Global Mobility Solutions
Global Mobility Solutions
Global Mobility Solutions

Category: Relocation Best Practices

Categories
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

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.

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

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

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

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

Categories
Home Purchase Labor Force Relocation Best Practices Relocation Challenges

What Is an iBuyer?

Explanation of an iBuyer and why transferees shouldn’t use them

There is no doubt that selling or buying a home can be complex. More prominent real estate companies started buying and selling homes through iBuying. This newer way to sell houses and property popped up. 

But what is an iBuyer? How does it work? Is it worth it for me to sell my home to one? 

An iBuyer, in simple terms, is a real estate company that leverages technology to buy and sell homes in hopes of making a quicker sale than the traditional real estate process would. The main reason is that with iBuyers, people can buy and sell homes almost entirely online, and the buyer may never even step foot in the house before signing the dotted line. 

While some iBuyers have been around since 2014 but mainly due to the Covid-19 pandemic, iBuyers started to take a hold of a decent portion of real estate transactions. The main reason is that home buyers and sellers could show or search for houses online and take virtual tours. Then they could make offers and complete the process online before getting to their new destinations.

iBuyers vs House Flippers

Many people confuse iBuyers as being in the same realm as house flippers. Flippers typically buy properties at low prices and then relist the house for a higher price in hopes of making a profit. 

iBuyers look for homes that are more market-ready than those houses flippers purchase. iBuyers tend to make a more fair offer for what the property is worth during the market’s value. Fees are short. All iBuyer companies have fees worked into their submission. 

Should I Use an iBuyer?

Often, people who are in a hurry to get to their new destination turn to iBuyers. They think that because their process is more accessible than the traditional way, they can be on their way sooner. But relocating for a job, using an iBuyer, is probably not the best route because you could be leaving money on the table. 

If you are relocating for a new position, the first step is to review any relocation benefits offered by your new company. For example, employee relocation packages often offer home buying and home selling programs. This means there could be special programs that help moving employees sell their current homes and buy a new house in their new destination. 

When employees take a relocation job, they often think they will not have enough time to sell their home before their start date. This would make many believe that an iBuying company is the way to go. But any reliable relocation management company (RMC) would strongly side against iBuyers. 

Advantage of an RMC over iBuyers

Some of the most sought-after relocation benefits are home sale programs. In basic terms, relocation home sale programs provide assistance to homeowners so that they can move to their new city for the desired or assigned start date. Each RMC will have different terms and conditions for its offered real estate programs. But most programs will include payments to cover real estate commissions and closing costs. Therefore, every home selling assistance program differs depending on the seller’s/buyer’s situation. The type of program a moving employee can use also depends on relocation policies specified in the employee’s offer letter. Direct Reimbursement, Buyer Value Option (BVO), and Guaranteed Purchase Offer (GPO) are three of the most commonly offered relocation home sale programs. 

Each of these programs offers different advantages to transferees. Direct reimbursement is the most common program. This home-selling program is where the employee will list and sell their home on their own and be reimbursed by their new company for closing costs and other fees. 

The BVO program is where the RMC will buy the home from the moving employee and sell it to a buyer with a competitive offer. Finally, the GPO program is the handiest; this is where the employee will list and try to sell their home independently. If, after a set amount of time (typically 30-120 days), the employee is unable to sell their home, the RMC will purchase the home from the employee so that they can make it to their start date on time.

GMS Employs Real Estate Experts

Global Mobility Solutions (GMS) has been the industry leader in relocation since 1987. We’ve assisted in millions of moves since and have taken pride in making a seamless relocation process with top-notch customer service. We understand that selling a home in a tighter time frame adds to stress. 


That is why GMS only employs the best real estate experts to help our clients sell and buy homes promptly while getting checks next to all their needs on their list. With over 30 years of experience, GMS knows how to get relocating employees moved on time without leaving too much money on the table. For more information on our home-selling programs, please reach out to set up a free consultation on how GMS can help. Or check out our Knowledge Base for more insight on other services GMS can offer those looking to relocate for a new job.

We're Here to Help! Request a Courtesy Consultation

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

Categories
Global Relocation Challenges Global Relocation Tips Relocation Best Practices Relocation Challenges Visas and International Travel

Immigration Options for Remote Work Policies

woman filling out visa and immigration paperwork

Companies can still be held responsible for immigration rules on remote employees

There’s no doubt that the Covid-19 pandemic changed the remote work options for millions, maybe even billions, of employees worldwide. Companies sending their employees to work from home worked out well in numerous industries for organizations and employees alike. Employees like the flexible work schedules that remote work policies offer, while companies were initially surprised but overall pleased with their productivity. 

 

There’s still some debate about whether companies should remain in full-time remote work settings or urge employees to return to the office. While many organizations decided against a full-time office return, some factors should be weighed in. Again, there is no denying that offering remote work flexibility helps hire and retain top talent, but from the company’s standpoint, they need to make sure all of their bases are covered. 

 

Are companies responsible for immigration regulations if their employees live in a different country than the headquarters? For example, does it make a difference if the employee relocates independently or is asked to do so for a global assignment? 

 

Companies should arm themselves with visa and immigration knowledge when creating remote work options for their workforce. Here are some immigration matters to keep in mind as employees turn to the digital nomad lifestyle: 

Employees with H-1B Visa

Employees with H-1B status can only work at the specific locations listed on their Form I-129 petition or Labor Condition Application. However, they can also work remotely if their home is within a reasonable commuting radius from their employer’s office (if their home is outside of the MSA listed on the LCA or not within a reasonable commuting distance, then an amended H-1B Petition would need to be filed by the employer to allow for this working arrangement). If working remotely full-time or in a hybrid arrangement, they will be asked to post a Notice of LCA at two locations in their new home for up to ten days. The employer can then update what is known as a Public Access File with records of the posted LCA, including the new location and the dates for the work assignment. 

 

In the meantime, H-1B employees traveling as digital nomads face various immigration issues due to the location-specific requirements of the visa type. It’s also important to point out that remote employees’ H-1B site visits still happen. So, those employees who work in a remote environment may be able to attend a site visit at their house.

Employees with E and L Visa Status

Entrepreneurs and investors who want to start a business in the United States or transfer multinationals from other countries around the world to a U.S. location often use E-2 visas, which must be issued according to bilateral treaties. In addition, the E-2 visa applicant must have the same nationality as the company’s ultimate owner.

 

The L-1 visa requires foreign and U.S. companies to share a joint ownership group. The foreign company must have also hired the employee in a managerial, executive, or specialized position for at least one year out of the immediately prior three years. The employee also must arrive in the U.S. to take on a similar managerial position. 

 

USCIS and other governmental agencies usually require evidence of a permanent, physical office address when evaluating E-2 or L-1 petitions. However, this may challenge companies/employers who do not have a physical location or address. In addition, USCIS also requires a physical mailing address for most forms, which could be troublesome for U.S. companies composed of digital nomads. 

GMS Has Visa and Immigration Specialists Standing By

When companies put together remote work policies, it is essential to have visa and immigration specialist assistance. Organizations do not want to expose themselves to fines, additional taxes, or other compensation obligations because of a lapse in immigration paperwork. Working with Global Mobility Solutions (GMS) can assure companies that their visa needs are up to date. Our team has over 30 years of experience in helping companies put together relocation packages emphasizing immigration regulations. 


Set up a free visa assessment consultation with one of our experts to ensure that your company is covered on all fronts when moving employees worldwide. And for other help on visa and immigration topics, check out our Knowledge Base.

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

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

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

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

Categories
Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Relocation Best Practices

Best Education Options for Expat Families

kindergarten teacher welcoming new international student
Rear view of a friendly female kindergarten student on his first day of school.

Taking a look at schooling options for international transplants

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

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

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

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

Option 1: Online Schooling from Home Country

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

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

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

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

Option 2: Public School

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

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

Option 3: Enroll in a Private International School

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

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

How GMS Can Help Expat Families with Children

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

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

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

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

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

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

Categories
Choosing a Relocation Company Corporate Relocation Domestic Relocation Domestic Relocation Challenges Relocation Best Practices Relocation Challenges Relocation Programs Talent Mobility

Why Relocation Services Should Include Spousal & Partner Support

Happy couple carrying cardboard box
Happy couple carrying cardboard box and pot plant in new house

The Importance of Providing Spouse & Family Support for a Successful Relocation Process

Relocating for a job can bring many new opportunities to one’s professional career. But moving to a new destination for a job can also mean uprooting a partner, or even an entire family. When a candidate accepts a new position and agrees to move for the job, many negotiate to get relocation costs covered by the new company. Companies that are regularly involved in the talent mobility process work with relocation management companies (RMC) to construct relocation packages that are enticing and helpful to employees. 

But do these relocation benefits ever include any support for the transferee’s spouse or family? Any modern RMC representative would highly recommend including partner/spousal support and family support offerings to recently hired employees. There are many reasons companies should be happy to help ease the transition for their new employees’ families. For example, if the employee knows their family will have an easier time moving, they are more likely to accept the position. Finding the right candidate quickly cuts down on the time of the job search. Also, knowing their family will be taken care of during the relocation process because of special relocation benefits, the employee can have their mind on their work. 

There is no one size fits all relocation package. Each talent mobility assignment is different and should be treated as so. With that being said, there are numerous relocation services that RMCs can provide to moving employees’ spouses and other family members. Let’s look at some of the more common programs worked into the relocation process.

Area Orientation Trips

Orientation trips are a relocation benefit that tends to get overlooked. Many RMCs would recommend that companies cover at least one or two (if not more) orientation trips for the employee and their partner/spouse. The main reason to add this into a relocation package for the employee to utilize it as a house-hunting trip. Including this service helps the employee and their family get somewhat familiar with the lay of the land for their new destination. These trips can also be used to check out different schools and activities for those relocating with children. Taking a tour of a local school might help the family decide which neighborhood they might want to settle in. If the transferee’s kids play sports or participate in other after-school activities, then take advantage of the trips to meet and greet with coaches and directors so that they are not starting from square one once arriving in the new city. Area orientation trips can give kids and spouses a new, exciting spin on the move if a dream house is discovered while house hunting.

Spousal Career Services

Another perk that should be included in relocation packages is career services for the moving employee’s spouse or partner. It’s not unusual for a domestic partnership to make up a dual-career household; this means if the family is moving for one person’s job, there is a chance the other will have to quit or alter their career. But there are ways that companies can work with RMCs to include spousal career services in their talent mobility benefits. These programs can offer comprehensive career assistance along the lines of: 

  • Quick Start Job Search Preparation (marketing tools, job search assistance manual)
  • Job Search Assistance (market information, access to searchable data)
  • Personal Branding (online profiles, personal website, blog, video)
  • Partnering Services (online courses for job search execution)
  • Resume Writing Services (resumes, cover letters, LinkedIn profile)

Spouses who are moving with their partner can use this time to their advantage. Some people hold off on a career change, but right after a relocation could be a perfect time. If the moving spouse has to resign from their current position anyway, then it could be a new beginning they need to switch industries or positions, maybe even start their own business. In very lucrative relocation offerings, there may even be grants and financial support benefits for the employee’s spouse to get special training for a new job. And sometimes, some RMCs might even work in entrepreneurial opportunities for relocating partners.

Language Training

For international relocation services, language training might be one of the most essential benefits needed. Those who relocate to a new country with a spouse and children will more than likely have to learn a new language. Learning a new language can be difficult if the family has not been preparing for it for a few years leading up to the move. Companies that plan to interview, and ultimately hire, global candidates should seriously consider covering or reimbursing for classes and tutoring for the employee and their family members to learn the language of their new home. Language training programs give the spouse and family a better chance of adjusting and liking their new surroundings making it more likely that the employee can succeed at their new job as well.

GMS Offers Relocation Services with Spousal Support

For international relocation services, language training might be one of the most essential benefits needed. Those who relocate to a new country with a spouse and children will more than likely have to learn a new language. Learning a new language can be difficult if the family has not been preparing for it for a few years leading up to the move. Companies that plan to interview, and ultimately hire, global candidates should seriously consider covering or reimbursing for classes and tutoring for the employee and their family members to learn the language of their new home. Language training programs give the spouse and family a better chance of adjusting and liking their new surroundings making it more likely that the employee can succeed at their new job as well.

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
Job Market Job Seekers Labor Force Relocation Best Practices

Here Are Some Hiring Incentive Ideas to Land Top Talent

Recruiting In a Hot Job Market? Sweeten the Deal

From trucking to healthcare, many industries are having a hard time landing top talent for open jobs. Companies have difficulty filling positions regardless of the talent level in some industries, such as hospitality and foodservice. What is holding back companies from being able to hire the right candidate in a reasonable time? 

While pandemic and economic factors certainly play a factor in these difficulties, GMS recommends that you keep it simple and review what your HR department does from a recruiting and benefits standpoint. What can your company offer that other companies can’t? How do you prove to candidates that working at your company will improve their life professionally and personally? 

Sometimes, companies will offer high salaries for positions but end up with a candidate who is not qualified. Or worse, a candidate who works for the company for six months then moves on to another job that offers more. Obtaining and retaining good employees can be difficult for HR managers and recruiters. That’s why some companies provide enhanced incentives to new employees. 

Here are some ideas on how your company can hire and obtain talented candidates for positions at all levels:

1. Roll Out an Employee Referral Program

A simple idea, but giving your employees incentives to recruit for the company can go a long way. Your employees know better than anyone what type of person needs to fill the open seat. Rewarding your staff by giving bonuses or other financial incentives for bringing in a front-runner job candidate will pay dividends.

In many cases, these referral programs offer existing employees a pre-defined bonus if the employee refers an applicant who meets all criteria, is hired, and then stays with the company for a specified length of time. Ninety days of employment is the typical timeframe applied to these programs. However, with the current competitive hiring market, some companies are paying their employee referral bonuses after only 30 days of the new hire’s start date.

2. Temporarily Reduce Repayment Agreement Terms to One Year

Offering relocation policies to candidates is a great way to open up the talent pool for the open position. When you are able to field any applications from candidates located throughout the country, it gives your company much more opportunity to find the right employee as opposed to just interviewing local candidates. Keeping the job posting local shrinks the number of potential candidates. 

Oftentimes, when offering relocation packages to new hires, employers offer to cover the costs of the relocation if the employee stays with the company for a protracted period of time (generally 2-3 years). This arrangement is called a Repayment Agreement, whereby the employee is contractually obligated to repay a defined amount of the relocation costs that were covered on their behalf in the event they leave the company within the specified time period.

In a tight hiring market, many companies are temporarily reducing the terms of this agreement to as little as one year. This can be perceived as an added incentive for the employee, reducing their risk of paying back their relocation costs in the event they need to move on. However, this represents added risk and exposure to the employer.

3. Increase Allowances to Encourage Candidates to Consider Relocation

Miscellaneous Expense Allowances (MEAs) are a pool of money a company will offer an employee above and beyond the benefits, the employer has committed to directly covering (such as household goods transportation costs.) The MEA can be used by the employee to cover relocation costs that might not be covered under the policy, but qualify for use. For example, the employee’s relocation policy might not specifically call out pet transportation as a covered benefit. Employees can utilize their MEA to help cover the cost of transportation for their dog or cat, reducing their personal financial burden.

The specific MEA benefit level and its allowable use can be different from company to company and policy to policy. However, increasing the amount offered in the MEA can be a powerful incentive for job candidates who might be on the fence about relocating for the position.

4. Review and Approve Relocation Policy Exceptions Upfront

In the negotiation stage of hiring, it is always important to be upfront and crystal clear about what benefits are contained within your relocation policies. Make sure the employee knows what is covered, how they can utilize relocation policies, and why they should take advantage of each benefit. The last thing you want is to send an offer letter out only to have it rejected. 

Occasionally, the benefits provided by your relocation package may not meet the needs of a candidate and their family, potentially derailing the hiring process. In these cases, policy exceptions can be used to provide additional and targeted relocation support to the candidate. For example, consider increasing the number of days of temporary housing coverage to accommodate an employee without a place to live due to the current hot real estate market. As homes are selling quickly, intense competition in purchasing a new home can drag out how long an employee needs accommodations.

5. Formalize A Sign-On Bonus Structure

Sign-on bonuses are an easy way to hire in a hurry. Offering a set amount of money to be paid to the new employee after a certain amount of days on the job can be a powerful hiring incentive. In industries that are desperate for talent, these sign-on bonuses can be as high as $5,000 to $10,000. The amount of the bonus should depend on the employee’s experience and the urgency for filling the open position. 

6. Offer Retention Bonuses To Obtain and Keep Top Talent

Having retention or goal-based bonus structures for new hires can be a great way to keep good talent around. After an employee is hired, give them a list of obtainable goals for them to meet in their first 30-120 days. If all goals are met, the employee should be eligible for the bonus. Programs like this do two things: first off, they keep the employee motivated and focused on meeting marks. Second, it is a great recruiting weapon. Advertising to potential employees that they can get bonuses for aspects of their job can entice some great candidates to be willing to leave their current job to work for you.

GMS Knows Hiring Can Be Hard. Let Us Help!

Global Mobility Solutions (GMS) has been a workforce mobility leader since 1987. We help companies create and update relocation policies for employees, offer outstanding recruiter services, and develop innovative resources for HR managers. We want to help your company get the right people in the right seats quickly and easily. Contact us today to set up a consultation call with one of our talent mobility experts. We will listen to all of your wants and needs, then help you put together the best global mobility plan possible.

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
Domestic Relocation Global Relocation Relocation Best Practices Relocation Management Relocation Programs

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

American and Canadian flags waving at sunset

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

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

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

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

Typical Costs Incurred During Domestic Relocation

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

Selling Your Home

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

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

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

Short-term Housing Options

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

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

Moving & Transportation

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

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

Typical Costs Associated with Global Relocation

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

Visa Fees

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

Moving Insurance

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

Storage Costs

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

GMS Can Help No Matter Where You’re Headed

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

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

We're Here to Help! Request a Courtesy Consultation

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

Categories
Choosing a Relocation Company Corporate Relocation Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Global Mobility Relocation Best Practices Talent Mobility

A Complete Guide to Relocation Services

Metropolitan cityscape at sunset
The City of London, financial district of the Metropole, just after sunset with illuminated buildings and cloudy sky, United Kingdom

Moving Out-of-State for Work? Everything You Need to Know About Relocation Services

There’s little question that today’s job market is becoming more competitive. Many qualified job seekers receive multiple job offers, weighing the pros and cons of each. Employers who can offer the best compensation and benefits typically land the best talent. Typically, many people think of common benefits, such as health coverage, dental insurance, or 401k options. However, a benefit that is often overlooked when extending an offer to out-of-state job seekers is relocation assistance.

 

When sending out offer letters to job candidates, companies should consider including relocation services. Relocation benefits may be the deciding factor for your preferred candidate as moving their family out-of-state is not cheap. With the right relocation package available to them, the employee can feel at ease knowing the company has their best interests in mind. HR departments that help relieve the employee of the burden of moving by including relocation services in the hiring process note increased job acceptance rates and employees that arrive at their destination ready to work. 

 

Oftentimes, companies will work with a relocation management company (RMC) to develop and manage their relocation programs while delivering a wide range of relocation services. From the packing and shipping household goods to the delivery of visa or real estate assistance, there is a lot that goes into family moves. A reliable RMC can help companies have competitive relocation packages ready and will coach the moving employee and their family through the entire process. 

 

Additionally, for companies that provide their employees a lump-sum relocation package (in lieu of a comprehensive relocation policy), having an RMC on your side can be a great benefit. The relocation company can provide value-added assistance to the employee by helping them manage their lump sum budget, source vetted vendors, such as household goods movers, and provide access to technology that will assist the employee with their self-managed relocation.

Advantages of Relocation Services

There are plenty of advantages to leveraging relocation experts when utilizing relocation services in your talent acquisition efforts. The first and foremost benefit is a reduction of stress on your workforce. Moving across town is hard enough to coordinate but managing an out-of-state move while trying to start a new job is even more difficult. Relocation Consultants (Relocation Coaches at GMS) can help with the coordination of the move, allowing the employee to focus on their new job position and the onboarding process.  

 

Cost savings is also another advantage that both the company and the employee will enjoy. For the employee, relocation costs can represent a significant financial burden. Largely, companies that offer relocation benefits include expense management as a core portion of their relocation policies, essentially providing financial assistance for a range of approved benefits related to the move. 

 

Additionally, companies themselves can realize savings on the cost of relocation services through the usage of an RMC with a vetted and competitive network of providers. The usage of a multiple-bid process allows the RMC to “shop around” to obtain competing quotes of key services, such as household goods transportation. This results in a more cost-efficient program and increased customer satisfaction. 

 

Time management is another huge advantage. RMCs have helped thousands of people move before with established processes and technology, so they are prepared to make it as time efficient as possible. The RMC will perform the coordination of services, such as booking short-term housing, setting dates with movers, and assisting with the sale of the employee’s home. 

 

This time savings is beneficial to a relocating employee as they may only have a few weeks to get to their new destination. By allowing a quality relocation management company to orchestrate the relocation, you can mitigate the risk of delays, which could potentially push back an employee’s start date.

What Is a Relocation Package?

Relocation packages, also known as relocation policies, are benefits and support that companies offer employees who are transferring to a location for a position. These policies cover a range of supporting benefits spanning a wide range of relocation-related services. These may include visa/immigration assistance, real estate/rental assistance, the shipment of the employee’s household goods, global tax services, culture/language training, temporary housing assistance, spouse/partner career support, miscellaneous expense allowances, and more. 

 

There are a variety of different relocation packages that a company may offer an employee, with differing levels of support that are aligned by the employee’s position, their assignment, or other factors, as determined by the employer. As every company has differing needs and objectives related to their workforce mobility program, the specific structure and benefits offered in their policies will vary from company to company. However, it is common practice across many industries to utilize a multi-tier program, generally separated by employee level.

What Should a Relocation Package Include?

The most common relocation services will include most of the basic relocation needs including:

 

Moving services: The transportation of the employee’s household goods is one of the most needed relocation services. Safely packing, shipping, and storing the employee’s household goods is a critical relocation benefit offering. 

 

Short-term housing: Also known as corporate housing or temporary housing is a benefit that typically includes 30, 60, or 90 days in a furnished apartment while the relocating employee finds a full-time home in their new area.

 

Real estate & rental support: Buying and selling houses can be a confusing process. Most relocation service providers urge companies to include real estate assistance in their packages. Home sale programs allow employees to have options when it comes to selling their current home. Assistance with home finding is also commonly provided, allowing the employee to tour their destination and look at properties that align with their needs. For renters, benefits may include lease break assistance with their current apartment, tours of communities at their destination, and lease negotiation services.

 

Visa and immigration support: For companies that move employees internationally, assistance with the visa and immigration process is important. With the complex range of laws, visa types, and reporting rules, leveraging your RMC’s immigration experience will ensure your company is compliant with international laws.

 

Other benefits: Apart from the above, most companies decide to include the following relocation services: pet moving specialists, automotive transportation, destination services, travel assistance, family support programs for spouses and school-aged children, expense management services, and more.

How Much Do Relocation Services Cost?

The cost of relocation services and packages will depend on the policies that the company is willing to offer for new or promoting employees. It can also depend on the specific needs of the employee who is moving. How many family members is the employee relocating with? What size is their home and what support is needed to move their personal items? Does the company feel the need to cover auto transportation? Does the employee have a home to sell or a lease to break? Is the employee receiving a comprehensive benefits package or a streamlined lump sum?

 

Depending on the answers, the total costs can vary. It is important to have a conversation with your relocation management company regarding program costs, methods of cost control, and when and where to use certain relocation benefits. Robust and detailed reporting should be provided by your RMC to ensure you have complete visibility into your program’s total spend and where that money is being spent.

How to Address Relocation Costs

Relocation packages have a range of what they can and cannot cover. Some of the more common methods used to address relocation expenses include:  

 

Direct Billing: The RMC will source, coordinate, and pay the vendors hired in the relocation process. Invoices are handled and later paid by the employee’s company. This type of expense management can be pricey for the company but ensures the moving employee gets the most bang for their buck. 

 

Expense Reimbursement: This solution is set up to where the employee pays for all relocation expenses upfront, then receives compensation checks from their employer after the move is complete. This type of package can be tricky to handle if the benefit is not written by a professional RMC. 

It is also common to see a blend of direct billing (for large-ticket items, such as HHG transportation costs) and expense reimbursements (for smaller relocation expenses that may be covered by a miscellaneous allowance provided by the company).

 

Lump Sum: A lump sum relocation policy is basically a set amount of money given to the moving employee upfront to handle any moving costs as they see fit. Usually, the most popular type of relocation package due to its ability to provide simple controls over costs and easy budgeting, this method also provides the least amount of support to the employee and exposes them to potential risk.

 

Core-Flex: Some RMCs can offer core-flex relocation packages, where the relocation policies incorporate a core relocation benefit section, along with a menu of optional benefits. For example, a core relocation benefit may be HHG moving assistance. An optional “flex” benefit might include spouse/partner career transition assistance.

GMS Specializes in Relocation Services

Since 1987, Global Mobility Solutions has assisted companies and employees with all their relocation service needs. From creating relocation policies to coaching employees through the process, our experienced and talented team can assist in any way. We are always available to field your questions, contact us today to get all your corporate relocation or international relocation questions answered.

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
Domestic Relocation Domestic Relocation Trends Labor Force Relocation Best Practices Relocation Challenges Relocation Management

What Is a Zoom Town?

Mature businessman working at home using lap top and smart phone
Mature businessman working at home using lap top and smart phone

Learn More About Communities Growing Thanks to Remote Workers

Zoom Town is a new term used for spots around the country that are seeing increases in the populations of people who work remotely on a permanent basis. It’s a play on words from the old term “boomtown” which was used to describe towns and cities in the United States that saw huge population increases due to oil discovery. The term also stems from numerous companies using the popular Zoom meeting app, implying that people who work from home “zoom” into work instead of commuting.

This trend of Zoom Towns has grown as more and more companies are providing employees the ability to work from home full-time or even part-time. Now that employees no longer have to show their face in an office space regularly, it gives them the freedom to choose to live wherever suits their lifestyle and budget.

Cost of Living and Housing Market Shifts Helped Form Zoom Towns

Many would say that working remotely was becoming more common even before the Covid-19 pandemic forced businesses to ask employees to work from home for health and safety reasons. Now that remote positions are becoming the new normal across all industries, people are finding it harder to justify moving to, and remaining in, some of the larger or more expensive cities in the country.

It was reported in a survey given out to employees who were in-office before the pandemic that 91% of employees hope to become full-time remote workers at their current position moving forward. This shift to working online has had an impact on the cities that people want to live in. Smaller towns and cities now seem to be favored by remote workers as the cost of living and real estate prices are more appealing than the major cities that used to be some of the best job hubs in the country.

Top Growing Zoom Towns for Remote Workers

While the below list of growing Zoom Towns may not have an obvious connection, there is a series of running themes between them. If workers do not have to commute into an office five times per week, and they have the option to live with great scenery and weather, who wouldn’t? An additional theme running through this list of towns is that these destinations are all outside of major cities. As stated before, remote workers are looking to escape big city life for smaller cities and towns with more affordable housing, lower cost of living, better traffic, and an improved sense of “livability”. 

Here are some of the fastest-growing Zoom Towns in the US (in no particular order): 

  1. Gilbert, Arizona
  2. Frisco, Texas
  3. League City Texas
  4. Bellevue, Washington
  5. Olathe, Kansas 
  6. Henderson, Nevada 
  7. Roseville, California 
  8. Sandy Springs, Georgia 
  9. Centennial, Colorado 
  10. Cary, North Carolina

Relocating to a Zoom Town

It should go without saying that while most companies who hire for remote positions will allow employees to work from anywhere, there might be a chance that employees are asked to make an appearance in the office quarterly or annually. Maintaining well-optioned travel policies and remote work policies will go a long way in ensuring your remote jobs are successful for your workers and effective for your organization.

As remote work has exploded in popularity, we have found that many companies do not offer remote workers with relocation benefits. Commonly due to the fact that the decision on where to live for a remote worker boils down to personal choice. However, there are numerous government relocation incentive programs to help reduce the financial burden on remote workers who are looking for a change in scenery. 

It is important to note that in the modern war for talent, for companies to attract and retain the best talent it takes great recruiting benefits. Since 1987, GMS has specialized in helping businesses build successful workforce relocation programs, develop competitive relocation policies, and assist in the design of remote worker programs. Do you have questions regarding relocation, remote workers, or any facet of corporate mobility? Speak with one of our relocation experts 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
Corporate Relocation Domestic Relocation Household Goods Relocation Best Practices Relocation Management

Understanding Third-Party Household Goods Shipping

Why Relocation Service Providers Use Third-Party Moving Companies

Relocating for a new job can be a great opportunity for an individual or family. It can lead to new job opportunities, new friends, and new beginnings. Most people who have moved to a new area know that along with the excitement comes stress. Companies that provide their relocating employees with mobility benefits through a relocation management company (RMC) can help reduce the stress of the move. 

The RMC assists the company in providing all the services that one might need to move for their new job. Shipping one’s household goods from their current home to their new place is usually a key benefit that is included for those who are taking advantage of their company’s relocation policies. 

If you are an employee that is about to go through the relocation process, you might have already noticed that the RMC you are working with uses a third-party moving company to handle the shipping of all household goods. But why are third-party transportation companies used and what does the typical move process look like? 

What Role Does the Third-Party Moving Company Play?

Typically, the RMC will reach out to the relocating employee to gather information on the employee’s household goods that need to be shipped to their location. The RMC will use that information to set the employee up with a trusted, high-quality moving company from an already vetted network of providers. In some cases, some RMCs will get multiple quotes before choosing third-party services for a relocating employee. This is also the stage where the mover can note if they have any items that need special attention before being moved, like being taken apart or packed in a specific manner. These items usually consist of artwork, glass items, TVs, pianos, and other higher valued items. 

From there, the moving company will coordinate with the transferring employee to set up packing days, loading, transit, and delivery days. To assure the household goods can arrive on time for the employee, RMCs will often assign a relocation specialist or coach to aid the employee in coordinating the various moving parts of their relocation, including the shipment of their household goods. The employee’s Relocation Coach will help coordinate with the moving company and ensure that the employee is maximizing their benefits and that they are being used properly. This point of contact will also typically provide check-ins with the employee during the pack and load process, tracking updates, and shipment status information.

Third-party Specialty Services Might Have to Be Used

Another advantage that the RMC’s third-party service provider network can help with is if custom crating and specialty moving services are needed to move the employee’s household goods. Many fragile and high-valued items will require specialized crating due to the unique nature of each individual item. Crating provides the highest level of damage protection during the moving process. These specialty services are used for items such as pianos, billiard tables, televisions, and more. Many local moving companies may not be qualified to manage the movement of these types of items. 

These specialty services can support the move process by disassembling furniture to safe shipment and the reduction of space needed on the moving truck or shipping container. Unmounting/mounting wall-mounted televisions, the removal and packaging of chandeliers, and the movement of bulky or heavy items (such as exercise equipment or safes) can also fall under the purview of a moving specialist. The use of these specialists helps to add an extra layer of protection to the employee’s household goods, ensuring that their belongings will be moved properly with little to no damage or loss.

GMS Ensures Quality with Third-Party Household Goods Shipping

Global Mobility Solutions has a vast network of reputable moving, storage, and specialty companies that we work with when helping employees move. It is our goal at GMS to only work with 3rd-party service providers who deliver guaranteed customer service and competitive market rates. On top of that, GMS emphasizes the overall customer experience and constantly monitors feedback through our surveys to identify what is working and what may need improvement.

Relocation can seem like a long process, but in working with an RMC like GMS, we can help streamline your program, help develop competitive workforce mobility policies and manage a worldwide network of mobility professionals on your behalf. If you have any questions about corporate relocation or are looking to update your company’s relocation policies, reach out to us today. 

Accessibility by WAH

TAKE THE NEXT STEP IN YOUR CAREER