Category: Global Relocation Trends

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GMS and Partners Donate 50,000 Meals to St. Mary’s Food Bank at 2016 Forum

2016 Global Mobility Solutions Partner Forum and Awards Dinner Features Insightful Discussions, Recognition for Top-performing Suppliers, and Philanthropy

SCOTTSDALE, Ariz., March 02, 2016 – Global Mobility Solutions (https://gmsmobility.com/) recently hosted its annual partner forum, an event recognizing members of its Premier Alliance Network – an elite partnership of transportation and relocation service providers. This year’s forum was branded as #TrendUp; the forum focused on emerging trends within the relocation management industry.

“GMS continues to grow, thanks in large part to its exceptional network of partners,” said President Steven Wester. “The relocation industry as a whole is rapidly evolving and keeping abreast of future trends has never been more important. Our partner forum is an opportunity to deliver practical business insights, honor top-performing suppliers within our network, and extends our support to noble causes in the communities we all serve. This year’s event was a big success on each of those fronts.”

The highlight of this year’s forum was the much-anticipated client panel. Suppliers held a lively Q and A session with human resources management from Fortune 500 companies, as well as one of the largest nonprofit health care providers in the world.

GMS recognizes outstanding contributions to its clientele through Partner of the Year awards. The primary criteria for these annual awards include customer satisfaction and on-time service – key indicators of quality and reliability among relocation providers. Partner of the Year award winners for 2016 included the following:

•    Global Services – Nomad Temporary Housing
•    International HHG – Chipman International
•    Domestic HHG (Silver Tier) – Merchants Moving/Atlas
•    Domestic HHG (Gold Tier) – Hilldrup/United
•    Domestic HHG (Platinum Tier) – Armbruster/Mayflower

GMS President Steven Wester (left) and GMS Transportation Director Ann Knapp (right) Award Armbruster Moving and Storage (center) with Platinum Partner of the Year AwardGMS President Steven Wester (left) and GMS Transportation Director Ann Knapp (right) Award Armbruster Moving and Storage (center) with Platinum Partner of the Year Award at 2016 Forum | #TrendUp.

In addition to the client panel and Partner of the Year awards, a trio of workshop sessions provided an opportunity for participants to gain insight into some fast-emerging trends in the relocation industry, led by experienced subject matter experts.

Chuck Matthews, Chief Executive Officer of WGM Holdings and a member of the FBI’s InfraGard partnership, headed a session on cyber security for small to mid-sized businesses. According to cyber security firm Symantec, 60% of cyber attacks target SMBs, resulting in billions in losses annually. Matthews offered background on the origin of these attacks and their continuously evolving levels of sophistication. The session focused primarily on what managers and owners can do to protect their valuable assets, not to mention their reputations, against digital fraud and hacking. Other sessions included “Standards Please,” in which GMS Vice President of Domestic Services Nancy Kritzer illustrated the importance of consistent standards in communication. Meanwhile, performance analytics as a critical tool for the modern enterprise was the theme of “Measuring What Matters” with GMS Vice President of Global Services John Fernandez.

Every year, the partner forum allows GMS and its Premier Alliance Network an opportunity to demonstrate their shared commitment to philanthropy. For GMS, that commitment has included significant efforts to end childhood hunger in local communities. This year’s forum featured both an online pre-forum raffle and an in-forum raffle that resulted in a donation of over 50,000 meals to St. Mary’s Food Bank in Phoenix to help eliminate hunger.

“We are so thankful for this amazing gift,” remarked Lisa Goin, Chief Development and Communications Officer at St. Mary’s Food Bank. “Here in Arizona, there are nearly 500,000 children who literally do not know if they will have dinner tonight. This gift will help feed 50,000 of them a nutritious meal.”

About Global Mobility Solutions

Founded in 1987, Global Mobility Solutions is a global corporate relocation services company that specializes in workforce mobility. The company’s corporate relocation services include global assignment management, domestic relocation management and a range of pre-decision solutions. Global Mobility Solutions is a back-to-back winner of HRO Today’s 2014 and 2015 client satisfaction survey, and rated number 1 in the relocation management industry for breadth of services.

Contact:

Thomas Belnap, Marketing Director
800-617-1904 ext. 8832
[email protected]

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Changing real estate trends in Germany may affect assignee housing decisions

The real estate market in one of the most powerful economies in Europe is undergoing a major shift. History has shown Germans would much rather rent their homes than buy them, which may explain the country’s 43 percent home-ownership rate in 2013. However, this trend has recently shifted in a way that could impact global mobility down the road – particularly the way assignees go about finding a place to live.

A nation of renters
According to a recent article by digital business news outlet Quartz, Germans began renting in the 1930s and 1940s. After West Germany was established in 1949, the government created its first housing law. The law was designed to boost the construction of houses, and by 1956, the nation cut its housing shortage in two. Few Germans had enough money for a down payment on a house, though. The mortgage market was weak, so banks required citizens to front large sums of money for home ownership. As a result, the renting trend was born.

History has shown Germans would much rather rent than buy their homes, which may explain its 43 percent home-ownership rate in 2013. “History has shown Germans would much rather rent than buy their homes, which may explain its 43 percent home-ownership rate in 2013.”

 

Cheap rent has been a real estate mainstay for many years in Germany, partly because rent increases are capped at 15 percent over three years. Regulations prevent any increase in rent whatsoever during a tenant’s first year. For those living in urban areas where demand is high, new rent prices will be capped at 10 percent more than the area average, thanks in part to new rent brake legislation signed by Prime Minister Angela Merkel’s cabinet in January, national news outlet DW reported.

Government legislation in Germany traditionally favors renters over homeowners, which isn’t surprising considering this demographic has represented a large portion of the population for many years. For example, the German government does not allow homeowners to deduct mortgage-interest payments from their taxes; a sharp contrast to the benefits of homeownership in the United States.

Times are slowly changing
Despite the federal regulations favoring renters and cheap rent prices, real estate trends appear to be changing in Germany. According to the Cologne Institute for Economic Research, Germany experienced a sharp increase in the number of people buying homes between 2009 and 2013. This trend is largely due to the fact that people are taking advantage of low interest rates throughout the country. What’s more, foreign investors are showing great interest in the nation’s real estate.

Although there is legislation capping rental prices at 10 percent above market average in urban areas, that only limits price increases so much year over year. Research from the VDP Association of German Mortgage Banks found rent for newly leased apartments rose 4.6 percent year over year between the third quarter of 2013 and 2014, Bloomberg recently reported.

That, in conjunction with low interest rates and easy financing for property purchases, has home ownership growing in popularity in Germany. Home values have climbed 5.2 percent from last year, and multifamily housing also jumped more than 7 percent in value. Assignees relocating to Germany can take advantage of low-interest rate mortgages, particularly in Eastern Germany. The CIER’s five-year analysis of 402 German counties revealed that side of the country is a highly feasible region for buying a property. Assignees relocating to Germany can take advantage of low-interest rate mortgages, but need to ensure they consider all of the financial impacts. Higher down payments are usually required from expats because they represent a higher financial risk. Additionally, consideration must be given towards disposing of the property and any potential capital gains tax that might be owed if they relocate again.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

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HR innovation and talent management: A perfect pair

relocation coach helping a moving employee

The global economy is a more diverse marketplace than ever before. Workers on one end of the world can connect with employees thousands of miles away in real time thanks in part to the latest technological advances. As a result, international operations are growing, and global mobility is now an integral part of expanding business processes.

Although international relocation has become an important aspect of improving global operations, a surprising number of companies are still handling assignments in similar ways they were performed years ago. Development in technology has had a major impact on talent mobility over the years, but if companies want to keep pace with increasing global demand, they’ll need to implement cutting-edge systems as international assignments become more common in the workforce.

HR technology can drastically impact talent mobility processes.
HR technology can drastically impact talent mobility processes.

Human resources must embrace technology
A stand-alone approach to global assignments is outdated now that mobility has become a standard practice across different verticals. Human resource information systems must integrate with supporting technologies that incorporate assignee data into the company’s general HR database, as it is crucial to creating a ubiquitous mobility process. A unified system helps create affordable, scalable and realistic processes that can grow in unison with increasing global demand.

Cutting-edge HR technology plays an integral role not only in streamlining mobility processes, but it also aids in back-end organization. For these reasons, the HR technology market is now worth more than $15 billion in software alone, according to a recent study conducted by Bersin & Associates, which cited Bloomberg statistics. In fact, the human resources consulting firm said the value of new tools that help in managing employee communications, recognition and workplace wellness is also growing rapidly. In fact, the top 50 venture deals completed in 2014 totaled more than $560 million.

What’s the next step?
Certainly, the recent influx of investment in HR technology is promising for international relocations, but human resource departments need to make smart and strategic steps when implementing new technology into existing mobility processes. According to workforce mobility association Worldwide ERC, member companies individually invest an average of more than $15.7 million in each year for global transfers. This points to the need for businesses to outline a smart and strategic mobility framework. Too much money is at stake to consider anything otherwise.

Since international mobility has become a norm, organizations need to know how to outline an actionable and profitable plan for a successful assignment. A recent Deloitte study outlined how businesses can diversify their talent mobility designs based on two key dimensions: development value and business value. The design helps companies ensure that the level of support they provide to assignees is justified based on the forecasted business value of each assignment. There are four categories in the value-based approach:

  • Learning experience: These assignments are high in development value and low in business value because the talent – often young, promising employees – are expected to bear some of the costs associated with the move in exchange for global experience and professional growth.
  • Commodity job: Target employees are volunteers or low-cost talent, which makes this level of support low in business and development value. These are designated for local and at-risk assignees.
  • Strategic opportunity: These assignees are the future leaders. The focus here is on development, experience and retention, which makes this level of support high in development and business value.
  • Skilled position: Although low in development value, skilled position employee support during a relocation is high in business value because these assignees typically have specialized skill sets. They have deep, niche capabilities and are rapidly deployed on project-based assignments.

This type of framework, when used in unison with cutting-edge HR technology, can add significant value to any international assignment process. Not only will it help businesses decide the financial viability of certain assignees, but it also provides a framework for HR departments on how much support to give during the process. Companies can also use smart strategies and technology to develop and retain the next generation of leaders – the majority of which are not only willing to, but expect to be internationally relocated at some point in their careers.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

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Going global: The future of talent mobility

Singapore business district skyline panorama over Marina Bay

Thanks in part to recent developments in workplace technology, productivity and professional development are no longer limited by geographic boundaries. Corporate talent can easily complete work from various locations.

As markets continue to expand, more businesses will find it necessary to increase workforce mobility around the world. A recent Price Waterhouse and Coopers study found that assignee levels have increased 25 percent in the last 10 years and are projected to grow another 50 percent by 2020. With the projected mobility increases, businesses may want to keep their eyes on industry trends. Here are three issues to keep in mind to prepare for the future of talent mobility:

Businesses must adopt new technology to better connect a globally diverse workforce.
Businesses must adopt new technology to better connect a globally diverse workforce.

The future lies in the cloud
The estimated increase highlights the need for companies to surround employees with the right technological infrastructure to maintain productivity. Cloud-based systems may increase talent agility and flexibility since employees can access corporate information on a moment’s notice with an established Wi-Fi connection. Especially as the younger workforce continues to mature, these individuals will likely require more diverse business interactions.

Attract top talent through new technology
Young assignees are open to change. They often embrace new challenges and view relocation as a means of professional development. In fact, a separate PwC study found 37 percent of millennial respondents would like the opportunity to go on a global assignment. This can become a reality if and when businesses adopt cloud-based applications for everyday business operations. Once this technology is implemented, geographically separated employees become better connected, which in turn improves collaboration and productivity. Pew research found that nearly one-quarter of millennial respondents felt technology set their generation apart from older age brackets. These technologically savvy employees want to work with cutting-edge technology.

Businesses can position themselves as innovative and progressive by implementing new technology. Recent Deloitte research revealed that  78 percent of millennial respondents said they were influenced by how innovative a company is when deciding if they want to work there or not. Corporate adoption of new technology not only eliminates workplace borders, it also has the potential to draw some of the best talent in the workforce at any age, not just young adults. Sometimes some of the best, most experienced employees developed strong skill sets because they were early adopters of new technology.

Standardization and price reductions
In addition to new technology implementation, market trends demonstrate that companies are looking to reduce short-term costs in their mobility programs. Certainly, the current domestic and global economic landscape may be a primary driver in cost reductions, but it’s important to effectively manage costs at all times, regardless of the surrounding economic conditions. According to a recent industry survey, 72 percent of respondents attributed economic conditions to an overall reduction in international assignment costs.

With a potential decline in global mobility costs, as well as a projected growth in assignee relocation, employers are beginning to focus more on international compliance with industry standards. Minimizing relocation timelines to increase assignment success is also contributing to standardization and central decision-making authority. While traditional averages of standardized policies were around 72 percent, the survey found 92 percent of employers indicated they standardized policies on a global level versus a regional or divisional level.

As companies continue to standardize their relocation policies and implement cloud-based infrastructures, costs will likely go down. Moreover, adoption of new technology can attract top talent – most of whom are looking to make a move abroad for the sake of professional development. Cloud-based systems can also help connect globally differentiated employees without sacrificing collaboration or productivity. A managed and cutting-edge approach to talent mobility is the way of the future, and it could very well drive down costs in the process.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

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Top 5 emerging international markets

Walking through the beautiful streets of Dublin, Ireland

When it comes to the corporate relocation process, finding the right fit for employee mobility can be difficult. Different areas of the world are better positioned for personal and professional growth depending on the vertical, but developing in an emerging market is much easier said than done. A multilayer economic hotspot may be the ideal location to relocate talent for new or existing business ventures, but it takes time and a depth of knowledge to successfully adapt and find personal success in a new market.

A recent Forbes analysis of international GDPs found 70 percent of world growth in the next several years will come from emerging markets. Although China and India comprise about 40 percent of that maturation, there are still other viable options for businesses aiming to relocate talent. Keeping that in mind, here are five emerging markets to keep tabs on for a potential international relocation and reasons to further invest in talent relocations in these geographical areas:

  1. Emerging markets offer unique opportunities for expatriates.
    Emerging markets offer unique opportunities for expatriates.

    Central America: Although this encompasses several different countries, the region is small enough where businesses could individually identify local economies and choose which one best aligns with their business needs. CBS News recently came out with a list of the ten best places to invest in real estate, and half of the locations were located in Central America. The low cost of living and typically warm climate make for happy employees, which is a primary objective of global relocation. In terms of real estate investment, finding a return in this region of the world won’t be as difficult, either. CBS specifically cited Mexico, two cities in Belize, Nicaragua and Panama as possible real estate investment gold mines. Businesses and their employees can consult relocation services on the best areas to buy or lease property once a move location is decided.

  2. Colombia: The South American nation isn’t exactly well-known on the international stage as a manufacturing haven, but it’s proximity to the coastline, strong economic growth and cost of doing business make it a viable possibility to relocate talent. Bloomberg predicts GDP growth between 2013 and 2017 will occur at a rate of nearly 22 percent with just a 3 percent inflation rate. A separate Reuters report noted Columbia’s economic growth was as high as 6.5 percent in the first quarter of 2014, although that figure dipped to 4.3 percent in the second quarter. A strong economic backbone and low projected inflation present an opportunity for relocated talent to find personal and professional success.
  3. Indonesia and Malaysia: While China, India and Korea dominate the economic growth talks, smaller nations such as Malaysia and Indonesia are gaining a considerable amount of attention with regard to commercial prosperity. The two nations are separately governed bodies, but the bordering nations’ economies will likely continue to grow in the next few years. Indonesia’s GDP is projected to grow more than 30 percent between 2013 and 2017, while Malaysia is expected to mature 22 percent in the same time period. The latter nation’s inflation rate is as low as 2.5 percent and has a considerably low ease of doing business rank, according to Bloomberg. While vast cultural changes may prove to be a challenge for newly moved employees, global relocation firms can provide talent with services to help the settling-in process, whether it’s through offering van line services, tax preparation or providing ongoing counseling and support after the move.
  4. Turkey: Bloomberg also ranked Turkey in its top-20 emerging markets, calling the nation the seventh-most viable nation for economic growth. Its GDP is forecast to grow more than 21 percent between 2013 and 2017, but its inflation rate is 5.4 percent, which has pundits jumping off the Turkish bandwagon. However, Turkey is a highly opportunistic market not only because of the current local real estate boom, but also because its workforce is packed with young and emerging talent. CBS News reported that half of residents in Istanbul, the nation’s capital and largest economic market, are aged 30 and younger, meaning buying power in Turkey is likely to increase as the rest of the population ages. Young talent may enjoy moving to this Western European and Southeast Asian nation not only because of its projected GDP growth, but also because of the young and emerging talent surrounding them. A youthful workforce in the nation’s capital specifically may help newly moved talent find individuals who have similar interests and desires, thus making the relocation process easier.

Emerging markets provide a strong opportunity to relocate top talent. Businesses can benefit from sending employees to other countries to help further develop company production and create new business resources. Recent Ernst & Young forecasts show investors are already exploring emerging markets as developing countries are attracting half of foreign direct investment. Companies focused on employee mobility are moving toward emerging markets, and a business that relocates its top talent to these locations could directly benefit from regional economic growth.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

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