Green Cards, officially known as “Permanent Resident Cards” let the holders live and work in the U.S. on a permanent basis. The process to apply for a Green Card depends on the individual’s specific situation. Eligibility requirements vary based on the application’s submission category.

USCIS notes that most people who apply for a Green Card will need to submit at least two forms, along with the correct immigration application fees. Depending on the situation, the forms may include one or more of the following:

  • I-130 Form, Petition for Alien Relative
  • I-140 Form, Immigrant Petition for Alien Worker
  • I-730 Form, Refugee/Asylee Relative Petition
  • I-589 Form, Application for Asylum and for Withholding of Removal

Other USCIS petitions include:

  • I-360 Form, Petition for Amerasian, Widow(er), or Special Immigrant
  • I-526 Form, Immigrant Petition by Alien Entrepreneur
  • I-918 Form, Petition of U Nonimmigrant Status
  • I-929 Form, Petition for Qualifying Family Member of a U-1 Nonimmigrant

As a result, fees for forms can add up quickly. Adding a 10% surcharge on immigration application fees may increase the total amount of fees significantly, depending on the individual as well as their family members’ situations.

What are the Current Immigration Application Fees?

USCIS has several forms with associated fees depending on the specific applicant need. To apply for naturalization, applicants must submit Form N-400, Application for Naturalization. There is an online portal to help applicants calculate their total fees. Form N-400 fees include a fee for the form itself, and another fee for biometrics. An average Form N-400 fee includes:

Biometrics$85
N-400$640
Total$725

What will the Immigration Application Fees rise to?

If the 10% surcharge is added to immigration application fees, the total cost to file Form N-400 may rise by $72.50 to a total of $797.50 (assuming biometrics fee also rises by 10%). If an employer has several employees impacted by this surcharge, the increase in costs may be significant.

What Does This Mean?

Depending on the form, the 10% surcharge may be as low as $6.50, or as high as $1,779.50. In some cases, these fees may be paid by employers who employ H-1B visa holders. Employers should review the fees for the various forms to understand if the 10% surcharge may cause significant changes to budgets and costs associated with compliance to USCIS requirements.

 What Should Employers do About Immigration Application Fees?

Employers should work with a knowledgeable and experienced Relocation Management Company (RMC). RMCs with experience will be able to help employers understand how to identify costs and other issues that may arise from the USCIS surcharge request.

The RMC will also have knowledge of a number of alternatives that may provide employers with valuable and cost-effective solutions. As a result, employers may be able to mitigate the impact of the 10% surcharge and other issues surrounding immigration as it relates to COVID-19 restrictions.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to respond effectively to issues regarding the USCIS and immigration. Our team can help your company understand how to plan accordingly for increases in immigration application fees.

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.

Contact our experts online to discuss your company’s interest in learning more about how to plan for increases in immigration application fees, or give us a call at 800.617.1904 or 480.922.0700 today.

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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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Border Restrictions in the United States to be Extended Indefinitely

American and Canadian flags waving at sunset

The Centers for Disease Control and Prevention (CDC) has amended and extended a rule that allows the Trump administration to extend border restrictions for an indefinite length of time. The rule, effective May 19, is officially known as the “Amendment and Extension of Order Suspending Introduction of Certain Persons from Countries Where a Communicable Disease Exists.” The original order was issued on March 20, and then was first extended on April 20.

What are the Specific Areas that the Order Covers?

The order’s amendment is to clarify the areas that are covered by the order. Specifically, the order applies to U.S. Customs and Border Protection managed areas and installations including:

What is the Duration of the Order Implementing Border Restrictions?

As written, the duration of the order will depend on the determination of the Director of the CDC, Robert R. Redfield, MD, as to the following:

  1. The Director determines the danger of further introduction of COVID-19 into the US Is no longer a danger to public health
  2. The continuation of the order for border restrictions is no longer necessary to protect the public health

Who does the Order Apply to?

The order’s wording is specific, and states that it applies to all persons travelling from Canada or Mexico, regardless of the country of origin. This is an important point that greatly expands the range of the order and its impact on travel and immigration. A significant number of expulsions have been occurring at the border since the first order was put into place.

Are there Exceptions to the Order?

There are a few exceptions to the order for border restrictions. Certain persons will be able to pass through a POE or a Border Patrol Station. However, the U.S. Department of State has issued a Global Level 4 Health Advisory: Do Not Travel guidance. In general, people should avoid unnecessary travel. The exceptions to the order include:

  • U.S. Citizens
  • Lawful permanent residents, their spouses, and children
  • S. members of the armed forces, their spouses, and children
  • Associated personnel of the armed forces, their spouses, and children
  • Persons from foreign countries:
    • With valid travel documents arriving at a POE
    • In the visa waiver program, not subject to travel restrictions, arriving at a POE
  • Persons determined by customs officers to be excepted on a case-by-case basis subject to overall circumstances such as interests related to:
    • Law enforcement
    • Officer and public safety
    • Humanitarian
    • Public health

Ultimately, the U.S. Department of Homeland Security will consult with the CDC to determine how to approach these case-by-case exceptions to ensure consistency.

What Should Employers do About Border Restrictions?

Companies should continue to stay informed about U.S. border restrictions. These restrictions may have a significant impact on an employer’s ability to recruit and hire foreign talent. As a result, knowing what to expect can help companies determine how to leverage strategic resources and respond accordingly to meet corporate objectives.

Companies should also work with a knowledgeable and experienced Relocation Management Company (RMC). RMCs can help companies design a robust talent acquisition program. Also, RMCs can help a company design an industry-leading relocation program that will give them a competitive advantage in the global market for highly skilled employees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to respond effectively to issues regarding travel and immigration. As a result, our team can help your company understand how to develop plans to mitigate the impact of US border restrictions.

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

Contact our experts online to discuss your company’s interest in learning more about the US border restrictions and their impact on travel and immigration, or give us a call at 800.617.1904 or 480.922.0700 today.

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Beating Isolation: Tips for Employees Who are Temporarily Working From Home

Carefree funny young man having fun dancing alone in modern kitchen interior, active happy funky single guy enjoying silly movements dance standing at home listening music celebrating freedom concept

For millions of employees who are temporarily working from home, beating isolation may be a huge challenge. With the COVID-19 pandemic resulting in many “stay at home” orders, many employees are feeling the effects of spending a lot of time alone. Day-to-day interactions with their workplace peers has now given way to limited conversations through electronic devices.

Many employees live far from their workplace friends. As a result, it is not easy to get together for lunch or coffee breaks while practicing good social distancing. Isolation may have negative impacts on employees’ level of engagement and productivity. If you are working from home, what can you do to promote positive feelings and increase your feelings of connection to your company and coworkers?

GMS Employees Share Their Tips for Beating Isolation

Just like many of our clients and network partners, GMS has several employees who are temporarily working from home. For some of these employees, this is their first time ever working from a home office location. A few of these employees have been having great success in getting over the feelings of isolation in their temporary work from home environment. We asked these employees to share their successes in beating isolation.

GMS Employees Beating Isolation While Temporarily Working from Home

Erika Escalante, Business Development Manager

Spring Brittlebush blossoms carpet the desert below The Supertition Mountains in the Tonto National Forest near Phoenix Arizona great to hike while beating isolation
The Superstition Mountains in the Tonto National Forest

“This is the first time I have had the opportunity to work from home so I have definitely been trying to keep busy. I have been going on morning jogs as I feel it allows me to start my day with a bit more energy. A few other non-screen activities are also fun, including working on puzzles and reading books. I enjoy virtual game nights with my friends.

We try to do one hike per weekend (while practicing good social distancing), and so far we have visited the Phoenix Mountain Preserve, Bartlett Lake, Tonto National Forest, and a few other places. I think the key for me in beating isolation is to keep busy and stay connected with my family and friends.”

Ann Knapp, Director, Transportation Services

“This has been quite a serious and quick change for all of us and it took me a bit to get into a groove since I’ve never worked full time from home before. I’ve tried to approach ‘quarantine’ with honesty, realism and humor (this is how I handle most things in life). For me, it’s been key to make sure that I’m consistently doing some basic things to start my day: get up, watch the Golic and Wingo show on ESPN while I eat my breakfast, and shower. Right before logging on each morning, I pick out some music (because the silence of my house is deafening) and then I get to work. For lunch, I do what I didn’t do at the office – I walk away. Sometimes it is for 10 minutes, sometimes it’s for the whole lunch break, just depends on the day, but I have found it to be valuable to help me get through the rest of the day.

Summer in Scottsdale

Woman walking in hot sun with water bottleIt’s been getting pretty warm here in the desert, so my short walks have all but been eliminated. Now I’m walking in place and have ‘one person dance parties’ – it seems a bit ridiculous, but it at least gets the blood flowing. Also, when I’m done for the day, I’m done. I try to log off pretty near to my ‘normal’ time, but when I finally do, the laptop is shut and I walk away from it for the night. I’m making more phone calls and video calls in order to have ‘more’ interaction with people, since that is what I’m missing most from my daily routine and it’s great for beating isolation.

I’ve also allowed myself to acknowledge that it’s okay to not always be okay with what’s going on in the world. I’m a ‘brave face’ ‘think positively’ person, but I’ve had to allow myself to acknowledge those occasions where I feel overwhelmed because I need to address those feelings – it doesn’t do me any good to bottle them up. There have been times when I’m scared about what’s going to happen in the future and times when the loneliness becomes very real – and those 5 or 10 minutes that I spend working through those feelings help me to reset and move forward.  Additionally, hobbies have been taking up a bit of my ‘downtime’ whether it’s reading or knitting or picking up something new, they help to keep my mind active after work and on the weekends. We are in this together, we will get through this together.”

Laurent Lanée, Senior Global Assignment Manager

“This is not my first time working from home so it has not been a huge challenge for me to adjust. Beating isolation is something I know how to do well. I am also very lucky that even with my wife working from home and my daughter being home schooled at this time, we all have plenty of space not to interfere with each other. So overall it has been a pretty smooth transition for me, going back to a setup that I’m familiar with.

Communicate, Communicate, Communicate

Communication is key when being remote. I have not been shy picking up the phone to call my co-workers to discuss something. I feel that the increased phone communication has allowed me to get to know my co-workers in a different way than face to face in the office. Being home definitely allows for more freedom of movement and communication.

My role as a Global Assignment Manager is always very independent as I manage my cases, assignees, clients and service providers mostly via email and phone calls so my way of doing business has not really changed, while being home based. I also feel that our team has actually grown closer as we are ‘meeting’ more regularly in a more casual setting, to discuss our work days and the current global situation.

Fun Activities

Some of the things I have been doing on my side for beating isolation and to keep busy (not that it has ever been a problem for me) are:

  • Practicing my cocktail making skills
  • Teaching my daughter how to swim
  • Assisting my daughter with her kindergarten home schooling (seems it takes an IT specialist skills to navigate all the apps that are needed for that to happen!)
  • Set up a new swing set in our backyard for my daughterHerb Garden growing is great for beating isolation
  • Going for walks and bicycle rides with my daughter in our neighborhood (trying to teach her how to ride her bike)
  • Attempting to grow an herb garden (not that easy in 100 degree weather!)
  • Cleaning up the garage (not that fun!)
  • Communicating with friends and family via Facetime
  • Working on the French/English translation of my grandmother’s journal (or her daily life in Normandy during the first half of 20th century including World Wars I & II)
  • Reconstructing our family genealogy
  • Working on pictures for our gallery wall in our new home entryway
  • Submitting images from my 250,000 images library to online photo competitions and stock images websites
  • Having weekly neighborhood happy hours with my wife in our driveway… and waving to neighbors!
  • Attending free online photography and art courses via MoMA, Adobe and Canon USA
  • Taking free virtual tours of exhibits and museums around the world
  • Planning our family’s next vacation since the last one got canceled due to Covid-19”

Kelly Rabbitts, Vice President, Global Account Management

Lemonade“I moved recently, so I have been unpacking, remodeling, and painting my new home. I have also been making lemonade with fresh lemons from my lemon tree.

Regularly participating in virtual happy hours with friends and family members helps with beating isolation through video chats and gatherings. I have also been pursuing my writing.”

What Should Employers do to Help Employees with Beating Isolation?

Employers should encourage employees to find ways to connect with co-workers, friends, and family members during their time working at home. Many states have various regulations and orders to “stay at home” so tips on beating isolation will be important for employees to learn and put into practice. Talent Management programs should take into account how workplace changes and dynamics can affect employee performance. Helpful resources should be made available for employees, and employers should encourage creative and fun ways for beating isolation.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients navigate issues that impact employees working at remote locations. As a result, our team can help your company share tips on beating isolation so employees feel engaged, productive, and a member of the team. Companies should take a proactive approach to helping employees who are temporarily working from home and who may be feeling negative effects of isolation.

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

Contact our experts online to discuss how your company can share tips on beating isolation for employees who are temporarily working from home, or give us a call at 800.617.1904 or 480.922.0700 today.

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Virtual Career Opportunities: Rising to the New Challenge

Shot of two colleagues video chatting with each other on a computer at work

Many GMS clients are currently seeking employees for virtual career opportunities. As the world responds to the COVID-19 global pandemic, thousands of employers need to hire additional staff. Often this need may be driven by rapidly changing business priorities. Increasing demand for specific products and services means companies need employees to help meet new objectives. With many directives for employees to stay at home, employers are quickly adapting jobs, work teams, and communication methods to fit the new challenge of operating a virtual workplace.

For job seekers, this new challenge requires them to understand the dynamics of a virtual workplace. They must also position their skills, education, and experience in a way that makes a solid case they are ideally suited for success in a virtual workplace. However, valuable skills in a real workplace may not easily translate or be recognizable in a virtual setting. What should job seekers know about virtual career opportunities?

GMS spoke with Craig B. Toedtman, Founder and CEO of Resource Development Company, Inc. (RDC), to learn more about virtual career opportunities. RDC is a privately held human resource management consulting firm that focuses on providing retained search and career management services. Craig agreed to share his expert guidance on this topic, as well as provide helpful resources for job seekers.

Virtual Career Opportunities: The Advantages

One of the best aspects of virtual career opportunities are the wide range of possible advantages for both employers and employees. Craig has extensive knowledge on this topic, having helped thousands of employees to obtain new jobs. According to Craig, the top advantages include:

Advantages for Employers

  • Environmentally friendly (carbon emission reduction)
  • Larger recruiting market for candidates
  • Lower costs for office space and amenities

Advantages for Employees

  • Access to more opportunities over a greater geographic range
  • Better work-life balance (if employee can “leave” work at end of their day)
  • No commuting reduces stress and costs

Virtual Career Opportunities: The Disadvantages

As with anything, along with advantages come possible disadvantages. Craig believes both employers and employees should be aware of the disadvantages, so they will know how to avoid them. Craig notes the major disadvantages may include:

Disadvantages for Employers

  • Lack of interaction may reduce teamwork and synergies
  • Scheduling conflicts
  • Some processes function best in a centralized format

Disadvantages for Employees

  • Communications may be a challenge
  • Diminishing promotional opportunities (difficult to show additional aptitudes and talents)
  • Working alone may lead to negative isolation effects

The Real Challenge that Must be Overcome for Virtual Career Opportunities

Ultimately, Craig believes the real challenge for employers is two-fold:

  1. Identify the critical success factors surrounding virtual career opportunities
  2. Put tools in place to execute and monitor actions to ensure success

If employers are able to meet this real challenge, then the question turns to the strength of job seekers under consideration for the position. Craig’s firm administers the DiSC® Personality Assessment to help job seekers understand their strengths, characteristics, and preferred behavior style.

DiSC® Personality Traits and Virtual Workplaces

Certain personality traits may perform well in virtual career opportunities that require higher levels of isolation. “C” personalities that do well on clearly defined tasks may excel in these positions, if expectations are clear. “D” personalities may also excel in virtual workplaces if there are specific goals they must obtain.

However, other personality traits may do very well in virtual career opportunities if the position suits their styles. “I” personalities prefer interaction, so a remote sales position requiring interaction with clients and prospects may be an area they can be highly successful. “S” personalities that prefer close team work may be ideally suited for roles requiring a high level of interaction with other team members.

Resources to Find Virtual Career Opportunities

Craig’s firm notes the following online sites are helpful for job seekers looking for virtual career opportunities:

Indeed Virtual Jobs

ZipRecruiter® Virtual Jobs

Amazon Virtual Locations

CareerBuilder® Virtual Jobs

FlexJobs Remote Companies That Thrive on Virtual Work

Linkedin Virtual Jobs

Monster Virtual Jobs

SkillCrush Companies Hiring Remote Workers

Virtual Assistant Jobs

What Should Employers do?

Employers looking to create successful virtual career opportunities should consider working with a career services firm that has knowledge and experience with virtual workplaces. Relocation Management Companies (RMCs) are ideal sources for information on candidate recruitment and talent acquisition programs.

Pre-Decision Services are critical for employers as they provide valuable information about a candidate’s ability to accept a position and be successful. Assessment data can be paired with structured interview questions to better understand the candidate’s interests, goals, and motivations. DiSC® Personality Assessments administered by qualified professional career service firms such as RDC provide a wealth of information for employers to understand if the job seeker is a good fit, and for the job seeker to determine if they are suited for various virtual career opportunities.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients determine how to develop a talent acquisition program that is responsive to changing company needs. Our team can help your company determine how to turn virtual career opportunities into successful new hires.

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

New SafeRelo™ COVID-19 Knowledge Portal

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

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

Contact our experts online to discuss how your company can leverage virtual career opportunities to continue growing your business, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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Best Travel Tools for Relocation Programs

Business meeting on the train

Companies should incorporate the best travel tools into their corporate relocation programs. Global Mobility Solutions’ industry benchmarking study shows that only 23% of Relocation Management Companies (RMCs) provide any form of travel tools. GMS is a leader in the relocation industry on this point, providing a full range of useful resources for transferees.

Industry Benchmarking Studies Highlight Best Travel Tools

GMS has recently published several Industry Benchmarking Studies to help companies 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, companies can learn whether their relocation program offers the best travel tools as compared to those offered by competitors in their specific industry.

The relocation industry’s 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 the relocation industry’s many solutions to meet ever-increasing client requirements and employee needs.

Five Best Travel Tools for Relocation Programs

There are five best travel tools for relocation programs. All of these tools can be designed to work seamlessly with each client’s travel policy and relocation programs:

1. Compliance to Company Travel Policy

An online travel tool quickly and easily communicates guidelines to employees. Best travel tools for compliance also show specific features and options for each client’s policy. Limits that match policy guidelines should also be shown, to help employees choose the most appropriate options.

2. Tracking Travelers (GPS)

Tracking employee travel is important for several reasons. Companies need to ensure the safety of employees during their travels, so knowing where they are at any given time is extremely valuable. Also, companies need to track the number of days-in-country for reporting requirements.

3. Compliance for Entry, Re-entry, and Taxes

Companies need to track the number of days an employee stays within a country for reporting requirements that may relate to tax issues, or specific work permits. Also, countries may have specific entry/re-entry requirements.

4. Best Travel Tools Bill Direct to Client, or to GMS

Many companies appreciate the option of direct billing. Billing travel costs directly to the client, or to GMS with no markup back to the client, has many benefits:

  • Paperwork reduction
  • Administrative cost reduction
  • Simplified processes
  • Employees don’t need to submit for reimbursements
  • Itemized invoices show all travel expenses

5. Custom Reporting Options

Comprehensive reports that show every element of travel and costs are helpful to clients for managing travel budgets and programs. Reports that are customizable can help measure program effectiveness and readily highlight areas that are out of compliance.

How Can Companies Learn About the Best Travel Tools?

Companies should review their current travel policy and relocation program to determine if they are using the best travel tools. RMCs with expertise and experience in travel policies for relocation programs are a valuable resource for policy reviews. Companies should schedule a policy review on a regular basis to learn about the latest features to streamline and enhance reporting and compliance requirements.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients benchmark their relocation program and incorporate the best travel tools into their business travel policy. Our team can help your company understand how to provide the best travel tools for your traveling employees.

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

Learn how to incorporate the best travel tools into your company’s relocation program. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Business Services Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends

Travel Guidance: Staying Ahead of the Curve

A multi-generation African-American family sitting together on a park bench on a sunny autumn day. A 10 year old boy is hanging out with his father and his great grandfather.

In the midst of urgent travel guidance from the United States, federal agencies, and other nations, employers should practice due diligence in assisting their employees on assignment. The U.S. Department of State has issued a Global Level 4 Health Advisory: Do Not Travel. Even within the United States, additional travel restrictions are arising. For example, the state of Texas has implemented travel restrictions on those who want to enter the state. Several other locations may be considering local restrictions. Many US cities have “shelter-in-place” mandates aiming to protect citizens most at risk during the COVID-19 pandemic.

Employees on Assignment During Travel Guidance

Worldwide ERC® reports that over 13,500 US citizens have requested assistance from the State Department to return to the United States. Such assistance is becoming extremely challenging as airlines reduce their number of flights, and other nations close their borders to travel. Major regions such as the European Union are developing plans to restrict non-essential travel from other countries.

For employers that have employees on assignment in other nations, support and communication are critical. It is possible that some employees may need to remain in place for an extended period of time. Employers should be sure to inform employees on all aspects of their situation. They should also provide as much support as possible, so the employees and their family members can have peace of mind.

Relocation Management Company Resources for Global Assignees

Relocation Management Companies (RMCs) have a wealth of knowledge, experience, and resources to provide assistance for global assignees. GMS recently shared information with its clients to cover many of the issues surrounding travel guidance and how to provide support for global assignees.

Important Points for Employers to Consider for Global Assignees Include:

  • Extending temporary housing for those employees on global assignment who need extra time to determine how to repatriate to their country of origin
  • Extending relocation benefits to allow for more than one year
  • Many clients have initiated a global assignment but are asking their employees to work at the home location for the time being. Clients need to be thoughtful about how this may impact visa and taxation issues. GMS recommends clients consult their tax and immigration provider for support
  • Approving additional tenancy management, home maintenance, and grocery delivery when necessary
  • Since almost all business travel has been restricted, restrict all home leave trips for global assignments as well
  • Due to travel guidance restrictions, offer virtual services such as destination support and settling in services, immigration assessments, and visa country spotlights

What Does This Mean?

During the COVID-19 pandemic, travel guidance is constantly changing. Employers may have global assignees impacted in several ways by various restrictions, border closures, and reduced means of transport. As a result, employers should work to ensure continual and up-to-date communications with employees on global assignment. They should also consider revising several aspects of their relocation and travel policies to ensure employees receive as much support as possible as they try to navigate changing travel guidance, restrictions, and closures.

What Should Employers Do About Travel Guidance?

Employers with global assignees impacted by travel guidance, restrictions on movement, and other issues impacting their mobility should speak with an experienced and knowledgeable RMC. RMCs with established local presences and vast networks of top providers offer valuable insight into how best to communicate issues and resolve difficult situations. They can also provide the necessary resources and support for employees and their family members. Experienced RMCs will be able to offer technology and resources directly, locally, and even virtually as each individual situation requires.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to respond to changing travel guidance, border closures, and other issues and restrictions affecting global workforce mobility. Our team can help your company understand how to assist global assignees with virtually any relocation issue. As a result, this will help them and their family members have peace of mind, and be able to focus on their assignments.

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

Contact our experts online to learn more about how our company can help your global assignees during times of continually changing travel guidance and other restrictions, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends United States Economy

Vehicle Program for Foreign Nationals Relocating to the United States

Happy man receiving keys for his new car in a showroom.

Global Mobility Solutions’ clients often have transferees relocating to the United States who can use a vehicle program to obtain a car. Arriving from outside the country, foreign nationals quickly realize they need a vehicle after their arrival. Many international locations have extensive public transportation options. Most US cities lack extensive inter-city rail options, and often do not have robust local bus or light rail service throughout the metropolitan area, so transferees need a car.

A significant hurdle these transferees face is that they often do not have established credit in the US. As a result, they will not have a credit profile that lenders can use to determine their creditworthiness.

GMS spoke with Afia Arneja, Senior Vice President, International AutoSource (IAS). Afia agreed to share her expert guidance on this topic.

Challenges of Getting a Car in the US for International Assignees

According to Afia, many transferees moving to the US are not prepared for the challenges they will face when it comes to getting a car. Having a solution for their transportation is low on their list of priorities. However, upon arrival, these transferees suddenly understand the urgency of having a vehicle in this country with its large cities and wide suburban areas.

Biggest Obstacles That a Vehicle Program Helps Transferees Overcome

1: Lack of Credit History

Afia notes that many transferees are unaware that their overseas credit history doesn’t transfer with them to the US. If they are new to the US they will have to establish a credit history to obtain a loan for a new car. Some banks or financial institutions may offer a solution, but that comes at a cost in high-interest rates. These high rates are how these institutions offset their credit risk with the transferee.   IAS recognized this issue very early on. Serving the transferee community for over 20 years, IAS built unique programs by leveraging their manufacturer relationships. IAS also provides finance and lease options for transferees. These options are much more reasonable than those offered by banks and financial institutions.

2: No Access to International Driver History and Records

Similar to credit history, driving records do not transfer to the US. Unfortunately for transferees, Afia says this means that most insurance companies will consider transferees as new drivers. As a result, these insurance companies will charge them a premium for auto insurance. IAS is a full-service vehicle program provider that has partnerships with leading auto insurance companies to solve this problem for their customers. As a result, IAS can provide reasonable auto insurance rates with no penalties for not having a US driving history.

3: Confusing Car Buying Options Compared to Easy to Use and Easy to Understand IAS Vehicle Program

Upon arrival in the US, transferees are exposed to many car-buying solutions. Navigating through the overwhelming number of dealers and buying services that promise the “best deal” can be daunting.   Afia notes that IAS created a vehicle program to protect transferees from overpaying for their automobile. IAS has pre-negotiated prices with manufacturers that provide factory-direct access and cut out the middleman. Without having to work through a dealer, transferees receive competitive prices and avoid all the hassles of negotiation.

4: Driving Options

Transferees need to identify the right solution for their transportation needs. Afia believes this starts with determining the length of stay in the US. Many transferees need expert guidance to help them find the right option for their situation. The IAS vehicle program provides products that fit any situation.

For assignments less than 12 months, ReadyDrive Rental is a long-term rental program that offers competitive rates. Often these rates are lower than most corporate rates available with insurance coverage included.

For 2-3 year assignments, there are lease products available. These products take the hassle of selling the car at the end of the job out of the equation. Financing options are also available for those planning to stay longer than 3 years.

Important Points to Note on Working with IAS to Obtain a Vehicle for a Foreign National

  1. IAS does not require a local credit history to help transferees obtain a vehicle. However, an important point to note is that buying or leasing a vehicle is extremely helpful for a foreign national to start building credit in the US.
  2. IAS is able to connect with partners to obtain competitive insurance rates for the transferee. Of particular importance is that IAS can do this even if the transferee does not have a local driving record.

What Does This Vehicle Program Solution Mean?

Foreign national transferees who want to obtain a car in the US have multiple solutions with the IAS vehicle program. Even if the transferee does not have credit in the US or a local driving record, IAS can provide a solution for their needs. Solutions might include buying, leasing, or renting a vehicle.

What Should Employers do About a Vehicle Program?

Employers with foreign national transferees who want a vehicle in the US should review the various options offered through the IAS vehicle program. Relocation Management Companies with knowledge and experience can provide guidance on industry-leading solutions such as those offered by IAS. Employers should also review their relocation policies to determine if enhancements are necessary. Adjustments to policies can be made to further assist foreign national transferees who want to use the IAS vehicle program.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to communicate to foreign national transferees any issues related to obtaining a vehicle in the US. Our team can help your company understand how to proceed by providing guidance on how to help transferees obtain a car through the IAS vehicle program.

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

Contact our experts online to discuss your company’s need to help foreign national transferees learn about the IAS vehicle program in the US, or give us a call at 800.617.1904 or 480.922.0700 today.

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Global Mobility Global Relocation Global Relocation Tips Global Relocation Trends Relocation Best Practices Relocation Challenges Relocation Programs United States Economy Visas and International Travel

Successful Language Training: What Does it Look Like, and What Can it Provide?

relocation coach helping moving employee
Male CEO talking during a business presentation in a board room. Copy space.

Successful language training often helps employees determine if they can easily accept a global assignment. Many transferees may have a commanding grasp of several languages. Language proficiency and other professional skills often prepare them well for work in a new location. However, their family members may not be as proficient in multiple languages. The prospect of relocating to a destination where language may become a barrier can be daunting.

Employers should inquire as to whether transferees, their spouses, and their family members have proficiency in the language that is most in use at their new location. If they do not have proficiency, employers should provide assistance with language training.

What Does Successful Language Training Look Like?

Language training programs may include several helpful elements. All of these elements work together to provide transferees and their family members with valuable communication skills. These programs provide professional resources that are proven to assist transferees and their family members successfully settle in to their new location.

GMS spoke with Inigo Lopez, CEO of BiCortex Business Language Services to learn more about how participants can get the most out of their language training programs. Inigo agreed to share his expert guidance on this topic.

Successful Language Training Should be Efficient

Inigo notes that for greatest efficiency, students should study in a private class. Also, the number of student in group classes should always be kept to a minimum. The best solutions are tailored to the student’s specific needs including:

  • Preferred location (home, office or a neutral location)
  • Level of education
  • Business industry
  • Student’s professional and personal objectives

Language training that uses multiple methods to teach students typically has the highest rate of success. These methods may include conversation, use of visual aids, grammar exercises, and self-study. Also, students report higher levels of satisfaction with the training program. As a result, they are also more highly motivated.

Successful Language Training by Expert Language Trainers

Inigo believes the best language training providers work with trainers with the following profile:

  1. Significant number of years within the field of education
  2. Native and multilingual teachers
  3. Qualifications from renowned colleges and universities
  4. Highly motivated specialists with excellent customer feedback

Language Training and Complementary Services

Beyond language training, good solutions offer a range of complementary services. Inigo believes language training and other services can work together to help students reach the highest level of success. For example, tutoring can extend beyond language to include academic support in schools, preparatory classes for examinations, diplomas, and entrance exams, or writing papers.

Additionally, training should incorporate a wide variety of formats. Live online classes, online module learning, and custom solutions all work together to help students learn at their own pace.

What are Students of Successful Language Training Saying?

Inigo provided comments from several students who have utilized language training solutions successfully. Their comments show the amount of value that language training can provide:

M. recently relocated from Colombia to the United States

“My goal is to learn the English language because now we live in the United States…the language training classes helped me a lot…my level is very low as a beginner. My advice to others who want to learn a new language would be that first you really need to want to learn and receive classes both on grammar and tenses, classes can be online as it is similar to face to face in my experience.

The best thing for me is to simply learn, I love to learn more things every day. English for me is a priority and is a goal of mine in 2020. My favorite resources were the internet based tools and videos.”

R. recently relocated from India to the United Kingdom

“My main goal is to be fluent in it, and be confident. So far it is good, my teacher helps very much, and I like her classes. My advice to others is try to use English every day, read books, when looking for a word you do not know yet, always use more than one dictionary.

The best thing about learning a new language is that I am able to develop my confidence level, improving my social interaction and encouraging connection between peers. For me, the best way to learn has always been watching movies and shows. A good way to learn and practice English is to talk with our friends.”

What Should Employers do About Language Training?

The most successful company relocation programs provide a wealth of support programs and services for transferees and their family members since they are often key to ensuring a successful relocation. GMS provides our clients with an extensive range of language training programs as well as other valuable business services so employee relocations are successful. Our high-touch service model fully extends to helping transferees and their family members with everything they need during their relocation process.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop successful language training programs to help their relocating employees and their family members settle in to their new location. Our team can help your company determine the best language training solution for your relocation program. As a result, this will help promote successful 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.

Contact our experts online to discuss successful language training solutions to help your transferees and their family members, or give us a call at 800.617.1904 or 480.922.0700 today.

Categories
Business Services Global Relocation Challenges Global Relocation Tips Relocation Challenges Visas and International Travel

Business Faux Pas: Top 5 Tips to Cultivate Good Global Relationships

Old Ways Wont Open New Doors sign

Global Mobility Solutions’ clients know that business faux pas can inhibit the development of a mutually beneficial relationship. Some customs that are completely acceptable in one country may not be acceptable in other countries. As a result, even the smallest gesture might not give a positive reflection. There are many ways to avoid these scenarios. Companies should provide resources and training for employees to help them learn how to cultivate good global relationships.

Top Emerging International Markets for Global Relocation

Many companies actively seek the top emerging international markets for investment. Companies focused on growth have a number of paths to choose as they look into global expansion. These choices may include some of the following:

  1. Business travel
  2. Short term assignments
  3. Work with a local partner
  4. Utilize services of International Professional Employer Organizations (PEO)
  5. Establish a local presence

Companies that are planning to use one or more of these paths should follow specific tips to avoid business faux pas. Careful research and investigation will help ensure good global relationships.

Top 5 Tips to Avoid Business Faux Pas

1. Research information about the location

GMS provides a number of valuable information resources for our clients. Global and Domestic Spotlights highlight information about culture, education, cost of living, climate, and many other points. Each of the spotlights provides information that can be used to learn more about important points for business contacts.

MyRelocation® Video Spotlights provide visual insights into a destination. Viewers can easily identify points of interest. They can also see the type of location, whether large city, suburban town, or small city located in the countryside. As a result, each of these locations will help the viewer understand how best to approach contacts in those areas.

In-depth research on a specific location can provide important points. For example, the city of Los Angeles recently enacted new regulations that may impact clients in various ways, and could certainly lead to business faux pas. This kind of research can also be provided with customized requests focused on specific locations and topics.

2. Get to know your contact

Many companies and their employees have robust pages on Linkedin. This social networking platform has risen in importance as a place where business people communicate with each other on relevant topics. Groups may be formed that are specific to interests such as Quality Auditing or Content Marketing. A contact’s participation in a group may provide helpful information on topics of importance to them.

Professional Organizations may have information about members. For example, the Arizona Department of Real Estate includes information on all licensees and brokers. Visitors to the website can search within the Department’s Public Database on topics related to licensing, education, development services, and compliance.

3. Ask questions to avoid business faux pas

Within your company or other professional contacts, do you know others who have visited the location? If yes, they may provide good information about the location, customs, and people. The more these contacts share with you, the better your chances are for creating a positive experience and avoiding business faux pas.

Do you or others in your circles know specific contacts at the location? Perhaps a supplier may have a facility located there. It may be helpful to reach out to these contacts and ask questions about their lives and experiences. Inquire as to what these contacts enjoy doing in their spare time, and what tips they can share about the local culture.

As you plan your travel, the places you stay may be able to provide valuable input for your visit. Contact local housing providers and ask if they have information about the location they can share. If you will be staying at a hotel, often the concierge is a source of valuable local information.

4. Review the business

Diligent research on businesses and contacts should include reviewing any publications such as the company’s annual reports, press releases, websites, and social media pages. Much of the contact that is shared can provide good insight into what is important for the company. It may also provide a number of talking points that can help open doors and leave an impression that you care about the company and their issues, needs, and goals.

Many business journals publish articles about companies. While not all of these articles are authorized, they may still provide helpful information. Some business journals to review include the Financial Times, The Wall Street Journal, Crain’s Chicago Business, and The Economic Times. Keep in mind that referencing an unauthorized article about a company to your local contact would indeed be a business faux pas.

5. Attend cultural training to learn how to avoid business faux pas

A virtual trainer for culture allows employees to access training anytime, anywhere. Cultural training modules include several topics in helpful settings, such as:

  • Personal training via webcam in one-on-one sessions
  • Trainers help employees learn how to view cultural differences to promote synergy
  • Guidance to operate in business settings includes practical and actionable points
  • Skill-sets found in other cultures are leveraged to help the employee learn more
  • Values such as mutual respect and understanding are shared and reinforced

Cultural training can be critically important as businesses pursue growth in countries that may be quite different from their own. For example, China’s culture includes a unique concept called “good guanxi.“ In China, the primary focus in business is relationships, not tasks. As a result, companies seeking to do business in China should learn the best ways to build business networks with good guanxi. This will go a long way toward avoiding any business faux pas.

What Should Companies do About Business Faux Pas?

Companies should work with a qualified Relocation Management Company (RMC) that has extensive experience in helping companies understand global issues. The RMC will help them understand how to research information about locations and companies. Additionally, the RMC will help the company learn how best to prepare for global expansion, whether through direct staffing efforts with global assignments or with the use of an International PEO.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients learn how to avoid business faux pas, with a goal of cultivating good global relationships. Our team can help your company understand how to research locations, people, and companies. We can also help your company learn how to leverage cultural training modules for employees to promote successful global business development.

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

Learn more about how your company can avoid business faux pas and cultivate good global relationships. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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