Category: Relocation Challenges

Top Things to Consider to Ensure a Smooth Group Move

Post author By Nancy Kritzer | CRP
Post date September 13, 2016

Singapore business district skyline panorama over Marina Bay

Smooth Group Move – Dwight D. Eisenhower once said that “Planning is everything.” The initial blueprints for the 1944 invasion of Normandy, in which the general moved over 132,000 ground troops across the English Channel, were first presented in July of 1943. Even though your group move will not be of D-Day proportions, it will still require advanced planning and ongoing support to accomplish your mission.

Group move success is not just measured in how many people you move from point A to point B. You need to ensure that your business goals are met. These may include the retention of talent, meeting budget guidelines, minimizing disruptions, and guaranteeing the happiness of the transferees and their families.

Key considerations for a smooth group move should include and are not limited to:

A proven methodology and customized solutions
Risk avoidance and compliance
Decision-making support to maximize acceptances
Robust tools and resources that ensure efficient communication
Total management of the relocation process

Although there are specific steps that can be taken in each unique phase of an employee relocation, there is some overall planning that must be considered to ensure a successful group move.

Inclusion and Alignment

It is important to start with developing customized resources for you and your employee population considering the move. This approach allows for stakeholders to fully understand the relocation programs available, the process and host location insights for decision making.

Your RMC needs to work with you to create and implement a strategy and project plan tailored to your business needs, organizational culture and employee demographics. Service options should include:

Employee surveys to assess the needs of your transferees prior to program development.
The design, development, and implementation of corporate relocation policies that focus on competitiveness, cost efficiencies and alignment with goals and objectives.
Budget development and oversight that identify and quantify mobility cost with other best practice group move programs, as well as provide savings and containment recommendations.
Site surveys of the new location with special attention to schools, housing, cost of living, etc.
Announcements and communications templates to ensure that transferees are properly informed every step of the move.

Pre-Decision

You want to make sure that you move the right talent to the right place at the right price. It can save a lot of time, money and heartache to ensure that this happens before you actually relocate an employee. Your RMC should support your pre-decision efforts by providing:

In-person, group policy overview and briefings
Customized web-based resources specific to the destination location
Live resource centers at both the origin and destination locations
Group area orientations that include housing tours, school visits, etc.
Assignment/relocation offer letter coordination
A summary and debrief of all pre-decision activity, findings, and recommendations

Pre-Move Planning

Once you determine which employees are participating in the group move, your Relocation Management Company (RMC) should help you and your transferees understand what is involved with the process of getting to the destination location. Services should include:

Household goods shipment surveys to take into account all of a transferee’s personal belongs to be shipped and deliver an inspection-based cost summary to be used for budgeting, accruals, and cost impact analysis.
Global relocation analysis reports include a comparable analysis of consumables, transportation, goods and services, housing costs, etc. in order to provide realistic expectations of the cost of living in the destination location versus the origin location.
Educational assessments offer comprehensive consultations with the relocating families and follow-up discussions about schools and education concerns the families may have.

Putting the Planning into Action

Policy counseling and needs analysis is conducted with every smooth group move. During this initial conversation, your RMC should conduct a comprehensive needs assessment and provide a detailed review benefits and procedures, as well as identify any special needs that will need to be addressed. They should also discuss any concerns that the employee may have about relocating so that the RMC is best prepared to help along the way.
Global Expense Management to manage and track your relocating workforce. By managing the expense submission and payment process, you should be able to track and report on 100% of mobility expenses for your company, including payment to vendors and local agencies.Key Benefits:
– Easy to use platform for client and employee
– Online submission of relocation expense reports
– Expenses audit to policy and/or assignment letter
– Auditing and payment of all vendor invoices
– Timely (within 2-3 business days) payments
– Single payment source, eliminates your administrative burdens

Home Disposition can provide your employees with global home sale and property management assistance services.
Destination Services ease transition to countries worldwide, freeing up the employee to concentrate on the business mission. Your RMC should deliver a comprehensive and worldwide array of global relocation services including area tour/orientation, home finding, school search and settling in.
Global Travel Services allow your RMC to coordinate global travel services with client or network partners, including: airport transportation, rental car, airline travel and hotel.
Meet and Greets arranged at the destination airport provide pick-up and accompanied transfer to the residence. Includes: Ground transportation for relocating employee and/or family to a hotel, temporary housing, permanent residence or other destination per instructions. This service can be provided as part of a bundled area tours, home-finding or settling-in program, or provided à la carte.
Area tours and orientations provide an overview of the new community and local amenities to assist in deciding about the assignment. This could include any of the following: Welcome packet and information on assignment location, tours of neighborhoods and typical housing, school tours and information (if applicable), locating grocery stores, medical facilities, places of worship, etc., security briefing.

Home finding assistance with finding suitable housing in accordance with personal preference and policy, facilitate the preparation and signature of an appropriate lease and manage all move-in formalities. This could include any of the following: Needs analysis, pre-screening properties (within budget), accompanied property viewings, lease negotiations, utility connections, walk-through support, and furniture rental assistance (if needed).
Auto leasing/purchasing service programs and long term rental solutions provide assignees with car leasing/purchasing of new/used vehicles, any make or model. In many cases, local credit scores, or even driver’s licenses, are not required.
Schooling searches will help assess the suitability and availability of local area public or private schooling and to assist with registration and entry requirements. This could include a briefing on different school systems, organizing appointments with administrators, assisting with enrollment, etc.
Global transportation services provide multiple estimates to drive competiveness without compromising quality.
Global temporary housing coordination assists the relocating employee in selecting and securing temporary accommodations within policy. Based on your relocation policy, accommodations may include hotel, extended stay and corporate housing at different facilities around the world.

Continued Support Once Your Transferees Reach the Beach

After the transferees involved with your smooth group move reach their destination, your RMC should continue providing value-added programs to ensure that they and their families thrive in their new location.

Settling-in assistance can provide an orientation to the new community, local amenities, utilities and government registrations. This could include bank account set up, driver’s license and vehicle registration, public transportation assistance, smart phone transfers, telephone and utility setups, registration of public utilities, assistance with sourcing local services, expatriate networking association assistance, and more.
Trailing spouse/partner family assistance addresses concerns about the job market for the accompanying partner, finances, children’s education, family healthcare, eldercare, and much more. At the same time, your company needs the right talent to fill critical positions and achieve business objectives. Understanding your employee’s concerns can help them make the right mobility decision. The right decision means better return on investment for your organization’s mobility program and a smoother transition for the employee and family.Programs include, but are not limited to, the following:
– Spousal/Partner Career Assistance
– Career Continuation Assistance
– Job Search Strategy
– Career Continuation Assistance
– Entrepreneur Support
– Locating Community Networks, Services, and Activities

Cultural and language training can be offered through instructor-led sessions or self-paced, web-based learning. This allows transferees and their families to understand the cultural nuances of the destination location and effectively communicate with the people there.

Planning is the Key to Victory

You might think that this looks like a lot of planning to pull off a successful and smooth group move. You’re right. However, a world-class RMC with award-winning breadth of programs and customer service can easily guide you through every step of your move – whether relocating one employee across state lines or moving a small army of talent across the English Channel, to ensure a smooth group move.

For information about how Global Mobility Solutions can make your smooth group move easy and stress-free for you and your employees, please contact us today.

Tags corporate relocation, Domestic Relocation, employee relocation, global relocation, Group Moves, Pre-decision, Workforce Mobility

Corporate Relocation Corporate relocation tips Domestic Relocation Global Relocation Relocation Challenges

5 Reasons to Outsource Global Mobility Management

Post author By Sam Hoey | CRP, GMS
Post date April 30, 2016

Business meeting at table — Group of young modern people in smart casual wear discussing business while working in the creative office

Outsource global mobility management – As companies continue to focus on ways to reduce assignment costs, examining operational effectiveness for improved quality and costs savings has become more relevant, particularly with programs managed in-house and/or partially outsourced.

Cost Management: often times, in house programs do not consider or do not have the processes for tracking and reporting mobility costs, which often results in misrepresentation of mobility costs and government fines.
Cost Savings: Outsourcing mobility will generate cost savings from a variety of sources, including policy recommendations, fees vs. in-house operational costs and direct costs e.g. home sale, shipments, etc.
Courtesy Enhancements: In-house programs typically do not offer “no costs” solutions such as pre-decision, expatriate auto lease programs, expatriate home purchase programs and other value add services companies gain from fully outsourcing.
Core Responsibilities: Outsourcing non-core competencies, allows human resources, compensation and benefits and/or recruiting professionals to focus on their core business duties by eliminating the administrative burden of managing the relocation process.
Compliance: Mobility programs offer significant tax and compliance advantages.

These are the top 5 reasons to outsource global mobility management.

Corporate Relocation Domestic Relocation Global Relocation Relocation Challenges

Relocation Myths!

Post author By Nancy Kritzer | CRP
Post date February 5, 2016

Sam Hoey
Relocation Policy Consultant
at GMS for over 20 years

The Emmy nominated series MythBusters aims to uncover the truth behind popular myths and legends by mixing science, curiosity and ingenuity to create an experiment. As much as I would love to do an experiment to find out if Diet Coke and Mentos will make your stomach explode or if it is possible to beat a lie detector test, I am actually going to bust some common relocation myths heard in the relocation industry. As a professional relocation policy consultant, I have witnessed how some myths encourage mistakes when creating corporate relocation policies. These myths sometimes negatively impact a host of policy elements, including household goods move, transferee support services, language training limits, and even reimbursement considerations, which commonly stem from generalizations. Let’s uncover the truth behind some of these commonly held generalizations.

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Myth 1: Every company needs a relocation policy.

If you infrequently transfer employees and your transfers are mainly US Domestic an “offer letter” is as effective as a standard policy. When writing the “offer letter”, it’s important to clearly define the benefits offered. However, if you transfer more than a handful of employees annually then a well defined tiered relocation policy is recommended.[divider line_type=”No Line” custom_height=”1″]

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Myth 2: Lump sum programs save the company money.

[clickToTweet tweet=”When given a lump sum employees often cut corners with their relocation and pocket additional funds” quote=”When given a lump sum employees often cut corners with their relocation, pocketing additional funds” theme=”style3″]
Although a lump sum is a perfect solution for the college graduate new hire, it is rarely recommended for a more professional level of employee. The fact is, by cutting a lump sum check the employee often cuts corners with their relocation and then pockets the additional money. There are also tax disadvantages with the lump sum. If the company is not grossing up the lump sum, there are FICA taxes required to be paid by the company. If the company is not offering tax assistance, the amount of taxes that are withheld are significant and the employee is then paying tax on a benefit that is non taxable if the funds are used for the household goods move. There are also liability concerns with the employee choosing to rent a UHAUL and moving themselves. Bottom line is that the employee ends up being more stressed and unable to focus on the job since they are coordinating all aspects of their move.

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Myth 3: Unpacking is a dream come true.

Reality is, unpacking can be a nightmare. Unpacking in the moving industry consists of the crew removing everything out of the boxes and placing it on the closest flat surface. It will be placed in the correct room, but will not be put away in cabinets or closets. Many people prefer to unpack at their leisure, prioritizing the most critical items first, and have it out of sight until they have time to get to it.

A recommended solution is to replace unpacking with debris pick-up which involves having the mover come pick up the boxes and materials when the unpacking is complete. An additional advantage is that it saves the company between $300 and $1,000 per move.
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Myth 4: Millennials only want self service options.

[clickToTweet tweet=”While millennials love online resources, we find they lean heavily on relocation coaches.” quote=”While millennials love their online resources, we find they lean heavily on relocation coaches.” theme=”style3″]

I’ve heard time and again that millennials are all about self service, and would rather manage their own relocation via digital resources rather than speaking with a live relocation consultant. While millennials do tend to use more online resources than previous generations, we find this statement to be extremely false. In fact, most Millennials often need even more hand holding than the standard executive transferee since it may be their first time moving, first time buying or selling a home and may be inexperienced with relocation in general. Due to the newness of it all, they may have personal questions about how to navigate through breaking a lease or what neighborhood would best suit their lifestyle, etc.

Millennials will still rely on social networking websites like Facebook and LinkedIn to make virtual friends or connections at their new location even prior to moving there.[divider line_type=”No Line” custom_height=”20″]

Myths 5-12:

We put the industry’s most common assumptions to the test in our latest white paper for 2016.

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Family Matters and Career Support for the Trailing Spouse

Post author By Sam Hoey | CRP, GMS
Post date November 19, 2015

family in living room looking at laptop — Three young Indian businesspeople working together and having fun while doing it.

Relocating employees often face serious concerns regarding their children’s education, family healthcare, eldercare, and the job market for their accompanying partner or fiancé. Understanding your employee’s needs and concerns can help them make the right decision with regard to relocating. While some candidates may appear perfect for a job opportunity on paper there may be a plethora of unseen obstacles that could result in a candidate declining an assignment, or worse, failing to relocate midway through their move.

Impact Stats:

In Worldwide ERC’s latest 2015 U.S. Transfer Volume and Cost Survey there are 3 statistics that will likely cause considerable stress to any human resources professional:

The number 1 reason for an employee’s reluctance to relocate is family resistance to the move. (60% of all relocating employees!)
The average cost to relocate a home owning employee comes in at around $72,000.
Career concerns for the trailing spouse is a top 10 issue in addition to family resistance to the move.

That’s a lot of risk, and highlights the absolute necessity for comprehensive pre-decision planning and quality family support solutions. Understanding your employee’s concerns can help them make the right mobility decision. The right decision means better return on investment for your organization’s mobility program and a smoother transition for the employee and their family.[divider line_type=”No Line” custom_height=”20″]

Put a plan into place:

Organizational planning before the move is crucial to your program’s success. If you can’t remember the last time your organization revisited your relocation policy and process, it may be time for a quick dust off. Start with the family support essentials:

Look into your career and family assistance offerings. Every organization and industry has its own idiosyncrasies. How do you determine how much assistance an employee needs? What level of support is too little? How much is too much? There are a lot of moving parts and given the amount of risk involved, reaching out to relocation management experts should be a part of any comprehensive plan.
Provide a single point of contact. According to HRO Today’s 2015 provider report, a single point of contact is a hallmark of quality service at relocation management companies. A relocation manager or “coach” is the employee’s confidant and adviser if concerns arise before or during their relocation. Depending on the organization, policies can be complex and difficult for an employee to navigate. A relocation manager can help explain and coordinate career and family assistance benefits for the employee and their family. Without a single point of contact that understands the big picture some needs may inevitably fall through the cracks.
Ensure your organization offers core services. Every relocation program should include a family pre-decision evaluation, career assistance, lifestyle and family support programs. Do your employees fully understand the impact the move will have on their partner’s career or their family’s lifestyle? Is a suburban family moving to a big city? What does the job market at destination look like for the employee’s spouse? Quality pre-decision screening and family support benefits help uncover underlying issues, and address them before they become problematic.
Pre-decision screening should be proactive. The core elements of any pre-decision program includes: needs assessments to identify top concerns and potential red flags, general overview of the local job market and community, general information about companies that may fit the partner’s career goals, cost of living assessment and general salary information, and an in depth career assessment such as the Hiring Edge DISC.
Be Better Than A Google Search. Some programs have website portals that simply list online resources for job searches. While sending an employee’s spouse to job boards like Career Builder or Jobing is a good start, but such services hardly offer anything more than a simple Google Search would. Comprehensive career assistance should review a candidate’s experience, identify personality type, discuss the importance of corporate culture, develop an application schedule and goals, offer resumé critique, provide networking and interview preparation and assist candidates in navigating the sea of job listings and online resources available today.
Leverage your recruiting network. Possibly one of the best resources a company can offer up is their network of recruiters. Most organizations employ 3rd party recruiting companies to meet the demands of their own staffing needs. Providing a warm hand-off to these networks can make a world of difference. This is where some relocation management companies have an edge over in house relocation programs, as well as a key differentiator when comparing RMC’s.
Support for the entrepreneur. Some spouses may have a small business and will have unique needs and guidance when relocating their business. Guidance and resources for spouses looking to start a new business or relocating an existing business may include market analysis, networking assistance, and introductions to the startup community in the new area.
Understand the stressors of the relocating family. When employees and families relocate they undergo a massive amount of change. The biggest tasks such as finding living accommodations or working with moving companies, require a great deal of attention and leave little time to deal with other needs. This time crunch plus the stress that accompanies relocation can make it difficult for the employee and the family to adjust to the new location, emotionally and physically.
Culture shock can happen anywhere. While traditionally thought of as an issue exclusively impacting employee on global assignment, domestic culture shock is a common occurrence. Any drastic change in lifestyle can have an unnerving effect such as: suburban life vs. inner city bustle, west coast laissez-faire style work environments vs. hard nosed New York hustle, even climate and geography play a significant role in a families ability to settle into a new location. Due to these factors, benefit packages should include services that assist the family after the move is completed. (These are sometimes called settling-in or acclimation services.)
Get connected to the community. Moving to a new location often means employees and families must recreate their lifestyle without the help of the support network they traditionally relied on. An organization’s relocation program should fill in the gaps of a families support network during the transition with services that identify relevant community networks, activities, medical specialists, secondary and higher educational resources as well as licensed preschools and/or day cares.

While there are a lot of moving parts and face value costs to providing a comprehensive family support plan, the benefits pay dividends. With over 60% of employees confirming that family issues presented major challenges to their relocation, family support services deserve healthy attention. Given a price tag of 72,000 per relocation, organizations can’t likely afford policy missteps. While this article provides a quality overview of the topic, organizational needs are unique and may depend on program type, industry, company size, and geographic location. If you have questions on how your program’s family support benefits measure up, reach out to a family support consultant at Global Mobility Solutions today for a free comprehensive program review.

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Navigating Silicon Valley’s Housing Market

Post author By Sam Hoey | CRP, GMS
Post date October 16, 2015

Typical Australian suburb from above in autumn

Imagine having to relocate to the most expensive metropolitan area in America. An area that stretches from the southern banks of San Francisco to San Jose County, better known as Silicon Valley. A place where “only 44 percent of Santa Clara County households could afford to purchase an entry-level home — defined as costing $833,850, or 85 percent of the county’s median sale price.” The housing sector has seen an explosion in population “reaching three million people just last quarter at a rate of one person for every sixteen seconds”. As the world’s leader for thousands of startup companies and high tech corporations, it has hit an all-time high in housing cost; forcing workers farther away from their place of employment and schools.

The combination of high-income industry leaders, a rising population and shortage of land is the perfect storm for the future rising cost in real estate. It is important to note that sales data mentioned is not adjusted and accounted for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home, but rather by the price per square foot. Which is determined by how much space a buyer is willing to pay for the property. So when shopping for a home, by focusing on off-peak seasons, i.e., November through February, will help save time and money.

“Click Map to Navigate Housing Market in Silicon Valley.” – Powered by Google Maps

Prior to looking for a home without sacrificing your other needs, you may have to consider driving a few extra hours to save money. According to the Silicon Valley Leadership Group and the Silicon Valley Community Foundation in 2015, the average commute time of workers rose by 8 percent in which 1 in 6 commuters travel two or more hours each day to work and growing. It could be difficult to make price comparisons, regarding commute times by having too many locations. So it’s best to limit yourself to two or three locations. By choosing the right real estate agent, they will be able to determine a cost comparison on price per square foot. As well as discovering several resources in the different areas by saving precious contract time and money in the end. Without these vital factors this will cost the winning the offer on the home. If the buyer is not ready to buy they should wait. Only if one has a strong stomach, nerves and able to take strong suggestions from their Realtor.

Currently, housing is being underpriced in hopes of getting an overbid. The strategy works bringing in offers over a $1000/square foot. Looking for the needle in a haystack can be time-consuming, but possible. If there is no time to wait and have a weak stomach, then cash is your quickest answer. While choosing to rent, remember it is always more expensive in the long run. Plan carefully. Renters are being priced out of the areas as prices are increasing, less than 25 percent of workers and just 40 percent of households in metro San Jose can rent or buy average-priced housing.” While Justin Fichelson, stated that “We’re slowing down. Instead of seeing 30 percent appreciation, homeowners may see 10 to 15 percent appreciation, echoing Zillow’s assessment last week that the pace of appreciation is slowing. Redfin had a different take on the strength of the Bay Area housing market. Such debates are common as some perceive shifts in the housing market.” However, housing markets fluctuate during seasons, and while going into the holiday season, we are going to see a slight change in the market.

Ever since Zuckerberg, founder of Facebook, moved to Palo Alto – prices have increased dramatically. Along with the idea of buying multiple lots and rebuilding, brokers are calling Silicon Valley a tear-down market. Anything in the $4 million and below range will likely be demolished, or they will need to rent and place their money in another investment. However on the other side of the spectrum, lower to middle-income housing plans are being implemented by city, state and federal officials. San Jose affordable housing law was upheld earlier this year by state Supreme Court. The California Building Industry Association and the Pacific Legal Foundation announced on Tuesday, and they have asked the U.S. Supreme Court to review a June decision by California’s highest court. Clearing the way for San Jose to implement a long-planned “inclusionary” housing ordinance. Lawyers for the industry argue that San Jose’s law and others like it across California violate federal constitutional protections against the “taking” of private property. Requiring developers of new, for-sale homes to set aside 15 percent of units as affordable housing, or pay a fee.

Instead of using the term “housing bubble”, which is widely used and less understood, a correction in the housing price index will continue into 2016. While San Jose and San Francisco “are projected to have yearly growth rates of around 3%, entering winter 2015-2016 on the downside is of great concern. What started as ‘red hot’ at the start of 2014 may end as ‘in the red’ come 2016,” stated by Alex Villacorta from Clear Capital. As 2015 begins, eight years after the peak and six years after the crash, real estate markets across the country are transitioning from the recovery phase to the expansion phase. For many areas, like Silicon Valley, the expansion phase is well under way. According to Glen Mueller (Full report Author of The Cycle Monitor) Boston, New York, Denver, and San Francisco, are already experiencing incredibly tight rental markets and robust new construction in apartments. Between now and then, aside from the occasional slowdown, the real estate industry is likely to enjoy a long period of expansion.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

Tags Domestic Real Estate

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The Yuan Effect on Global Real Estate

Post author By Tamara Molino | CRP, GMS
Post date September 15, 2015

Beautiful young couple is holding moving cardboard boxes, looking at camera and smiling

The recent devaluation of Chinese yuan could prompt China’s real estate investors to look towards the global real estate market to protect their investments. Capital is expected to move far from developing markets to be safe from increasing currency risks. There are expectations however that extreme wealthy Chinese real estate investors and developers will invest heavily in an established economy like the US before further yuan devaluation. Thomas Lam, a Senior Director and Head of Valuation & Consultancy with Knight Frank states, “mainlanders mostly buy overseas homes for immigration, for their children who are studying abroad or as holiday homes. They will be unlikely to sell in haste unless significant problems arise with that country’s property market such as political unrest.” Decisions to invest in the United States housing market will rest on how the Xi markets hedge the Renminbi against their currency or the industrial sector.

Although the yuan is projected to slip further, wealthy Chinese investors and developers will likely convert their money into other currencies or purchase properties in different countries with higher yields as an approach to fence hazard. David Crowe, NAHB Chief Economist, assures our economy to be healthy, “since the affordability had edged slightly lower in the second quarter. The Housing Opportunity Index (HOI) will remain well above 50. And where half the households can afford half the homes sold, low mortgage rates, pent-up demand and continued job growth should contribute to a gradual, steady rise in housing throughout the year.”

Countries such as Korea, Russia, Portugal and as of late New Zealand will continue to witness investment influx from mid-level Chinese investors as properties in developed economy like the United States may prove to be a greater expense. Some market experts say, more Chinese investors will invest in other countries as they seek diversification. It’s likely to witness a slight drop in the reported investment flow from China when reported in US dollars; one of the effects of yuan devaluation.

Records also show that “China is the largest investor in the American real estate sector over the last year”. According to Michael Cole, an editor with Mingtiandi, “Chinese investors have already put $13.4 billion into overseas real estate this year, with over $3 billion heading to the US.” This confirms Chinese real estate developers today are experienced when it comes to foreign investment and their decision to invest in any country. However, the level of investiture will depend chiefly on the availability of properties and good exchange rates.

Tags Domestic Real Estate, Global Real Estate, Real Estate

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CFPB rule changes may affect relocating employees

Post author By Global Mobility Solutions
Post date October 15, 2014

Pensive businessman signs a document at the office

CFPB Rule Changes – New regulations set forth by the Consumer Finance Protection Bureau are scheduled to take effect next year, which will likely impact the corporate relocation process going forward. The financial information that relocating employees have to provide to lenders is changing.

Employee relocation is a complex process, which is why an expert relocation management company proves to be beneficial in moving talent. A major aspect of an employee relocation is the sale or purchase of a home, and up until this point, the real estate aspect of a relocation has been relatively static.

The Real Estate Settlement Procedures Act of 1974 and the Truth in Lending Act of 1968 laid the groundwork for buying and selling residential real estate in that both pieces of legislation required substantial financial information from the buyer. This included a detailed advanced disclosure of estimated and actual mortgage lender, title and other settlement costs to borrowers, according to the U.S. Department of Housing and Urban Development’s website. In essence, the legislation made it easier to obtain mortgage financing.

Changes are wide-sweeping

Employee relocation services may be impacted by the new CFPB regulations.

In the past, a number of different parties all worked together to provide a seamless and comfortable moving experience for the moving employee. More specifically, the third-party relocation service, the employee’s company, insurance underwriters, attorneys and real estate agents all pitched in to create a comfortable moving experience for relocating employees. While it may seem unrelated that the CFPB – an agency that was created to help prevent another financial meltdown in 2010 after the economic recession was in full swing – has laid out new regulations set to take place in April 2015, corporate relocation will be impacted nonetheless. Since so many parties are involved in making the employee transition smooth, almost everyone is affected in some way.

In April 2012, the CFB Bulletin 2012-03 established new regulations that placed responsibility on the lender to protect consumers who obtained loans to purchase real estate property. The rules were put in place to protect the consumer. Yet, even though banks and lenders are now responsible for financial oversight and protection, the trickle-down affect corporate relocation efforts as well. Although most relocation companies interact with relocated employees prior to the purchase of a property, transferees may likely use a portion of an allocated allowance to apply for a mortgage, which is where the reach of the CFPB comes into play.

Relocation services impacted
More recently, the CFPB announced a rule that eliminated the good faith estimate, the HUD-1, or the former settlement sheet where all seller and buyer costs and proceeds are calculated and shown. The new closing disclosure form must be provided to the buyer three days before closing, or consummation, as the CFPB now calls it. After this window, only limited items can change, according to relocation services industry trade group Worldwide ERC.

Worldwide ERC pointed out that since most relocation service providers now require a HUD-1 at least two days before closing to obtain client approval, the process may be backed up to five days once the new regulations take effect. These added regulations point to the increased complexities surrounding employee relocation, and highlight the need for partnering with an expert in global talent management.

Brought to you by Global Mobility Solutions, a trusted partner in global talent management.

Tags Real Estate

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Top 5 emerging international markets

Post author By Tamara Molino | CRP, GMS
Post date October 14, 2014

Walking through the beautiful streets of Dublin, Ireland

When it comes to the corporate relocation process, finding the right fit for employee mobility can be difficult. Different areas of the world are better positioned for personal and professional growth depending on the vertical, but developing in an emerging market is much easier said than done. A multilayer economic hotspot may be the ideal location to relocate talent for new or existing business ventures, but it takes time and a depth of knowledge to successfully adapt and find personal success in a new market.

A recent Forbes analysis of international GDPs found 70 percent of world growth in the next several years will come from emerging markets. Although China and India comprise about 40 percent of that maturation, there are still other viable options for businesses aiming to relocate talent. Keeping that in mind, here are five emerging markets to keep tabs on for a potential international relocation and reasons to further invest in talent relocations in these geographical areas:

Emerging markets offer unique opportunities for expatriates.

Central America: Although this encompasses several different countries, the region is small enough where businesses could individually identify local economies and choose which one best aligns with their business needs. CBS News recently came out with a list of the ten best places to invest in real estate, and half of the locations were located in Central America. The low cost of living and typically warm climate make for happy employees, which is a primary objective of global relocation. In terms of real estate investment, finding a return in this region of the world won’t be as difficult, either. CBS specifically cited Mexico, two cities in Belize, Nicaragua and Panama as possible real estate investment gold mines. Businesses and their employees can consult relocation services on the best areas to buy or lease property once a move location is decided.
Colombia: The South American nation isn’t exactly well-known on the international stage as a manufacturing haven, but it’s proximity to the coastline, strong economic growth and cost of doing business make it a viable possibility to relocate talent. Bloomberg predicts GDP growth between 2013 and 2017 will occur at a rate of nearly 22 percent with just a 3 percent inflation rate. A separate Reuters report noted Columbia’s economic growth was as high as 6.5 percent in the first quarter of 2014, although that figure dipped to 4.3 percent in the second quarter. A strong economic backbone and low projected inflation present an opportunity for relocated talent to find personal and professional success.
Indonesia and Malaysia: While China, India and Korea dominate the economic growth talks, smaller nations such as Malaysia and Indonesia are gaining a considerable amount of attention with regard to commercial prosperity. The two nations are separately governed bodies, but the bordering nations’ economies will likely continue to grow in the next few years. Indonesia’s GDP is projected to grow more than 30 percent between 2013 and 2017, while Malaysia is expected to mature 22 percent in the same time period. The latter nation’s inflation rate is as low as 2.5 percent and has a considerably low ease of doing business rank, according to Bloomberg. While vast cultural changes may prove to be a challenge for newly moved employees, global relocation firms can provide talent with services to help the settling-in process, whether it’s through offering van line services, tax preparation or providing ongoing counseling and support after the move.
Turkey: Bloomberg also ranked Turkey in its top-20 emerging markets, calling the nation the seventh-most viable nation for economic growth. Its GDP is forecast to grow more than 21 percent between 2013 and 2017, but its inflation rate is 5.4 percent, which has pundits jumping off the Turkish bandwagon. However, Turkey is a highly opportunistic market not only because of the current local real estate boom, but also because its workforce is packed with young and emerging talent. CBS News reported that half of residents in Istanbul, the nation’s capital and largest economic market, are aged 30 and younger, meaning buying power in Turkey is likely to increase as the rest of the population ages. Young talent may enjoy moving to this Western European and Southeast Asian nation not only because of its projected GDP growth, but also because of the young and emerging talent surrounding them. A youthful workforce in the nation’s capital specifically may help newly moved talent find individuals who have similar interests and desires, thus making the relocation process easier.

Emerging markets provide a strong opportunity to relocate top talent. Businesses can benefit from sending employees to other countries to help further develop company production and create new business resources. Recent Ernst & Young forecasts show investors are already exploring emerging markets as developing countries are attracting half of foreign direct investment. Companies focused on employee mobility are moving toward emerging markets, and a business that relocates its top talent to these locations could directly benefit from regional economic growth.

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