Category: Relocation Best Practices

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Tips & Tricks Navigating the Legalities of Corporate Relocation

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Understanding Corporate Relocation

Navigating the legalities of corporate relocation can be a complex yet vital task for any organization considering a shift in their base of operations. This blog post aims to act as a compass, providing valuable insights into this intricate process.

Relocating your corporate headquarters is more than just a physical move. It entails transferring your business’s operations, assets, and sometimes, even employees to a new location. Various factors can spur this decision—expanding business operations, accessing a new market, or seeking cost-effectiveness. However, the process involves navigating numerous logistical, operational, and legal hurdles.

Legal Considerations in Corporate Relocation

First and foremost, let’s delve into the lease and property agreements. These contracts form the bedrock of any relocation process. Understanding the terms, especially regarding early termination, potential penalties, and the legal requirements for setting up a new lease.

Next, zoning laws and regulations are often overlooked but are equally important. Adhering to local ordinances is vital. Additionally, some locations may require special permissions or permits.

Lastly, the impact on your workforce is considerable. Employment law considerations are necessary when managing employee relocation, understanding termination rights, and modifying employment contracts.

Impact of Corporate Relocation on Taxes

Transitioning to the subject of taxes, relocation may significantly affect your corporate tax liabilities. Understanding the nuances of federal and state tax laws is paramount. Moreover, familiarity with double taxation agreements can prevent unexpected costs.

Interestingly, many regions offer government relocation incentives to attract businesses. These can offset some of the costs associated with moving, so it’s worth exploring these options.

Navigating International Corporate Relocation

On the other hand, international relocations present unique challenges. Not only do you need to understand international law, but you also need to manage the complexities of international tax rules. Moreover, cultural and ethical considerations play a crucial role in the success of an overseas relocation. One of the significant challenges of international corporate relocation is ensuring a smooth transition for your workforce in a foreign environment.

Tips and Tricks for Navigating Corporate Relocation Legalities

Now, let’s equip you with some practical tips. Early consultation with legal experts is a must. They can help you navigate the legalities of corporate relocation, ensuring you’re on the right side of the law. Keep the following in mind: 

  • Keeping thorough records and documentation of all aspects of the move is equally important. Such records serve as a reference and can be vital in legal disputes.
  • Moreover, consider utilizing corporate relocation services. These experts can manage the logistics, allowing you to focus on maintaining business operations.
  • Compliance with all relevant laws and regulations is non-negotiable. It protects your organization from legal repercussions.
  • Lastly, communication with all stakeholders helps manage expectations and facilitates a smoother transition.

Case Study: Successful Corporate Relocations

Several organizations have successfully navigated the legal maze of corporate relocation. Their experiences underscore the importance of early planning, legal consultation, and effective communication. These lessons can provide a valuable roadmap for your own relocation process. You can download free corporate relocation case studies here.

The Role of Moving Companies in Corporate Relocation

Amid all the legal and logistical considerations, hiring a professional moving company can be a game-changer. These experts handle the physical aspects of the move and often provide valuable advice on how to streamline the process when moving on a tight schedule. By doing that, they are sure to help you move your office quickly. A reliable moving company will ensure your business assets’ safe and efficient transportation, thereby reducing the risk of damage or loss.

Helping Employees Adjust After a Relocation Assignment

Also, helping your employees adjust after a relocation assignment is another crucial aspect. Providing support, such as cultural training or financial assistance, can help mitigate relocation stress and promote faster adaptation to the new environment.

Cultural understanding becomes crucial when relocating to a new area, especially internationally. This entails studying the new location’s business etiquette, social norms, and communication styles. On the other hand, ethical considerations involve respecting and integrating local customs into your company culture, ensuring a smooth transition for your employees, and fostering positive relationships with local businesses and communities.

Post-Relocation Considerations

Even after the relocation is complete, the work is still ongoing. Post-relocation evaluations are necessary to assess the move’s success and identify areas for improvement. These insights can be invaluable for future relocations or other companies looking to make a similar move.

Mastering the legalities of corporate relocation can seem like a daunting task. However, the process can be less overwhelming with early legal consultation, careful planning, and clear communication. Working with an experienced relocation management company such as Global Mobility Solutions (GMS) can help reduce the stress of an office move.

Remember, each relocation is a unique journey, but with the right tools and guidance, you can turn this challenging process into a successful venture. This guide is your first step towards understanding the complexities and, in turn, executing a smooth and compliant corporate relocation. Reach out to GMS today with any questions you may have about corporate relocation.

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Language Barriers to Overcome During International Relocation Process

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Here are some ways to overcome language barriers when moving abroad

Many workers seek job opportunities outside their home country despite the perceived language barrier challenge. Now more than ever, companies allow employees to work their complete schedules with remote work policies. This has opened up opportunities for employees to consider international relocation options as they no longer have to be in the office daily. 

But moving abroad isn’t always seamless, and there are some obstacles to overcome before enjoying life in the new destination. When heading to a new country, the test of learning the native language looms large. But this shouldn’t stop employees from relocating to the country they always wanted to live in. Expat numbers have risen recently, with remote work positions becoming the norm. 

CEOWorld says the number of expatriates living globally has grown by over 4.7% annually. It is projected to continue doing so in the coming years. This is likely due to the higher employment rate in the EU, where citizens living in a different EU country had a 73.1% employment rate compared to those in their country of origin, with 72.4%. This suggests that individuals are willing to overcome language barriers to benefit from better job and salary opportunities.

It is important not to downplay the difficulties of a language barrier. Such a barrier can cause many problems in both personal and professional life. Working with a relocation management company that can provide language service resources is a good idea when moving abroad. Overcoming these issues with extra effort and the right mindset is possible. Read on to learn more.

Relieve Culture Shock

Connecting with other cultures can be difficult, particularly in formal settings with power dynamics. According to TIBR studies, expat faculty and employees often face racism and hurtful comments, resulting in an even greater divide between locals and outsiders during the Covid-19 pandemic. To ease these tensions and build relationships, it is crucial to be open-minded and take the initiative to initiate contact. It is also possible that your coworkers are just as nervous as you are.

Language Services Help Cut Down on Frustration

Misunderstandings are a natural part of travel and international relocation, and locals may find it challenging to remain patient when simple errors could have been avoided with more language knowledge. Understanding a language is complex and can be discouraging when you don’t make the progress you’d like. Even professional diplomats, who are prepared for culture shocks, can be overwhelmed. Learning a language isn’t just about understanding grammar and vocabulary; there is much more to it.

Understanding a community’s underlying characteristics, such as demographics, personalities, and beliefs, is essential. Maryville University’s guide on international studies and relations explains that learning a language gives an individual a broader perspective on humanity and culture which supports them in gaining a more profound grasp of their new home faster. This change can help replace any frustration with success.

Lack of consistency in an employee’s work

The inability to communicate effectively can have serious consequences, particularly for specific jobs requiring high skill levels. For example, a small error in healthcare can have devastating results. Despite this, there is a growing need for international medical professionals to address the exhaustion of local personnel.

When going through the international relocation process, they must receive language and cultural training to succeed in their new environment. Philip Andrew suggests that taking classes online and reading books can help with language barriers, and cross-cultural training can help with cultural awareness. Being an expat can be complex, with challenges such as homesickness and financial insecurity. Still, when one can manage these issues, many rewards and opportunities can be gained, such as increased financial security, new relationships, and treasured memories.

Work with GMS for International Relocation

Global Mobility Solutions specializes in international relocations. We work with the best language service providers in the industry to assist employees with seamless relocation. Our relocation experts will help with document translations and online language training classes for employees and their families. 

Do not let language barriers hold you back from the move you have always wanted to make. GMS can help you and your family. Contact us today to discuss the pre-decision services we provide regarding international relocation.

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The Challenges of International Corporate Relocation

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Use this international relocation guide to overcome some of the common challenges

The international corporate relocation process can be a daunting venture. It requires extensive planning and coordination to get employees to their new home country. For growing companies, relocating employees abroad has become an all-too-familiar task. From efficient shipping protocols to secure job placement services upon arrival, the complexities of the global mobility process must involve a strategic approach. For this reason, today, we will discuss the challenges of international corporate relocation. We will assess the steps you must take to overcome these challenges to seamlessly get employees from point A to point B.

1. Paying Suppliers Internationally

Managing international relocation for a business involves countless vendors, often requiring payment across different countries and currencies. This creates numerous logistical challenges. The main one is, finding secure methods to pay local suppliers abroad and ensuring the payments are authorized. However, many relocation management companies have recently expanded the number of digital payments they support. This means that nowadays, it’s much less of a hassle to go through this process than it was in the past. As long as you are working with a reputable vendor, you don’t have to fear potential payment delays or have any security concerns.

2. Language Barriers

When moving abroad, language barriers can be a considerable challenge. This can be an issue even in countries where English is relatively widespread. Therefore, business owners need to consider the complexities that nuances and culture bring to the table when relocating. As a company owner, you must be aware of these potential differences and prepared to address them if necessary by providing employees and their families with language training. This is the only way to guarantee a successful corporate relocation. That being said, while reliable translation services can help minimize issues with language, businesses shouldn’t stop there. Depending on where you are relocating your company, offering extensive employee training may be necessary. Furthermore, one of the work productivity tips is to enable your employees to learn and speak a new language. This is one of the best ways to stay productive as they assimilate into their new environment.

3. Cultural Differences

Navigating cultural differences often poses the biggest challenge for businesses undergoing international relocation. Different countries have different cultures and customers. As we’ve mentioned, this includes language barriers but doesn’t end there. It also includes religious differences, social etiquette, and more. These things can create difficulties for companies settling into a new community. As such, businesses need to educate their staff on the culture of their new destination. Companies must also ensure that their relocation policies align with local societal norms. Furthermore, pairing up with experienced consultants familiar with the local culture is crucial. This will ensure a smooth transition.

4. Immigration, Tax, and Legal Issues

The legal and tax implications of relocating a business or employees internationally can be confusing and complex. Professional guidance and assistance are often necessary to ensure nothing goes wrong once the company settles in. That being said, professionals can help companies navigate local regulations and compliance requirements of domestic and international tax systems. Additionally, company owners, as well as their employees, must consider any current permits or visas that are necessary for residence in the new country. This also includes consideration for their existing financial obligations. For this reason, thoughtful planning and research are key. Therefore, if you are moving your company, plan ahead and figure out as much as you can before you get into the relocation process.

How to Ensure a Successful International Corporate Relocation

As we’ve said, there is no better way of ensuring a successful international corporate relocation than planning ahead. This is a huge process, and it may necessitate months of preparation. As an employer, you need to develop relocation policies around short-term housing options, relocation allowances, visa applications, and various other aspects of relocation. The goal is to make global mobility as easy as possible for your team. If you fail to do this, you may have issues with employees accepting an international assignment. Offering your employees help will make them feel comfortable in the new environment. However, once the relocation is over, you should also help your employees transfer funds and open bank accounts. Adequate preparation and policies in place will not only make for a successful move but will also help maintain morale and productivity during the period of transition.

GMS Provides Resources for Companies Looking To Relocate Employees Abroad

Global Mobility Solutions (GMS) is here to assist with the process of international relocation with comprehensive knowledge and technology that can help companies with all their questions and concerns. Our team of international moving experts can aid your employees in making a smooth transition to a new work environment. With these resources at your fingertips, employees will be able to cross borders and settle in at their new destination confidently.

International corporate relocation can be a complex process. However, by understanding and planning for the challenges ahead, and working with GMS, companies can minimize the risks involved. With careful research and proper preparation, there’s a chance to reduce costs and make a better transition for employees. Reach out to us today to set up a risk-free consultation.

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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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What Are The Benefits of Outsourcing Global Relocation Programs?

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learn why your company should work with a relocation management company for talent mobility

What are the benefits of outsourcing global relocation programs? For companies that have steady moving needs, there are many benefits to outsourcing this strategic function. Most learn they need to gain the knowledge and experience to manage talent mobility with in-house resources effectively. Outsourcing this critical activity provides them access to the industry’s best practices and thought leadership that will help their company’s international relocation program achieve success with virtually all relocation assignments.

There are five distinct benefits clients can gain from outsourcing their global relocation services with a trusted relocation management company (RMC):

Cost Management

For most clients, managing relocation costs is one of the most important reasons driving their choice to outsource relocation. 71% of companies working on relocation in-house need to be made aware of their total internal operating expenses. A lack of knowledge of the actual costs of relocation prevents the company from understanding how to utilize resources efficiently. They also cannot gain the most benefit from their global relocation program. A solution that provides full expense tracking and reporting is one of the top features clients seek as they consider outsourcing their global relocation program so that costs can be fully identified and reviewed for budgetary impact and program performance.

Savings With Outsourcing Global Relocation Programs

Outsourcing global relocation services should allow clients to obtain more significant cost savings. Some RMCs are not independent. As a result, they often do not seek multiple bids for household goods shipments and other services. An independent RMC provides clients with several opportunities to receive and review bids on services, and this helps keep costs lower than other RMCs that don’t seek competitive bids.

Compliance

Transferees and their families often have questions about tax issues, visa applications, and other reporting requirements related to their global relocation assignment. To avoid putting the client’s company at risk for providing incorrect or insufficient guidance and advice, outsourcing global mobility management can provide expert guidance on unique relocation needs to help transferees find the right solution and help clients avoid any risks related to transferee requests.

Program Enhancements Through Outsourcing Global Relocation Programs

In-house programs only sometimes provide enhancements such as pre-decision tools, candidate assessments, auto lease programs, home purchase programs, and other value-added services. Choosing to outsource relocation services provides access to these services. Transferees and their families highly value these relocation program enhancements. Additional valued services include community tours, language training, outplacement services, school reports, and moving cost estimates.

Focus on Their Core Competencies

Working with an RMC lets human resources, compensation, benefits, and recruiting professionals focus on their core competencies. As a result, they can provide the best service in these business areas. In turn, experts at an RMC give the client’s international relocation program the best service. Choosing an RMC with the knowledge and experience to manage their entire program provides peace of mind and assurance that costs will be managed effectively, relocations will be successful, and transferees and their families will be satisfied with their experiences.

Work with the Best Global Relocation Service Provider

Global Mobility Solutions (GMS) has been helping customers get their employees from point A to point B since 1987. Our wide range of services and expert relocation specialists give your company the opportunity to get the package they need. GMS will assist your company put together a global relocation plan that makes sense for your company and employees, all while staying within a realistic budget. If you are ready to discuss more about our offerings, please set up a free consultation with one of our business development managers, by filling out this form. We look forward to working with you!

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2023 Real Estate Trends: States People Are Moving to and Why?

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These are the states that are seeing a significant increase in population and some possible reasons why

Relocating for professional or personal reasons can be an excellent decision for both. New beginnings bring new opportunities to advance your career or grow yourself in a new destination. For 2023, we will use real estate trends to predict which states people will migrate to.

But before we start to look at which states are drawing new people in, let’s review some of the significant factors in why people are looking for a relocation change.

Cost of Living and Affordability

Housing affordability is decreasing as Americans seek cheaper homes and cheaper living in other states/cities. 2022 saw many moving due to money/costs, but 2023 looks to have a more steady housing market, making moving possible for many.

Americans searching for economic stability evaluated the financial implications of city vs. suburban life. Remote work has enabled many who live in costly cities to transition to cheaper places without giving up job prospects. This U.S. relocation trend explains the growing number of people departing urban regions for the suburbs.

Remote Work Options

Since the Covid-19 pandemic, most previously office-based companies have moved to either full-time remote work or hybrid schedules with remote work options. Now that many people in the workforce have the opportunity to work remotely, they now can choose to live wherever they want. 

In the past, employees would have to live within driving distance of their office to be at work on time, which made significant cities the apparent hotspots in the country. But with people able to log into work from the comfort of their homes, they are looking for homes in less crowded destinations. 

In 2023, working from home will be a permanent fixture for many companies. This will have employees seeking a new destination they have always wanted to live in. States with warmer weather and cheaper costs of living are the prominent front runners for those looking to move this year while working remotely.

Top States People are Moving to in 2023

2022 saw significant growth in certain states, trends that may repeat in 2023. Those with more room, cheaper living and remote work will be the best spots to reside in America. Here are the top four states people are migrating to in 2023:

1) Arizona

Arizona’s year-round sunny weather makes this an obvious destination for those looking to relocate to a place for outdoor activities. The Phoenix suburbs are growing in population yearly, with towns in the East Valley like Mesa and Gilbert leading the way. Hiking and golfing are activities that can happen in Arizona any day of the year.

And if taking in the sun by the pool or on the golf course isn’t something you’d want to do every day, northern and eastern Arizona have plenty of forests to explore with four-season weather. And let’s not forget the great wonder of the world, the Grand Canyon, which is a driving distance from the Phoenix area, for a weekend getaway.

2) Georgia

Georgia anticipates a rise in population. This Southern state has an impressively low unemployment rate of 2.9% compared to the national average. Furthermore, the cost of living and taxes are relatively low, making it an attractive place to live. 

Living in urban areas such as Atlanta and Savannah offers many job prospects due to the presence of renowned corporations like Home Depot, UPS, Delta Airlines, and Coca-Cola. When not working, Georgia’s inhabitants can explore the Chattahoochee-Oconee National Forest by hiking, camping, or biking, or visit the Georgia Aquarium, meander around the City Market in the Landmark District, or take in spectacular sights at Rock City atop Lookout Mountain.

3) Idaho

Idaho has a high population growth rate due to its desirable mountain location and low crime rate. People are moving into the state, particularly to the city of Meridian, faster than they are leaving. Those looking for more space and a good job have the opportunity to join a thriving economy in Boise, one of the top U.S. cities for job-seekers. People nearby enjoy going to well-known places in the state such as Craters of the Moon, Sawtooth, Lake Coeur d’Alene, and Shoshone Falls Park.

4) North Carolina

North Carolina’s low cost of living and substantial job opportunities have attracted many people. Areas like Charlotte and Raleigh have experienced population growth in recent years. Research Triangle Park comprises Oak City, Durham, and Chapel Hill, a hub for science and technology and great for young STEM professionals.

Asheville is one of the top cities to live in in the South. One of the locals’ favorite activities is bird-watching at Cape Hatteras, hiking Chimney Rock State Park, and driving the Blue Ridge Parkway.

Keep Up with GMS for Real Estate Trends

As the industry leader in relocation services, Global Mobility Solutions (GMS) always stays up with industry trends and news. Real estate trends are not only something our relocation experts monitor but study. We take great pride in knowing that our team always strives to gain as much global mobility knowledge as possible. 

If you are considering a relocation for you and your family, contact us today to see if you can take advantage of our Employee Choice Program. If you are an HR or hiring manager looking to create or update relocation policies for your company, set up a free consultation with one of our business development managers.

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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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5 Terms to Include in a Competitive Relocation Package

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Make your relocation offer competitive by including these policies

Every year millions of people move for new jobs. Relocating for your professional career is familiar, but the relocation industry has changed since the Covid-19 pandemic. When it comes to offering relocation packages to employees willing to move for a new position, studies show that employees are more reluctant to move if there is a higher cost of living in their new destination. 

Another factor for employees not wanting to relocate is the start date. Companies often ask employees to be in their new seats within 30 days of signing the offer letter. So, what can companies do to work around these distresses? 

Companies who are asking talent to relocate for a position should look into offering employee relocation packages. These packages help offset the stress of moving by providing financial assistance and corporate housing so that the employee can relocate as seamlessly as possible. 

While every company has different opinions on what should and should not be covered regarding talent mobility, a few basic policies should be included in every relocation package. Here are five terms to make your company’s relocation package appealing to applicants so that they cannot refuse your offer:

1) Real Estate Programs or Lease-Break Assistance

A survey by Worldwide ERC showed that selling a home for less than it is worth is the most expensive part of relocating. When time is limited, employees are often forced to accept a lower sale price or pay a financial penalty for ending a lease. Often, employees are scared they will get stuck paying two mortgages or rent payments for multiple months, which could hurt them financially. 

If companies want a shot at landing top talent for an open position, they will include financial aid coverage for breaking a lease. If the employee can get out of their current rental at little or low cost to them, they are more likely to accept your relocation offer. 

For applicants who are homeowners, offering home sale assistance and home-buying assistance programs in the relocation package would be a massive perk for them. Standard relocation real estate programs include BOV, GPO, or Direct Reimbursement. Each of these programs has different pros and cons. But every moving employee will have different needs, so options can make any offer even more appealing.

2) Moving Expenses

This one may seem too easy to list, but it is essential. Very few people save thousands of dollars regularly if they may have to move unexpectedly. So, if an employee is mulling over your offer, the price of moving may be daunting in the back of their mind. But if your company were to cover or assist in the moving expenses, it could quickly put those thoughts to the rest of the employees. 

There are numerous ways to assist an employee with relocation costs. Most companies go the route of reimbursement programs, but there are packages where the company will handle everything on behalf of the employee so that they do not have to worry about it. Again, each different kind of program will have its pros and cons. 

It’s worth noting that no matter which method your company chooses to use for handling relocation expenses, some relocation technology can help keep spending within a budget.

3) Transportation Costs

Moving can be costly, by car or plane. Visiting the new spot before relocating is necessary to find housing and get to know the area. Relocation packages typically include reimbursements for two or three trips. This can also be a chance for the transferring employee to search potential neighborhoods and schools for their family.

4) Tax Implications

Relocating employees can face an unanticipated problem with taxes concerning relocation benefits. An employer may give a ‘relocation lump sum’ to cover relocation expenses, which is taxed as extra income at the employee’s ordinary tax rate.

Employees with a 25% tax rate will be taxed $2,500 on a $10,000 lump sum. This can be a financial strain, so many companies increase the lump sum to cover taxes.

5) Miscellaneous Expenses

One last suggestion to make a solid offer to a potential candidate is to have a miscellaneous expenses policy in your relocation package. Employees may incur costs when relocating. Ask them what expenses they anticipate and offer assistance to cover them, such as vacation days, spousal income loss, and packing services.

GMS Specializes In All of These Terms and Conditions

Look no further if your company needs help updating or creating employee relocation packages. Global Mobility Solutions (GMS) has been helping companies with their relocation services needs since 1987. Our expert team will listen to your wants and needs, then assist you in putting together the best relocation policies to make all your offers to new employees appealing for them to accept a relocation assignment. We specialize in helping companies provide their employees with the terms mentioned above. 

Reach out to us today to set up a free consultation. Within 24 hours, one of our business development managers will be in touch to get you started on setting up the most competitive relocation package in your industry.

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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Cost-Effective Strategies for Managing Employee Relocations

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Young Asian couple or family feeling happy relaxing and play with their cat after moving to new house or apartment.

use these tips to keep relocation costs within budget

It’s no secret that relocating an employee is a costly endeavor. Creating global teams for your business can be highly beneficial. However, you might lose money on the project if you fail to play your cards right. It’s easy to feel overwhelmed with all the expenses you encounter during this process. There is so much to account for when managing employee relocations. Just a few of these things would be: 

  • Moving company expenses
  • Benefits packages
  • Acquiring accommodation
  • International transport (when applicable)
  • HR department bonuses

And the list goes on. However, it’s not all bad news. If you work strategically, you can save on relocation costs while keeping your employees happy when getting them from point A to point B.

Create tiered packages for employee relocations

The first strategy you can use to stay on budget when relocating an employee is creating tiered relocation packages. This means that the benefits package for an entry-level employee who has been with the company for three months should differ from that of an executive. This is a widespread and very effective strategy. Many employers have three or even four relocation benefit packages. You can create additional layers to those categories based on employee productivity.

Secure housing before the move

There are a lot of hidden expenses that come with moving on a whim, from renting out storage for your employee’s items to an indefinite time spent in short-term accommodation. And since using a storage unit isn’t tax deductible for businesses anymore, it’s even more expensive. Securing housing for your employee before moving is an excellent way of managing employee relocations while saving money.

Additionally, one of the most common reasons employees won’t relocate for work is that the move seems too hassle. So, securing everything in advance will not just help you save money; it’ll also help with employee satisfaction.

Introduce expense caps

Introducing expense caps is a great way to ensure your relocation program stays on budget. Expense caps are a great way to ensure no employee abuses their allowance. It’ll prevent surprise expenses from becoming the norm within your relocation program. 

When introducing expense caps, there are two essential factors to keep in mind: 

  1. Permissible exceptions – You should have some leeway in your budget if something goes wrong during your employee’s relocation. If they need to make an unplanned expense that is deemed necessary, you should be able to provide that;
  2. Expense caps should be personalized – It’s important to remember that living expenses differ in different areas. Ensure that your expense caps are calculated with the average cost of living in the area in mind.

Managing employee relocations is not ‘one-size-fits-all’

While offering every employee the same budget, guidelines, and services when managing their relocations may seem much more straightforward at first glance, you’ll quickly realize that it’s not. For example, a young single employee will require very different services than an older married employee with two kids. 

It’s essential to account for the individual needs of every employee you are relocating. Don’t worry if some mistakes come up the first few times. After a while, you’ll learn which services and guidelines are necessary for which group of employees. Ensuring that benefits packages and relocation services are tailored to the needs of your employees will help you save in two main ways: 

  1. You’ll be able to cut out any expenses that aren’t necessary for that worker; 
  2. You won’t be cutting out vital things to your employee. This will help keep morale (and productivity) up.

Other Relocation Costs to Keep in Mind

Conversely, a great option is to secure a fully furnished new home for them. That way, they only need to bring essentials and valuable personal possessions. Some other ways to cut costs on a long-distance move would be: 

  1. Choosing the suitable date – Moving during the off-season (winter and fall) can usually get you lower prices; 
  2. Shopping around – Getting estimates from a few moving companies is a great way to ensure you’re getting the most bang for your buck; 
  3. Compound expenses – If you plan on hiring professional packers in addition to movers, try finding a company that offers both. That way, you can get a deal on both services instead of paying the total price for each.

Ready for the best deal on relocation services?

Global Mobility Solutions (GMS) is your best bet to get a proper quote when it comes to relocation services. First off, all of our service providers are strictly vetted. And second off, we use a multi-bid approach when it comes to hiring vendors for each move. 

Most relocation services companies (RMC) will have a trusted partner vendor they use most of the time. Which is why their prices stay set at what they are. But GMS will get multiple bids from different vendors so that our savings on relocation costs get passed on to you. 

If you’re ready to hear more about how GMS can help save your company money on relocation costs, contact us today to schedule a free consultation.

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Global Relocation Tips Global Relocation Trends Household Goods Relocation Best Practices Relocation Challenges Relocation Management

Many Ocean Shipping Lines Are Moving to Aircraft

airplane flying over large shipping containers
Airplane flying above container port.

Many household goods shipping companies are investing in air travel

As shippers look for more efficient ways to ship household goods worldwide, ocean freight companies are increasingly turning to air cargo. Although airfreight represents only a tiny section of the broader cargo industry, the pandemic has caused it to become more prominent due to supply chains, travel bans, and consumer spending issues.

 

Air travel has become increasingly important for companies engaged in maritime trade due to the recent pandemic. With more people shopping online, household goods shipping companies are struggling to keep up with demand. This has caused ships to be idly anchored at congested ports, unable to dock for weeks at a time. Further complicating matters is a shortage of workers assigned to load and unload vessels. Containers that could be used to hold exports are instead sitting unused, while exporters with plenty of goods to ship need help to get containers.

 

 

The three dominant European container shipping companies (AP Moeller-Maersk, CMA CGM Group, and Mediterranean Shipping Co.) have primarily avoided airfreight, feeling that it is an expensive distraction from their core businesses of operating giant vessels, container terminals, and related logistics operations around the world. However, executives claim that many customers are now opting for air shipping because it is more cost-effective and reliable. Maersk, the world’s largest container shipping company, began an air cargo division in April last year and now has a fleet of 15 planes.

 

Ocean Freighters Turning to Buy Air Planes

Boeing and Airbus are now part of this equation as they started selling freighter versions of their newer widebody planes. These freighters are more fuel-efficient than older cargo jets. And to show the rising demand for converting old passenger planes into freighters, it should be noted that some have been booked up for years.

 

In recent reports, Maersk is anticipating free cash flow to be about $19 billion by the end of 2022. The company plans to obtain seven Boeing 767s (purchase three and lease four) by the new year. The idea would be to have aircraft fly routes between Asia, the United States, and Europe. 

 

Last year, Maersk moved into the air cargo game and increased volume by 100% after purchasing German air freight company, Senator International. In addition, Maersk has been buying airplanes for its air cargo division, which was formerly called Star Air. The division, contracted by United Parcel Service Inc. and Germany’s DHL to fly freight, now operates with 15 Boeing-made 767 freighters.

 

Also, earlier this year, CMA CGM, the world’s third-biggest ocean shipper, agreed to share cargo space with Air France-KLM. And on top of that, CMA CGM said it would buy a 9% stake in the airline.

 

Numbers released by the International Air Transport Association (IATA), last year, the airfreight industry grew over 21%. This means that revenue will increase to $289 billion in 2022, up from $238 billion last year.

 

Boeing reported that about 400 freight planes had been added to the world fleet in the past three years. This is an eye-opening 20% rise. Boeing is now estimating that the global freighter fleet will increase to about 3,600 by 2040. To put that number in perspective, it is currently around 2,000.

How Increased Airfreight Will Affect Global Mobility & Relocation Industry

In the past, airfreight for relocations was too expensive, and many relocation companies didn’t even consider it an option. However, the lowering costs and the congestion of ports have now made a more realistic answer for many.

 

As airfreight rates become more affordable, international relocation companies can choose to ship household goods by air. With more employers turning to lump sum packages for relocations and ocean shipping delays being a common factor, transferees are leaving more of their belongings behind when they move abroad for a work assignment. The fewer belongings the employee brings means the quicker they can move, meaning the more likely they are to choose airfreight for their next relocation. Although the airfreight method is still quite costly, it eliminates many relocation delays, significantly improving the transferee’s experience.

 

Global Mobility Solutions (GMS) is the industry leader in Global Mobility, which is why we stay on top of all topics regarding relocation. Visit our Knowledge Base to learn more about hot topics in the relocation industry. And feel free to reach out to us with any questions regarding the household goods shipment.

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Buy a Home Corporate Relocation Global Relocation Trends Relocation Best Practices

Answers to Housing Market Questions Heading into 2023

happy family sitting on front steps of home petting their dogs
Family in front of their house

As we near 2023, here are some hot topics regarding the real estate market

Over the last three years, many real estate markets saw record-high home prices. As the interest rates continue to rise, there are many questions regarding the housing markets across the country heading into 2023. Many buyers and sellers wonder if these high prices will stay consistent or continue to increase. 

 

Here we cover some questions that many have about the future of the real estate market and how it may affect relocation programs next year:

What Caused Home Prices to Rise So Much in the Last Two Years?

The short answer is high demand and low supply. According to the Federal Housing Finance Agency (FHFA) Home Price Index, the national average on home prices went up 15% in 2021 and 9% in 2020. Historically prices have only grown about 5% each year until then. 

 

Because of the historically high demand, the Federal Reserve drove down mortgage rates and borrowing costs to record lows to better support economic activity. The thought was to make monthly payments on expensive homes more manageable. But while that was happening, the number of homes for sale declined as many people were waiting out the Covid-19 pandemic and its effects on the market.

What Will Happen with Home Prices in 2023?

With a rise in mortgage rates, we have seen new and existing home sales slow down considerably. According to the National Association of Realtors, existing home sales were down almost 20% when compared year over year. At the same time, median home prices sold somehow went up 7.7%.

Demand may have slowed in most major markets, but the number of homes for sale continues to be at historic lows. Experts predict that the national average home prices could continue to rise, but if so, it will be much slower than in the past two years. For 2023, the Mortgage Bankers Association (MBA) and Fannie Mae predict existing home price growth of 3.1% and 3.2%, respectively.     

 

In summary, potential buyers might not have to deal with as much competition, but property appraisals are likely to remain high.

Will there be a housing market crash similar to 2007–08?

Experts will say that they do not see the market conditions as a “housing bubble” compared to 2007-2008. During the period leading up to that bubble burst, too many mortgage companies were greenlighting buyers who did not have financial positions to manage monthly payments. Back then, many home loans were made with no money down on the property, so the buyers did not even have equity in the property. 

 

As the home prices eventually declined significantly, this made it easier for the new homeowner to walk away from the house, which created the crash. But today, mortgage qualifiers have much stronger credit profiles and equity in their properties. According to the New York Federal Reserve, most home loans made over the last two years have gone to those with high credit scores of 760+ rather than the low scores of the Housing Bubble period. 

In addition, the housing market in 2007 had a surplus of homes for purchase in the decade before the COVID-19 pandemic, but new home construction did not keep up with the demands of a growing population.

With the price increases, is housing affordability an issue for the U.S. economy?

The high cost of housing and increasing mortgage rates make it difficult for more people to afford a home. This has been a problem in the economy for several years, with the lack of affordable housing being an issue since the Great Recession. As the supply of homes becomes tighter, builders are incentivized to construct larger homes with more significant profit margins. With an increase in the availability of these higher-priced segments, builders have slowly begun moving down the price-point scale.

GMS Is Always In the Know On the Housing MarkeT

Global Mobility Solutions (GMS) always stays up to date on the real estate market in almost every need within the US, and most international market trends. Our dedicated real estate team works with the best relocation real estate agents and mortgage brokers to assure excellent service and outstanding home sale and buying assistance programs. 

 

On top of that, our corporate housing providers are all thoroughly vetted before being passed on to clients. At GMS, we understand that the up and down housing market can be a big reason why an employee might decline a relocation assignment, which is why we do everything in our power to get them from point A to point B without going into financial distress over their home sale or home buying portion of the relocation process. 

For more information on our real estate case studies or other industry trends regarding global mobility programs, feel free to reach out to us today for a free consultation. Our award-winning relocation team is ready to answer any questions you may have.

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Buy a Home Global Relocation Global Relocation Tips Global Relocation Trends Relocation Best Practices

How to Prepare International Transferees for U.S. Home Purchase

Multiracial family getting home consultation
Home consultation

Here are some tips for international employees to use when looking to buy a home in the U.S.

Moving to a new country for a new job can be a lot of work. Preparing the family for the move, finding a place to live, ensuring all visa documents are accounted for, etc. There is a lot that goes into international relocation. As many people know, purchasing a home is one of the lengthiest parts of the relocation process. The home-buying process can be extended, and those not used to real estate regulations in the US will find it even more confusing. 

For those relocating to the US for a job on an H1-B visa or even those looking to buy a home to live in a while on a long-term international assignment, the standard process for buying a home in the US differs significantly from most countries in Asia or Europe. 

The first and most crucial step when preparing to move overseas is to review your international relocation package provided by your employer carefully. See what relocation benefits your new company offers, then ask how to utilize each. Many international relocation service providers will help companies create unique benefits for each transferee. And in most cases, relocation benefits include home-buying programs that can help in a significant way, both process-wise and financially. 

With that said, here are a few things to keep in mind when purchasing a home if you are relocating to the U.S. for work: 

Visa & Immigration Documents Needed to Buy a Home in the U.S.

Working with a full-service relocation management provider can help immensely with visa and immigration documentation. They can help you file for the proper visa, in turn, they can also help you with which immigration documents you will need to apply for mortgage approval when buying a home in the U.S. Each mortgage lender will have different requirements when filling out applications, but among the most common documents needs are: 

  • Valid foreign passport
  • U.S. visa and/or a driver’s license
  • Social security number or ITIN
  • Bank statements 
  • Financial documentation from your foreign bank
  • Evidence of reserves
  • Paycheck stubs
  • Tax return for the last two or three years

Can International Transferees Buy a Property without a US Credit Score?

Yes. International buyers are eligible for loans from U.S. mortgage providers even if they do not have a U.S. credit history. In some cases, lenders even offer special programs for immigrants and non-resident buyers with no credit to get a competitive rate still. And some relocation management companies work with lenders to set up specialized programs for H1-B and L-1 visa holders.

Next Steps After Mortgage Approval

Once the international transferee has been approved for a mortgage from a U.S. brokerage, they know their realistic budget. From there, they should work with a real estate agent specializing in relocation home purchases. These relocation preferred real estate agents will know how to handle the transaction regarding closing date, move-in date, days to close, and other aspects that might vary from an international move. 

Once a real estate agent is chosen, the transferee and agent can start working together on finding their dream home in the new destination. It’s worth checking your relocation package to see if your new company includes any house-hunting trips. These trips are usually a few days so that you can view homes with your real estate agent. It also serves as a time to check on international schools if relocating with children. 

Once a budget and area are set, then comes time to start putting offers on houses that are appealing. Your real estate agent will help you arrange a competitive bid on a property, then assist in negotiating with the seller for a final price. Remember that relocation packages will often include home-buying programs that can help with closing costs and commissions.

After the Offer is Accepted

If your offer is accepted and the home inspection goes well, you are ready to start your relocation process. The typical closing window for a home sale in the U.S. is about 30-45 days. Once all your visa and immigration paperwork is filed and accepted, you can work with your relocation service provider to begin scheduling movers to assist with getting your household goods to the new destination. A reputable global mobility provider will provide a relocation coach who can help you every step of the way through the moving process.

Keep Taxes Top of Mind

The home buying process in the U.S. might present a different variety of taxes compared to what you are used to in your country. A few tax regulations to keep in mind when closing on a home include Capital Gains Tax, Withholding Tax, and State Property Tax.

 Be sure to stay in the loop on all taxes due by asking your mortgage lender and real estate agent. If you are assigned a relocation expert to assist you in moving, they should have some insight into what taxes should be paid. They also might know of some tax breaks that can help you from buying a home.

GMS Can Help International Transferees Relocate

Global Mobility Solutions (GMS) specializes in helping corporations worldwide relocate their employees internationally. We help companies create competitive international relocation packages that attract top talent for open positions. From there, we assign a relocation coach to each transferee. 

This gives a single point of contact to each employee relocating. This relocation expert will help the employee handle all aspects of the relocation process, including getting them in touch with a relocation real estate agent. 

GMS only works with the top real estate agents across the U.S., and we ensure that all agents specialize in working with relocating families. Our expert relocation team also specializes in visa and immigration applications.  If you are ready to hear more about how GMS can help you with your global mobility needs, please reach out today to set up a free consultation.

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About

Contact Us

About Us

GMS Client Login

Privacy Policy

Other Services

Our Technology

Global Relocation

Group Moves

U.S. & Canadian Relocation

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

About

Contact Us

About Us

GMS Client Login

Privacy Policy

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

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