Categories
Global Relocation Global Relocation Tips Global Relocation Trends Visas and International Travel

Shanghai Streamlines Foreign Expert Residency

Shanghai has streamlined the procedures for highly skilled foreign experts to get their residence permits, easing foreign expert residency. This is the city’s latest measure to attract and retain top international talent. The initiative in Shanghai is the first and only measure of its type in China. It simplifies the application process, and establishes a globally competitive talent system.

What are the key features of the initiative?

National and local authorities who manage human resources or the affairs of foreign experts will identify the highly skilled foreign professionals who may benefit from the initiative. Those eligible can visit an online portal to submit their documents. Permits will be available after three working days from the Exit-Entry Administration Bureau of the Shanghai Public Security Bureau.

The new procedure is a large improvement from the previous process. Previously, applicants had to visit exit-entry offices in person. They also had to participate in interviews and provide supplementary materials. The average application took seven working days for completion.

Who is eligible under the initiative?

Highly skilled professionals employed by over 8,000 companies which are viewed as key leaders in Shanghai’s quest to become a global technological innovation hub by 2030. The enterprises include high-tech and new technology companies, financial companies, strategic emerging fields, regional headquarters of multinational companies, and research and development centers that include foreign investment.

What should employers expect with this initiative?

Employers who have plans to hire highly-skilled foreign professionals for positions in Shanghai should expect an easier entry process.

What should employers do?

Employers should review their hiring plans for foreign professionals in Shanghai to determine eligibility under the new initiative. They should also use the features of the new initiative within their relocation program and talent recruitment materials to attract and retain highly-skilled professionals.

Conclusion

Global Mobility Solutions’ team of global relocation experts have helped thousands of our clients with country-specific employment and work pass requirements. We can help your company understand how to gain the most benefit from the streamlined foreign expert residency requirements in Shanghai. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

Categories
Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Relocation Challenges Visas and International Travel

Switzerland’s Federal Council Approves List of Occupation Types

Global Mobility Solutions previously noted a new requirement of employers to communicate Switzerland job openings in specific occupation types with higher than average unemployment rates beginning July 2018, according to a December 8, 2017 Federal Council decision. The Federal Council’s requirement for mandatory registration will start July 1, 2018 for positions that have 8% or higher unemployment, and then increase on January 1, 2020 for positions that have 5% or higher unemployment.

What is the new requirement starting July 1?

Under the new requirement, employers must register their job openings with the local job center and then wait five business days before advertising these openings through other venues. The local job center must forward applications from local job seekers who meet the requirements of the job opening within three business days. Companies must invite local candidates that meet the requirements of the job opening to an interview. They must also report the job openings they are able to fill through this channel to the job center. The temporary withholding of job opening information helps job seekers who are registered with the local job center to get priority access to the job advertisements.

What are the occupation types affected by this new requirement?

Switzerland’s Federal Council has now approved the following list of occupation types that fall under the job registration requirements:

  • Agricultural assistants
  • Other professions in the watch industry
  • Warehousemen
  • Other professions
  • Concrete constructor, cementer (inside): Construction
  • Other professions of the construction industry
  • Plasterers, stucco workers
  • Insulators
  • Public Relations Professionals
  • Marketing Professionals
  • Runners and Couriers
  • Teleoperators/Operators and Telephone operators
  • Receptionists and Porters
  • Service staff
  • Floor, laundry and Economat staff
  • Kitchen staff
  • Domestic farm managers
  • Actors
  • Manpower with indeterminate manual employment

What should employers expect with this requirement?

Employers should expect to register their job openings with the local job center. They must follow the new requirement if the job is on the list of occupation types. They should also expect to keep records to ensure they can verify they are following all aspects of the requirement, and to report on the job openings they are able to fill through this process. Employers can use the Check Up Tool to verify if their job opening is on the list that requires registration.

What should employers do?

Global Mobility Solutions recommends that employers review their hiring plans in Switzerland to determine the impact of the new requirement on their employment and job advertising processes. Employers should also examine their record-keeping processes to ensure they can accurately record and report on their activities related to fulfilling the new requirements.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with country-specific employment and job requirements. We can help your company understand how to comply with the job registration requirements in Switzerland, as well as review record-keeping processes to ensure reporting capabilities are sufficient. Learn best practices from Global Mobility Solutions, the relocation industry and technology experts. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

Categories
Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Immigration Rules Relocation Challenges Talent Mobility Visas and International Travel

Australian Senate Approves Skilling Australians Fund Levy Legislation

The Australian Senate has recently passed the Skilling Australians Fund (SAF) levy legislation aimed at developing a fund to provide training for Australians. This legislation is part of a larger group of initiatives that will change requirements for employers who would like to employ foreign workers to come to work in Australia. The SAF requires employers who sponsor temporary or permanent visas to pay levies. The SAF, while not yet fully implemented, is on track for implementation once the bill passes through Parliament.

The Skilling Australians Fund is seen as an important part of the Australian Government’s commitment to the private sector, growing the number of apprenticeships and traineeships and working in partnership with state and territory governments. The purpose of the SAF levy is to require employers who want to hire foreign workers to contribute to the skills development of Australians. This ensures those businesses that benefit from employing skilled foreign workers will also support training for Australians.

What are the key features of the Skilling Australians Fund legislation?

The SAF is designed to provide funds for Australian trainee and apprentice programs. When the legislation goes into effect, it will replace the current training requirement for employers. Currently, employers must demonstrate they are spending a sufficient amount of their business’s payroll on training programs.

Visa programs for which the levy will be assessed include:

  • Temporary Skill Shortage (TSS) (subclass 482) visa
  • Employer Nomination Scheme (ENS) (subclass 186) visa
  • Regional Sponsored Migration Scheme (RSMS) (subclass 187) visa

The applicable levies will be assessed in the following manner:

Temporary Skills Shortage (TSS) (482) Nomination

  • Small Business A$1200 per year
  • Large Business (turnover A$10million or over) A$1800 per year

Employer Nomination Scheme visa

  • Small Business A$3000
  • Large Business A$5000

Additional changes in the legislation impact Labor Market Testing requirements. The changes included in the legislation require the following:

  • Conduct testing no more than four months prior to submission of a nomination application
  • Advertising must increase and run for four weeks, instead of the current 21 days

What should employers expect with this legislation?

Employers who have plans to hire foreign workers for positions in Australia should prepare for upcoming changes in labor market testing and advertising requirements. Employers should also plan for increased budgetary impacts due to the new SAF levy.

What should employers do?

Employers should review their hiring plans for foreign workers in Australia to determine timeframes for labor market testing and position advertising. Employers should also review the budget impact of the new SAF levy as it applies to temporary and permanent visa sponsorships.

Conclusion

Global Mobility Solutions’ team of global relocation experts have helped thousands of our clients with country-specific employment and work pass requirements. We can help your company understand how to plan for the SAF levy requirements in Australia. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

Categories
Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Global Mobility Global Relocation Global Relocation Tips Global Relocation Trends Household Goods

Understanding Why Traditional and Self-Service Relocation Program Models Stay Relevant in Healthcare

There are various relocation program models that companies can use to provide transferees and their families a range of benefits to ensure a successful relocation. Global Mobility Solutions’ Medical Industry Benchmarking Report shows that among healthcare companies:

  • 86% offer a traditional program
  • 14% offer a lump sum/managed cap (self-service) program
  • 22% offer both types of programs

A best practice consideration is to adopt a combination of traditional and managed cap programming models. Reviewing the basic features and benefits of traditional and self-service relocation program models can help companies understand which programming model is the right choice for their unique requirements.

What is a Traditional Relocation Model?

A traditional relocation program generally provides for ongoing employee support services, supplier management, candidate selection, relocation benefits, and expense management. Corporate relocation programs frequently vary by company due to size, need, or destination. The overall process of employee relocation is usually divided into one of four service brackets including:

A robust pre-decision process is one of the most important things that contribute to high satisfaction rates among relocating employees. Recognizing its importance to overall satisfaction, there has been a significant increase in pre-decision service usage within the healthcare industry.

Additionally, 84% to 90% of healthcare companies utilize a tiered policy approach to relocation. The most common are by position level or homeowner versus renter status.

Providing additional benefits in a relocation program to attract highly skilled new hires will give a healthcare company a competitive advantage. For example, home selling and buying assistance might be a very attractive benefit for a talented healthcare professional who is considering a relocation offer from a prospective employer. Levels of assistance in this area can vary based on position. A relocation policy with a strong communication plan will clearly define and describe the exceptional value that this benefit provides to new hires.

What are Self-Service Relocation Program Models?

Self-service relocation models include lump sum and managed cap programs. The point is that employees direct their own relocation process. The difference between lump sum and managed cap programs is whether the employee or the RMC manages the relocation process.

Lump Sum Program

In a lump sum program, companies provide employees with an allocated lump sum payment and let the employee choose their relocation providers and process. Some Relocation Management Companies (RMCs) offer programs such as a dedicated debit card where funds are electronically transferred to the employee after their expense report is audited. The employee has immediate access 24/7/365 via ATMs and point-of sale retailers nationwide. In addition, funds can also be electronically transferred from the card to their personal checking account.

The success of a lump sum program rests solely upon the relocating employee. They do not have the benefit of expert guidance and counseling that an RMC can provide.

Managed Cap Program

In a managed cap program, companies provide employees a specific amount of funds to spend. Employees benefit from the support services offered by the RMC. These services include policy counseling to the employee on the best allocation of their funds when choosing from an array of relocation services. In addition, they receive guidance on the taxation of particular components, saving the company a FICA tax match and gross-up on particular benefits, such as the household goods shipment and final move trip.

A managed cap program contributes to fewer budget overages and higher satisfaction levels than the lump-sum option, maximizing the benefit for both the company and the employee. Consider tiered policies by level, under a managed cap methodology. This will inherently produce greater efficiencies than other relocation program models, provide employees choice, enhance quality, and contain costs.

Healthcare Industry Talent Recruiting Trends

According to Healthcare Source’s Healthcare Talent Management Trends for 2018, healthcare companies increasingly face skilled labor shortages in several employment fields. The aging population leads to increasing demand for healthcare talent. Also, the number of retiring healthcare professionals leads to a declining talent pool, creating a gap. Traditional employment recruiting strategies are not effective in closing the talent gap. Healthcare companies can attract employees by offering relocation programs with attractive benefits.

Leveraging Relocation Program Models to Attract Healthcare Talent

Most healthcare companies report a willingness to pay for relocation. In order to get the best results from their talent recruiting efforts, healthcare companies should promote their relocation program as a highly valuable benefit. This will help the company attract and retain talent that is looking for assignments in new locations.

Communicating their interest in attracting new hires and their willingness to help employees during their relocation process helps strengthen and broaden a healthcare company’s employer branding efforts. Many healthcare companies are investing significantly in building their employer brands to attract and engage top quality talent. A well-defined and attractive relocation program that follows industry best practices tells prospective employees the company is an employer of choice within the industry.

Healthcare talent acquisition programs must attract a variety of new hires, with many different skill levels. Offering a combination of traditional and managed cap programming models, along with a tiered policy approach, provides healthcare companies with a wide range of options to attract new hires.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts have helped thousands of our clients develop relocation program models that attract and retain qualified employees. Our team can help your healthcare company by using industry best practices to design a relocation program that combines traditional and managed cap models within a tiered policy to provide the widest range of options, increasing your company’s ability to attract and retain new employees.

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

Contact our experts online to discuss your healthcare company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Global Mobility Global Relocation Global Relocation Tips Global Relocation Trends Immigration Rules Relocation Challenges Relocation Management Relocation Programs Relocation Technology

What are the 2018 Global Relocation Trends?

What are the major 2018 global relocation trends shaping the industry? As workforce mobility and employee relocation continues to increase, several trends change how clients respond to increasing employee requirements regarding their relocation needs. Also, global changes in how employees are able to accept transferee assignments, such as limits on working visas and work permits, further impact company plans for mobility.

Our team of global relocation experts have identified five key trends that are shaping 2018 Global Relocation.

2018 Global Relocation Trends

Growth in Partner and Spouse Career Support Programs

As companies continue to expand globally, the need for a mobile workforce to accept transferee assignments has increased exponentially. Along with this mobile workforce, services designed specifically for spouses and partners have become increasingly important to employees. Spouses and partners are critical to ensuring transferee success. It is important for clients to provide support and information specifically for spouses and partners to help them with their relocation process. Specifically, pre-decision support, an online job search and assistance portal, and professional career services are important programs and services for spouses and partners. Transferees can be secure in the knowledge that their spouses and partners will receive as much assistance as they need to be successful in their new location.

Flexible and Responsive Global Relocation Programs

Global relocation programs need to provide enough flexibility to anticipate and provide for challenges and opportunities that are unique to specific locations. Many multi-national clients have designed a corporate-level relocation program, which then is further customized for each international headquarter location. Relocation programs designed at the corporate level need to provide for a multitude of options and differences across locations. Our recent Case Study on Implementation Success Factors describes in detail the importance of identifying all stakeholders and engaging them early in the process to ensure implementation success.

Immigration Challenges

Countries are increasingly placing limits on the number and types of working visas and work permits that allow transferees to enter the country legally for work assignments. Some countries such as the United Kingdom have seen the number of applications exceed the monthly quota. Other countries such as China have changed requirements and set up a Working Permits Points System that emphasizes transferees with specialized knowledge. The United States has instituted travel restrictions for specific locations, and has increased enforcement of immigration requirements. As countries around the world respond to migration challenges, the impact on global relocation programs will continue to evolve.

Technology Advances

Global relocation programs continue to respond to evolving technology changes. Increasingly, mobile technology must be responsive to provide transferees with information and solutions during their relocation process when they need it, wherever they are located. Transferees should be able to get information on the go, and upload expenses for quick reimbursement. Mobile enhanced relocation technology solutions such as MyRelocation should be available, as it is platform-responsive and able to be accessed anywhere, making it the most useful solution for a mobile workforce.

Outsourcing Relocation Programs to Industry Experts

Global relocation programs must cover a wide array of specialized issues such as tax, visa applications, and compliance reporting. Furthermore, it is to a client’s best advantage to consult with experts who have knowledge and experience in the specific aspects of these areas as they relate to global relocation programs. Companies can benefit from an outsourced solution that specializes in unique relocation needs. Working with relocation experts who have extensive experience in these and other areas can help a company avoid risks and respond more effectively to transferee’s requests for guidance and advice.

Conclusion

Thoroughly reviewing your global relocation policy and benchmarking to industry best practices keeps your company at the forefront of your industry peers, reinforces employee satisfaction, and promotes successful relocations. The global relocation experts at Global Mobility Solutions (GMS) have the knowledge and expertise to help your company remain at the forefront of 2018 global relocation trends, and offer your employees the best relocation experience.

Contact our team of experts to discuss your global relocation policy needs, or call us at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Global Relocation Challenges Global Relocation Tips Global Relocation Trends Immigration Rules Visas and International Travel

Slovakia Employment Rules Change for Non-EU Nationals

Slovakia Employment Rules: Slovakia is currently facing a shortage of qualified employees across several industries. To ease this situation, the Slovak government will reduce the restrictive requirements currently in place regarding employment for non-EU nationals starting May 1, 2018.

What are the Slovakia Employment Rules Changes?

Slovakia’s Act on Employment Services will require vacant position notifications to be reported to the Labor Office for twenty business days instead of the current thirty business days. This reduces the overall single permit processing time.

Districts which have average unemployment rates lower than 5% will have a simplified single permit process for occupations with labor shortages. The Labor Office will issue confirmation on filling job vacancies without conducting a local labor market test.

Single permit holders hired without a local labor market test in this simple procedure can only comprise 30% or less of a company’s total employment.

Additionally, new documents must be provided to the Labor Office to support the assignment of a non-EU national from another EU member state. These documents include confirmation of the accommodation for the assignment duration, a copy of Form A1, and a copy of the EU member state’s residence document (if applicable).

What Should Employers Expect?

Employers who have been convicted of illegally hiring foreign nationals in the most recent two year period will not be able to utilize the simple procedure.

Employers should learn about and understand the new simple procedure available in Slovakia. The Employment Rules change may allow employers to hire additional non-EU nationals in a shorter timeframe in order to meet business goals and objectives.

Most companies in Slovakia claim the simple procedures will not result in a massive search for workers outside of EU countries. Currently, the majority of workers in Slovakia who are from countries outside the EU are from Serbia and Ukraine. Half of these employees have a university-level education.

Conclusion

Global Mobility Solutions’ team of global relocation experts have helped thousands of our clients with country-specific employment rule changes and work requirements, and we can help your company understand how to comply with the new Slovakia employment rules change for non-EU nationals. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Categories
Global Relocation Global Relocation Challenges Global Relocation Trends Immigration Rules Relocation Challenges Visas and International Travel

Administration Establishes National Vetting Center

The Trump Administration has established a National Vetting Center. The Center’s purpose is to improve coordination among federal departments and agencies as they work together to identify threats to national security and safety. The Administration has given the Department of Homeland Security and other agencies up to six months to establish the Center based on guidelines and the Administration’s approval.

Why is a National Vetting Center Needed?

The Administration is working to enhance national security. The National Vetting Center allows for an integrated approach to the use and management of all data. The Center is designed to work across several areas relating to national security. Intelligence and other information on individuals that may present a threat to national security or other areas such as border security and public safety, can be coordinated, shared, and used among agencies and departments.

Which Federal Departments and Agencies Participate in the Center?

Several federal departments and agencies will participate in the Center, including:

  • Department of Homeland Security
  • State Department
  • Attorney General
  • Justice Department
  • Central Intelligence Agency
  • Defense Department

The Center will operate under the oversight of a National Vetting Governance Board. As a result, the Board will serve as the senior interagency forum for considering issues that affect the National Vetting Center and its activities.

What is the National Vetting Center’s Main Focus?

The Center’s main focus will be on visa applicants, immigrants, and others looking to enter the US. Additionally, other individuals who are already in the US, or may be subject to deportation proceedings, will be included.

Conclusion

The Global relocation experts at Global Mobility Solutions (GMS) have the knowledge and expertise to help your company understand what the National Vetting Center is and how it might impact your company’s relocation program.

Our experts can also help your company determine how to structure your company’s relocation program in light of the National Vetting Center to meet business requirements while offering your employees the best relocation experience. Contact our team of experts to discuss how we can help you with your company’s relocation program, or call us at 800.617.1904 or 480.922.0700 today.

Categories
Global Relocation Global Relocation Challenges Global Relocation Trends Immigration Rules Relocation Challenges

Switzerland Employers Must Communicate Job Openings in Occupations with Higher than Average Unemployment

Employers must communicate Switzerland job openings in occupations that have higher than average unemployment rates starting July 2018, according to a December 8, 2017 Federal Council decision. The Federal Council may issue a list of the occupations subject to mandatory communication of openings in early 2018. The Federal Council’s requirement for mandatory advertisements will start July 1, 2018 for positions that have 8% or higher unemployment, and then increase on January 1, 2020 for positions that have 5% or higher unemployment.

What is the Switzerland job openings issue?

An initiative called “Against Mass Immigration” was adopted by Switzerland on February 9, 2014. This initiative called for quota limits on immigration. However, the Swiss Parliament passed a compromise immigration law in 2016, hoping the country could continue to have its enhanced access to the European Union’s single market. The new law required employers to advertise job openings in occupations with higher than average unemployment at job centers and to prioritize local residents prior to recruiting from outside the country. Since the implementation of the “Against Mass Immigration” effort is coming to an end after four years, the new requirement aims to continue to give local job seekers priority in job openings in sectors with higher than average unemployment.

Who does this requirement affect?

Employers based in Switzerland planning to hire workers from outside the country.

What is the new requirement?

Under the new requirement, employers must advertise their job openings with the local job center and then wait five business days before advertising these openings through other venues. The local job center must forward applications from local job seekers who meet the requirements of the job opening within three business days. Companies must invite local candidates that meet the requirements of the job opening to an interview. They must also report the job openings they are able to fill through this channel to the job center. The temporary withholding of job opening information helps job seekers who are registered with the local job center to get priority access to the job advertisements.

Conclusion

Global Mobility Solutions’ team of global relocation experts have helped thousands of our clients with country-specific employment requirements, and we can help your company understand how to comply with Switzerland’s new job opening and advertising rules. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Categories
Domestic Relocation Trends Global Relocation Trends Talent Management Talent Mobility

Human Resources Innovation and Talent Management

How does human resources innovation impact talent management? Human Resources is central to a company’s ability to attract, keep, and manage talent. In the current work economy, with technology driving so much change in company processes, human resources innovation might include new and varied ways to promote communication on a local and global level. This ensures employees remain fully engaged and informed wherever their current assignment may be.

Technological Advances

Technological advances that promote greater communication include video conferencing and social media engagement. On the employee-specific level, personal recognition including rewards for health and wellness efforts, social responsibility programs, and fostering creative cultures.

Talent Management in Human Resources Innovation

Talent Management can leverage Human Resources innovation by embracing technology. Additionally, it can utilize new thinking regarding what companies need to do to attract and retain talent. In some cases, technology can be used to help employees manage their own work processes, styles, education, and times that result in greater collaboration and employee satisfaction. Companies should provide employees access to several helpful online resources and guides for education.

For example, the Clinical Psychology Education Guide, Online Counseling Programs, and the Online Counseling Degree Guide all provide extensive information that employees can use to further their educational pursuits. The focus on talent management might improve with a new initiative on allowing employees to manage themselves.

Those employees interested in earning their MBA in Human Resources can easily find several resources for an Online MBA in Human Resources. Online education is gaining in popularity due to its ease of access and flexibility for scheduling. Financing MBA education options and descriptive guides to taking the Graduate Management Admission Test (GMAT) help employees determine how best to proceed with their future education.

Workforce Mobility and Employee Relocation

Workforce mobility and employee relocation also benefit from human resources innovation. Transferees are more likely to accept assignments knowing they have a wealth of technological resources, programs, and support for themselves and their families to assist in their relocation. Leading relocation technology that can be used anytime, anywhere provide a direct link from the company to the transferee. The technology promotes communication and provides employees with ease of mind regarding the challenges they face during their relocation.

Future of Human Resources Innovation

The 2017 Deloitte Global Human Capital Trends report notes the future of work is in the augmented workforce. This refers to reinventing jobs due to artificial intelligence (AI), robotics, and cognitive tools. These tools are growing in use and sophistication. This fundamental shift in the future of work will lead employers to focus more heavily on the role of human skills, the customer and employee experiences, and redefining the employment value proposition—what they offer employees and why employees would want to remain with the company. Companies can utilize an augmented workforce approach with their relocation programs to create unique and creative assignments for transferees. Relocation assignments that focus on new technology will help both the company and the employee learn and grow successfully.

Conclusion

The corporate relocation experts at Global Mobility Solutions (GMS) have the knowledge and expertise to help your company manage its talent and provide your employees the best relocation experience. Contact our team of experts to discuss how we can help your talent management and employee relocation process, request a demonstration of our relocation technology, or call us directly at 800.617.1904 or 480.922.0700 today.

Request a relocation technology demo

Categories
Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Global Mobility Global Relocation Global Relocation Tips Global Relocation Trends Household Goods Relocation Best Practices Relocation Management

Relocation Models for 5 Major Industries

Traditional vs. Lump Sum Relocation Programs

Which is best model for your company?

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

What are the Differences?

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

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

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

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

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

Modern Mobility Made Easy™
Helping you manage your relocating employees

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

Download your industry benchmarking study

Looking for something?