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Best Solution to H-1B Visa Denial?: Global Parking

Global Parking Might Be Best Option if Denied H-1B Case

After implementing some updated guidelines last spring, the U.S. Citizenship and Immigration Services (USCIS) started to release the H-1B visa lottery results for 2022 and 2023. One of the new guidelines capped registration at an annual quota of 85,000. From that number, about 20,000 registrants were candidates who earned a degree from a U.S. college or university, while the remaining registrations were left for other qualified candidates. 

Those applicants who were chosen in the lottery were probably relieved, but what about those who registered and were not selected? When it comes to visa and immigration issues, it is important to be extremely diligent when it comes to matters like these. Those who are in the U.S. on a work assignment have a few options if they are denied an H-1B visa. Looking into global relocation options might be the best way to go. Global parking is one of the most common workarounds for being denied in a visa lottery.

What Is Global Parking?

If an employee is not selected for an H-1B visa, the employer may want to look into relocating the employee to an affiliate outside of the U.S. for a short-term assignment. This is a common strategy to “park” an employee aboard for a small length of time to prepare for the next steps. Many companies choose to utilize this method because H-1B applicants are highly skilled employees in most cases. In simpler terms, companies don’t want to lose the specialized employees, so they will justify covering the relocation costs while the employee is on this assignment. From there, the company can then assist the employee in taking another shot at the H-1B the following year. 

The biggest advantage of global parking is that business operations can continue to run smoothly, because the company is not spending time, money, or training efforts on a new employee. While the obvious downside (for the short-term) is that the employee has to relocate. Talent mobility options are the best way for companies to retain top employees.

What If the Plan is for the Employee to Work in the U.S Long-term?

Global parking can open doors that lead to alternative visa and immigration options. When a company parks talent outside the U.S. for a short-term global assignment, it can make the employee eligible to return under what is known as the Intra-Company Transfer (ICT) category. To sum this up, if a company relocates an employee aboard for a set number of days, they then have options to transfer them back. 

Another option employees have if they are sent on an assignment outside the U.S., is they can now become eligible to apply for the L-1B and L-1A visas. These visas are not subject to a lottery and could be a great option to get the employee back stateside quickly.

Some examples of Global Parking:

listed examples of global parking

Are There Rules and Regulations for Global Parking?

In most instances, in order to go the route of global parking, companies must have an affiliate branch or entity in the destination country of choice. If not, one solution is to utilize a Professional Employer Organization (PEO) that can act as a co-employer by placing the employee on a local-level contract and payroll. 

GMS Wants to Help Companies Retain Top Talent

Global Mobility Solutions (GMS) has been helping companies with their global relocation assignments since 1987. Our team can also help with relocation policies, visas, and immigration needs. We understand firsthand how hard it is to retain top-level employees. Relocation options open up countless opportunities to keep good talent within a company. Reach out to us today to learn more about global parking or any relocation services questions. Feel free to check out our Knowledge Base which is updated weekly with in-depth relocation, job market, and real estate topics.

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

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Best Education Options for Expat Families

Taking a look at schooling options for international transplants

When an employee accepts an international assignment or position, they have to think about how their family will adapt to the new destination. One of the most stressful situations for a family moving overseas is the thought of school for the kids. Moving is hard enough on children, then add on learning a foreign language, and they are probably scared about making friends, fitting in, etc. 

First and foremost, relocating families should do everything to get their children proper language training classes. It would be worth checking the relocation package as language classes can often be included. While looking into the relocation benefits, it is common for companies to provide family and spousal support programs. There could be good programs in the program to help family members adjust. After the move, the kids can start school. 

Expat families heading to a foreign country will have plenty of questions regarding everyday life. However, one of the main questions that should be brought into the conversation should be, “what are the best education options for my children in our new country?” 

Every family has different expectations and opinions on their children’s education needs. But it should be noted that there are a few options for education overseas. Of course, each option will have pros and cons, but doing what is best for each child is essential. 

Option 1: Online Schooling from Home Country

Today’s technology offers numerous options for students to complete and submit assignments from anywhere. Since the Covid-19 pandemic, many families have turned to virtual learning as their primary education situation. However, there are pros to allowing children to do online school while living aboard. 

First off, kids won’t have to be pushed into the deep end when learning a new language. If they are doing online school from their native country, they can do their assignments in their language while learning their new language at their own pace. This may help children feel more comfortable. It’s also possible that kids can keep in touch with classmates and teachers they like, helping ease the stress of a long-distance move. 

The major con with this option is that it might take longer for kids to make friends and find activities to do in the new destination. In addition, online classes will require kids to be on the computer for most of the day, which means they might not have as much interaction with children their age. An excellent alternative to the cons of this option could be to enroll kids in local sports programs and other after-school activities. 

It’s worth mentioning that homeschooling is always an option. The pros and cons are similar to online school, but with more added pressure and work for the parent(s) in charge of the kids’ schooling. 

Option 2: Public School

If the children of the expat family already have a foundation in the new language, then the public school could be a great choice. In theory, attending a local school would make it easier for the kids to meet new friends and learn about fun, local activities. In addition, it would be a reasonable assumption that most local schools also have their language training classes to help the expat children understand more of the new language. 

The apparent con with this option comes up if the relocating children minimally speak the local language. This can make it difficult for the new students to keep up in class and make friends. Not to mention adds an enormous amount of stress and public anxiety being in a school where it’s hard to understand teachers and other students.

Option 3: Enroll in a Private International School

It’s safe to say that the online school route is probably the most used by expat families for education options. But before the Covid-19 pandemic made online classes a new commonality, many international relocators used private schools for their children. In many cases, expat families would seek out private schools that offer classes in their native language. 

This option provides relocating students with familiarity as they can still interact in their own language. The good thing about this option is that in many of these schools, they do teach the curriculum in the destination’s language so that children still learn their new language at a great pace. It’s an obvious point out, but this option is probably going to be the most expensive.

How GMS Can Help Expat Families with Children

Global Mobility Solutions (GMS) is the industry leader in relocation services. Our experienced team has been helping expat families with international relocation since 1987. Some of the pre-decision services we provide include Virtual Destination Spotlights. These spotlights are customized packets about the new location including general information, expatriate housing, schooling, and education info, cultural awareness, visa and immigration information, and more.

GMS offers another destination service in the coaching stage: detailed school reports. These reports show detailed information on educational options at the transferee’s new destination, including a “report card” on the school’s rating/performance. Here at GMS, we understand that an international move can be a trying task for the whole family which is why we do our best to make the relocation process as seamless as possible. 

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

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

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Advantages of Using an RMC for International Relocation

Learn the Advantages of working with an international relocation management company

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

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

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

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

1) International Relocation Policies

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


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

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

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

2) International Relocation Costs

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

3) Immigration Compliance

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

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

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

4) Tax Compliance

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

5) Household Goods Shipping

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

GMS Specializes in International Relocation Services

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

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

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What Is Global Mobility?

A Definition of Global Mobility and Why It’s Important

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

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

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

Common Services Included in Global Mobility Policies

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

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

Pre-Decision Services:

– Needs Assessment/Pre-Decision Counseling

– Security Briefings

– Cost Projections and Tax Calculations

– Cost of Living Analysis

– Goods & Services Tables

– School Reports

– Virtual and Video Destination

– Mobility Assessments

– Pre-Hire/Decision Travel Booking

– Area Tour & Orientation

– Candidate Expenses

– Assignment Letter Development

– HR/Recruiter Debrief

 Pre-Departure Services:

– Program Counseling & Management

– Global Expense & Compensation Management

– Visa & Immigration Services

– Home Disposition Assistance

– Auto Shipment & Disposition Assistance

– Tax Equalization & Consultation

– Medical Coordination

– Assignment Travel Booking

– Area Tour & Orientation

– Global Home Finding

– Schooling Assistance

– Spouse/Partner Career Assistance

– Cultural Training

 Destination Services:

– Settling In

– Auto Lease/Purchase

– Language Training

– Air, Sea, & Surface Shipment

– Storage Management

– Global Banking

– Driver’s Education

– Temporary Living

– Career Assistance

– Education Assistance & Placement

 Ongoing/Repatriation Support:

– Ongoing Tax Consultation & Filings

– Security Monitoring and Alerts

– Global Travel Tracking

– Tenancy Management Services

– Emergency Services

– VAT Recovery

– Repatriation Program Counseling & Management

– Repayment Collections

Why Are Global Mobility Strategies Important?

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

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

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

GMS Provides Excellent Global Mobility Service

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

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

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Zoom Town Options for International Relocation

Check Out These Countries That Offer Relocation Incentives

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

What Are Zoom Towns?

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

 

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

 

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

Switzerland

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

Italy

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

Greece

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

 

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

Croatia

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

GMS Can Help with International Relocation

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


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

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2023 H-1B Registration Details

Get more details on H-1B Cap registration

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

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

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

H-1B Lottery

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

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

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

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

GMS Can Help with Any Visa & Immigration Needs

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

We're Here to Help! Request a Courtesy Visa Program Consultation

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

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

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

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Relocation Policy Review: Anticipating Changes and Challenges

Why Companies should review their Relocation Policies?

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

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

 

Address Strategic Objectives in Your Relocation Policy Review

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

Cost Reductions and Process Improvements Can Be Found

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

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

Maintaining Your Company’s Competitive Market Position

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

Ensures Company Policy Remains Compliant

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

When Should Relocation Benefits Be Reviewed?

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

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

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

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

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U.S. Domestic vs International Relocation Costs: More Than Just The Miles

A Look Into the Major Difference Between Domestic and International Relocation Expenses

In today’s competitive job market, hiring the best employee for an open position can be a long, but rewarding process. In order to remain a top contender for talent, it is important to ensure your recruiting efforts are backed by well-optioned relocation services, allowing you to source talent outside of your immediate region. Companies who work with a relocation management company (RMC) give their HR department and recruiters access to important tools that enhance their ability to hire the best possible employees, taking the company to the next level. 

The operation of any relocation program comes with necessary expenses, however, the relative cost of these expenses and their service categories will vary by the services utilized and the type of relocation being performed. For example, the service mixture (and by extension, the total cost) of a typical relocation that occurs within the United States and one that is international can be very different. 

Let’s explore a few of the primary cost factor differences between a domestic relocation and an international relocation.

Typical Costs Incurred During Domestic Relocation

When accepting a position in a new state, the high-cost services are usually moving costs and real estate assistance. Most companies include assistance for both in most average relocation packages. Short-term or temporary housing is another benefit that is usually included in relocation services that can help to increase the overall cost. Let’s take a deeper look at some of the more common domestic relocation benefits:

Selling Your Home

Oftentimes, selling a home isn’t a simple process. Listings and showings alone can take weeks before the ball starts rolling with suitable offers to purchase. Additionally, the sale of a home is not considered cheap. The cost of selling your property can easily rise to several thousand, if not tens of thousands, of dollars. Many employees simply don’t have the liquidity or equity to cover such an expense.

Some relocation management companies include real estate assistance in their relocation benefits. These benefits can include home-sale programs like the BVO, GPO, and Direct Reimbursement, in simpler terms this part of the relocation package is real estate assistance. Each program has different pros and cons but overall can help in any situation. These various programs are all designed to help alleviate the financial stress of selling what many transferees would consider their most expensive asset. 

Relocation companies typically are always up to date with real estate trends and offer real estate agents who specialize in the relocation process. There is also a chance that using one of these programs, if the relocating employee has a hard time selling their home, the RMC will purchase the home from them so they can continue their relocation on a reasonable timeline.

Short-term Housing Options

Also known as corporate housing or temporary housing, short-term housing is a great relocation benefit when utilized. These are usually furnished apartments where the relocating employee and their family can stay, usually for 30 to 90 days, while they await their belongings from the moving company and look for a more permanent home. This gives the employee a better chance to research neighborhoods and schools where they would want their family to live. 

As with many things, time is money. The longer the stay in short-term housing, the higher the overall direct cost. This causes temporary housing costs to be one of the key cost considerations for many relocations.

Moving & Transportation

Moving locally can be complicated enough, when it comes to moving an entire household to a new city or state, many do not fully understand the costs involved. Manpower costs and shortage in the HHG industry are a historic challenge, but market pressures on items such as packaging materials and fuels have become a new dynamic that have caused transportation costs to climb in recent years.

The packing and transporting of the employee’s belongings to their new destination in a safe and timely manner is important for a successful relocation. Using a quality moving company to ship all household goods greatly reduces stress and increases efficiency in the moving process.

Typical Costs Associated with Global Relocation

When it comes to international relocation, there are (generally) additional costs to consider above and beyond those that occur in a typical domestic relocation. Most of the benefits stated above are also included with global mobility assignments or permanent relocations, along with some more in-depth benefits that have to be involved when relocating to a new country. One key benefit should be assistance in applying and obtaining the correct visa and immigration paperwork. Here are some of the benefits included in an international relocation package that will have their own impact on the overall cost of the move:

Visa Fees

Visa applications and renewals can be a trying process. Depending on the employee and their situation, it can cover over $1,000 for all paperwork to be filed. Relocation companies tend to work with visa experts to avoid missteps, which will save everyone time and money in the long run. Companies who are hiring international candidates typically include provisions in their policies to cover any visa and immigration applications that are needed to be able to work for them internationally.

Moving Insurance

There will be some common coverage for household goods through the household goods transportation company, but oftentimes when it comes to international moves, items are sent by sea. This requires different types and ranges of coverage when compared to a domestic move. Purchasing property transportation insurance can help cover any mishaps to items as they arrive at the new destination. Most RMCs will urge companies to cover this cost in their relocation packages.

Storage Costs

International moves can be hard to coordinate, so one may find themselves in need of storage for a period of time. In most cases, HHG storage assistance is needed because the transferee hasn’t been able to find a new home yet. Others may need long-term storage as they are on an extended assignment and it is not necessary to ship their entire household to their assignment location. When there are storage options available in the relocation package, it can help the relocating employee greatly.

GMS Can Help No Matter Where You’re Headed

Global Mobility Solutions has dedicated teams for both domestic and international relocation. Our certified relocation coaches and assignment managers have handled moves from almost any state or country and can help no matter where you’re headed. Our domestic relocation services include handling all aspects of the move, including pre-decision, departure, and destination services. On the international side, we provide assistance from pre-assignment to assignment management to repatriation. 

Relocation costs can add up, but working with GMS, you gain access to a vetted and competitive mobility service provider network, complete end-to-end management of your program, and the industry know-how to ensure your program is running as efficiently as possible. Reach out to us today with any questions regarding global mobility.

We're Here to Help! Request a Courtesy Consultation

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

Categories
Global Mobility Global Relocation Global Relocation Trends Relocation Programs

Tokyo-based Employees Urged to Use Relocation Incentives

Japanese government is offering workers perks to relocate to less-populated areas

Tokyo, always known for being one of the most populated cities in the world, is starting to get just a little too crowded. The dynamic lifestyle of this great city is what brings many people to it in the first place. Many relocate to Tokyo for school but then remain for job opportunities. With so many people living in Japan’s capital now, it is estimated that 30% of the country’s entire population is concentrated in the greater Tokyo metropolitan area. This resulted after 25 years of year-over-year hikes in the population numbers. The number of inbound migrants in 2020 was about 38,000, a significant decrease from about 87,000 in 2019 (down about 56%), but still of significant volume.

This centralization of the Japanese population in Tokyo has been identified as a significant national risk. The potential (and realized) damages to the country and the economy that can be caused by disasters such as infectious diseases and earthquakes occurring in such a densely populated area have highlighted the need for a change in thinking. The mitigation of the impact of such disasters occurring in Tokyo can be helped by working towards the building of a decentralized society.

Additional benefits of this new direction can create a positive impact on the people that live in Japan. While there is much to do in Tokyo, like all major cities, there are a few drawbacks. The crowds in this big city atmosphere can make life harder, especially in a pandemic setting like most of the world as seen in the past two years. Additionally, the cost of living is not cheap. Living in the greater Tokyo area can be extremely expensive compared to more rural countryside areas of Japan. In fact, Tokyo is consistently ranked as one of the most expensive cities in the world.

So, what is Japan doing to promote citizens to consider moving to more rural and less crowded parts of the country? The government is offering relocation incentives to those who are able to work remotely from their new home. This big urge to relocate people to less crowded areas can be financially beneficial for those willing to do so.

Financial Support Relocation Incentives

Hoping to revitalize the rural parts of Japan, the government is offering individuals grants of up to 1 million yen (about $9,000 USD) to move out of Tokyo, while working remotely of course. Remote work is an important aspect of this program, removing the need to commute in and out of Tokyo for work. It has been reported that the government is committed to shelling out more than $10 billion yen in grants for this program. 

On top of the grants, local governments are also offering programs to attract new residents to their cities and towns. Many municipalities are providing ongoing support to help new residents find employment. Some of these programs are even geared toward helping entrepreneurs establish a new business in a local storefront. There are also some relocation programs that are helping movers either purchase or rent a home in their new area.

Experience Relocation Support Through GMS

Japan is one of many countries right now offering government relocation incentives. Contact GMS today with any questions regarding your relocation program, policies, or needs. Our qualified team has been helping people relocate all over the world since 1987. We will listen to your needs, examine your relocation program, and provide expert feedback on how to develop a competitive program based on industry best practices.

We're Here to Help! Request a Courtesy Visa Program Consultation

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

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

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

Categories
Choosing a Relocation Company Corporate Relocation Domestic Relocation Global Mobility Global Relocation Relocation Best Practices Relocation Management

Advantages of Creating Competition Between Suppliers for Relocation Services

GMS Always Fields Multiple Bids from Suppliers on Key Services

No one wants to pay more than they need to, this is especially true when it comes to the outsourcing of employee relocation services to a Relocation Management Company (RMC). Cost is generally the #1 driver of any procurement process, and it is wise to ensure you’re getting the most for your money before you sign on the dotted line. While saving money is a no-brainer, have you considered what steps your RMC is taking to ensure they deliver on cost savings for your relocation program?  

Many relocation companies have their own supplier base. These suppliers may consist of critical (and expensive) services, such as household goods transportation companies and temporary housing agencies. It is important to understand how your relocation company is leveraging these suppliers to reduce the impact of these services.

GMS Process to Keep Relocation Costs Down

Global Mobility Solutions, like most relocation companies, has its own, trusted network of suppliers. However, our network model is different due to our Multiple-Bid Process on key services. This process creates ongoing competition between our suppliers which ultimately results in lower prices and major relocation cost savings for our clients’ overall mobility spend. 

So how does it work? GMS analyzes each relocating employee’s unique needs, develops a service delivery plan, and then reaches out to at least two different suppliers for bids on key services. The suppliers’ estimates are audited for accuracy and submitted to you for final selection and approval based on the criteria most important to your organization. It should be noted that these are not just random or first-time suppliers who place bids with GMS. Each supplier is trusted and vetted by our network management team to ensure great service and competitive pricing. The process also allows us to develop creative service strategies to address every unique relocation need from each transferee. 

What makes GMS different is our independence and transparency in our supplier selection process. As we are not affiliated with any of our suppliers (van lines, corporate housing, real estate, destination services, immigration, or otherwise) we can subjectively vet our supplier base, ensuring the best possible quality for the best possible price across all of our key services. Some RMCs own or are owned by the suppliers they utilize which prevents the ability for true competition amongst the sub-suppliers servicing your account.

Additionally, GMS benchmarks and reviews our supplier pricing and negotiated rates on a quarterly to annual basis to ensure competitiveness by service in your specific relocating markets. These two features provide GMS clients with an umbrella of cost savings coverage while enhancing the quality of each relocation.

Let GMS Provide Relocation Services for Your Company

Operating a workforce relocation program can be expensive, but in many cases, it’s the best way to ensure your organization remains competitive in the acquisitions of talent to fuel your ongoing success. To have a better shot at cutting down relocation costs during the process, it is important to ensure your RMC utilizes a competitive bid process between suppliers on key services, such as household goods transportation, corporate housing, and more. Competition is always good for the consumer, driving down prices and increasing quality. GMS ensures the best price possible 100% of the time. For more information on corporate relocation services and program management from GMS, reach out today to schedule a call with one of our qualified team members.

We're Here to Help! Request a Courtesy Consultation

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