Category: Global Relocation

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Changing European Demographics due to Migration Patterns

Migration between countries is changing European demographics. Young workers are leaving certain countries at higher rates, and moving to other countries for a variety of reasons. As a result, the phenomenon known as “brain drain” has been cited in a report produced by the Commission for Social Policy, Education, Employment, Research and Culture of European Committee of the Regions.

Brain Drain Leads to Changing European Demographics

“Addressing brain drain: The local and regional dimension” notes that the fundamental right of free movement of European Union (EU) workers results in several disparate effects. Freedom of movement and residence for persons in the EU was established in 1992 by the Treaty of Maastricht. This Treaty, officially known as the Treaty on European Union, was originally signed by 12 countries in the city of Maastrict. Maastricht is located in the Netherlands near this country’s border with Belgium and Germany.

The report examines data that shows changing European demographics due in part to migration patterns. As a result of free movement, highly educated workers in some countries are moving to other countries to live and work. The “sending” countries often do not have the capacity to develop better conditions that will keep and attract workers with high levels of education and skills. Some of these countries are resorting to changes such as eliminating income taxes on young workers in order to entice them to remain.

Countries Gaining from Changing European Demographics due to Migration

The main destination countries that gain from changing European demographics due to migration are:

  • Germany
  • United Kingdom (UK)

During 2017, nearly 17 million workers moved within the EU. Of these 17 million workers, nearly one third were between the ages of 15-34. Generally, young mobile workers in the EU migrate towards the two largest and most economically stable countries.

Workers with higher degrees from universities and trade schools also move to countries and cities that offer great opportunities and a more attractive lifestyle. Generally, about a quarter of the nearly 17 million workers who moved in 2017 are within this bracket, between the ages of 15 and 64. Adding to the changing European demographics, these workers migrate to countries including:

Highlight on Estonia

Estonia is one of the fastest growing economies in the EU. In 2017, this country’s Gross Domestic Product (GDP) grew by 4.9%. Growth has been broadly spread across the economy’s various sectors:

  • Manufacturing 3.9%
  • Mining and Quarrying 46.1% (fastest-growing)
  • Construction 17.8% (largest contributor to GDP)
  • Information 15.6%
  • Communications 0.8%
  • Professional, Scientific 13.9%
  • Technical Activities 0.6%
  • Trade 1.8%

Estonia supplies over 90% of its electricity requirements through locally mined oil shale. The country’s four main trading partners are Finland, Germany, Russia, and Sweden. As a result, much of Estonia’s fortunes depend on developments in these countries.

The country has a shortage of skilled workers. Therefore, Estonia increased the working visa quota for non-EEA citizens to promote migration to the nation. Some of the largest companies in Estonia are Tallink Group, Ericsson Eesti, Eesti Energia, Tallinna Kaubamaja, and Maxima Eesti.

Countries Losing from Changing European Demographics due to Migration

Several countries in the EU are facing the loss of educated workers due to migration patterns. These countries experience brain drain, the loss of skilled and talented workers who are critical to a nation’s economic success. Often these countries experience problems that are compounded by the loss of high income-producing workers. European countries facing out-migration include:

Highlight on Romania

Romania’s economy continues to experience setbacks. The nation has some of the EU’s highest income inequalities, as well as an aging and shrinking population. Romania’s population is declining at a rate of over 0.32% per year. However, this rate rose to 0.50% in 2018, indicating a faster rate of decline. In the early 1990s, the population peaked at 23,372,101 residents. Currently, Romania’s population is approximately 19,348,013 residents, a loss of over 4 million people since its peak year.

Bucharest Stock Exchange in 2018 reports 249 trading sessions, for 87 companies with listed shares. By comparison, the New York Stock Exchange trades stocks for nearly 2,800 companies, illustrating the relatively small size of the nation’s economy. The Romania economy is also more highly dependent on manufacturing industries tied to export growth. Both the industry and exports are increasingly dependent on the automotive industry. As a result, Romania’s industry is highly dependent on the activity and consumer confidence of its European trading partners.

What Should Employers Impacted by Changing European Demographics do?

Employers in EU countries impacted by changing European demographics should consider highlighting their relocation program’s benefits in their recruiting materials. A good example to follow is the healthcare industry. The healthcare industry has been facing a critical talent shortage for several years. Healthcare employers have responded in several ways, including:

  • Creating Exceptional Candidate Experiences
  • Leveraging Data to Enhance Their Recruiting Programs
  • Focusing on Cultural Fit in Their Recruiting
  • Developing a Superior Employer Brand so New Hires Develop Favorable Impressions
  • Increasing the Process Speed so Candidates Stay Engaged with the Employer

Relocation Management Companies (RMCs) are ideal sources for information on global candidate recruitment and relocation. Pre-Decision Services are critical for employers as they provide valuable information about a candidate’s ability to accept a position and be successful in the new location. Assessment data can be paired with structured interview questions to better understand the candidate’s interests, goals, and motivations.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients understand how to leverage global relocation to counter the effects of changing European demographics. Our team can help your company by using industry best practices to design your relocation program. This will increase your company’s ability to attract and retain new employees and mitigate the effects of talent shortage.

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.

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.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning how to mitigate the impact of changing European demographics, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Canada Immigration Issues May Impact the Upcoming Federal Government Election

Canada immigration may be a major factor in the country’s upcoming federal government election scheduled for Monday October 21, 2019. National policy has been changing to encourage immigration. For example, the government of Ontario created an immigration pilot initiative to attract highly skilled immigrants. As a result, these immigrants are encouraged to locate to smaller cities and towns throughout the Ontario Province. Also, while immigrants currently comprise about 20% of the Canadian population, the nation’s Immigration Plan seeks to add over 1 million immigrants by the end of 2021.

Why is Canada Seeking to Add Immigrants?

Canada seeks to add immigrants for several reasons, including:

  • Canada immigration results in significant and measurable contributions to the nation
  • Over the next several years the ratio of working people to retired will decline:
    • Current ratio working/retired: 4 to 1
    • Future ratio working/retired: 2.5 to 1
  • The declining working population will impair the nation’s ability to fund social programs
  • Future economic growth depends on welcoming and integrating immigrants

Toronto has achieved a “Tech Talent Rank” of #3 in the top fifty U.S. and Canadian cities for tech workers. Part of this achievement is due to job growth, and part is due to an increasing supply of talent. Toronto’s tech market has benefited from Canada’s Global Talent Stream. The Global Talent Stream is part of Canada’s Global Skills Strategy, which helps companies grow by ensuring a ready pool of skilled and qualified workers.

What are the Challenges with Canada Immigration?

Canada’s current government led by Prime Minister Justin Trudeau of the Liberal Party has instituted several pro-immigration policies. However, there has been a dramatic increase in Canada immigration and asylum seekers following the Trump Administration’s election in the United States. Several thousand asylum seekers have illegally crossed into Canada, with several seeking refugee status. Challenges include provisions for housing, severely delayed entry timetables, and expanding populations of job seekers in cities such as Quebec and Toronto.

Diverging opinions on the issues have arisen from other political parties. Some of these political parties support alternative policy approaches such as:

  1. The Green Party opposes Liberal efforts to close asylum loopholes
  2. The Conservative Party has questioned the legitimacy of many asylum seekers
  3. The New Democratic Party seeks to suspend the Safe Third Country Agreement with the US so asylum seekers go through authorized ports of entry

What Should Employers do About Canada Immigration Issues?

Companies currently in Canada should continue to stay informed about the various immigration policies that political parties support. Representatives of Canada’s business community have requested the political parties tone down their rhetoric on immigration issues. Many of Canada’s businesses need immigrant workers to grow and expand, especially at times of low unemployment. Several organizations have publicly noted their support for increased Canada immigration.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to grow their company’s international employment. Our team can also help your company understand how to respond to current policies and potential changes to Canada immigration.

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.

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 company’s interest in learning more about Canada immigration issues, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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What is the European Employment Strategy?

Companies with an interest in global growth should investigate the European employment strategy. In 1997, European Union (EU) member states worked to establish joint objectives and goals for the EU’s policy on employment. The goal is to create a greater number of jobs throughout the EU, and to ensure they are good jobs with potential for growth. The European employment strategy is part of the larger decade-long Europe 2020 strategy.

What is the Europe 2020 Strategy?

The Europe 2020 strategy set the EU’s agenda for growth and jobs to be achieved by 2020. Goals of the strategy are:

  1. Improve the EU’s global competitiveness
  2. Enhance worker productivity
  3. Create a foundation for a sustainable social market economy
  4. Overcome the region’s structural economic weakness

National Targets Support the European Employment Strategy

Each EU member state has the same national targets covering jobs, energy, poverty, and other measures. Many of the measures support the European employment strategy. Targets related to jobs, education, and investment include:

  1. 75% employment for those aged 20-64 to support the European employment strategy
  2. Investment in research and development at 3% of the member state’s Gross Domestic Product
  3. 40% or more of the population in the age range of 30-34 having degrees in higher education

EU member states provide data to the EU to report on their progress. As a result, progress reports have a wealth of information showing how each state is performing to the targets.

Leveraging the European Employment Strategy across 28 Member States

EU employment law protects worker rights across all of the region. However, within each member state, the employment laws often work differently. As a result, companies looking for growth in the EU must navigate differences and nuances in employment law across 28 member states. Navigating so many different member state laws can be challenging. Also, it may require a significant amount of resources to set up entities in any given region. Administrative resources must be in place to ensure compliance with EU and member state laws.

What Should Employers do About the European Employment Strategy?

Companies currently in the EU that want to leverage the European employment strategy should look into the various member state employment laws to ensure compliance. They should also look into several support programs for job creation. EU Structural Funds are in place to support employment growth, including:

  1. European Regional Development Fund

Promotes jobs at the provincial level and increases regional labor market attractiveness.

  1. European Social Fund

Supports job growth at companies and organizations, as well as new job creation. Develops resources to help workers find jobs.

Companies not currently in the EU that want to grow quickly should look into the services of an International Professional Employer Organization (PEO). International PEOs provide an employer of record solution for companies to expand quickly into new markets. The PEO will manage all aspects of the employment relationship in the EU, from onboarding to pension arrangements. Companies may be able to achieve significant savings compared to the cost of setting up their own foreign entity in the EU.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to grow their company’s international employment. Our team can also help your company understand how to work with an International PEO. Whether through global relocation or the services of an International PEO, our team can help your company leverage the European employment strategy.

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.

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 company’s interest in leveraging the European employment strategy, or give us a call at 800.617.1904 or 480.922.0700 today.

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Several Countries to Experience an Increase in Working Age Population

According to the Population Division of the United Nations Department of Economic and Social Affairs, several countries will experience an increase in working age population through 2050. In its report entitled “The World Population Prospects 2019: Highlights,” the Population Division identifies the following areas will experience working age population growth:

  • Most of sub-Saharan Africa
  • Some areas of Asia
  • Sections of Latin America
  • Parts of the Caribbean

One of the main driving forces behind this growth is actually a reduction in birth rates. Lower growth rates for the non-working age population results in a favorable age distribution for other demographic populations.

Demographic trends resulting in this growth should help create benefits for these economies. With a growing workforce, governments should invest in training programs and education. As a result, this will position these economies well for future success and continual economic progress.

Overall Population Growth

According to the Population Division, the greatest increases in overall population between 2019 and 2050 will take place in the following nine countries:

  1. Democratic Republic of the Congo
  2. Egypt
  3. Ethiopia
  4. India
  5. Indonesia
  6. Nigeria
  7. Pakistan
  8. United Republic of Tanzania
  9. United States

Nigeria is expected to have the highest increase during this timeframe. However, the report notes that India is projected to become the world’s most populous country by the year 2027, overtaking China.

Focus on Nigeria Working Age Population

Nigeria (officially the Federal Republic of Nigeria) is in West Africa, on the Gulf of Guinea. The nation has a large population, estimated at over 191 million residents. The nation’s population grew at a rate of over 60% from 1990 through 2008. The United Nations reports that Nigeria has been experiencing tremendous population growth. The country has one of the highest growth rates in the world, along with high growth in population aged 14 years or younger. The country’s median age is approximately 18 years old.

Nigeria’s working age population has been growing and is estimated at 115.5 million people through Q3 2018. However, the unemployment rate has been rising as well, with a calculated rate through Q3 2018 of 23.1%. The largest industries that drive Nigeria’s economy include:

  • Agriculture
  • Mining
  • Petroleum
  • Tourism

These industries also drive most of Nigeria’s exports, consisting of:

  • Chemicals
  • Cocoa
  • Palm Oil
  • Petroleum

Focus on India Working Age Population

India (officially the Republic of India) is in South Asia. While the country is the seventh largest by area, it is currently the second largest by population, behind China. India’s population is currently estimated at approximately 1.37 billion residents. The rate of India’s population growth, 15 million per year, is the largest in the world. The country’s median age is approximately 27 years old.

India’s working age population will grow to more than 1 billion by the year 2050. However, unemployment is rising as well. Labor force participation in India has been declining, with 50% of the working age population out of the workforce. The top sectors that drive India’s economy include:

  • Automobiles
  • Aviation
  • Fast Moving Consumer Goods (household and personal care items)
  • Oil and Gas
  • Steel and Cement

These same industries also drive most of India’s Top 10 exports:

  • Automobiles
  • Chemicals
  • Clothing
  • Cotton
  • Electrical Machinery and Equipment
  • Gems and Metals
  • Machinery and Computers
  • Oil, Mineral Fuels
  • Pharmaceuticals
  • Steel and Iron

What Does This Mean?

Several countries that have a growing working age population may offer opportunities for future economic growth. Companies not currently located in these countries should review their future plans. Employers may be able to leverage growing labor forces either locally or through global relocation. Also, companies may benefit from the increasing population within countries that might fit within their global expansion plans.

What Should Employers do if a Country has a Growing Working Age Population?

Review Expansion Plans

Companies currently in a country with a growing working age population should examine their plans for corporate expansion. They should also review their talent acquisition programs to ensure alignment with corporate objectives. Pre-decision services offer critical tools to help companies retain organization talent.

Leverage Relocation Benefits

Companies that are experiencing a talent shortage should consider looking at countries with a growing working age population. They can leverage relocation benefits to attract and retain international talent.

International PEO

Companies not currently in a country with a growing working age population but who want to enter it might consider the services of an International Professional Employer Organization (PEO). International PEOs help companies quickly grow and expand into new markets with an employer of record solution. The PEO will manage all aspects of the employment relationship in the EU, from onboarding to pension arrangements. Companies may be able to achieve significant savings compared to the cost of setting up their own foreign entity in these countries.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to grow their company’s international employment. Our team can also help your company understand how to work with an International PEO. Whether through global relocation or the services of an International PEO, our team can help your company leverage the growth of countries with a growing working age population.

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.

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 company’s interest in learning how it can leverage opportunities in a country with a growing working age population, or give us a call at 800.617.1904 or 480.922.0700 today.

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European Central Bank Urges Banks to Proceed with Relocating UK Workers and Processes

The European Central Bank (ECB) is urging banks in the United Kingdom (UK) to prepare for a possible no-deal Brexit scenario by relocating UK workers and processes to the European Union (EU). Although the ECB believes risks to the overall EU financial stability should be manageable, it still expects banks to develop contingencies for all possibilities.

ECB Areas of Concern

The ECB notes several specific areas of concern that UK banks should address. These areas may present a number of issues that pose significant challenges for the UK banks, such as:

  • Relocating UK workers
  • Developing internal processes and systems
  • Transferring clients
  • Building local risk management capacities
  • Creating local structures of governance
  • Changing capital requirements

Need for Relocating UK Workers due to No-Deal Brexit Scenario

A no-deal Brexit scenario means EU law would no longer apply to the UK. On February 8, 2018, the European Commission Notice to Stakeholders noted several consequences in specific areas, such as:

  1. Authorizations
    1. Authorization to provide banking, payment services, and electronic money issuing will cease
    2. UK entities will need to become authorized in the EU member states they operate in
    3. EU entities with branches in the UK must comply with their operation programs
  2. Arrangements and Exposures
    1. Autonomous risk management and control frameworks
    2. Treatment of exposures to UK third parties
  3. Contracts
    1. Continuity for contract relationships will lose the EU single passport
    2. EU rules on conflicts of law and jurisdictions no longer apply to the UK

UK Banks can Mitigate the Impact of a No-Deal Brexit by Relocating UK Workers

UK banks should be able to mitigate the impact of these consequences if they prepare accordingly. These banks should proceed with relocating UK workers to the EU member states where they have operations. Also, they should examine their internal processes and controls. This will help them ensure the impact of falling out of the EU will not hinder the banking services they provide to clients.

Brexit has already impacted the UK labor market. As a result of the uncertainty, job seekers from the EU have been reducing their search for positions in the UK. These workers may also be a potential resource for new hires and talent acquisition for UK banks relocating processes to the EU.

What Does This Mean?

Banks in the UK that have clients and operations in the EU should accelerate their preparations for a no-deal Brexit scenario. They should consider relocating UK workers to EU member states. Also, they should examine internal processes and controls to ensure proper functionality within the applicable legal and regulatory environments they will operate under in such as a scenario.

GMS’ team of global experts provides analysis and guidance on several relocation industry topics in our White Paper: 2019 Industry Update. With respect to Brexit, companies should identify employees and their family members in the UK and the EU who might face issues related to their:

  • Documents
  • Visas
  • Work Permits
  • Work Authorizations
  • Travel Documents
  • Health Insurance Requirements
  • Living Arrangements

The UK has published several helpful sources of information and Brexit guidance for business. The guidance covers a wide range of topics, from “Importing after Brexit: check what you need to do” to “Prepare to work and operate in the European aviation sector after Brexit.” Companies should be sure to review the UK’s guidance to ensure they prepare accordingly, especially if they will be relocating UK workers.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients manage their need to relocate workers. Our team can help your company understand how a no-deal Brexit scenario may impact your need for relocating UK workers to the EU.

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.

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.

Learn best practices from Global Mobility Solutions. GMS relocation industry and technology experts are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning more about relocating UK workers to the EU, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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Brexit will Impact Free Movement Between UK and EU

Brexit will impact the free movement of people between the United Kingdom (UK) and the European Union (EU). The UK’s upcoming exit from the EU is increasingly looking to occur as a no-deal Brexit scenario. Many EU nationals are no longer looking for work in the UK. Although EU nationals are declining in the UK workforce, over 3 million, or 5% of the UK’s total population of approximately 64 million are from Europe.

UK Government to End Free Movement with Brexit

The UK government has announced that free movement will end on October 31. EU nationals who currently reside in the UK might have some uncertainty about how this will impact them. Currently EU nationals do not require documentation to live and work in the UK, other than having a valid passport. Following Brexit, EU nationals will need proof of legal status in the country for a wide range of issues such as employment, finance, and health insurance. With no current documentation yet in place to prove legal status, EU nationals in the UK prior to Brexit may not be distinguishable from those who arrive post-Brexit.

UK Government Assures EU Nationals are Welcome to Stay After Free Movement Ends

The UK government has issued assurances that EU nationals and their families are welcome to stay in the UK and apply for the EU Settlement Scheme. The UK government is currently determining how EU nationals will provide proof of their current legal status in the UK following a no-deal Brexit that also ends free movement. It has also reaffirmed the Settled Status for EU nationals and their family members even as the deadline for Brexit has been extended to October 31. As a result, the government is urging EU nationals to apply for the EU Settlement Scheme.

How can EU Nationals in the UK Apply for the EU Settlement Scheme?

The UK government has created an online portal for EU nationals who want to apply for the EU Settlement Scheme. Applicants for the new Settled Status must prove their identity and nationality. They must also demonstrate proof they live in the UK, and must declare any criminal convictions on their records. Under a no-deal Brexit scenario and the end of free movement, the deadline for EU nationals to apply is December 31, 2020.

Acceptable documents to prove identity and nationality include:

  • Current passport
  • Identification card
  • Recent photograph

UK Government Assistance for EU Nationals and their Families with the EU Settlement Scheme

The UK government is offering a wide range of assistance and support to help EU nationals and their families with the EU Settlement Scheme and application process, including:

What Does This Mean?

The UK government is working to determine how to provide EU nationals with documentation of their legal status. Also, it has set October 31 as the date for Brexit and the end of free movement, either with a deal or with a no-deal Brexit scenario. However, the UK government has also reaffirmed that EU nationals and their family members are welcome to stay in the UK. It has also encouraged EU nationals and their families to submit applications for the EU Settlement Scheme.

Of particular importance, the UK government notes that for those who have not applied by the date free movement ends on October 31, they will be able to continue living and working as they do now. EU nationals will be able to obtain employment, benefits, and services using the same method they currently employ to confirm their status and entitlement to receive such benefits. EU nationals should verify that all of their current documents such as passports and identification cards are valid and have not expired.

What Should Employers do About Free Movement Ending with Brexit?

Employers in the UK that have EU nationals as employees should provide guidance on the UK government’s efforts to assist them with applications for the EU Settlement Scheme. The UK government notes that over one million people have already received Settled or Pre-Settled Status under the Scheme. Employers should encourage EU national employees to verify all of their current documents such as passports are valid and in order, as well as for their family members.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to respond effectively to changing government regulations especially as they apply to visa and immigration issues. Our team can help your company understand how to communicate important points such as the end of free movement that may impact your EU national employees and their family members. We can also assist your company in identifying helpful guidance to provide your EU national employees regarding steps to take under Brexit such as applying for the EU Settlement Scheme.

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.

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.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning how to communicate issues regarding Brexit and the end of free movement to your employees, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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UK Employers Seek to Lower Salary Threshold for Foreign Workers

Despite continuing uncertainty over Brexit, UK employers are seeking a lower salary threshold for foreign workers. Currently, all non-European Union (EU) citizens who work in the UK must earn a minimum salary of £30,000. Proposals under consideration will extend this requirement to EU citizens following Brexit.

Former UK Secretary of State for the Home Department Sajid Javid unveiled these proposals in December 2018 in a white paper on immigration, “The UK’s future skills-based immigration system.” This white paper describes proposals on new laws that may become the foundation for a government bill. Specific points in the white paper cover topics on immigrant employment such as:

  1. Skilled foreign workers seeking visas that cover a five-year period must earn a minimum salary of £30,000.
  2. Eliminating all caps on highly-skilled workers from both the EU and non-EU countries

Coalition Notes Need for Lower Salary Threshold

A coalition consisting of employers and educational institutions notes that over 60% of all jobs in the UK are currently below the £30,000 threshold. This coalition includes, among others:

The coalition supports measures that create a lower salary threshold for foreign workers. As a result, the group proposes a lower salary threshold of £20,000. Other measures the coalition supports include increases in the amount and length for temporary visas and post-education work visas.

What Does This Mean?

Impending implementation of some sort of Brexit plan has already led job seekers from the EU to reduce their search for positions in the UK. As a result, a great number of positions are being filled by British workers. However, this is a temporary solution, at best. The UK is experiencing several trends that combine to leave employers without workers:

  1. Declining UK labor force participation by EU nationals.
  2. Self-employment continues to increase to record high levels.
  3. Unemployment rate in the UK continues to decline.
  4. Job openings in the UK are rising to levels that continue to set records.

What Should Employers Seeking a Lower Salary Threshold do?

Employers and coalition members should continue their efforts to promote a lower salary threshold for foreign workers. Many of the coalition members represent industries that employ large numbers of workers in lower wage occupations. Competition for workers across all industries and skill levels continues to increase, so the coalition will continue its efforts.

Employers in the UK should examine their employment needs. They should review their relocation program to determine if it benefits their talent acquisition goals during times of extremely tight labor markets and continued economic growth.

Employers should work with a Relocation Management Company (RMC) that has the knowledge and expertise to help them design a relocation program that promotes global talent acquisition. RMCs with knowledge and experience will provide expert guidance on designing a relocation program to attract qualified new hires and relocating employees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop hiring and recruiting programs to attract highly skilled job seekers in the UK. Our team can help your company determine how to attract job seekers looking for employment opportunities. We can help your company attract workers whether or not the coalition succeeds with the lower salary threshold for foreign workers.

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.

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 company’s recruiting, hiring, and relocation program needs as the UK continues to examine the possibility of a lower salary threshold for foreign workers, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Saving Time and Increasing Data Accuracy with a Relocation API

Clients can save time and increase the accuracy of transferee initiations in their relocation program through an Application Programming Interface, or relocation API. An API provides a framework for different computer systems to communicate and share information. Generally, it lists operations that software developers can use in their design work. Also, an API includes descriptions for what they actually do. A relocation API facilities the communication of information that a Relocation Management Company (RMC) uses for initiations or other relocation-related functions.

Where Should a Client Start with a Relocation API?

The Global Mobility Solutions (GMS) team of developers has extensive experience building APIs to help clients with their relocation program needs. The team recently built an exceptionally robust relocation API for a client’s in-house system to interact with MyRelocation®. Award winning cloud-based MyRelocation® technology is specifically designed to streamline a company’s relocation management.

The GMS MyRelocation® technology provides everything a transferee needs to track and manage their relocation. It also provides clients with an advance financial reporting dashboard including over 200 custom reports on demand.

GMS’ team of developers recommends that before discussing a relocation API, clients should identify their goals. Having clear goals and defined end tasks helps developers quickly hone in on several possible solutions that will work correctly. In general, clients should consider goals including:

  1. Increasing process efficiency
  2. Improving data accuracy
  3. Providing flexibility for data and processes
  4. Enhancing speed of data transfer
  5. Additional and possible future uses for the relocation API data

For example, a client may want to implement a relocation API to replace current processes of completing online forms or submitting PDF documents that duplicate data in the client’s current system. Many clients with transferees already have the relocating employee’s information within their internal Human Resource Information System (HRIS). A relocation API can leverage this data to facilitate relocation initiations in the MyRelocation® portal. That same data is then available for use to interface with the GMS Travel Management Program. It might also be of use with visa and immigration systems for global relocations.

What does a Relocation API do?

Once a client defines their goals, developers can work together to define the relocation API. Major elements of it should include:

  • What the API actually does—the data it communicates with between systems
  • How the API works within the systems—where does data reside and how does it move between systems
  • The specific actions on each side of the interface to facilitate its functioning

By taking a holistic approach to development, clients and GMS can anticipate relocation program requirements and transferee needs. Clients can achieve significant process efficiencies and direct time savings toward value-added corporate objectives.

What Should Employers do?

Employers should examine their current relocation programs and processes to identify opportunities to create a relocation API. This will help internal departments increase their efficiency and save valuable time they can use to focus on business goals and corporate objectives.

Employers should work with a qualified and experienced Relocation Management Company (RMC) that can provide guidance and insight as to best practices for developing a relocation API. Industry-leading relocation technology solutions are specially designed to quickly and easily integrate with each client’s Human Resource Information Systems.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to identify and develop their relocation API. Our team can help your company create a relocation API that follows industry best practices. As a result, your company will save time, and increase its data accuracy.

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.

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.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts. Contact our experts online to discuss your company’s interest in developing a relocation API, or give us a call at 800.617.1904 or 480.922.0700 today.

Request a relocation technology demo

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Global Mobility Global Relocation Global Relocation Tips

Global Opportunities for Growth with the China Belt and Road Initiative

The China Belt and Road Initiative recently hosted its second forum. Over 5,000 delegates from over 150 countries, including  the leaders of 37 nations, attended the forum held in Beijing in April 2019. The infrastructure project began in 2013 as a way to rebuild several historical trading routes across Europe and Asia that had been lost over the years, previously known as the “Silk Road.” The road was basically a widespread network of routes that connected China to other nations in the Far East, Middle East, and Europe. The Han Dynasty opened trade with the West along these routes in 130 B.C. However, the routes were closed over 600 years ago when the Ottoman Empire boycotted trade with China.

China’s New Silk Road Created by the China Belt and Road Initiative

China’s “New Silk Road” is a signature project for President Xi Jinpeng. The project is officially known as the “One Belt, One Road” (OBOR) initiative. In addition to large infrastructure projects across the region, the hope is that trade along these routes will increase. China is looking for a global resurgence in a push to expand the country’s international influence. Some initiatives preceded the OBOR, such as China’s flagship economic corridor development with Pakistan. China is seeking to become the center of global economic activity, with all of the power and influence this status will bring. Additional benefits of the China Belt and Road Initiative include:

  • Opportunities to absorb China’s current excess industrial capacity
  • Access to new capital for large state firms that already carry a significant amount of debt
  • State banks avert any financial crises arising from large state firm’s non-performing loans
  • Larger State Owned Enterprises gain pathways to develop into internationally competitive firms

International Cooperation for the China Belt and Road Initiative

China has been developing strong international ties with nations critical to the success of its Belt and Road Initiative. China’s success is clearly seen in its interactions with the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NBD) for BRICS nations. In fact, China has long been considered one of the top emerging international markets. With the NDB headquarters in Shanghai, China’s influential role as a financial center among the BRICS nations is a certainty. BRICS nations include:

  • Brazil
  • Russia
  • India
  • China
  • South Africa

Increasing Imports from Nations Participating in the China Belt and Road Initiative

At the April forum, President Xi Jinping chose to address criticism of the China Belt and Road Initiative by publicly supporting several trade-oriented policies and frameworks. Specifically, China will:

  • Focus on the highest quality and sustainability for projects undertaken by the China Belt and Road Initiative
  • Increase its imports from developing countries to spur investment in those nations
  • Reduce existing barriers to trade to further open China’s markets to international imports
  • Implement structural changes to promote foreign investment in China

President Xi Jinping’s message on trade included a focus on implementation of trade and international agreements. While agreements can easily be made, implementation has been challenging without a sustained commitment from China to ensure full follow-through. As a result, such issues can be extremely difficult to understand and resolve, including:

As of the 2nd Forum, the nation has signed over 170 China Belt and Road Initiative agreements with 125 nations. China’s total investments may reach upwards of $1.3 trillion by the year 2027.

What Does the China Belt and Road Initiative Mean for Employers?

Employers in nations where the China Belt and Road Initiative projects are in planning stages may be able to leverage opportunities to participate directly or indirectly in various parts of the initiative. Although China’s focus is for its State Owned Enterprises to benefit from these projects, local firms in the countries will benefit as the projects come to fruition. The benefit may arise through direct investment in project-related activities. Alternatively, it may arise through increased trade resulting from the China Belt and Road Initiative.

What should Employers do?

Employers currently located in countries where China Belt and Road Initiative projects are planned or underway should investigate opportunities where they might be able to participate. They should also review future production plans that might need adjustment for potential increased trade opportunities with China.

Employers should review their talent acquisition and management programs to ensure they remain competitive to attract and retain new hires and transferees. Some countries may face talent shortages, so employers should look into global relocation as a solution to find and hire qualified employees. Relocation Management Companies (RMCs) can provide expert assistance to employers to benchmark their relocation policies and add enhancements that attract talent.

Employers not currently located in countries participating in the China Belt and Road Initiative might consider these countries as a strategic location for future corporate expansion. The services of an International Professional Employer Organization (PEO) may be useful to help an employer enter these countries and quickly test the local market.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees to various destinations. Our team can help your company determine how to attract and retain new hires needed to leverage opportunities arising from the China Belt and Road Initiative.

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.

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.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts. Contact our experts online to discuss your company’s relocation program needs in countries that benefit from the China Belt and Road Initiative, or call us at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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

British Workers Fill Jobs As EU National Job Seekers in the UK Decline

As the United Kingdom’s (UK) economy continues to grow even while facing the prospect of a “no-deal” Brexit, British workers fill jobs since European Union (EU) nationals are declining in the workforce. Migration to the UK from the EU continues to fall as it has been doing since 2018. In our 2019 Industry Update – Talent Mobility, Real Estate, Household Goods, and Immigration white paper, we present several Brexit scenarios that may impact global mobility. Whether the UK can reach a deal with the EU or not, the UK economy still needs workers, and British workers fill jobs that otherwise would have been filled by EU nationals.

Declining labor force participation from EU nationals in turn creates openings for unemployed British workers. As a result, employers in the UK have been adjusting their talent recruitment programs to fill job openings. UK unemployment has fallen to lows not seen in the country since the 1970’s, and job openings have risen to record levels. According to the UK Office for National Statistics:

  • UK employment increased by 179,000 workers in the three months to February 2019
  • Total employment of 32.72 million workers is a record high
  • Employment growth is mostly due to increasing labor force participation by women
  • UK unemployment rate of 3.9% and economic inactivity rate of 20.7% represent a joint record low

Service Industry Sectors Where British Workers Fill Jobs

The first part of 2019 saw several service industry sectors in the UK experience high growth, including:

  • Computer Programming
  • Healthcare
  • Retail Trade

Manufacturing Industry Sectors Where British Workers Fill Jobs

Additionally, UK manufacturing output rose due to strong demand for computer and electrical components. Computer, electronic, and optical products manufacturing in the UK tend to be of products with higher value. They are also not as price-sensitive as lower cost commodity-type items. Within the UK, the manufacturing sector:

  • Employs 2.6 million workers
  • Contributes up to 11% of Gross Value Added (GVA), the measure of the value of goods and services produced in the UK
  • Represents 44% of total UK exports
  • Accounts for 70% of UK business research and development (R&D)

What Does This Mean?

Despite the uncertainties surrounding Brexit, UK wages and employment continue to grow. UK business sentiment remains strong and steady, and manufacturing appears to have rebounded. Some of the growth in manufacturing is due to acceleration in the growth of raw materials held as stock. As a result, raw materials, work in progress, and finished goods held as stock has risen. Part of this growth may be due to manufacturers anticipating production glitches due to Brexit. Business confidence in the UK increased to -13 in the second quarter of 2019, from the prior quarter’s reading of -23. All of these trends provide positive momentum and help British workers fill jobs as the UK economy expands.

Job seekers in the UK should investigate opportunities in the service sector for openings in computer programming, healthcare, and retail trade. They should also investigate opportunities in the manufacturing sector for openings at companies that produce computer, electronic, and optical products. Job openings may vary by region, so job seekers should be open to global relocation opportunities that let British workers fill jobs. They should also utilize the best online job sites in the UK, including Adzuna, Indeed UK, and Monster UK. Job seekers should utilize professional career services to enhance their job search and achieve success in their career objectives.

What Should Employers do?

Employers in the UK should examine their employment needs. Economic growth fosters competition for job seekers with requisite skills and training. They should review their relocation program to determine if it benefits their talent acquisition goals and corporate objectives. Employers should work with a Relocation Management Company that has the knowledge and expertise to help them design a relocation that promotes global talent acquisition. RMCs with knowledge and experience will provide expert guidance on designing a relocation program to attract qualified new hires and relocating employees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop hiring and recruiting programs to attract highly skilled job seekers in the UK. Our team can help your company determine how to attract job seekers looking for employment opportunities. We can help British workers fill jobs that EU nationals no longer pursue.

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.

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 company’s recruiting, hiring, and relocation program needs in the UK to help British workers fill jobs, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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