Category: Relocation Challenges

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Sustainability in the Relocation Industry

Close-up of children holding a planet at the beach
Close-up of children holding a planet at the beach

Relocation Management Companies should be aware of sustainability

Most companies’ interest in corporate environmental sustainability is on the rise. Everyone is looking to reduce carbon footprints without disrupting their business practices. A World Economic Forum report showed a 16 percent increase over the last five years in global public concern for nature. 

Having a grasp of sustainability in the context of the global mobility and relocation sector enables organizations to implement beneficial transformations that benefit both their staff and the environment. 

At Global Mobility Solutions (GMS), we are all looking for ways to protect the environment and reduce costs for our clients and their employees. When looking at ways to improve your global mobility program’s sustainability and how to reduce your carbon footprint, here are some things to consider.

Partner with a Professional Organizer

Partner with a “Discard and Donate” company that offers a professional organizer to assist your employees in preparing for their move.  This saves the client money by reducing the shipment size, and the program cost will always be less than the savings on the move.  Consider updating your relocation policy to cover some of these program costs to help encourage your employees to purge before moving. This can help reduce wasted materials and ensure that unwanted household goods go to good use instead of the trash. 

Also, Introduce a weight cap on your household goods moves.  This cap can vary by tier or by homeowner vs. renter. This will encourage your employees to consider discarding unwanted items before shipping them on your dime.

Partner with Move for Hunger

GMS is a proud partner of Move for Hunger. Move for Hunger offers your employees the option to donate their non-perishable food to a local food bank at the origin location. Items such as canned veggies, fruits, stews, soups, beans, tuna, pasta, sauce, baby food, flour, cereal, oatmeal, juice, rice, peanut butter, and jelly can be donated.  

Since its inception in 2009, over 10 million pounds of food have been donated through Move for Hunger and its partners to help feed the food insecure in the US and Canada. We suggest adding policy language to encourage transferees to contribute to this cause.

Offer Employees Furniture Rental Allowance

For international relocation assignments, GMS urges clients to consider extending a furniture rental allowance instead of shipping household goods.  Many relocation management companies partner with furniture rentals for temporary furnishings, another cost-effective way to reduce the carbon footprint.

Make Sure Your Vendors Are Green

GMS has a strict vetting process for working with household goods movers and corporate housing providers. We don’t just work with anyone. During our interviewing process, we ask vendors about their sustainability protocols and what they do to go green. Suppliers who use green clean methods help cut down on wasted resources.

Add Virtual Tools to the Relocation Process

First off, partner with real estate agencies that offer virtual tours and virtual closings for properties to minimize the need for in-person meetings and reduce the environmental impact of transportation. 

Contract with household goods providers who are experienced in using virtual surveys. GMS aims to streamline the relocation process while minimizing its environmental impact. Virtual surveys allow for accurate estimations of shipments without the need for physical visits, reducing unnecessary travel and fuel consumption. Additionally, GMS encourages suppliers who utilize recycled packing materials, further contributing to waste reduction and sustainability efforts.

Virtual services encompass a wide range of offerings within GMS, including assistance for spouses and careers, language and cultural training, and, whenever feasible, support for housing, banking, and registration in the destination country. These services can be provided in different ways, such as through video calls, virtual tours of potential homes, and online platforms for cross-cultural training, with the help of local consultants. 

Minimizing the need for in-person visits has a positive impact on the environment, as fuel consumption is reduced. Additionally, the assignee benefits from increased support from the local consultant, as less time is spent on transportation.

Ensure You’re Working with Real Estate Agents Who Practice Going Green

Real Estate agents can also help the relocation process be more environmentally friendly.  Most agents work from home and are completely paperless. Because they spend a lot of time in their cars, many offer to carpool with clients for a more sustainable transportation option.  

When showing properties, agents encourage using energy-efficient light bulbs and turning off lights before leaving any property. By promoting properties with energy-efficient appliances, solar panels, and sustainable building materials, agents can help reduce the carbon footprint of the real estate industry.

When selling a home and the potential cost of utilities is on a client’s mind, agents often suggest they use native plants in landscaping, which require less water and maintenance than exotic species. Desert landscaping is also recommended in dry areas. This not only helps conserve water but also supports local biodiversity.

Many Realtors have obtained a NAR Green Designation. The course focuses on People, Property, Planet, and Prosperity. By completing this course, real estate experts are equipped to provide guidance and access to resources that can assist homeowners in enhancing the efficiency of their residences. This support ranges from affordable solutions and do-it-yourself initiatives undertaking extensive renovations or constructing new homes.

By implementing these practices, our preferred real estate agents can significantly impact the environment and contribute to a greener future. Together, we can create a more sustainable real estate industry that benefits our clients and the planet.

GMS Leads the Relocation Industry in Sustainability

At GMS, we understand the importance of responsible business practices and strive to impact the environment positively. By partnering with like-minded household goods and corporate housing providers, we can collectively work towards a more sustainable future while providing exceptional service to our clients.

In conclusion, GMS prioritizes sustainability and responsible business practices and offers flexible relocation policies to accommodate the diverse needs of our clients. Relocation Policies empower transferees with small shipments to arrange their self-move quickly and flexibly, ensuring a hassle-free experience. Partner with GMS today and let us handle your relocation services needs while working towards a more sustainable future together.

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Corporate Relocation Corporate relocation tips Relocation Best Practices Relocation Challenges Relocation Management

Tips & Tricks Navigating the Legalities of Corporate Relocation

a man and a woman packing after navigating the legalities of corporate relocation

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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Corporate Relocation Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Relocation Best Practices Relocation Challenges

The Challenges of International Corporate Relocation

Happy family with young kids moving into a new home
Children Helping Unload Boxes From Van On Family Moving In Day

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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Home Purchase Relocation Best Practices Relocation Challenges Relocation Management

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

man smiling while moving boxes into his new home
Portrait of a young man carrying a box while moving house

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.

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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Relocation Best Practices Relocation Challenges Relocation Management Relocation Policy Review Relocation Programs

5 Terms to Include in a Competitive Relocation Package

family enjoying pizza in their new home with moving boxes around
a young family move into their new home and have pizza for their first meal

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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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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Are you ready to calculate your potential relocation program savings? Request access to our easy-to-use Relocation Cost Savings Calculator. Your Mobility Pro will grant your access request within 1 business day.

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Home Purchase Labor Force Relocation Best Practices Relocation Challenges

What Is an iBuyer?

Fastest-selling housing markets

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.

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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.

Categories
Domestic Relocation Trends Global Relocation Trends Household Goods Relocation Challenges

Household Goods Summer Update

Big truck of delivery company with cargo is driving on forest road in the mountains at sunset.

The HHG Industry & The Summer of 2022

While the summer household goods moving season is heating up, 2022 is shaping to be hotter than usual. The summer of ‘22 is the perfect storm which includes a range of issues the industry has been battling for some time, such as driver and labor shortages, not to mention the high gas prices as of late. Today, there is a range of new challenges, compounded by the lingering events of the pandemic and higher fuel costs.

These factors boil down to several key areas:

  • Increased Volume
  • New Storage Challenges
  • Challenges with Materials & Supply
  • Air & Sea Freight Cost Volatility
  • International Port Delays
  • Continuing Driver & Labor Shortages

It is important to remember that many of these challenges are beyond the control of the relocation and household goods (HHG) industries. So let’s dive into today’s major challenges facing the household goods transportation industry.

Increased Household Goods Move Volume

Move volume is up across the industry, an increase over currently elevated levels that have been present for the past year. Corporate relocation volume is up over 2022 and has been approaching pre-pandemic figures from 2020 and 2021. 

Additionally, U.S. military moves have been restarted, accounting for a large portion of typical HHG traffic. Previously, these moves were on hold throughout 2020, with few exceptions for emergency or national security moves. As a result, military relocation volume has suddenly jumped, nearing its typical summer volume.

COD/Consumer business

Volume began to skyrocket in 2020, with consumers deciding that they wanted to make significant life changes during the pandemic. This was accelerated by work-from-home policies, with companies allowing their workforce to live and work from anywhere with an internet connection.

Due to increased demand, COD pricing has become elevated. This increase in consumer pricing will continue to harm those relocating employees that are provided a lump sum benefit in place of a comprehensive relocation package. Their moving budget will no longer stretch as far as it may have in previous years, placing these transferees in a tight spot.

Heightened increases in consumer moves have caused a resurgence of “rogue movers,” fly-by-night moving companies who prey on individuals looking for cheaper moving options. This increases the risk that transferees who receive lump sums as their sole relocation benefit may fall victim to similar scams as they try to conserve their funds for moving.

HHG Storage Challenges

Household goods storage capacity is not something that the industry worries about very often. As a result, few in the business today have encountered it before. Well, hello, summer 2022, we’ve got ourselves a shortage of storage!

Storage Capacity for Personal Property

HHG shipments that required storage options have declined for more than a decade. In the past, the real estate market was well balanced, and most shipments were delivered directly to the transferees’ new homes, bypassing the need for storage entirely. 

This decline in storage needs pushed many in the industry to downsize their warehouse spaces to lower overhead costs, shifting to smaller, less costly facilities.

Today’s red hot real estate market has caused an increased overlap rate for the typical transferee’s relocation timeline. In 2022, homes are still selling quickly, forcing employees to move out sooner than anticipated. Once at their destination, the highly competitive market prevents employees from finding suitable housing promptly. It has become common for homes to be sold before the family can even view the property. This translates to extended stays in temporary housing for the family while their household goods are put into storage until a home can be secured. While many around the country expect the real estate frenzy to cool off, there’s no way to level out numbers until that happens.

Additionally, some shipments must be stored further away from the transferee’s ultimate destination, leading to potential costs beyond what would typically have occurred with a closer storage facility.

HHG Labor Constraints

Storage in transit deliveries for corporate relocations is typically handled by local labor that the local destination agent arranges. The existing labor shortage that the industry has been dealing with has been compounded by the effects of the pandemic, further restricting supply. This limited labor pool specifies the development of creative solutions for operating trucks.

Materials & Their Impact on Household Goods

As many have seen in the news, the cost of simple building materials at your local hardware store has almost quadrupled over the last year. This is another excellent example of supply and demand playing out in real time.

Lumber

The cost of lumber is up, spiking as high as 347%! Primarily, this has impacted the housing sector, with builders and consumers taking a hit on the cost of new builds. In addition, the household goods and storage industry has dramatically increased the cost of 3rd party crating.

Additionally, as new storage vaults and warehouses are being built/bought to meet demand, higher costs, limited availability of materials, and a slower building pace result.


source: tradingeconomics.com

Corrugated Cardboard

The ideal packing material for most household goods moves, the cardboard box, has been steadily increasing in price for a decade now, thanks to the rise of the eCommerce and flat-pack furniture giants.

Costs have continued to rise in concert with the rise in demand for household goods. However, there is good news – While the price is rising, supply currently appears to be meeting the demand for packing materials.

Fuel Costs

Another newsworthy item is extremely high gasoline costs have risen in recent months, exemplified by the interruption of supply pipelines on the East Coast. As a result, clients have raised concerns regarding gasoline prices and how this would translate to HHG move costs. However, the rise in gasoline costs does not directly correlate to the price of diesel, which the household goods industry runs on.

  • Most household goods transportation equipment runs on diesel and not gasoline.
  • Diesel pricing was rising until February and has leveled off considerably since then.
  • There are fuel surcharges on all interstate HHG moves, a process that has been in place for over two decades.

Fuel surcharges are determined by the average price of a gallon of diesel as calculated by the U.S. Department of Energy on the first Monday of every month. The new fuel surcharge (if a change is required) goes into effect for shipments loading from the 15th of that same month through the 14th of the following month. This helps to level off any volatility in fuel prices.

Blog - Chart - Gas Diesel Prices

HHG Air/Sea Freight Pricing Volatility

Supply and demand have caused air and sea freight pricing to remain volatile around the globe. This has been compounded by the overall reduction of flights, leading to limited availability to air freight transport. However, many in the industry are hopeful that we’ll be back on track within the next 12 months. 

Also, lift vans, a typical wooden container used in international shipping, are in short supply. These containers wear out over time and need to be replaced. However, with the ongoing lumber shortage, replacements are more costly and more challenging to come by.

Continuing HHG Driver & Labor Shortages

Driver and labor shortages continue to plague the moving and storage industry. The HHG industry has made sustained attempts to attract talent with varied results. The uptick in volume and the increased costs of doing business have led to a more acute awareness of these shortages. As a result, the industry has explored the need for alternative modes of transport (such as small containerized shipments) and continues to utilize these methods.

What Can Companies with Household Goods Shipments Do?

Many of the relocation industry’s HHG transportation challenges are simply out of anyone’s control. Simply put, TIME has become the critical factor for many of these challenges. It will take time for these issues to unravel themselves:

  • Material supply will catch up with demand
  • The housing market will cool which will lessen storage demand
  • Over time, international ports will catch up with their backlog

However, for companies that need to relocate their employees, time is a powerful ally. Now, more than ever, companies should work to initiate their employees’ HHG services as early in the move process as possible.

  • This will allow your relocation team to set the right expectations upfront and help ensure your employees arrive at their destination as quickly as possible, ready to work.
  • The earlier companies can initiate relocations for their transferees, the sooner HHG services can be scheduled and coordinated.
  • The more accurately a transferee can project their final move date, the more quickly the move can be added to the list of summer moves.

GMS Is Prepared, Let's Talk!

Do you have questions about the household goods industry? Let’s talk!   Global Mobility Solutions (GMS) is a leader in global workforce mobility. We help companies build and operate competitive relocation programs for talent acquisition and retention strategies. 

Our goal is to make every relocation experience smooth for those moving. Our services can help every step of the way, from pre-decision, to moving day, to getting settled in the new destination – GMS is here for you.

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
Close-up of person carry information from passport to usa visa application form. Man planning to move abroad. International and legal immigration concept

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
Relocation Challenges Relocation Programs United States Economy

IRS Increases Mileage Rate for Second Half of 2022

young woman filling up her car at the gas pump
woman filling up at the petrol pump

With Gas Prices on the Rise, IRS Increases Mileage Rate

The IRS announced in early June 2022 that they raised the optional standard mileage rate for the final six months of 2022. As a result, when taxpayers file for this year, they can use the new rate to calculate the deductible costs associated with driving for work and other certain purposes. 

The new rate is an increase of 4 cents, pushing it to 62.5 cents per mile. The rate increase comes with the recent spikes in gas prices. Typically the IRS adjusts mileage rates once a year, usually in the fall. But because of the hard-pressed times of fuel prices, the IRS felt the need to act earlier this year. As a result, for travel that took place from Jan. 1 through June 30, 2022, taxpayers will have to defer to the previous rate of 58.5 cents per mile when filing taxes next spring. 

“The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices,” said IRS Commissioner Chuck Rettig. “We are aware a number of unusual factors have come into play involving fuel costs, and we are taking this special step to help taxpayers, businesses and others who use this rate.” 

What the Mileage Rate Increase Means for Transferees

Like almost every other industry, high gas prices have an impact on relocation services. The tiny bit of good news here is that moving expenses are tax-deductible. So, this higher mileage rate can help offset moving expenses for those relocating for a new job or promotion. 

Many companies use Capped Relocation Policies. These policies are implemented to have a pre-approved, maximum budget that the company is willing to cover for their moving employee. This policy is meant to provide a measure of consistency with relocation costs.  

But the problem occurs in months like these when gas prices set higher costs for all aspects of the relocation process. With higher prices at the pumps, that means shipping household goods becomes much more expensive. Companies working under capped relocation policies should update their talent mobility programs ASAP, to ensure they provide enough coverage for new employees. 

If candidates feel they are not getting enough bang for their buck regarding relocation coverage, they may turn down the job offer. It is hard for companies to hire top talent in today’s market.

GMS Wants to Help with Relocation Costs

Global Mobility Solutions (GMS) team of expert relocation specialists always stays up to date with industry trends such as the mileage rate increase. We also specialize in assisting companies in updating or even creating relocation policies that make the process affordable for companies and beneficial for employees. 

GMS is here to answer any relocation-related tax questions, and we are always available to set up courtesy consultation meetings to review and update current relocation packages. Our goal is to ensure that your company is relocating your employees in the most cost-efficient way possible. Feel free to reach out to us today or check out our Knowledge Base, which is full of information on the relocation process.

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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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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