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Domestic Relocation Domestic Relocation Tips Employee Development Global Relocation Global Relocation Tips Labor Force Talent Mobility

2020-21 Employee Relocation: Location, Location, Location

If your company’s 2020-21 employee relocation plans require a mix of new hires and current employee transferees, how can you be sure you will attract the most highly qualified candidates? Many job seekers are looking for career opportunities. However, they also have other interests such as home ownership and a desire to live in a growing and vibrant location.

With the COVID-19 pandemic leading many employers to institute Work from Anywhere policies, some may think relocation is no longer necessary to attract talent. Employers that pursue this line of thinking may believe they are offering a great value in their talent acquisition programs. Unfortunately, they may also be seen as a less desirable employer for job seekers to consider. Why? Because the employer’s location may be one of the most desirable points for job seekers who are seeking opportunities.

Location, Location, Location

When employers benchmark their relocation policy, they should keep “location, location, location” at the top of their mind for talent acquisition. Key point to remember: the employer’s location is where the job seeker wants to work and live. While the job opportunity carries significant weight, location is often a deciding factor for employee relocation.

Location Often at Top of the List for 2020-21 Employee Relocation

Location is often at the top of every job seeker’s list when looking for employment. Many people see moving for a new job an exciting adventure. Looking at the best cities to find a new job is almost a rite of passage for new college graduates. Even during the pandemic, many cities have more job openings than candidates with the requisite skills and qualifications. Location, then, is a critical consideration for job seekers, and one that employers should leverage in their 2020-21 employee relocation plans.

Beyond location, job openings, and future company growth, job seekers also consider a wide range of location-specific factors in their search. These factors may include:

  • Cost of living
  • Housing options
  • Demographics
  • Social networks
  • Weather
  • Safety
  • Educational opportunities
  • Professional networks
  • Local amenities

Pre-Decision Services are Critical for Success with 2020-21 Employee Relocation

The value of pre-decision services to talent acquisition programs has increased dramatically. Employers can more readily determine if new hires and transferees will result in a successful relocation. These services also help the potential employee learn about the area and understand all aspects of the relocation. Career support services for spouses and partners are also provided, and family matters are taken into full consideration.

There are many benefits of pre-decision services for both the client and the candidate, including:

Client Benefits

  • Increases job acceptance ratios
  • Highlights candidate concerns and issues prior to relocation
  • Minimizes policy exceptions
  • Provides cost savings
  • Increases budget accuracy
  • Increases successful relocations
  • Identifies candidates unable/unwilling to relocate

Candidate Benefits

  • Thorough orientation tours for candidate and family members
  • Expert counsel and assistance for all aspects of the relocation
  • Relocation industry professionals provide support and attention
  • Spouse, partner, and family support services
  • Dedicated consultant available to discuss any concerns

MyRelocation® Video Destination Spotlights Highlight the Employer’s Location

With so much interest in location and location-specific factors from job seekers, employer should consider how they present relocation opportunities to candidates. GMS offers its clients Destination Spotlights to North America and Global locations that provide a wealth of helpful information. GMS’ MyRelocation® Video Destination Spotlights are professionally crafted videos. These beautiful and engaging videos provide an overview of the location for the candidate.

What Should Employers Do About 2020-21 Employee Relocation?

Employers should examine their 2020-21 employee relocation plans to determine how they can be successful in attracting candidates with the necessary skills and qualifications. They should work with a Relocation Management Company (RMC) with knowledge and experience in developing relocation policies that follow industry best practices.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to develop relocation programs that attract candidates with the necessary skills, education, and experience. Our team can help your company understand how to use 2020-21 employee relocation plans to design an effective relocation policy. As a result, your company will be able to remain competitive in its industry and attract the best candidates for job openings.

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

New SafeRelo™ COVID-19 Knowledge Portal

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

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

Contact our experts online to schedule a complimentary policy review for your 2020-21 employee relocation plans, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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Domestic Relocation Domestic Relocation Trends Global Relocation Global Relocation Trends Job Market Job Seekers Labor Force

STATE TAX COMPLIANCE ISSUES TO CONSIDER WITH REMOTE WORKING POLICIES

Telecommuting or the new Work from Anywhere policies are not a new concept. With traditional Work from Home policies, employees are typically within commuting distance of their office. In recent years, Work from Anywhere policies have begun to emerge. Under this type of arrangement, employees have greater flexibility to choose where they live and work.

COVID-19 Pandemic Accelerates Work from Anywhere Policies

While the number of employees working remotely has been growing at a steady pace over the past several years, the COVID-19 pandemic has now pushed this issue to the forefront and more companies are considering Work from Anywhere policies that allow employees to live and work in any location. While this type of policy is very attractive to both the company and employee, this type of policy can trigger new tax compliance issues for both parties.

GMS spoke with Erika Beddow, Business Development Manager at Global Mobility Tax, LLP (GMT).  Erika has over 20 years of experience in public accounting and in the global mobility industry. She has worked on an array of multi-national clients throughout her career. Erika also enjoys navigating complex situations while prudently mitigating risks, identifying value creation opportunities, and building strategic partnerships.  Erika agreed to share her expert guidance on this issue.

What is Important to Know about Remote Work Policies?

Erika notes that as with domestic business travel planning, it is important to note that each US state has its own unique laws and reporting requirements. During the COVID-19 pandemic, many employees have been telecommuting in states other than where they typically work due to stay at home orders and quarantine. These employees can unknowingly trigger state and local tax issues for the company, as well as payroll obligations in the state in which they are working.

Lacking State Guidance Regarding Issues Relating to Remote Work

Currently, Erika reports that only a few states have provided guidance and certain relief for companies and individuals who are working in their state temporarily due to the COVID-19 pandemic. Unfortunately, there is still a lot of uncertainty surrounding how many states will tax these individuals and businesses.

Possible Triggers for State Nexus and Payroll Withholding Requirements

As the globe recovers from the pandemic and employees continue to work remotely, Erika strongly believes that companies will need to consider the remote worker implications to avoid unknowingly trigger state “nexus” and payroll withholding requirements. (Nexus is the term used to describe a company being recognized as an entity in a particular state or jurisdiction.)

Additionally, businesses may face penalties and interest for failing to withhold state income taxes, while employees may have an increased tax filing obligation.

Work from Anywhere Policies: Benefits Versus Potential Cost Increases

Some benefits to Work from Anywhere policies are that they provide the employee more flexibility in where they live and work and the hours in which they work. However, Erika believes that companies need to be aware of the possible increase in costs to the organization. She notes that some increases can include administrative costs, payroll obligations, and tax implications for this type of policy.

According to Erika, while putting in place Work from Anywhere policies, companies will need to consider the following important points:

  • Understand corporate and payroll tax compliance obligations, not only in the location where the company operates, but also where their employees are living and working.
  • Monitor and track the location of where their employees are working.
  • Determine whether the employee’s work location has triggered corporate tax responsibilities due to state nexus.
  • Report employee income correctly and withhold appropriate taxes based off where they are tax resident as well as working.
  • Educate employees on state filing requirements and residency rules and provide tax assistance if necessary.
  • Provide guidelines for states the company can comply with versus states that may be too expensive due to payroll complexities and state nexus.

States are Increasing Their Ability to Track Remote Workers and Business Travelers

Many states have already been stepping up their ability to track remote workers and frequent business travelers prior to the COVID-19 pandemic. However, COVID-19 is putting pressure on state budgets. As a result, many states will likely increase their review of a company’s payroll filings and corporate nexus as more employees start working and living in different states than the employer.

How Work from Anywhere Policies May Lead to Non-Compliance

Companies can easily fall out of compliance if they are not tracking where their employees are working from and reporting the income and withholding taxes in the other state. Non-compliance can lead to unexpected tax implications for both the employer and employee, including fines and penalties.

If a company is considering implementing Work from Anywhere policies, each employee’s situation should be carefully reviewed. Erika states it is important for companies to determine whether any employee working in a different state has triggered state nexus, and to review the specific payroll tax withholding obligations in that state.

Solution to Help Companies Considering Remote Work Policies

GMT has put together a service solution to assist companies in evaluating and analyzing these issues. This solution helps companies by:

1. Implementing the GMT 2020 State Tax Compliance Solution

  • Ensuring payroll compliance and tax withholding
  • Advising employees on state residency and state tax filing requirements
  • Providing individual state tax services for your employees

2. Identify and quantify the risks state to state for remote workers

3. Discuss and draft an action plan for monitoring employees

4. Help find the stakeholders and create reports to support the action plan

5. Assist with systems integration to automate the process

6. Analyze and assist with state trailing liabilities from equity awards

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients learn about important issues such as tax compliance for their organization. Our mobility consulting team can help your company understand how to implement Work from Anywhere policies. We can also help your company to understand issues of compliance and non-compliance to state tax requirements with the expert assistance of Global Mobility Tax, LLP.

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

Contact our experts online to learn more about Work from Anywhere policies and state tax compliance versus non-compliance issues, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Global Relocation Global Relocation Tips Global Relocation Trends Job Market Job Seekers Labor Force Talent Management Talent Mobility United States Economy

Virtual Career Opportunities: Rising to the New Challenge

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

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

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

Virtual Career Opportunities: The Advantages

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

Advantages for Employers

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

Advantages for Employees

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

Virtual Career Opportunities: The Disadvantages

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

Disadvantages for Employers

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

Disadvantages for Employees

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

The Real Challenge that Must be Overcome for Virtual Career Opportunities

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

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

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

DiSC® Personality Traits and Virtual Workplaces

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

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

Resources to Find Virtual Career Opportunities

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

Indeed Virtual Jobs

ZipRecruiter® Virtual Jobs

Amazon Virtual Locations

CareerBuilder® Virtual Jobs

FlexJobs Remote Companies That Thrive on Virtual Work

Linkedin Virtual Jobs

Monster Virtual Jobs

SkillCrush Companies Hiring Remote Workers

Virtual Assistant Jobs

What Should Employers do?

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

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

Conclusion

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

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

New SafeRelo™ COVID-19 Knowledge Portal

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

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

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

We're Here to Help! Request a Courtesy Consultation

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

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Domestic Relocation Challenges Job Market Job Seekers Labor Force Relocation Challenges Talent Management Talent Mobility United States Economy

Returning Workforce: Tips to Help Bring Employees Back to the Office

Across the working world, many employers need to prepare for their returning workforce. Employees may have been working from home for several weeks or even a few months due to COVID-19 restrictions. Some offices and facilities may have closed very quickly to meet local or state requirements. How should employers approach welcoming employees back to the workplace?

Relocation Industry Suppliers Share Plans for Their Returning Workforce

GMS interviewed five relocation industry suppliers to find out what they plan to do for their returning workforce. We spoke with one supplier in the Household Goods Moving Industry, one Real Estate Broker, one Corporate Housing Provider, one Destination Services Provider, and one Home Mortgage Lender. We also asked these companies to share any resources they used to help them define their approach.

Each of these companies are leaders in their respective industries. As a result, their answers provide a wealth of insight and knowledge. GMS clients may be able to learn valuable information they can use as they develop their own plans for their returning workforce.

Household Goods Moving Company Plans for Their Returning Workforce

Mike McGill, Senior Vice President: Mills Van Lines

“From a remote work standpoint, the main area that this has impacted is our office staff that supports all of the services being performed in the field – i.e. sales, customer service and accounting – most of whom started working from home on 3/16. Thanks to the technology available to all of us, the transition from in-office to remote work was quite seamless and has enabled us to continue to function without interruption (I can’t imagine what we would have done if this pandemic struck 20 years ago). That being said, we run a single location company, with our HQ facility in Ohio. We have been following all of the guidelines of local, state, and federal government – as well as the CDC – and will continue to do so.

Governor of Ohio Announcements

The governor of Ohio made announcements earlier this week that they will allow non-essential businesses to start a phased opening – with some starting back up on 5/1 (doctor/dentist/veterinarian offices), others on 5/12 (retail and consumer stores), and even more later in the month (likely restaurants, bars, and salons). As part of those announcements, the governor requested that individuals who can work from home should continue to do so for the time being.

Communications to Team Members

We have communicated to our team members that we will continue to follow the guidance of the governor, and that we would like them to work remote until further notice. When we get to a point where it is safer to be out and about, we will definitely allow them to return to the office, but we have also let them all know that it will be up to each of them individually to decide when they feel ready to do so.

Adjustments Made to Enable Staff to Return to Office

Regardless of when the offsite staff does return to our office, we have already made adjustments to enable them to do so. Effective in early March we ramped up cleaning and disinfectant activities at our facility. We also started placing bulk orders back in March for supplies like disinfectant soap, hand sanitizer, and masks – and those orders have been arriving over the past 6 weeks. And we have asked that everyone keep 6 feet apart when interacting within the facility. We are fortunate because we have a good amount of space in our office that will allow for our entire returning workforce to be here at work and still be more than 10-15 feet apart at all times.”

Real Estate Broker Plans for Their Returning Workforce

Erik R. Brown, Realtor®, TV host, speaker, and author of “One in a Million: Everything You Need to Know to Find the Best Realtor®”: Compass

“We are following the guidelines of our local health officials and authorities. Fortunately in our world, we can work remotely while still servicing our clients’ wants and needs effectively. When California’s Safer at Home order is lifted (currently scheduled for 5/15), there will be social distancing recommendations for offices to follow. I am thankful that Compass is so agent-centric and forward thinking to plan for the long term health of our agents and staff.

Appropriate Social Distancing

Thankfully as a Realtor® I don’t handle the office administration; that is a massive job WITHOUT the intricacies of prepping for appropriate COVID-19 best practices! I know both in office and while showing homes and properties, appropriate social distancing, masks, small groups and the like are and will be the norm for the foreseeable future. Though I miss handshakes and hugs, I am a black belt in Zoom. 🙂

I am communicating much more online and the phone. Virtual meetings, Facebook Lives, Video messaging were a part of my practice, but now are commonplace for my team and me to communicate with clients, prospects, vendors, and colleagues. I have utilized virtual assistants for years, so developing an online infrastructure was something I did years ago. Much of our work then has become the foundation of what we do now.”

Corporate Housing Provider Plans for Their Returning Workforce

Ann Moore, Managing Partner: ATB Furnished Housing

“Although we all miss ‘normalcy’ ATB will resume business in stages based on our success rate of keeping our team healthy and virus free and our plan to open reflects this strategy. Because we support many of the essential businesses such as health care and transportation, our main office has never completely closed. However, 80% of our staff have been working remotely and critical function associates are done in shifts to reduce contact. We plan to keep all remote workers that can effectively work from home doing so until May 31.

Critical operational associates will be returning to work full time in the office as of Monday May 4th with guidelines regarding each employees’ personal home life scenario and safety concerns. All associates will be provided with masks, gloves and hand sanitizer to be used routinely when in the office as well as when traveling to and from the office. We will continue to limit travel and in person meetings will be restricted to three or less people. With the technology available to us for video conferencing we strongly feel there is no need to rush back to an environment of high level risks.

CDC Guidelines and Recommendations

Per the CDC guidelines and recommendations, our offices have been thoroughly cleaned and sanitized on a daily basis and all high touch surfaces are re-cleaned every three hours. We are fortunate that all of our work stations and offices are well over six feet apart so we do not need to re-configure to accommodate social distancing policies. As of Monday May 4th, we will be doing temperature checks upon reporting to work and will continue to be vigilant on assessing and tracking the virus statistics in our state and will not hesitate to resume a shelter in place policy as needed.

Keeping our team healthy and safe is our top priority. In an effort to be pro-active beyond the suggested preventative measures for spreading the virus, ATB will be focusing on educating our team about healthy immune boosting food choices and will be stocking the break room appropriately based on the suggestions of the Physicians Committee for Responsible Medicine. We look forward to a return to normal operations but also realize our role in doing so responsibly.”

Destination Services Provider Plans for Their Returning Workforce

John Merriweather, CEO and President: GO Destination Services

“Our team is eager to return to the corporate office in Carmel, Indiana. We are hiring a professional sanitizing company to keep employees safe. We will have a gradual return to the office on staggered work shifts based on desk proximity and job function. All meetings will conducted by video chat or phone call.”

Home Mortgage Lender Plans for Their Returning Workforce

Matt Canfield, Senior Vice President, Relocation and Affinity Lending: TIAA Bank

“Our leadership is evaluating when we will be able to return to our office environment, with a focus on keeping our team safe and healthy. At this point, we anticipate that this remote work guidance will remain in effect until further notice and the timing is right. For the near future many of our associates find them working from a new office—their homes. We have some great internal resources for Working Effectively in Today’s Environment to help our team through this tough time and keep our team happy, healthy, safe and productive.”

What Does This Mean?

Each company is unique in its workplace and culture. Also, various locations may need to address specific issues that depend on a variety of factors, from government regulations to the availability of transportation or child care. Companies in the planning stages for their returning workforce should leverage resources and expertise that can help them determine how to create appropriate measures while ensuring employee safety.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients with their talent management programs. As a result, our team can help employers with a variety of issues as they plan for their returning workforce.

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

Learn 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 learn more about how your company can leverage resources to plan for its returning workforce, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

Categories
Employee Development Job Market Job Seekers Labor Force Talent Management United States Economy

Inclusive Employment: Necessary for Talent Acquisition and Future Corporate Growth

Employers in the US should review their talent acquisition programs to ensure they focus on inclusive employment. With the signing of the United States-Mexico-Canada Agreement (USMCA), the US economy is poised for higher growth and an expansion of jobs.

Tight Labor Market Issues Make Case for Inclusive Employment

Currently, the US economy appears to be close to full employment. However, there are millions of working age adults who are not participating in the workforce. Over 90 million Americans are of working age but not working. While some of these adults are in retirement, large numbers may not be working due to other factors, such as:

  • Enrollment in school
  • Participating in job training programs
  • Providing home care for children or relatives
  • Unable to work due to disability or illness

According to Pew Research, additional factors influencing participation in the labor market include:

  • Lower numbers of teens participating in the workforce
  • Higher numbers of workers age 55 and older working and looking for jobs
  • Significant numbers of Americans are self-employed

US Economic Performance Requires Inclusive Employment

US economic performance is healthy with a forecast for continuing steady growth. Recent forecasts may not have taken into account the signing of the USMCA. This trade agreement may add significantly to the US economy’s future growth over the next several years. The United States International Trade Commission report, “U.S.-Mexico-Canada Trade Agreement: Likely Impact on the U.S. Economy and on Specific Industry Sectors” indicates the following:

  • S. real Gross Domestic Product (GDP) will rise by $62.2 billion (0.35 %)
  • S. employment will rise by 176,000 jobs (0.12 %)
  • Positive impact on U.S. trade with USMCA partners and rest of the world
  • Increases in wages, exports, employment, and output
  • Several industry sectors including manufacturing and services will benefit

What is Inclusive Employment?

Inclusive employment is often thought of with respect to individuals with disabilities. However, as noted by Johnny C. Taylor, Jr., SHRM-SCP, President and CEO of SHRM, the Society for Human Resource Management, an expansive definition of inclusion would cover many other individuals who may not have actual physical disabilities. A company that takes an expansive view of its workforce may dramatically increase the size of its prospective talent pool.

Individuals with Disabilities

The Professional Fellows Program on Inclusive Disability Employment notes that Inclusive Employment “…refers to individuals with disabilities working alongside their peers without disabilities in the competitive labor market (with access to the same benefits and career opportunities).”

  • Inclusive employment for individuals with disabilities provides many benefits for them:
  • Placement in a high-quality employment environment that may allow career advancement
  • Opportunity to become financially independent
  • Societal inclusion from an early age leads to acceptance and respect
  • Expands their range of skills, friendships, and interactions with others to help promote independence

A joint study by the Illinois Department of Commerce and Economic Opportunity and DePaul University identifies several benefits of workers with disabilities, including:

  • Participants with disabilities from the retail and hospitality sectors stayed on the job longer
  • Across all sectors, participants with disabilities had fewer scheduled absences
  • Retail participants with disabilities had fewer days of unscheduled absences

The U.S. Department of Education’s Office of Special Education and Rehabilitative Services has developed several resources to assist employers in developing inclusive employment practices. A new video on recruiting, training and employing individuals with disabilities highlights the success of CVS Health and their inclusive employment initiative.

Veterans

According to HRTechnologist, “When it comes to fostering diversity & inclusion (D&I) in the workplace, campaigns for hiring veterans are an absolute must-have.” Veterans often have many skills that are highly valuable to companies. As a result, an inclusive onboarding process for veterans and transitioning service members is a valuable resource for talent acquisition programs. Additionally, many veterans may also have service-connected disabilities. Many of these individuals share the same traits as able-bodied veterans, including:

  • Job-ready skills
  • Tested leadership abilities
  • Mission-focused work ethic

The U.S. Department of Labor promotes the hiring of veterans and inclusive employment initiatives with their Veterans’ Employment & Training Service (VETS) program. VETS helps veterans and service members that are leaving active duty in several ways:

  • Providing assistance to employers to find qualified transitioning service members and veterans
  • Employer Toolkit designed to assist and educate employers in their recruitment and hiring initiatives
  • HIRE Vets Medallion Program recognizes employers
  • Providing employment policy and compliance information for veterans and service members
  • Resources for Registered Apprenticeship programs to ensure those eligible can receive GI Bill benefits

Formerly Incarcerated Individuals

Individuals transitioning from incarceration to communities face challenges in finding employment. According to Prison Policy Initiative, the unemployment rate for formerly incarcerated people is nearly five times higher than the unemployment rate for the general United States population.

However, research also shows that companies with inclusive employment that promotes hiring of these individuals may benefit in several ways:

  • Military enlistees with criminal records were promoted more quickly and to higher ranks than other enlistees
  • Call center employees with criminal records had longer tenure and were less likely to quit
  • Ban the box” laws prevent employers from asking about criminal histories on initial job application forms and require they make hiring decisions based on merit and the relevance of prior convictions to particular jobs results in hired applicants with criminal records who exhibit a lower turnover rate than those with no records

Research shows that companies can make a significant amount of money through an employee’s longer tenure. Turnover among staff costs companies a significant amount of money, time, and resources. Ultimately, employers should choose the candidate that is best for the job whether they have a criminal record or not.

Employers and Managers Support Inclusive Employment of Formerly Incarcerated Individuals

A survey conducted by the Society for Human Resource Management (SHRM) and the Charles Koch Institute (CKI) to better understand how people in the business community viewed hiring those with criminal records found:

  • 74% of managers are willing or open to hiring individuals with a criminal record
  • 84% of HR professionals are willing or open to hiring individuals with a criminal record
  • Over 80% of all groups surveyed are willing and open to working with individuals with criminal records
  • Only a small minority were unwilling to make the hire or work alongside these individuals

Companies such as Greyston Bakery in Yonkers, New York, have seen significant success with “Open Hiring®” and focusing on training and apprenticeship programs. The company has employed thousands of formerly incarcerated individuals.

Facility Programs Provide Valuable Skills to Support Inclusive Employment

Many individuals learn valuable job skills during their incarceration. For example, Unicor is the current name of the Federal Prison Industries program that was established by President Franklin D. Roosevelt in 1934. Unicor prepares inmates with job training and practical work skills for their successful reentry to the workforce.

Unicor notes there are several incentives and benefits available to companies that hire former offenders:

What Should Employers do About Inclusive Employment?

Employers should understand the value of inclusive employment. They should also consider examining their current corporate structures and employment situations as they relate to diversity and inclusion. Employers should determine how inclusive employment initiatives in talent acquisition and management may increase their ability to reach corporate objectives.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients develop hiring and recruiting programs to attract highly skilled job seekers through inclusive employment initiatives. As a result, 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 with a focus on inclusive employment.

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 learn how inclusive employment can benefit your company’s recruiting, hiring, and relocation program, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Job Market Job Seekers Labor Force Talent Management Talent Mobility

Silver Tsunami: How Aging Workforce May Impact Relocation

Many companies in the United States are facing the effects of a silver tsunami in their workforce. In essence, this term refers to a company’s workforce increasing in age. As a result, older workers are becoming a larger and growing segment of employees. Companies often their leverage relocation program to meet corporate objectives. Therefore, they should examine the possible impact of a silver tsunami as it relates to their workforce.

How the Silver Tsunami may Impact Relocation

Transferees may utilize several elements of a company’s relocation program. Companies experiencing an increase in the age of their workforce could find many of their relocating employees need more or less benefits, depending on their specific circumstances. As the silver tsunami begins to change its workforce, companies should initiate a review of their relocation program to ensure it addresses those elements important to older workers. Many workers want to work after they retire from their main career.

There are three major areas that companies should consider as they review their relocation program:

1. Bridge Employment Opportunities Help Mitigate Silver Tsunami

Bridge employment” refers to paid employment opportunities for older workers. These workers may be transitioning out of their current career, but are not yet leaving the labor force. As a result, bridge employment may help companies leverage the silver tsunami. Companies should consider designing relocation opportunities for older workers so they can share skills and knowledge in other locations as part of the company’s overall bridge employment strategy. The healthcare industry has seen success through leveraging relocation benefits to attract and retain talented and highly skilled employees.

Opportunities in bridge employment should nurture meaningful work so older workers feel their contributions are making a difference. Older workers report satisfaction in their job and meaning in their activities as the main reasons they remain in the workforce.

2. Flexible Work Arrangements

Companies that offer older workers some flexibility with their work schedules and setup are more successful with talent acquisition and employee retention. Companies examining the structure of work to respond to changes brought by the silver tsunami should be sure to insert flexibility. Many workers identify specific aspects of flexible work as integral to their most desired job, including:

  • Home-based work initiatives
  • Part-time positions
  • Scheduling flexibility
  • Travel opportunities

3. Constructive Relationships

Many employment opportunities provide workers with a chance to interact, support, and engage with their co-workers. Older workers identify constructive work relationships as their top preference for a good quality job.

Companies should examine their workplaces to ensure they meet the conditions necessary to foster constructive work relationships. These conditions include:

  • Creating manager and employee relationships that are strong and built on achieving goals
  • Defining clear and understandable roles and relationships
  • Designing the company’s structure for clear accountability and authority
  • Focusing on social skills to enhance interpersonal relationships
  • Offering work systems and procedures that are effective and productive
  • Setting employee expectations and accountability

What Should Employers do About the Silver Tsunami?

Employers should review hiring plans and work structures to leverage the positive effects of the silver tsunami on their workforce. They should also benchmark their relocation policy to ensure it reflects industry-leading best practices. Companies should understand their industry’s competitive relocation landscape so they can design a policy that will attract highly skilled talent. Transferees that are willing to relocate for a bridge employment opportunity should have a range of relocation benefits. Also, these benefits should be designed to meet their expectations.

Industry Benchmarking Studies Help Employers Compare Their Relocation Program

GMS has recently published several Industry Benchmarking Studies to help employers learn whether their company’s relocation program is designed following industry-specific best practices. There are many benefits to a corporate relocation policy benchmarking. For example, employers can learn how benefits provided for older workers in their relocation program will help them leverage the silver tsunami as it leads to workplace changes.

Industry best practice is to schedule a relocation program and policy review every 12 to 18 months to ensure your company maintains its competitive position. This review will also help your company learn about how the relocation industry is evolving to meet changing employee demands due to the silver tsunami.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to leverage changing workplace dynamics to meet corporate objectives. Our team can help your company design a relocation policy with industry-leading best practices. As a result, your company will attract and retain talented and highly skilled employees that are part of the silver tsunami.

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 how the silver tsunami may impact your company’s corporate objectives, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Job Market Job Seekers Labor Force Talent Management Talent Mobility United States Economy

In the 2020 USA Job Market, Which Cities are the Best Places to Find a Job?

The 2020 USA job market is poised to continue its unprecedented growth. According to the U.S. Department of Commerce Bureau of Economic Analysis, the nation’s economic performance continues to perform strongly. The USA’s Gross Domestic Product (GDP) rose in the 4th Quarter of 2019 by 2.1%. Economists continue to forecast a future economic outlook of steady growth. This continuation of economic growth without negative impacts appears to be a “Goldilocks Economy.” Features of such an economy include:

  • Growth is not too hot to cause inflation
  • Growth is not too cold to create a recession
  • The ideal growth rate of 2-3% is in effect

The 2020 USA Job Market Benefits Cities Poised as Technology and Innovation Centers

2020 will see several job market trends impacting cities. Some of these trends include adoption of advanced technology, increasing global connectivity, and a workforce that continues to rise in average age. Cities that are positioned as technological innovation centers should gain significantly as corporations grow and their employee workforce expands.

Some forecasters predict that Artificial Intelligence (AI) will negatively impact jobs. PricewaterhouseCoopers published a report identifying several professions that may see significant impacts from AI, robotics, and similar technologies, including:

  • Bank Positions
  • Factory Jobs
  • Financial Services
  • Office Staff

However, all of these advanced technologies in turn create new employment opportunities. Employees who are comfortable with technology and rapid change should anticipate many new challenges and paths for future career growth.

What Characteristics do the Top 10 Cities in the 2020 USA Job Market Share?

The top 10 cities in the 2020 USA job market share several characteristics. Many of these cities exhibit several of the following traits:

  1. Business-friendly policies and incentives
  2. Pleasant climate and moderate weather
  3. Access to a wealth of amenities
  4. Significant job growth
  5. Highly educated and skilled local workforce
  6. Centers for technological innovation
  7. Close to other centers of employment

What are the Top 10 Cities in the 2020 USA Job Market?

According to WalletHub (the first website to offer free credit scores, reports, and additional financial information for consumers), the top 10 Cities in the 2020 USA Job Market are:

  1. Scottsdale, AZ
  2. South Burlington, VT
  3. San Francisco, CA
  4. Austin, TX
  5. Fremont, CA
  6. Chandler, AZ
  7. Boston, MA
  8. Tempe, AZ
  9. Portland, ME
  10. Boise, ID

Several cities from the 2019 ranking fell out of the top 10 ranking. These cities are:

  • Columbia, MD
  • Orlando, FL
  • Colorado Springs, CO
  • Plano, TX
  • Washington, DC

Conversely, several cities rose into the top 10 ranking. These cities are:

  • South Burlington, VT
  • Austin, TX
  • Fremont, CA
  • Tempe, AZ
  • Boise, ID

Scottsdale, Arizona and the 2020 USA Job Market

Scottsdale is the top city in the 2020 USA job market. This is the 2nd year in a row that Scottsdale has achieved the top spot in this ranking. In fact, two other Arizona cities are also in the top 10: Chandler is #6 (up from #10 in 2019), and Tempe is #8 (up from #14 in 2019).

WalletHub notes two significant factors that are driving Arizona cities to the top 10 ranking:

  1. Employment Growth
  2. Large Share of Engaged Workers

South Burlington, Vermont and the 2020 USA Job Market

South Burlington, VT rose to the #2 spot in 2020, from its #11 spot in 2019. Part of this rise is attributable to Vermont resident’s own migration patterns. Many Vermonters are relocating from remote locations to this metropolitan area.

Vermont as a whole is a small state, and South Burlington has an estimated population of over 19,000 residents. By comparison, Scottsdale has an estimated population of over 255,000 residents. Maricopa County in Arizona (where Scottsdale is located) added over 80,000 residents in 2018.

The University of Vermont’s location in Burlington helps draw residents to the city. Up to a third of Burlington’s residents are in their 20’s. As a result, this makes the city’s population much younger than the rest of the state. Residents are drawn to Burlington for quick and easy access to a wide range of urban amenities, such as:

  • Educational Opportunities
  • Fine Arts
  • Health Resources
  • Jobs
  • Public Transportation
  • Restaurants

What Does This Mean?

Job seekers in the 2020 USA job market should look at several Arizona cities as top places to find a job. Most of the job opportunities in Arizona are in the Phoenix metropolitan area. The leading job sectors in this area include:

  • Construction
  • Education and Health Services
  • Professional and Business Services

Several other cities in the USA are also great places to find a job. Job seekers have a wide variety of locations to consider when looking for a job, from Idaho to Vermont, and from Texas to Massachusetts. Employees looking for jobs should consider looking into the cities that rank high as a best place to find a job.

What Should Employers in the 2020 USA Job Market do?

Employers currently in a city that ranks as a best place to find a job should examine their hiring needs and identify candidates using pre-hire assessments. They should work with a qualified Relocation Management Company (RMC) that can provide a full range of pre-decision services.

Employers may consider relocating new hires or transferees to fill positions in these vibrant cities. They should provide transferees and their family members with as many valuable resources as possible to help increase relocation success.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to fill positions in the 2020 USA job market. Our team can help your company understand how to use pre-hire assessments to identify qualified candidates. Also, we can help your company design a relocation program following industry best practices that results in higher relocation success rates and greater transferee and family member satisfaction.

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 need to fill 2020 USA job market positions, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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Career Services Job Market Job Seekers Labor Force Talent Management Talent Mobility United States Economy

January 2020 Jobs Report: Where the Jobs Are

As reported by ADP in their monthly ADP National Employment Report®, the January 2020 jobs report shows strong growth across a number of industry sectors. Total nonfarm private employment grew by 291,000 jobs. This compares to growth of 199,000 jobs the month before in December 2019, and 264,000 jobs the year before in January 2019. In fact, the 291,000 jobs are the highest number recorded in the ADP report over the past year.

Where the Jobs Are: January 2020 Jobs Report

The January 2020 jobs report shows large job gains in several sectors including:

Leisure/Hospitality96,000
Education/Health Services70,000
Professional/Business Services49,000
Construction47,000
Franchise Employment45,100

Leisure/Hospitality Jobs

The January 2020 jobs report shows Leisure/Hospitality as one of the leading industry sectors adding employees. HospitalityOnline is a job search portal listing thousands of jobs for this industry. Jobs listings include:

  • Assistant General Manager
  • Director of Sales & Marketing
  • Event Manager
  • Executive Housekeeper
  • Front Desk Agent
  • Front Desk Supervisor
  • General Manager
  • Gourmet Caterer
  • Guest Room Attendant
  • Night Auditor
  • Restaurant Manager

Within this portal, job seekers can search by job title or category, and by city or zip code. Each job listing  shows information related to the facility and location, including a map to find the destination.

Construction Jobs

Another industry sector in the January 2020 jobs report showing significant employment gains is Construction. iHireConstruction is is a job search portal listing thousands of jobs for this industry. Jobs listings include:

  • Acoustical Carpenter
  • Contract Administrator
  • Division President
  • Drafting
  • Land Acquisition
  • Mechanical Engineer
  • Millwright
  • Project Manager
  • Roofer
  • Welding

A significantly helpful section of this portal is the ability to search by cities. Cities noting as “trending” include Oakland, CA; Chicago, IL; Boston, MA; Durham, NC; and Dallas, TX. Job seekers can also search by the company that is hiring employees.

What Does the January 2020 Jobs Report Mean?

Employers should review the job market and determine how employment gains might impact their company’s growth and expansion plans. Competition for employees may impact hiring plans. However, talent shortages can be mitigated with global relocation. Also, effective recruiting programs can draw new hires with significant skills and experience.

What should Employers do About the January 2020 Jobs Report?

Employers should work with their Relocation Management Company (RMC) to understand the impact of the January 2020 jobs report on their company’s talent acquisition and employee retention initiatives. RMCs can help companies understand how to recruit top talent in tight labor markets.

Industry Benchmarking Studies Help Employers Compare Their Relocation Program

GMS has recently published several Industry Benchmarking Studies to help employers learn whether their company’s relocation program is designed following industry-specific best practices. There are many benefits to a corporate relocation policy benchmarking. For example, employers can learn how their relocation program compares to those offered by competitors in their specific industry.

Companies that compete in any of the growing industry sectors noted in the January 2020 jobs report should review their relocation program to ensure that at a minimum it matches what competitors provide. RMCs may provide specific recommendations to help the company’s relocation program excel in talent acquisition based on specific industry practices.

Industry best practice is to schedule a relocation program and policy review every 12 to 18 months to ensure your company maintains its competitive position. This review will also help your company learn about how the relocation industry is evolving to meet increased employee demands.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees. Our team can help your company determine how to respond to the January 2020 jobs report. We can help your company ensure its talent acquisition and management program meets industry best practices and is competitive for your local job market.

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 relocation program needs as it relates to the January 2020 jobs report. Give our experts a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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Buy a Home Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Home Purchase Job Market Job Seekers Labor Force Talent Mobility United States Economy

Choose Topeka Incentives Aim to Draw New Residents to Kansas

Choose Topeka is a new incentive program that will draw new residents to Topeka and Shawnee County, Kansas. The program begins in 2020 with a public launch and full promotion. The incentives are performance based. As a result, new residents will become eligible after residing in the community for one year.

The program arose from a partnership between GO Topeka and local Topeka businesses. Over the past year, organizers have been working to develop the program and marketing materials to reach a wide audience. GO Topeka focuses on creating economic opportunities and growing the local business climate. The Joint Economic Development Organization has an agreement for services with GO Topeka. Both organizations are working together on the Choose Topeka incentive program.

What are the Eligibility Requirements for Choose Topeka?

The Choose Topeka incentive program is to help draw employees to work at local businesses. Therefore, the eligibility requirements center on meeting the needs of local employers and full-time positions:

  1. Participants must be eligible to work in the US
  2. Program requires participants to move to Topeka for a full-time position
  3. Employers must participate in the program for participants to receive matching funds
  4. Participants must purchase or rent a home in Shawnee County within a year of their hire and move to the area

What are the Benefits for Participants in Choose Topeka?

The benefits for participants in Choose Topeka are generous, and apply to both the participant as well as to the employer.

Participant Benefits

Up to $15,000 in funds in Year 1

  • Renting: $10,000
  • Home Purchase: $15,000

Source of funds: GO Topeka/Joint Economic Development Organization (JEDO) and Employer, match at 50%

Employer Benefits

  • Employer fully funds $10,000 up to $15,000 with employee transfer
  • After Year 1, GO Topeka/JEDO reimburse up to $5,000 ($10K) or $7,500 ($15K) to employer for employee retention

The Choose Topeka incentives are based on performance. Employees must move to the community and reside for at least one full year before becoming eligible. Only primary residences are eligible for the incentives. The incentives may be used for all expenses related to moving.

What is the Goal of Choose Topeka?

The goal of Choose Topeka is to draw up to 60 new residents and their families to the city. Employers will gain new workers with requisite skills. Also, several industries will receive economic benefits as the new residents move in and purchase locally.

GO Topeka estimates the total local economic impact of the Choose Topeka incentives to be:

  • Over $2.14 million/Year 1
  • Up to $11.38 million/By Year 5

What Should Employers do About Choose Topeka?

Companies in Topeka and the surrounding Shawnee County area that have growth initiatives may be able to leverage the Choose Topeka incentives in their talent acquisition and relocation programs. Companies should examine their plans for corporate expansion. They should also consider participating in the Choose Topeka incentive program to gain the matching funds provided by GO Topeka/JEDO.

Many other US locations offer similar moving incentives. As a result, companies should leverage GO Topeka’s 2020 marketing and promotional efforts for the Choose Topeka incentive program into their employee recruitment efforts.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to leverage moving incentives such as those in the new Choose Topeka program to attract and retain talent. Our team can help your company by using industry best practices to design your relocation program. This will increase your company’s ability to hire and retain new employees.

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 the Choose Topeka moving incentives to attract and retain talent, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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Domestic Relocation Domestic Relocation Challenges Job Market Job Seekers Labor Force Talent Mobility United States Economy

California AB5 Law and the Impact on the Relocation Industry

The new California AB5 Law may impact the relocation industry in several ways. The law aims to change how employees are classified. This is seen as a way to address the rise of the gig (or “sharing”) working economy and its perceived negative effects.

What is the California AB5 Law?

The California AB5 Law took effect on January 1, 2020. This law makes all independent contractors in the state into statutory employees. The law covers all types of workers, including truckers, drivers, and writers. Ultimately, the law requires the following:

  • Extends employee classification status to gig workers.
  • Companies must use a three-pronged “ABC test” to prove workers are independent contractors, not employees.
  • AB5 is designed to regulate companies that hire gig workers in large numbers, such as Uber, Lyft, and DoorDash.

Consequences of California AB5 Law

Consequences of the law include companies like Vox Media announcing it will not renew the contracts of freelance writers for SB Nation, a sports-focused website. Some analysts believe the new law may impair the ability of workers to hold jobs. Some gig economy companies are pursing legal action to reduce the impact of the law on their operations. Other companies are departing the state due to the impact of the law; however, this may leave more opportunities for their competitors.

Assemblywowan Lorena Gonzalez, (D-San Diego), the architect of AB5, indicated that perhaps some freelancers have lost income, but she has stated “These were never good jobs…No one has ever suggested that, even freelancers.

Employee Benefits Gained With California AB5 Law

Moving from the status of independent contractor to employee now lets these workers become eligible for a full range of benefits. In California, benefits employees become eligible for include:

  • California Paid Sick Leave
  • Unemployment Benefits
  • Pregnancy Disability Leave
  • Social Security Benefits
  • Overtime Pay
  • Worker’s Compensation Coverage
  • Minimum Wages
  • Family and Medical Leave Act Benefits (FMLA)
  • Holidays and Vacations
  • Final Wage Payment

How Might California AB5 Law Impact the Relocation Industry?

Household Goods Moving Companies

The new California AB5 Law might impact several aspects of the relocation process. One reason is due to some employers such as Household Goods (HHG) moving companies. These companies often utilize independent contractors and freelancers for their workforce as an accepted long-term industry practice.

Recently, a federal judge blocked California AB5 Law from applying to over 70,000 independent truckers. Without the block, this law might severely restrict the ability of HHG movers from operating in the state. The injunction was sought by the California Trucking Association on the grounds that the state ran afoul of federal law that governs interstate commerce. However, some HHG moving companies may still have concerns and confusion about the effects of the law and how best, or whether, they should comply.

Shared Ride Providers

Another reason is due to transferee acceptance of and preference for services provided by companies that epitomize the sharing economy. Examples of these companies are shared ride services such as Uber and Lyft. Transferees might contact a shared ride service company for a ride from the airport to a location during pre-assignment travel.

Companies such as Uber and others have filed a lawsuit against the state, asserting the new law is unconstitutional. Ultimately the suit notes that the law prevents independent contractors from benefiting from the flexibility offered by gig working arrangements.

What Should Employers do About the California AB5 Law?

Employers should review their relocation plans and timelines for any moves into and out of California. They should anticipate possible delays related to any household goods moving processes such as transportation, loading/unloading, and packing/unpacking services. They should also inform transferees about the new law, and how it might impact travel arrangements such as shared ride services.

Conclusion

Global Mobility Solutions’ team of domestic relocation experts have helped thousands of our clients with household goods moves and transferees into and out of the state of California. We can help your company understand how to plan for the impact of the California AB5 Law as it relates to your relocation program.

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 how to respond to the impact of the California AB5 Law from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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