Global Mobility Solutions
Global Mobility Solutions
Global Mobility Solutions

Category: Relocation Challenges

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What are the New Real Estate Business Models?

What are the new real estate business models? Global Mobility Solutions’ 2019 Forum included a presentation by Ken Jenny, Executive Director, tranCen.com, Inc. Ken is an expert in the residential real estate industry. He has over 38 years of diverse and progressive experience in brokerage, MLS, franchising, online marketing, business processes, and technology. This experience includes an emphasis on executing tangible ways to improve the consumer real estate experience. From being a real estate agent to a corporate executive to an independent industry advisor, Ken has examined and designed effective change strategies for nearly every aspect of the residential real estate industry. Ken’s relentless consumer-first thinking addresses the ever-changing challenges facing the industry today.

Ken’s previous positions include the COO of Coldwell Banker Residential Affiliates, the CMO of Prudential Real Estate, and the CEO of RealEstate.com. Ken introduced attendees to new real estate business models and their implications for business and consumers.

What do New Real Estate Business Models Look Like?

Ken noted how new real estate business models differ from the current real estate business models. In effect, these new models offer custom solutions to what they perceive as the customer’s pain points in the current business models. Several key differences include:

  1. Easier processes for the seller
  2. One buyer (the alternative company) to work with
  3. Increasing the speed to closing

In Global Mobility Solutions’ White Paper: 2019 Industry Update – Talent Mobility, Real Estate, Household Goods, and Immigration, our experts explain these key differences in further detail. A full review of the many aspects of using a licensed and experienced Listing Agent are presented. These aspects are then compared to using an alternative company. A few important points to note about new real estate business models include:

  • Homes often must meet several restrictive criteria
  • The alternative company is the only buyer
  • Offers are negotiated using online real estate data
  • Closing statement is net of service fees (averaging 6.5%), inspection costs, and repair costs

As a result, our team of real estate experts developed the following guidelines. These guidelines are helpful for sellers who may be considering using a new real estate business model:

Sellers may want to use an alternative company and not a Listing Agent if they:

  1. Are not cost conscious.
  2. Desire to choose their own closing date.
  3. Feel comfortable relying on online real estate data.
  4. Are willing to market their home to only one buyer (the alternative company).

Sellers may want to use a Listing Agent and not an alternative company if they:

  1. Are cost conscious and seeking to lower any repair costs.
  2. Are able to work with a closing date negotiated with a Buyer, contingent on several components including appraisals and financing.
  3. Prefer a licensed professional appraiser to determine the value of their home.
  4. Desire a licensed real estate professional to negotiate the sale of their home for top dollar.
  5. Feel comfortable relying on a licensed and experienced personal representative that looks out for their best interests.

How are the Best Real Estate Companies Responding to New Real Estate Business Models?

Global Mobility Solutions chooses to work with the “best of the best” in our partner networks. In real estate, our partners must consistently meet stringent service levels. They must also deliver exceptional customer satisfaction as measured by customer surveys. As a result, GMS real estate partners provide unparalleled levels of service and satisfaction to our clients and their relocating employees.

These partners combine the best aspects of the current business model with the best features of the new real estate business models. As a result, they are able to deliver truly outstanding outcomes for our clients and their transferees. In order to enhance current marketing programs, GMS partners may use Virtual StagingTM to provide 24/7 access to homes without any inconvenience to the current owner. To speed the closing process, GMS partners may use Electronic Closing Platforms (eClosing). These platforms include features such as remote online notarization and eSignatures. GMS real estate partners offer a “restomod” approach to their real estate businesses, incorporating the best aspects of traditional real estate business models and the best aspects of new real estate business models.

What Does This Mean?

Companies that encourage transferees to buy instead of rent should be sure to provide their relocating employees with the best service in the industry. By using a combination of traditional and new real estate business models, the GMS real estate partner network delivers outstanding performance. Transferees with home sales and purchases will gain the advantages of advanced technologies and faster processes. They will also retain all the benefits of working with licensed and experienced real estate agents.

What Should Employers do About the New Real Estate Business Models?

Companies should work with an experienced and knowledgeable Relocation Management Company (RMC). RMCs provide extensive solutions when it comes to relocating new hires and transferees who need to sell and buy homes using new real estate business models. Companies should review their relocation programs. This will help ensure they have a competitive advantage. Also, it will ensure their program provides the highest level of relocation benefits and services for their employees.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how they can provide exceptional real estate services to their new hires and relocating employees. Our team can help your company understand how to leverage the benefits of a partner network that represents the “best of the best” in the real estate industry for your transferees.

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

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

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 new real estate business models, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Overcoming Challenges in Relocation Programs

How can a company excel at overcoming challenges in relocation programs? Global Mobility Solutions’ 2019 Forum included an inspiring presentation by Eric McElvenny, a military husband and proud father of three children. Eric graduated from the United States Naval Academy in 2006. Following his graduation, Eric had the privilege of serving 7 years in the United States Marine Corps. Eric’s final military deployment was to Afghanistan. On this deployment, Eric was wounded during combat operations when he stepped on an improvised explosive device (IED). This injury led to a new journey into triathlon racing.

Eric shared his story from the military to the finish line. Also, he presented the habits we can use to embrace life’s challenges. When not training and speaking, Eric can be found with his family in Pittsburgh, Pennsylvania.

What are the Challenges in Relocation?

Eric described many challenges he faced, including learning a new career and finding his inner strength to complete his first Iron Man Triathlon in 2013, held in Hawaii. His story was insightful, and he was given a standing ovation by the grateful attendees.

In relocation, the challenges may not be as daunting as learning a new career or competing in a triathlon. However, an experienced Relocation Management Company (RMC) will have the knowledge and expertise to help your company excel at overcoming challenges in your relocation program.

Overcoming Challenges to a Location

Your company may have several locations. What if one of the locations is in a remote or challenging area? Helpful information about the location will be key for new hires and transferees to make the decision to relocate. Our global relocation experts present five specific tips to help move employees to remote and challenging locations:

  1. Pre-Decision Services Including Candidate Assessment and Expectations
  2. Community Tour of the Location During Interview
  3. Include the Family
  4. Offer Spousal or Partner Assistance
  5. Destination and Video Spotlights for Challenging Locations

Using these five tips can help a company communicate the many benefits new hires and transferees can expect with their relocation.

Recruiting Top Talent in a Tight Job Market

Talent acquisition can be challenging for any organization. During a tight job market, competition for qualified candidates makes recruitment efforts even more difficult. Overcoming challenges in talent acquisition during a tight job market is key to an organization’s ability to grow and meet strategic corporate objectives. Several points in relocation can help companies recruit top talent:

  1. Leverage Social Media
  2. Pre-Decision Services to Identify Concerns and Issues Prior to Relocation
  3. Leverage Relocation Package in the Hiring Process
  4. Policy Exceptions for Relocation Packages
  5. Increase Compensation Where Necessary for Highly Skilled Talent

Beyond the challenges of a tight job market, industries facing a skills gap also benefit from these tactics. Global relocation to fill positions requiring a high level of skill has become a solution for several industries including healthcare and information technology services.

Overcoming Challenges in Retaining New Hires

As difficult as it is to acquire talent, companies must address retaining new hires and overcoming challenges that result in failed relocations. In our newly published Case Study on Educational Institution Relocation Programs, we note several reasons why our client, a university, was losing new hires.

The overarching challenges for our client located in a small city in the eastern part of the United States:

Spouses were feeling left out of the decision-making process. As a result, many dual career couples that moved to the campus had a difficult time adapting if there was no job for the spouse. Also, recruiters could not help the hiring manager determine how to budget for the relocation. The institution’s decentralized approach provided no insight as to the overall relocation spend across the university.

Our team identified seven specific points for our client’s relocation program:

  1. Act as the university’s knowledgeable partner
  2. Provide superior local area information to highlight desirable aspects of the area
  3. Engage with candidates during pre-decision
  4. Create full accounting and tracking systems
  5. Implement satisfaction surveys
  6. Measure time for acceptance rates before and after program
  7. Provide information on all aspects of the relocation including tax impacts

By creating a relocation program that covers all of these points, our client experienced a measurable increase in new hire retention and transferee satisfaction. They also experienced a reduction in overall relocation costs. Overcoming challenges in new hire retention helps organizations direct more resources toward their strategic objectives.

What Does This Mean?

Companies faced with overcoming challenges in their relocation programs should examine the areas that will improve their transferee’s experience. By enhancing their relocation programs, companies will be more successful in recruiting talent, retaining new hires, and moving employees and their families to challenging locations.

What Should Employers do When Overcoming Challenges?

Companies should work with an experienced and knowledgeable Relocation Management Company (RMC). RMCs provide a wealth of solutions for overcoming challenges in relocation programs. Companies should review their relocation programs. This will help ensure they have a competitive advantage. Also, it will ensure their program provides the highest level of relocation benefits and services for their employees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients in overcoming challenges with relocation. As a result, our team can help your company understand how to move transferees to challenging locations. We can also help your company recruit top talent in a tight job market and retain new hires.

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

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss overcoming challenges in your company’s relocation program, or give us a call at 800.617.1904 or 480.922.0700 today.

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Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Relocation Challenges Talent Mobility Visas and International Travel

Brexit Impacts Job Seekers from the European Union

European Union flag and map

The United Kingdom’s (UK) upcoming Brexit impacts the labor market in many ways. As a result, job seekers from the European Union (EU) may be responding to the uncertainty and the upcoming departure from the EU by reducing their search for positions in the UK. Net long-term migration to the UK from the EU fell in July of 2018 to its lowest level in over four years.

Brexit impacts other areas as well, and may be related to persistent weakness in the British pound relative to other European currencies since 2015. Consequently, a weaker UK currency reduces migrant’s purchasing power back in their home countries.

UK Net Migration Target

The UK government had set a target in 2010 to reduce net migration, however that target has never been met. Part of the failure was due to migration into the UK from countries located outside the EU, including (in alphabetical order):

  • Australia
  • Bangladesh
  • Canada
  • India
  • Jamaica
  • Kenya
  • Pakistan
  • South Africa
  • United States

How Brexit impacts job seekers may actually help the UK government reduce net migration into the country. The reduction, however, could have negative impacts in other areas.

Impact of Net Migration Reduction on Industry

The various ways that Brexit impacts job seekers may disproportionately affect certain industries in the UK. As a result, construction and health care are most at risk as job seekers reduce their willingness to migrate to the UK. These two industries rely heavily on migrants to fill open positions. The UK’s strong economy as well as its changing demographics had been driving up demand for workers in these two industries. Additionally, changing economic conditions in migrant’s home countries such as Romania, Poland, and Ireland may allow them greater opportunities to remain in their country of origin. These changing economies may allow them to find jobs that offer sufficient pay and benefits for their needs.

What Should Employers Expect?

Employers seeking to fill positions in the UK should expect that Brexit impacts job seekers from the EU. They should also expect that they may need to review their talent recruitment program to attract job seekers from other regions as the global economy dynamically changes where migrants seek new jobs.

What Should Employers do?

Employers in the UK finding difficulties in hiring and recruiting for positions in specific industries should consider highlighting their relocation program’s benefits in their recruiting materials. Talent shortages can be mitigated with global relocation. Helpful tips for employers facing talent shortages include:

  1. Provide an Exceptional Candidate Experience
  2. Use Data to Enhance Recruiting Efforts
  3. Recruit for Cultural Fit to Your Organization
  4. Create a Superior Employer Brand
  5. Speed the Process to Keep Candidates Engaged

Relocation Management Companies (RMCs) can provide expert assistance to employers in the UK looking to enhance their company’s global candidate recruitment and relocation.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their talent recruitment programs. As a result, we can help your company understand how Brexit impacts your company’s talent recruitment processes. We can also help your company leverage its relocation program to attract and retain highly skilled and talented job seekers.

Learn how your company can benefit from highlighting your relocation program to job seekers from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Buy a Home Global Relocation Global Relocation Challenges Home Purchase Relocation Challenges

Mortgage Loan for Foreign Nationals Relocating to the United States

Happy family is standing with keys from their new house in hand. Smiling and looking at camera.

Many of Global Mobility Solutions’ clients have transferees relocating to the United States from outside the country. Often, they will need a mortgage loan to buy a home. These transferees may not have established credit in the US. As a result, they will not have a credit profile that lenders can use to determine their creditworthiness.

GMS spoke with Michael Farner, an expert at Quicken Loans who agreed to share his advice and guidance on this topic.

How Can a Foreign National Obtain a Mortgage to Buy a Home in the US?

According to Michael Farner, if a foreign national has established credit in the US over a period of time long enough to have all three credit bureaus reporting, Quicken Loans would also be able to lend at that time.

Quicken Loans and other mortgage companies have a program to support foreign nationals who are relocating to the US and want to obtain a mortgage, but who have not established credit in the US. The program entails work on the part of Quicken Loans to create a credit profile for the foreign national.

Important Points to Note for Program Eligibility Include:

  1. There must be 0 credit established in the US to qualify for this program. In other words, the foreign national must not have obtained any other credit instrument. Examples may include a loan to buy a car or a credit card in the US.
  2. The foreign national must provide a social security number.

If the foreign national is eligible for the Quicken Loans program, the lender will then build a credit profile for the customer. To do this, the lender may examine the foreign national’s debt in their departure country. This examination will include:

  1. Information on payments for housing, including rent payments, showing 24 months of history for each credit reference.
  2. Information for three other “non-housing” debts that can establish payment histories. Examples may include insurance, utilities, or automobile loans. These debts must also show 24 months of history for each credit reference.

The foreign national may need to assist the lender in obtaining information. The lender may ask the foreign national to participate in a conference call with their departure country’s financial institution.

Once Quicken Loans gathers sufficient information, they will build a credit profile for the foreign national. The credit profile will determine how much they can borrow on a mortgage loan, and the terms of the mortgage.

What are the Features of a Mortgage for a Foreign National?

A mortgage for a transferee who will be relocating to the US is similar to a mortgage for any US-based customer who is seeking to buy a home.

For a foreign national, a mortgage will generally feature the following:

  1. Finances the purchase of an existing home.
  2. Length may be 15 or 30 years.
  3. Interest rate may be fixed or variable.
  4. Foreign national borrower makes principle and interest payments for the life of the mortgage.
  5. Mortgage is often sold to investors in the bond market.

Do Foreign National Transferees Need to Sell Their Current Home Before Applying for a New Mortgage?

Foreign national transferees who are relocating and who currently own a home in their departure country may want to keep their current home. Everyone’s situation is different, and what is possible depends on a number of factors:

  1. Is there a mortgage on the current home in the departure country?
  2. If yes, what is the amount of the current home mortgage?
  3. What are the amount and terms of the mortgage loan for the home in the US?
  4. Can the transferee obtain approval for the total debt load? This would include their current mortgage and the new mortgage loan in the US.

What does this mean?

Foreign national transferees who want to obtain a mortgage in the US to buy a home should review their current financial arrangements with a qualified lender. Transferees who have a mortgage on their current home in their departure country may be able to obtain mortgage for a home in the US. However, this depends on their financial circumstances. Importantly, transferees should understand that they must obtain approval for the total amount of current mortgage debt and the new mortgage loan in the US.

What should employers do?

Employers with foreign national transferees looking to buy a home in the US should direct them to speak with qualified lenders and financial advisors for guidance. Employers should also review their relocation policies to determine if enhancements can be made to allow for exceptions that may arise from foreign national transferees who want to obtain a mortgage in the US.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to communicate to foreign national transferees any issues related to obtaining mortgages to purchase a home in the US. Therefore, our team can help your company understand how best to proceed by providing guidance to foreign national transferees on obtaining information from qualified lenders and financial advisors.

Contact our experts online to discuss your company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is sharing public knowledge and can help companies more clearly understand mortgage loans for foreign national relocations. However, GMS is not a CPA firm or a lender, and is not giving financial advice. Everyone’s financial situation is different; individuals and employers should consult their lenders and financial advisors prior to making any decisions.

Request your complimentary relocation policy review

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Buy a Home Global Relocation Trends Relocation Challenges

Dublin Housing Market Remains Strong, Prices Begin to Stabilize

Walking through the beautiful streets of Dublin, Ireland

The Dublin housing market is beginning to stabilize after experiencing a period of rapidly rising prices. Residential property prices in Dublin rose in some places from 50% to 100% or more since the 2012 housing bust through 2015, but then moderated when changes were made to Central Bank rules. Over the past few years through 2018, Dublin housing market prices have been rising even higher. Through the second quarter of 2018, residential prices in Dublin rose year-on-year by 6.2%.

Overall, housing in Ireland continues to face strong demand and weak supply. New construction in Dublin generally focuses on new homes in the form of housing estates. Most demand is for apartments located in the city, indicating a mismatch between supply and demand. However, the new home construction in the Dublin housing market has helped prices stabilize.

According to Daft.ie’s Irish Price Report for Q3 2018:

Most Expensive Housing Markets in Ireland

  • South County Dublin
  • South Dublin City
  • North Dublin City
  • Wicklow (located south of Dublin on the east coast of Ireland)

Ireland’s Strong Economic Growth Drives Dublin Housing Market

As the Ireland economy continues expanding with growth forecasts in some cases doubled, the Dublin housing market will experience continually higher demand. New construction adding to the supply will help keep price increases from overheating too rapidly.

There are concerns that the Ireland economy is growing too fast. Growth estimates of over 9% in the first half of 2018 may be high due to multinational currency transfers. However, the underlying economic momentum appears to be two and a half times the European Union average.

What should employers expect?

Employers should expect that the Dublin housing market will continue to experience price increases. Both residential home prices and rents are expected to continue rising. Conversely, employers looking to relocate employees from the Dublin market may experience shorter timeframes for property sales.

What should employers do?

Employers should review their hiring plans and determine how to mitigate the impact of the Dublin housing market price increases. Employers should examine their relocation policies to determine if they would benefit from enhancements that assist transferees looking to relocate into Dublin.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their country-specific employment, visa, and residency requirements. We can help your company understand how to respond effectively to the Dublin housing market. Our experts can help your company understand the impact on transferees and their ability to accept relocations as housing prices continue to rise.

Learn how housing markets impact relocations from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Immigration Rules Relocation Challenges Visas and International Travel

USCIS Adjusting Premium Processing Fees to Improve Adjudications and Service Processes

USCIS Adjusting Premium Processing Fees to Improve Adjudications and Service Processes

The U.S. Citizenship and Immigration Service (USCIS) will increase premium processing fees for some forms starting on October 1, 2018. The fees will increase by 14.92%, reflecting the percentage increase in inflation since implementation of the last fee increase in 2010. The increase is being done in accordance with the Immigration and Nationality Act. The Act permits USCIS to raise such fees in order to provide services.

What is the issue?

Costs for staff, technology, and supplies have increased since 2010. Using the Consumer Price Index for all Urban Consumers as a benchmark, the increase on average is 14.92% over this time frame. At the same time, the demand for immigration services that USCIS provides has significantly increased. Without an increase in the premium processing fees, USCIS will be increasingly unable to continue providing services.

What are the forms subject to increases in premium processing fees?

Premium processing fees are additional fees that petitioners can pay for the option of requesting a 15-day processing time for specific requests. Petitioners must also pay the basic form filing fee as well as any other required fees.

Forms subject to increases in premium processing fees include:

Form I-129, Petition for a Nonimmigrant Worker – this form is for petitioners filing on behalf of a nonimmigrant worker to come to the United States temporarily to perform services or labor, or to receive training, as an H-1B, H-2A, H-2B, H-3, L-1, O-1, O-2, P-1, P-1S, P-2, P-2S, P-3, P-3S, Q-1 or R-1 nonimmigrant worker. Petitioners may also use this form to request an extension of stay in or change of status to E-1, E-2, E-3, H-1B1 or TN, or one of the above classifications for a foreign national.

Form I-140, Immigrant Petition for Alien Workers – this form is used to petition for an alien worker to become a permanent resident of the United States.

What does increasing premium processing fees mean for the USCIS?

USCIS will be able to hire additional staff, as well as make significant investments in technology. As a result, this will allow the agency to provide adjudications and premium processing services quickly and more efficiently than is currently possible.

What should employers expect?

Employers should expect that premium processing fees for Form I-129 and I-140 will increase by 14.92%. Currently, the fee is $1,225. Starting on October 1, the fee will increase to $1,410.

What should employers do?

Employers should review their hiring plans and determine any current budgetary impact related to increases in premium processing fees for Form I-129 and Form I-140. Employers should also review future budgets to ensure they reflect the increased fees.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their country-specific employment, visa, and residency requirements. We can help your company understand how to respond effectively to the USCIS’s increase in premium processing fees. Learn how your company can mitigate the impact of increases in premium processing fees from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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Domestic Relocation Tips Household Goods Relocation Best Practices Relocation Challenges

Household Goods Moves and Your Relocation Management Company

Household Goods Moves and Your Relocation Management Company

Transferees and new hires often require household goods moves from their current location to their new location. Usually this move must adhere to a specific time schedule. It is in the employer’s best interest to ensure that the transferee has a positive and successful relocation experience. A qualified Relocation Management Company (RMC) can ensure that household goods moves are conducted professionally within specific timeframes, and provide service guarantees.

What might transferees and new hires experience by arranging their own household goods moves?

Transferees and new hires that arrange their own household goods moves face several challenges. They may need to set aside a significant amount of time to research qualified transportation options. Once they complete this research, they must obtain estimates for their move. While the Federal Motor Carrier Safety Administration has a number of excellent resources, tips, and guidelines to help people as they look into household goods moves, many employees have little time to spare doing the requisite amount of work to choose a reputable moving company. Additionally, while helpful checklists are useful to understand the basic processes, it may be challenging for an employee to fully understand and be able to compare the information and responses they receive from several moving companies. In some cases, employees may be inadvertently exposed to less than professional services by disreputable moving companies.

How can your RMC help with household goods moves?

Employers should work with a qualified RMC that can provide guidance and assistance for household goods moves. Transferees and new hires should be able to focus on their new position. Also, they should take care of their family and professional responsibilities. A qualified RMC should obtain multiple bids for household goods moves, to ensure best pricing. Also, RMCs should have programs in place to ensure they meet service levels and suppliers meet specific performance criteria.

Global Mobility Solutions’ team of global relocation experts, in a major corporate initiative led by Ann Knapp, Director of Transportation Services, created Curbside Manner™, which is the standard of quality that all GMS Transportation Partners are measured against. Curbside Manner™ requires transportation partners to always treat each customer with the utmost fairness and respect throughout their relocation process. Also, every member of the transportation team must treat each move with the highest level of professionalism, decorum, and service.

What should employers do?

Employers should ensure that transferees and new hires have access to a qualified RMC. The RMC can obtain multiple transportation estimates and arrange household goods moves. They can ensure the highest level of professional courtesy and performance. The RMC will manage household goods moves, so the employee can focus on their new responsibilities.

Conclusion

Global Mobility Solutions’ team of global relocation experts helps thousands of our clients with household goods moves for transferees and new hires. As a result, we can help your company understand how to utilize the full range of Pre-Decision Services, including moving cost estimates, to help ensure successful relocations. 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 or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Global Relocation Tips Relocation Challenges Visas and International Travel

United States Internal Revenue Service Could Deny or Revoke Over 362,000 Passports

Blue United States of America Passport Isolated on a White Background.

The Fixing America’s Surface Transportation (FAST) Act signed by President Barack Obama on December 4, 2015, includes a provision regarding a United States Passport and delinquent tax debt. This provision requires the Internal Revenue Service (IRS) to collaborate with the State Department. As a result, the IRS may deny or revoke the passport of any US taxpayer with seriously delinquent tax debt.

What is the issue?

The IRS has issued Notice 2018-1 “Revocation, Limitation, or Denial of Passport in Case of Certain Tax Delinquencies” to provide clarification on the issue.

  1. Section 32101(a) of the FAST Act adds new Code Section 7345. This requires the Treasury Department to notify the State Department if a certification is made that an individual has a “seriously delinquent tax debt.”
  2. Code Section 7345(a) provides that if the Treasury Department receives certification by the IRS Commissioner that an individual has a seriously delinquent tax debt, they must send this certification to the State Department for action and may include denial, revocation, or limitation of the taxpayer’s passport.
  3. Under Code Section 7345(b)(1), a “seriously delinquent tax debt” is an unpaid, legally enforceable, and assessed federal tax liability of an individual. The amount must be greater than $50,000, and for which:
    • A notice of federal tax lien is on file under section 6323, and
    • The taxpayer’s right to a hearing under section 6320 exhausts or lapses; or
    • A levy issues under section 6331.

Additionally, Code Section 7345(f) requires the $50,000 amount to adjust for inflation each calendar year beginning after 2016.

What is the need for Code Section 7345?

The basic concept of Code Section 7345 is to increase revenues. Prior to Code Section 7345, a taxpayer who was seriously delinquent on their tax debts faced limited consequences. Often residing outside of the country, such taxpayers had little incentive to pay their tax obligations in a timely manner.

Who does Code Section 7345 affect?

Code Section 7345 affects taxpayers who have seriously delinquent tax debt with no arrangements to settle. An important point to note is that this tax debt does include penalties and interest. A somewhat manageable $20,000 tax debt can quickly grow to over $50,000 when the amount includes penalties and interest. This in turn will trigger the possible passport denial or revocation. As a result, approximately 362,000 Americans could be at risk of losing their passport. Importantly, taxpayers who are in bankruptcy, subject to tax-related identity theft, or are working with the IRS to create a payment plan will not face passport denials or revocations.

What should employers expect?

Employers should expect that their United States citizen employees on assignment outside of the United States either permanently or on temporary basis are subject to Code Section 7345’s requirements. Employees denied a passport renewal or who have their passport revoked will not be able to move between countries.

What should employers do?

Employers who have US citizen employees on permanent or temporary assignment outside of the country should communicate Code Section 7345’s requirements to these employees. The IRS has remedies in place for taxpayers with seriously delinquent debt to prevent the loss of a passport. However, those employees must take action or face the denial of a passport renewal, or revocation of their current passport.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their country-specific employment, visa, and residency requirements. As a result, we can help your company understand how to respond effectively to Code Section 7345’s requirements. Learn how to respond to IRS and State Department passport enforcement issues that may impact US citizen employees on permanent or temporary assignment. Global Mobility Solutions’ relocation industry and technology experts are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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Why Choose Traditional Temporary Housing?

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With all of the housing options available to you, why should you choose traditional temporary housing provided through a Relocation Management Company (RMC)? Newer providers like online “bnb” websites or rentals offered by owners seem to offer so much more flexibility to meet your travel needs. From studio apartments and lofts in artsy places, to luxurious vacation rentals, the supply of interesting and exotic abodes seems endless. Also, the draw of quick and easy rentals as well as anecdotal stories of great bargains make these places seem irresistible to savvy travelers and transferees alike. With so much to choose from, what could traditional temporary housing offer in comparison?

Before you book yourself and your family into a rental through online providers, look into these four specific areas to be sure the rental meets your full requirements:

1. Security Standards

Do you know if there is a security system at the location? Is the rental’s location in a safe and family-friendly neighborhood? What about the Wi-Fi System? Traditional temporary housing locations receive evaluations on several criteria. Employees must undergo background checks. Building security undergoes an assessment. Even if a rental location is advertised as having good security, or is claimed to be in a safe neighborhood, has this been verified? Do you know if the area changes character depending on the day or hour?

2. Cleanliness

Temporary housing must meet specific cleanliness and quality standards, and undergoes professional cleaning prior to rentals. Is this what you will find through an online rental provider? Travelers often see and remark on the differences in cleanliness standards among hotel chains. Do you know if there are any cleanliness standards at the online provider’s rental unit? Will you have to perform cleaning services yourself? How would you know if surfaces are clean and sanitary? Would you be able to determine if surfaces have simply been wiped down with a single cleaning rag throughout the entire rental unit?

3. Move-in Inspection

Traditional temporary housing provided by an RMC includes a full move-in inspection covering several points. This inspection is to ensure the renters can verify the state of the unit. They also have an opportunity to note any discrepancies within the rental paperwork before moving in to the unit. However, many online rental providers are not onsite to greet renters and may not offer a move-in inspection. As such, renters are often at risk if something is not in working order, missing, or broken, and they are unable to provide proof the item was in that condition prior to their moving in.

4. Maintenance and Emergencies

Traditional temporary housing provided by an RMC includes information and processes for renters to follow should any item require maintenance, or should an emergency arise. Major equipment receives maintenance and service on a regular schedule. However, online rental providers may not provide specific instructions and processes for maintenance. Also, they may not be in a position to assist the renters during emergencies. Major equipment may not be maintained by professionals on a regular basis. Also, there are usually no guarantees in place should the renter determine the unit no longer meets their needs even if major equipment does not work properly.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients find traditional temporary housing that fully meets transferring employees and their family member’s requirements for security, cleanliness, and move-in readiness. As a result, we can help your company find the best temporary housing options for your relocation program. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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Switzerland’s Federal Council Approves List of Occupation Types

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Global Mobility Solutions previously noted a new requirement of employers to communicate Switzerland job openings in specific occupation types with higher than average unemployment rates beginning July 2018, according to a December 8, 2017 Federal Council decision. The Federal Council’s requirement for mandatory registration will start July 1, 2018 for positions that have 8% or higher unemployment, and then increase on January 1, 2020 for positions that have 5% or higher unemployment.

What is the new requirement starting July 1?

Under the new requirement, employers must register their job openings with the local job center and then wait five business days before advertising these openings through other venues. The local job center must forward applications from local job seekers who meet the requirements of the job opening within three business days. Companies must invite local candidates that meet the requirements of the job opening to an interview. They must also report the job openings they are able to fill through this channel to the job center. The temporary withholding of job opening information helps job seekers who are registered with the local job center to get priority access to the job advertisements.

What are the occupation types affected by this new requirement?

Switzerland’s Federal Council has now approved the following list of occupation types that fall under the job registration requirements:

  • Agricultural assistants
  • Other professions in the watch industry
  • Warehousemen
  • Other professions
  • Concrete constructor, cementer (inside): Construction
  • Other professions of the construction industry
  • Plasterers, stucco workers
  • Insulators
  • Public Relations Professionals
  • Marketing Professionals
  • Runners and Couriers
  • Teleoperators/Operators and Telephone operators
  • Receptionists and Porters
  • Service staff
  • Floor, laundry and Economat staff
  • Kitchen staff
  • Domestic farm managers
  • Actors
  • Manpower with indeterminate manual employment

What should employers expect with this requirement?

Employers should expect to register their job openings with the local job center. They must follow the new requirement if the job is on the list of occupation types. They should also expect to keep records to ensure they can verify they are following all aspects of the requirement, and to report on the job openings they are able to fill through this process. Employers can use the Check Up Tool to verify if their job opening is on the list that requires registration.

What should employers do?

Global Mobility Solutions recommends that employers review their hiring plans in Switzerland to determine the impact of the new requirement on their employment and job advertising processes. Employers should also examine their record-keeping processes to ensure they can accurately record and report on their activities related to fulfilling the new requirements.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with country-specific employment and job requirements. We can help your company understand how to comply with the job registration requirements in Switzerland, as well as review record-keeping processes to ensure reporting capabilities are sufficient. Learn best practices from Global Mobility Solutions, the relocation industry and technology experts. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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