Category: Relocation Challenges

Rising Interest Rates Impact Job Relocation Transferees

Post author By Sam Hoey | CRP, GMS
Post date June 7, 2022

couple going over interest rates options with lender — Couple discussing new financial strategy

Some options to include in relocation packages to help offset high-interest rates costs

As we enter peak move season, many are taking notice of the rising interest rates on mortgages. There is no doubt that this affects anyone who is relocating for a new position. In addition, interest rates have a significant say in the bottom line of monthly mortgage costs, which could sway a transferee’s decision on a home purchase.

Add rising interest rates to the significant increase in average home prices, and the impact on purchase power shifts for many who are relocating to a new state. But why is this happening? And what can companies do about it to help employees in their relocation process?

While there’s no magic relocation package that can include a lower interest rate or first dibs at bidding on a home, there are a few workarounds that might be able to ease the process for the transferee.

Will Interest Rates Continue to Rise?

Many real estate experts would predict that interest rates will continue to rise in the immediate future. With rates going up, the Federal Reserve has begun to pull back on the purchase of mortgage-backed securities (MBS). This will likely hike up interest rates because the return rate on mortgage bonds has to be higher to bring in investors.

The Federal Reserve controls the percentage of the Fed funds rate. But that does not mean there is a direct correlation between short-term interest rates on funds from banks and consumer interest rates. If it becomes more expensive for banks to borrow, they are more likely to pass that cost on to consumers through higher interest rates. This is the main reason for those predicting interest rates to rise in the coming month.

It’s worth mentioning that interest rates were low for so long to boost the economy while the world dealt with the COVID-19 pandemic. This favored higher home prices because lower interest rates meant that buyers’ budgets could be stretched further.

Updating Relocation Policies Can Help Offset Higher Interest Rates Costs

Hiring and maintaining top-level employees can be challenging. To get the right person in the right seat, companies should look into offering relocation packages to ensure they have the best chance of landing top talent. But what should be included in a talent mobility package to help offset these higher interest rates?

Here is a breakdown of some different relocation policies that can help transferees on the real estate front.

Please note that all numbers and figures used are for example purposes only and not to be used as quotes for the home buying process.

Offer to Pay for Points

It is common for companies to include prepaid interest assistance in their relocation benefits. Buying points is a way of lowering the interest rate on a loan by putting money down upfront. If companies can include this option in their relocation packages, it could save thousands of dollars over the course of the loan.

For example, let’s say the home the moving employee is looking at is $300,000. To keep the example easy we’ll just say the loan rate is 4%. If the company is willing to add prepaid interest assistance in their benefits, the company could pay $6,000 upfront to buy two points, which gets the interest rate down to 3.5%. While this doesn’t sound like such a difference-maker, it could save the home buyer just over $30,000 on a 30-year loan.

Add a MIDA to the Relocation Package

Another great option to help transferees deal with high interest rates is to have a Mortgage Interest Deferral Assistance (MIDA) program included in the relocation benefits. This is another form of buying points down, but instead of paying for the decreased points upfront, the company would offer to pay the difference in interest between the former mortgage and the new mortgage.

How this works is let’s say the moving employee has a current interest rate of 5%, but due to the market conditions when they move for the job, the interest rate they get locked into is 6.5%. The business could pay the employee the price difference on the monthly payment. This can help the employee stay afloat financially and still have some wiggle room when searching for a home in their new destination. Typically MIDA has a cutoff of about 1-3 years once the transferee’s relocation process is complete.

Include a Dollar-Based Mortgage Subsidy

This option works best for companies who want or need to know how much they will spend on mortgage assistance for moving employees. A dollar-based mortgage subsidy works because the organization is willing to pay a total of $25,000 to help the transferee with mortgage and interest rates. Instead of giving all the money upfront, the company could provide the employee 40% in the first year, 30% in the second year, then 20% in the third year, and finally, give them the last 10% in the fourth year.

This strategy is popular for relocation managers because it lowers the transferee’s monthly mortgage payment while the company knows precisely how much they are spending upfront for the four-year option.

Work with GMS for Relocation Needs

Global Mobility Solutions (GMS) has been the relocation industry leader since 1987. Our expert team of relocation specialists has helped countless transferring employees get from point A to point B. In addition, we take pride in offering companies a way to tie in real estate programs into their relocation policies that provide options to help with rising interest rates.

Many pre-decision services can also help the moving employee gain some buying power for their new home. For example, when working with GMS, clients have access to the best relocation technology, such as our mortgage calculator.

When working with GMS, companies and transferees are not tied down to work with one mortgage broker. Instead, we work with a long list of vetted and qualified lenders to ensure moving employees get the best rates. In most cases, transferees can get lower interest rates than if they shop independently. In addition, our extensive lender list gives transferees different home buying and selling options for relocation.

GMS knows firsthand how hard it can be to hire and retain top talent, so we want to help create competitive relocation packages that make the talent mobility process seamless for employees. Reach out to us today to schedule a free consultation on how our team can help set up mobility programs.

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Tags Domestic Relocation, Domestic Relocation Challenges, Domestic Relocation Trends

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The Relationship Between Frictional Unemployment and Relocation

Post author By John Fernandez | CRP, GMS, SSB
Post date May 17, 2022

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What Is Frictional Unemployment?

Frictional unemployment is the technical term for someone who is “in-between jobs” because they plan to move to a new position. Economists use this term for employees who leave their jobs voluntarily or involuntarily. There are other types of unemployment, but frictional is unique because it is seen as a natural part of labor turnover rates.

The majority of frictional unemployment is when an employee leaves their job for a new one. Career changes also fit into this category. Students who recently graduated and trying to obtain full-time positions are also considered under frictional unemployment.

Because frictional unemployment is natural in a healthy economy, it doesn’t always compel a negative impact. In most cases, this type of unemployment can be beneficial. If a higher-qualified employee chooses to explore new opportunities, companies receive applications from candidates. And in many cases, a set relocation strategy offers a significant offset to minimize time and costs for an employee moving to a new destination.

Examples of Frictional Unemployment

There are different situations that would constitute frictional unemployment. Again, because frictional unemployment numbers are high in a healthy economy, it can be suitable for companies and employees alike. The only obvious downfall on the employees’ end is that any type of unemployment can be scary and stressful. The longer the unemployment stent lasts, the harder it is on the employee and their family. Here are some everyday situations that reflect frictional unemployment:

Personal Transition

Maybe the most common example of frictional unemployment. A personal transition can include taking time off to care for kids or an ill relative to a complete career change. As always seen as voluntary unemployment, personal transitions can last just a few days to a long extended time. Career changes usually involve new training or going back to school, so they can take years in some instances.

Another prime example of personal transition unemployment is an employee who leaves their job to start their own business. As people can save and set a foundation for their business, they do their best to time an exit from their current position to take a shot at their dream business.

Geographic Move

There are numerous situations that would fit in this category. The most seen is someone who accepts a new position in a new state or country. No one can just move overnight and be ready to work the next day. The relocation process takes some time in which usually the employee is not working, so there is a small gap in employment before the new job starts. However, if an employee accepts a promotion or corporate relocation assignment from their company, there could still be a minimal employment gap.

Geographic move unemployment matters also occur when an employee’s spouse or partner accepts a job in another location. The employee then gives resignation notice due to the move and then searches for a new job.

Another callout for this type of frictional unemployment might be if an employee wants a fresh start in a new home, but the company won’t allow a transfer and doesn’t offer remote work options. Obviously, this also fits into voluntary unemployment. In most cases like this, it is recommended from a professional point of view that the employee already have a position lined up in their new destination before relocating.

Skill Matching

Skill matching refers to an employee leaving their job for a position where the skills, responsibilities, and requirements are on the same level. This situation usually occurs when an employee feels underappreciated or underpaid at their current company. Sometimes, the employee will apply to open similar positions to get the pay raise they hope to reach. Or if the employee feels the new company can offer better career growth opportunities.

Skill matching frictional unemployment happens in a thriving economy when employees have more power in salary negotiation.

Up-Skilling

Up-skilling frictional unemployment is highly similar to skill matching. The big difference is that the employee is taking a new position because they cannot advance at their current company. The most straightforward call out here is an employee who holds an entry-level job moves to a new organization to go into a manager-level role. Or a manager-level employee wants to be promoted to a director or president-level role. This switch usually happens when an employee is topped out and looking for a higher salary and more responsibilities.

Again, up-skilling is easier done in an employee-favored economy during hiring frenzies. But, just like skill matching, the number of days unemployed is minimal and on the employee’s terms.

Entering the Workforce

Recently graduated college students who have yet to find a full-time job count in frictional unemployment rates. Younger job seekers who are applying and interviewing for positions usually make up the highest rate of this example. This situation for frictional unemployment is the most dependent upon the health of the economy. In a healthy economy where job openings are plentiful, graduates have more options and a better chance of limiting their unemployment days.

It is not uncommon for someone who may have been a stay-at-home parent looking for their first career job since caring for children. And military members whose service time has concluded, now on the job search fit into this category also.

How a Relocation Strategy Can Reduce Frictional Unemployment

Setting up corporate relocation policies can help companies cut down on frictional unemployment. These set policies help quicken the timeline it takes for an employee and their family to move. If the company develops its strategies with a relocation management company (RMC), processing time and costs can be managed better. Companies tend to work with relocation specialists who can provide coaching for the process and a prepared list of vendors who work in the services needed, such as movers and real estate agents.

Frictional Unemployment can hinder companies that relocate new, existing, or promoted employees if they do not have a strategy in place. The company suffers because the moving process drags out; there are numerous days when the position is not filled. On the flip side, the employee suffers because this is time they are not getting paid. But being prepared with relocation packages to offer employees gets them from point A to point B within a reasonable timeline.

GMS Has Taken It to the Next Level

Global Mobility Solutions has been assisting companies with their relocation strategies since 1987. Our team of relocation experts knows how to help companies prioritize their global mobility needs. In addition, we have set in a new Employee Choice Program allowing employees to relocate without their company providing financial sponsorship.

This program is meant for companies to retain top talent for positions allowed to work remotely. In addition, companies can enable employees to relocate while not having to pay for the process. GMS offers this program to companies so that their employees can utilize our list of relocation vendors at great prices. Please fill out this form to get more information on this new program put together by GMS. Then one of our relocation experts will reach out to let you know how your employees can take advantage of the Employee Choice Program.

GMS is here to help with any relocation needs, and our Knowledge Base is full of hard-hitting blog topics that can answer many levels of questions.

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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.

Tags frictional unemployment, Job Market, Relocation Challenges

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Why Relocation Services Should Include Spousal & Partner Support

Post author By John Fernandez | CRP, GMS, SSB
Post date April 13, 2022

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

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Tags relocation packages, relocation services, Talent Mobility

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How to Overcome Relocation Challenges

Post author By Sam Hoey | CRP, GMS
Post date March 1, 2022

city skyline at sunset — Downtown Denver, Colorado, USA Drone Skyline Aerial Panorama.

The most significant obstacles when relocating an employee

Relocating employees can be a trying process. There are lots of moving parts involved. From handling the company’s needs to the employees’ wants, along with the vendors’ schedules, there are various pieces to fit perfectly to make the relocation process as seamless as possible. Like with any other corporate process, some challenges may occur. Relocation challenges can affect both the company and the relocating employee in many ways.

While each talent mobility assignment is different, companies can stay ahead of these obstacles by setting relocation policies. These policies are typically built in collaboration with and managed by a relocation management company (RMC), which provides the services through a vetted vendor network. Having relocation packages ready to go can help, but that does not mean that relocation challenges will not arise through the employee’s move.

Global Mobility Solutions (GMS) has provided companies with comprehensive and award-winning relocation services for employees since 1987. With that said, we’ve overcome our fair share of challenges while assisting people through the relocation process. Our qualified team developed unique solutions to these challenges in each case, ensuring a stress-free move for our transferees and their families. These challenges listed below are not a definitive list for potential issues that may pop up, but are some of the more common relocation challenges:

Relocation Costs

Probably the most direct challenge to point out is providing new hires or promoted employees with relocation benefits will cost the company money. But, again, working with an RMC can help assure that the company offers the right amount of benefits while paying an affordable amount. You have to spend money to run a business. If you do not provide any financial backing to an employee for a move, you are only shrinking your talent pool because only local candidates will apply. This makes spending money to relocate employees worth it, knowing your company can get the right person in the right seat.

Buying and Selling Homes

A primary concern many employees have before moving is selling their current home and buying a new house. While the real estate market is up right now in most major cities around the US, there is still a chance that the employee may need time to prepare their home to be sold, or it could be on the market for a while. This may affect the employee’s available start date. Additionally, when relocating to a new state, it can be difficult for most people to buy a new house without freeing up the equity from their current home.

When putting together relocation packages for your relocating employees, including real estate sale programs such as a Direct Reimbursement or Buyer Value Option program is strongly recommended. These special home selling programs give employees more options during their move and are an excellent way to overcome this relocation challenge.

Job Start Date

Another tricky situation many run into when hiring out of state is knowing when to set the employee’s job start date. Because each relocating employee will have different needs, it can be hard to know precisely how long the process will take. Once the job offer letter is signed, employees typically put their two-week notice in with their current employer. Then the question becomes, what period of time is reasonable to expect the employee to be at their destination? Timeline differences may arise between a college graduate who is a renter and a VP homeowner with a large family. Consideration should be given to each employee and their situation.

A good workaround for employees moving with families is to offer corporate housing options. This allows the employee to get to their new destination to start work and have a reliable place to live for about 30-90 days while their family is given more time to finish the move at the origin location.

Household Goods Shipping

When an employee has to move, they’ll need their household goods to get from point A to point B. This step of the relocation process can be a headache if not handled correctly. The last thing the employee wants or needs is to have their belongings show up late due to a kink in the system. If working with an RMC, it is worth asking how they vet their moving companies and what they look for when assigning movers to employees. Significant cost savings can be realized through a competitive bidding process where the RMC gathers multiple quotes from moving companies for company approval.

GMS Can Help Overcome Relocation Challenges

While all of these relocation challenges widely vary, the best way to cover all of them is to work with a qualified RMC such as GMS to help write and manage your relocation policies. Our team’s goal is to help make your employees’ relocation process as stress-free as possible. We have team members who specialize in both domestic and international relocation.

Feel free to reach out to us today to get started on a courtesy consultation with our industry experts, where we can review and provide feedback on your current relocation programming. If your company does not currently offer talent mobility benefits, we can also help you in your efforts to create a competitive relocation benefits program. Don’t let relocation challenges keep you from hiring and obtaining the top talent in your industry.

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Tags Domestic Relocation, Domestic Relocation Trends, relocation

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What Is a Zoom Town?

Post author By John Fernandez | CRP, GMS, SSB
Post date October 26, 2021

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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):

Gilbert, Arizona
Frisco, Texas
League City Texas
Bellevue, Washington
Olathe, Kansas
Henderson, Nevada
Roseville, California
Sandy Springs, Georgia
Centennial, Colorado
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.

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Tags Domestic Relocation Trends, relocation trends, zoom town, zoom towns, zoomtown

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The Benefits of a Preferred Relocation Real Estate Agent

Post author By Jules Matz | AHWD, ABR, CNE, CRP, GRI
Post date June 15, 2021

Real estate agent and businessman customer, Image taken at average residential area with multiple ownership block of flats type of buildings.

Pros of Using a Preferred Relocation Real Estate Agent

If you have been offered a new position in a different city or state by your current employer, or if you are accepting a new job in a new location, you probably have dozens of questions about the relocation process and how it works. Like most relocating individuals, one of the most prominent questions is most likely the concern about selling your home.

Many transferees who are getting ready to move (or those still weighing options with an offer) often wonder if they are on their own for selling their house or if the corporate relocation company that their employer is partnering with will do that. Going a level deeper, those moving then wonder if they are in charge of hiring their own real estate agent.

The answer to that question is simple; you have the power. Many relocation policies offer support when it comes to home selling assistance. If home selling assistance is one of your relocation benefits, then it is an excellent idea to capitalize on that. Now the question becomes, should I use a friend or family member to sell my home or be assigned a specialized relocation real estate agent? While many transferees may want to go with the first option, it might make more sense to allow the relocation specialist to handle the sale. Here’s why.

Using an Experienced Relocation Real Estate Agent

Many relocation companies urge the relocating employee to select an agent from their vetted real estate network because they can then guarantee that the agent is familiar with relocation policies and will be knowledgeable of the nuances in the relocation process. This will ensure that the transferee is maximizing their benefits by taking advantage of every aspect offered in the home-sale program. Transferees that stick with their company’s established home sale program commonly sell their homes more quickly and arrive at their destination with less stress and are ready to work.

In leveraging your company’s home sale program, your relocation company’s point of contact can coordinate the entire move process for you – from the relocation appraisal process to the moving of your household goods, and finally the end of the sale of your property. Additionally, relocation real estate companies will recommend multiple agents for you to interview before making a decision, placing you in control.

Real estate agents who are not experienced with the relocation process might not be as active, might not know how to maximize savings and profits, or might not have an understanding of how to properly utilize relocation benefits. If they have little to no understanding of how corporate relocation processes work, this will slow down the sale of your home.

Out-of-Network Fees

In addition to the valuable experience that a vetted relocation-specialized agent can provide, it is better to use a relocation company’s agent because many relocation companies charge sizable out-of-network or referral recovery fees when agents outside of their networks are utilized. In fact, many companies specifically state in their relocation policies that the usage of an authorized agent is mandatory in order to receive your benefits. In this case, you will not be able to benefit from specialized home sale programs designed to help you sell as quickly as possible, for as much as possible.

Get the Most Out Of Relocation Real Estate Benefits

Selling your home is just one of the first of many steps to take for a successful relocation for you and your family. That is why it is important to work with relocation specialists who have the knowledge to get you the best deal possible for your home. If you have any questions about relocation real estate benefits or need to get in touch with a vetted, relocation real estate agent who can guide you through the entire process, please contact us online today. One of our team members will reach out to assist you with all of your questions.

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Tags preferred agent, real estate agent, real estate tips, Realtor, relocation real estate agent

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Discover Your Potential Relocation Cost Savings

Post author By John Fernandez | CRP, GMS, SSB
Post date June 1, 2021

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Relocation Cost Savings

To have the most successful and efficient workforce mobility program, mobility specialists and HR professionals should regularly evaluate their company’s relocation costs, benefits, and policies in order to uncover cost savings or areas in your relocation policies that may need improvement. Many companies manage their relocation needs in-house while others use relocation management companies to mobilize their workforce. Relocation policies should be reviewed with regularity to assure the company is spending wisely and saving money where possible.

GMS makes this process simple with our industry-leading MyRelocation® technology. In addition to its client and employee-facing portals, MyRelocation® offers a suite of tools designed with your needs in mind.

GMS is happy to announce our new Relocation Cost Savings Calculator. This easy-to-use tool provides companies with insight as to how much they could be saving when it comes to their current relocation program. If it has been a while since your company’s policies have been reviewed, or you are just starting to look into mobility services, this calculator can help determine your organization’s potential cost savings.

It is not uncommon for companies to go years without changing or updating their relocation policies. While common, this practice can add up to serious costs over time as the direct costs related to relocation benefits react to various factors. Transportation prices change, home prices fluctuate, temporary housing costs increase, and the cost of living is constantly changing. To assure that your company is saving the most money while giving your employees the best relocation experience possible, it is important to check in on how you can be saving.

Calculating your Relocation Cost Savings

The innovative GMS Relocation Cost Savings Calculator looks at a range of common relocation program areas for cost-saving opportunities. With a user-selectable option for companies who handle mobility in-house or with an outsourced relocation management company. Key mobility policy elements that the calculator can highlight include:

Program Fees
Real Estate Services
Household Goods Transportation and Storage
Temporary Housing Programs
International Relocation Services
Program Funding

The Cost Savings Calculator is quick and easy to use, and once various data points are input, the relocation calculator will compute your potential savings in a downloadable PDF to allow you to easily compare your current relocation costs against your potential savings. After that, a GMS Mobility Pro will reach out personally to help validate your potential relocation costs savings estimate, provide no-pressure guidance, and answer any questions you may have.

Validate Your Savings Using Our Relocation Cost Calculator

Are you ready to discover how and where your mobility program may benefit from a reduction in relocation costs? Simply complete the form below and a GMS Mobility Pro will provide you with a link to work through the tool. It is easy to use and only takes a couple of minutes if you have the right information handy.

The GMS Relocation Cost Savings Calculator is free to use and comes with no obligation and no pressure to use. Get started now to discover how much your organization could be saving today.

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Tags managing mobility costs, Mobility Cost Management, Relocation Cost Management, Relocation Costs

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2021 Ushers in Fully Virtual Relocation from Start to Finish

Post author By John Fernandez | CRP, GMS, SSB
Post date May 4, 2021

senior woman reading from laptop — Woman watching business training or online webinar on laptop computer remote working

Virtual solutions in relocation management were well on their way to becoming the preferred choice long before the COVID-19 pandemic made them a requirement to do business. Supporting the working world’s “anytime, anywhere” focus, the relocation industry has been creating tools and resources to bring solutions to clients that are easy to use and do not require any physical contact. 2021 will see virtual solutions continue to grow in both popularity and functionality due to their convenience, speed, flexibility, and accuracy.

Virtual Relocation services span the relocation spectrum, including the following:

PRE-DECISION SERVICES

A valuable tool, pre-decision allows for a relocation management company to work with your new hires or transferees before an offer is extended or the decision to relocate is made. All of the following services can be provided through online solutions, reports, and electronic communications:

Candidate Assessment – Assess candidate expectation, skills, personal qualities, family circumstance, and financial preparedness
Cost of Living analysis – Cost of living comparison of origin and destination cities to help determine an acceptable or competitive salary range
Market analysis – Determine the likely home sale timeline and identify potential home sale challenges such as negative equity
School Reports – Public and Private School reports provided to the relocating employee to aid community selection
Moving Cost Estimates – Cost estimates on household goods transport to help budget for relocation costs
Community Search and Tours – Virtual Neighborhood Walks let buyers explore new neighborhoods and communities, and help them see nearby local features such as parks, schools, and shopping centers

VIRTUAL VISA AND IMMIGRATION SERVICES

In today’s new normal, the virtual experience extends to the visa application and immigration process:

A knowledge base of helpful information and resources
Virtual visa and legal consultation
Online application and form filing
Electronic fee payment
Online tools to track and manage case status and processing times

HOME SELLER VIRTUAL EXPERIENCE

The global pandemic forced home sellers, agents, and relocation companies to rethink the real estate process from beginning to end. Including the following.

Consultation, Digital Marketing

Virtual consultations using popular meeting platforms such as Zoom or Google Hangouts
Document signatures captured electronically using Dotloop real estate transaction management solution or other e-signature programs
Virtual walk-through and preparation for the home
Virtual staging using seller-provided photos combined with current furnishings and décor
Virtual experience “Open House” event with advertising and promotion
Virtual private showings

Offer, Contract, Deposit

Electronic offer submittal (once seller receives an acceptable offer, that specific buyer can see the property in person within 24 hours; following the viewing, the seller will execute the offer)
Contract to purchase the home is executed electronically
DepositLink or other financial service is used to electronically transfer the deposit

Inspections, Appraisal, Financing, Closing

Inspections are ordered and conducted (if not waived)
Purchase and Sale agreement is executed
Appraisal is completed
The buyer obtains financing commitment if applicable
Final in-person walk-through (if not waived)
Closing

HOME BUYER VIRTUAL EXPERIENCE

Like the home sale process, home purchases have traditionally been a very personal, in-person process. 2020 brought about rapid change as the real estate experience quickly adapted to provide a safe, virtual experience for prospective home buyers.

Consultation, Online Views

Virtual consultations using popular meeting platforms such as Zoom or Google Hangouts
Document signatures captured electronically using Dotloop real estate transaction management solution or other e-signature programs
Online searching for homes
Virtual experience tours of homes, either 3D virtual tour online, or a live interactive virtual tour (open house or private showing)
Live virtual buyer events
Video mail (v-mail) provide video directly to interested buyers

Offer, Contract, Deposit

Electronic offer submittal (once seller receives an acceptable offer, that specific buyer can see the property in person within 24 hours; following the viewing, the seller will execute the offer)
Contract to purchase the home is executed electronically
DepositLink or other financial service is used to electronically transfer the deposit

Inspections, Appraisal, Financing, Closing

Inspections are ordered and conducted (if not waived)
Appraisal is completed
The buyer obtains financing commitment if applicable
Final in-person walk-through (if not waived)
Closing

VIRTUAL HOUSEHOLD GOODS MOVES SERVICES

While the movement of personal property will always require a physical presence by moving crews, the household goods industry developed effective tools and processes to limit in-person interaction to protect both the transportation employee and the transferee’s family from unnecessary exposure:

Online, video, and virtual estimating surveys to document contents of homes
Online and electronic communications to arrange services and payments
Packing, moving, delivery, and setup services without requiring transferee to be present

VIRTUAL DESTINATION SERVICES

Virtual destination services are a great option for transferees and their family members. These include community tours and orientation, departure services and support, and area consultations. All of these services provide transferees with 1-on-1 consultation and support to ensure their comfort and peace of mind with the destination.

The services provide benefits such as:

Providing direct support when needed
Keeping assignments on track for success
Recruiting and retaining key employees
Assisting and supporting family members
Developing and growing relationships

For common services such as searching for schools, finding homes, and getting to know the new location, there are several new convenient formats that have risen in use:

Real-Time Video – Live video calls let transferees review specific areas, discuss their interests, and share their preferences. The local destination contact provides direct communication on specific points and can answer questions that may arise.
Webinar Presentations – Transferees access a 1-on-1 presentation through popular web-based platforms.
Pre-Recorded Video – A personalized video is recorded and shared with transferees. They are then free to review the recording at a time that is convenient to their schedule.

VIRTUAL LANGUAGE AND CULTURE TRAINING

A virtual trainer for language and culture allows candidates to access training anytime, anywhere. This access gives candidates the flexibility they need. Whether traveling or in a remote location, the virtual trainer lets candidates learn at their own pace.

Language Modules

Intuitive, straightforward interface
Self-paced lessons
Focus on conversation proficiency
Cultural insights and nuances that impact vocabulary and grammar
Mobile apps for quick brush-ups

Cultural Modules

One-on-one personal training via webcam
Coaches explain how to see cultural differences to promote synergy
Practical and actionable guidance to operate in business settings
Learning to leverage skill sets found in other cultures
Communicates values including mutual respect and understanding

VIRTUAL TUTORING FOR CHILDREN

Dedicated learning platforms deliver virtual instructor-led lessons in a fully professional, secure, and GDPR-compliant format. Features include:

Easy to use interface
Browser-based with no necessary downloads
Class reminders and notifications
Multiple-language support
Audio and video-based lessons
Online document sharing and lesson materials
Reporting for attendance, learning analytics, and more

The lesson content and methodology are adapted to the children’s needs. Books and materials are either virtual or delivered to the children through mail delivery services.

What's Trending in Workforce Mobility for 2021?

This article is an excerpt from our 2021 Workforce Mobility Forecast. Download a complete copy today, or watch a recording of our latest Thought Leadership Series webinar on the trends that are shaping the industry.

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GMS Is Here to Help

GMS is ready to help you with any relocation needs you may have. If you have questions or are ready to get started, please reach out to us online or call 1-800-617-1904 for US or 011-480-922-0700 for international. Our certified team is here to help.

Tags relocation best practices, relocation programs, virtual relocation

Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Relocation Best Practices Relocation Challenges

Top 5 Challenges Facing Companies with 1 to 25 Annual Relocations in the Post-COVID Era

Post author By Nancy Kritzer | CRP
Post date January 26, 2021

Photo of a delivery man lifting cardboard boxes from the back of his truck.

Companies with 1 to 25 annual relocations face a number of challenges for their relocation requirements. Many full-scale Relocation Management Companies (RMCs) provide a limited range of services for companies that annually move less than 25 employees. As a result, companies may face higher costs and lower levels of service for their relocation programs.

By comparison, GMS has extensive experience in working with clients that move less than 25 employees each year, making GMS the relocation industry expert. Choosing a relocation partner that specializes in working with companies that have lower volume programs will ensure successful relocations and the best possible employee experiences.

What are the Top 5 Challenges for Companies with 1 to 25 Annual Relocations?

The top 5 challenges facing companies with 1 to 25 annual relocations span the entire relocation process. Many of these challenges arise because some RMCs focus solely on companies that have large numbers of employee relocations.

Challenge #1 Lack of Performance Guarantees and No Quality Performance Metrics

Service level guarantees ensure clients receive the service they expect for their relocations. Some RMCs do not provide these guarantees to clients that move less than 25 employees

GMS SOLUTION: GMS provides a range of service metrics across all services, for all clients.

Challenge #2 High Fee Structures

Some RMCs charge companies that move less than 25 employees much higher fees to make up for lower margins and lower profits than they receive on their larger clients. Companies with 1 to 25 annual relocations are also less likely to need additional services. This results in lower revenues on additional services.

GMS SOLUTION: GMS offers a “One Fee Promise” for clients, ensuring fair and equal treatment.

Challenge #3 1 to 25 Annual Relocations Receive No Choice in Supplier Vendors

Many RMCs require their clients to use the RMC’s own network of suppliers under the guise of “economies of scale.” What this really does is drive more revenue and profit to the RMC, while the client ends up with no choice.

GMS SOLUTION: GMS features a Freedom of Choice™ model for all clients. GMS is not affiliated with any service provide, so clients have choices based on performance and savings.

Challenge #4 Limited Services

Some RMCs limit services to companies with 1 to 25 annual relocations. As a result, these clients must pay fees to other service providers to obtain valuable and necessary mobility services such as pre-decision/pre-hire, expense management, and travel coordination.

GMS SOLUTION: All GMS clients receive the same high level of service quality.

Challenge #5 Limited Funding Solutions

Most companies with 1 to 25 annual relocations must pay all (or most) of their relocation costs upfront. Then employees submit expenses for reimbursement. This process can take several weeks.

GMS SOLUTION: GMS lets clients determine the funding solution best fits their needs, including zero-interest options. Also, GMS provides a customizable invoicing schedule.

What Should Companies with 1 to 25 Annual Relocations do?

Companies with 1 to 25 annual relocations should choose to work with an RMC that has experience with clients who move less than 25 employees. GMS has ideal solutions that meet the common challenges these companies face.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of companies with 1 to 25 annual relocations understand why they should work with a relocation industry expert. We can help your company understand how benefit from all of the GMS solutions for your relocation program.

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

Powered by GMS’ 2020 Mobility Benchmark, the innovative GMS Program/Policy Evaluation (PPE) Tool provides instant relocation policy reviews. It also helps users gain insight into how their company’s relocation program compares to their industry peers.

Learn how GMS’ experience is best suited for your company’s 1 to 25 annual relocations. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Tags 1 to 25 Annual Relocations, Domestic Relocation, Domestic Relocation Challenges, Domestic Relocation Tips, Domestic Relocation Trends

Domestic Relocation Domestic Relocation Tips Household Goods Relocation Challenges

Pet Relocation from the Pet’s Perspective

Post author By Nancy Kritzer | CRP
Post date August 20, 2020

A happy yellow lab dog sitting on a sidewalk.

Pet relocation needs are often considered after an employee has accepted a position. If your company has new hires and transferees who are planning to relocate along with their pets, there are many points to consider. For example, housing at the new destination, household goods move logistics, and transportation options should be top of mind. Has the employee thought about their pets? Could pet relocation be as simple as opening their car door? Why not let their pet jump in the back seat as they ponder a long drive?

From a pet’s perspective, relocation may be fraught with confusion. Certainly costs may be involved, and there may be specific veterinary requirements such as current vaccinations. Before employees start making decisions, it is important to know the specific requirements their pet must meet, and what they may experience during a pet relocation.

Health and Vaccinations for a Pet Relocation

Many states require that pets have proof of current rabies vaccination from a licensed veterinarian. For example, the state of Florida maintains this requirement for dogs and cats 3 months of age and older. However, other states may require an official certificate of health. Requirements across states vary, and should be investigated prior to the pet relocation.

The United States Animal Health Association (USAHA) publishes a list of each states animal health officials. Additionally, USAHA publishes a list of sovereign territorial animal health agency members for the Navajo Nation and the Commonwealth of Northern Mariana Islands. It is important to contact the appropriate state agency at the destination. You should verify the most recent requirements for pets moving to the new location.

After the Veterinarian Visit, What is Next on the “to do List” for a Pet Relocation?

Once the employee’s pet stops giving them guilt-inducing looks following the most recent visit to the veterinarian, the actual logistics should be considered. What is the best option to get the pet from their current home to their new home? There are a multitude of choices, each with its own advantages.

Automobile

What could be easier than a nice drive with a pet? Consider how long the drive will be. Is it an hour, or is it several days? An hour, or even a few hours, might be easily doable for the employee and their pet. From a pet’s perspective, this might be their optimal choice for their pet relocation.

Now imagine yourself in the back seat of your car for several days. Would you feel comfortable and happy? Remember traveling for a day or two (or more) will also require stops at night. Hotels may accepts pets, and may charge extra for this convenience. Safety is also an important consideration. Each transition into and out of the car may provide an opportunity for a missed leash or a losing grip. Groggy pets might be susceptible to a fall as they exit the car. As a result, a pet may not prefer long trips in the back seat of their owner’s car.

Air Travel by Carry-on Luggage versus Cargo

Pets that can travel by air in carry-on luggage must be small enough to fit beneath the seat. Cats, small dogs, a rabbit, and similar small pets may be able to travel this way. Service animals and emotional support animals generally do not need to meet these requirements. For pets that meet these requirements, this might be a favorable choice. They get to be near their owner, and are protected in their carrier during the travel experience.

Airline travel has changed during the COVID-19 pandemic. Travelers should look into various airline policies regarding pets, service animals, and emotional support animals. Online resources such as Guide to Flying with an Emotional Support Animal may provide helpful information.

Air travel by cargo may be the only option if the pet is large. While the vast majority of pets that travel by cargo do well, some issues give owners pause for concern. The U.S. Department of Transportation publishes a monthly report to assist consumers with information on the quality of services provided by airlines. According to the June 2020 report, there was one report related to pet relocation. Recently many airlines have suspended the option for pets to fly in cargo. From a pet’s perspective, this type of travel may be more challenging. Since they will not be in sight of their owner, they may not feel happy and secure.

Rail Travel on Amtrak

Amtrak allows pets to travel by rail provided they meet certain guidelines:

Up to 20 pounds (pet and carrier)
Trips no longer than 7 hours
Signed pet release and indemnification
Pet must be at least 8 weeks old, odorless, harmless, and not disruptive

Notably, pets must travel with a human. Amtrak does not ship pets, or allow them to travel as a checked bag. With their owner along for the ride, travel by rail might be a surprisingly easy and pleasant option. The built-in limitation for 7 hour trips might benefit both the employee and their pet by providing scenic stops along the journey. Pets that meet the requirements may find this to be a favorable option.

Specialized Pet Transport

The International Pet and Animal Transportation Association is an organization of professional pet shippers. With members located in more than 80 countries, IPATA pet shippers work together to provide safe and secure pet relocation. There are specific requirements that must be met, such as vaccinations and health certificates. If the employee’s timing is critical and they are not able to bring their pet through air travel, IPATA may provide an option to meet their needs. From a pet’s perspective, if they can’t travel with their owner, then traveling through a professional service might be a viable option.

International Pet Relocation Health, Vaccinations, and Possible Quarantine Requirements

The United States Department of Agriculture Division of Animal and Plant Health Inspection Service notes there may be health requirements specific for international destinations. These requirements may include obtaining a health certificate, updating vaccinations, requisite diagnostic testing, or administration of medications.

The international relocation may require quarantine time for the pet. For example, pet relocation from the United States to Taiwan requires the importer to “…apply for an import permit and make a reservation of the post-entry quarantine space from animal quarantine authority at the port of entry.” Also, “When conducting the quarantine inspection, BAPHIQ (animal quarantine authority) will check the veterinary certificate and detain the dog or cat at the designated post-entry quarantine location for 7 days. During quarantine detention, the blood of the dog or cat will be sampled and tested again for rabies antibody.” Ultimately, pets that may need to undergo quarantine are bound to not be the happiest tail-waggers. However, when they are reunited with their owners, their happiness may increase. Especially if the owner shares big hugs and some delicious pet treats.

What Does This Mean?

It is important for new hires and transferees to understand issues related to pet relocation. Employers should be sure to extend the same level of service to pets as they would to human members of the relocating employee’s family. They should also ensure safe animal transportation options are available.

Employers should work with a qualified and experienced Relocation Management Company (RMC) that can provide guidance for safe and reliable pet relocation. RMCs can help clients and transferees understand how to arrange for the best pet relocation options.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to help their new hires and relocating employees with pet relocation. We can help your company utilize pre-decision services to identify needs and requirements to ensure a smooth relocation process for the employee, their family members, and their pets.

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning about pet relocation solutions, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Tags Animal Transportation, Domestic Relocation, Domestic Short Term Assignments, Emotional Support Animals, Move During COVID, Move During COVID-19, Pet Move, Pet Relocation, Pets, relocation, Service Animals, Workforce Mobility