Category: Relocation Management

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Providing Language Training Is Key for International Relocation

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Three young Indian businesspeople working together and having fun while doing it.

Companies with international relocation programs should include language training

When companies can interview and ultimately hire candidates from all over, it helps open up the talent pool. As a result, they have more options and a better chance of getting the right person in the right seat to get the job done. In addition, organizations that hire globally with regularity already know the importance of providing new hires with international relocation services. 

In most cases, companies will work with a relocation management company (RMC) to handle the creation and updates of these global mobility programs to assure that they can offer newly hired and promoted employees the best moving experience possible. Companies and relocating employees trust RMCs to handle everything from the pre-decision stages of the offer to the physical move to the new destination. 

But one international relocation service that constantly gets overlooked is language training for the employee and their family. On top of that, very few RMCs have the resources and connections to include culture training. 

Language training does not always include relocation packages because it is often overlooked by both the relocating employee and the company making the offer. The employee has a lot to worry about on their end during the negotiations from immigration needs, compensation, home buying and selling assistance, and the shipping of household goods. On the other hand, the company usually focuses more on the move’s timeline because they are anxious to get their new employee started on their job in an adequate time frame. 

The Role of Language Training During Relocation

Sometimes, international relocation service providers will offer e-learning sessions when it comes to language training. For relocating employees and their families to adapt to their new destination, they need in-depth language learning opportunities. If the employee struggles to communicate with coworkers, it can be challenging to do their job. On the other hand, if employees have proper classes and resources for learning the new language, they are more likely to thrive in their new position. 

Language training can also help out with the employee’s personal life. There’s no doubt that home life can negatively affect work life. If an employee is stressed or sad, it can hurt their work performance. And let’s not kid ourselves; the international relocation process can be tough on a family—another reason why language training should be included in their relocation package. 

If the relocating children can communicate, they are more likely to thrive in school and make friends quicker. The spouse or partner of the transferee also has a better opportunity to find a job. All of this assists the relocating employee while trying to help their family adapt to the new country. 

GMS Offers Great Relocation Packages with Language Training

Global Mobility Solutions (GMS) understands what it takes to relocate an employee and help them thrive in their new setting. Over the last three decades, our team has been assisting companies in writing international relocation packages that greatly benefit the transferee and their family. In addition, we work with some of the best language training specialists worldwide to ensure that we can provide adequate foreign language training in almost any language. 

Including language training options in our relocation services isn’t the only factor that sets GMS as the industry leader in global mobility. Our team is dedicated to giving moving employees the most seamless relocation process possible while keeping costs and savings at an excellent rate for the company. Our relocation specialists help with every step, from learning about your business to helping create relocation packages to ensuring that transferees have everything they need to reach their final destination. 

We make it a goal to help each of your employees get from point A to point B and have the resources they need to thrive once they’re there. Reach out to us today to schedule a free consultation on how we can help you incorporate language training into your international relocation services. And for more information on the relocation process, check out our Knowledge Base to get answers to all your questions. 

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Relocation Management

5 Questions to ask in a Relocation Services Proposal

Here are some key points to bring up when seeking relocation management services

In a competitive hiring market, companies see firsthand how hard it can be to not only obtain but retain top candidates in their industry. Human resources teams in numerous industries are offering great hiring incentive programs in hopes of landing the most qualified applicant to fill the vacant spot. One of the best incentives to offer is a relocation package.

When hiring for a position, a qualified local candidate might fill that hole just fine. But what if there are no local applicants who qualify? Only fielding applications from locally based people can pigeonhole the hiring process for each position. But if the hiring manager can negotiate with employees globally then it opens up the options for getting the right talent in the right seat. 

The best route to take when offering relocation services is to work with a qualified and highly reputable relocation management company (RMC). Many companies understand that working with an RMC will provide their employees and families with a seamless relocation process. 

Hence, they seek pricing and bids from multiple RMCs to assure they are getting the best price. However, determining how to choose a qualified RMC can be challenging for a company that does not have a complete understanding of the talent mobility process. Therefore, these questions will help identify those with the most experience and best relocation management services.

1. Overview of the Company/General Company Information

RMCs should provide information about their principals, organizational structure, and account managers. A history of the company will give insight into its growth and industry relationships. Third parties and business partners used as vendors should be fully noted. But the important note to walk away from here is to find out who and how many points of contact the relocating employee will have during the process. 

Relocating a family is not an easy process. The last thing a moving employee wants is to not know who to reach out to at all times. Verify with the RMCs that each transferee will have a go-to account manager or relocation expert they can contact directly at all times.

2. Relocation Services and Supplies

There is no one size fits all relocation package. Every company will have different needs depending on how many employees they relocate, the timelines they have to relocate them, and the number of talent transfers they perform each year. That’s why companies who are vetting RMCs should find out about the relocation services offered and if those services can be tailored to their needs. 

Consider this question as a detailed menu of what the RMC will provide. Look for information related to specific areas, including:

  • Policy Counseling
  • Expense Administration
  • Cost Projections
  • Household Goods Moving Services
  • Temporary Housing
  • Home Marketing Assistance
  • Guaranteed Buyout/Amended Value Sale Program – Home Sale Assistance
  • Buyer Value Option Program – Home Sale Assistance
  • Home Inventory Management
  • Home Finding/Purchase Assistance
  • Mortgage Assistance
  • Rental Assistance
  • Property Management
  • Spouse/Partner Assistance

3. Quality Assurance/Customer Service

Good information in this section includes customer retention rates, complaint resolution processes, methods of communication, and all reporting and tracking systems available to the company and its relocating employees. In addition, the RMC should note how they account for order delivery, planning, and revisions to shipments.

Website services and information technology solutions as they apply to customer service should be described in detail. Look for a company that provides a robust solution that can easily integrate into your company’s current systems. True innovators should speak to their experience and history within the relocation industry.

4. Transition Process and Projected Relocation Timeline

In this section, the RMC should describe the transition from the pre-decision services to the final destination, including the setup of technology and rollout of the talent mobility program. The staffing structure for account services, including one-on-one services, should be described. The company should outline their support staff process, regular hours of operation, response times, and hierarchy to escalate issues.

5. What Sets Them Apart From Competitors?

The RMC should call out their main advantages that companies and employees will achieve by selecting their firm to provide relocation services. Several distinct advantages should be described in detail, and the RMC’s value proposition on each point should be clearly defined. At least three references who can speak to their experiences working with the RMC should be supplied as well.

GMS Checks All These Boxes

At Global Mobility Solutions (GMS), not only do we provide unbeatable relocation management services but we are the innovators of the talent mobility industry. For example, in the early 1990s, GMS was the first relocation company to register as a .com, 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. Therefore, this allows GMS to provide clients with an ideal platform with fully integrated information technology solutions for their relocation programs. 

At GMS, we take pride in providing award-wining relocation services to companies across numerous industries. We would love to have one of our expert team members walk you through your current relocation policies. From there, we can then decide the best route to take to help get your employees from point A to point B. With over 30 years of experience in the relocation and real estate industry, our team of relocation coaches strive to make the moving process as seamless as possible. 

 

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Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Relocation Management

Best Solution to H-1B Visa Denial?: Global Parking

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Global Parking Might Be Best Option if Denied H-1B Case

After implementing some updated guidelines last spring, the U.S. Citizenship and Immigration Services (USCIS) started to release the H-1B visa lottery results for 2022 and 2023. One of the new guidelines capped registration at an annual quota of 85,000. From that number, about 20,000 registrants were candidates who earned a degree from a U.S. college or university, while the remaining registrations were left for other qualified candidates. 

Those applicants who were chosen in the lottery were probably relieved, but what about those who registered and were not selected? When it comes to visa and immigration issues, it is important to be extremely diligent when it comes to matters like these. Those who are in the U.S. on a work assignment have a few options if they are denied an H-1B visa. Looking into global relocation options might be the best way to go. Global parking is one of the most common workarounds for being denied in a visa lottery.

What Is Global Parking?

If an employee is not selected for an H-1B visa, the employer may want to look into relocating the employee to an affiliate outside of the U.S. for a short-term assignment. This is a common strategy to “park” an employee aboard for a small length of time to prepare for the next steps. Many companies choose to utilize this method because H-1B applicants are highly skilled employees in most cases. In simpler terms, companies don’t want to lose the specialized employees, so they will justify covering the relocation costs while the employee is on this assignment. From there, the company can then assist the employee in taking another shot at the H-1B the following year. 

The biggest advantage of global parking is that business operations can continue to run smoothly, because the company is not spending time, money, or training efforts on a new employee. While the obvious downside (for the short-term) is that the employee has to relocate. Talent mobility options are the best way for companies to retain top employees.

What If the Plan is for the Employee to Work in the U.S Long-term?

Global parking can open doors that lead to alternative visa and immigration options. When a company parks talent outside the U.S. for a short-term global assignment, it can make the employee eligible to return under what is known as the Intra-Company Transfer (ICT) category. To sum this up, if a company relocates an employee aboard for a set number of days, they then have options to transfer them back. 

Another option employees have if they are sent on an assignment outside the U.S., is they can now become eligible to apply for the L-1B and L-1A visas. These visas are not subject to a lottery and could be a great option to get the employee back stateside quickly.

Some examples of Global Parking:

listed examples of global parking

Are There Rules and Regulations for Global Parking?

In most instances, in order to go the route of global parking, companies must have an affiliate branch or entity in the destination country of choice. If not, one solution is to utilize a Professional Employer Organization (PEO) that can act as a co-employer by placing the employee on a local-level contract and payroll. 

GMS Wants to Help Companies Retain Top Talent

Global Mobility Solutions (GMS) has been helping companies with their global relocation assignments since 1987. Our team can also help with relocation policies, visas, and immigration needs. We understand firsthand how hard it is to retain top-level employees. Relocation options open up countless opportunities to keep good talent within a company. Reach out to us today to learn more about global parking or any relocation services questions. Feel free to check out our Knowledge Base which is updated weekly with in-depth relocation, job market, and real estate topics.

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

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

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Choosing a Relocation Company Relocation Management Relocation Policy Review Relocation Programs Relocation Technology

Performing a Security Assessment on Your Relocation Management Company

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There are a lot of moving parts when it comes to the relocation process. Many vendors and suppliers are involved in getting the transferee from point A to point B. With that being said, there is a great deal of information and personal info that has to be shared across all parties. But what are relocation management companies (RMC) doing to keep transferee’s info safe? 

Most companies understand the importance of performing a security assessment on their data and operational systems. In many industries, specific standards require a security assessment on a regular basis to maintain compliance. Often these standards require the company perform a security assessment on any supplier that may receive company data. Specific control areas in a security assessment may include:

  • Information Security Management
  • Physical Security
  • Network Security Management
  • Platform Security
  • Remote and Mobile Access
  • Change Control
  • Identity and Access Management
  • Application Security

A security assessment will often include a request to receive a copy of the company’s Business Continuity Plan (BCP). A company’s BCP should cover several elements related to security issues surrounding a company’s data and operational systems. In the event of an unplanned disruption or other emergency situation, the BCP will indicate how the company’s operations will recover and proceed.

Different Types of Regulations and Requirements

Sarbanes-Oxley Act

The Sarbanes-Oxley Act came into effect in 2002. Sarbanes-Oxley is a United States federal law. This law set new or expanded requirements for all U.S. public company boards, management, and public accounting firms. As a result, the law requires that a company’s top management must individually certify the accuracy of financial information. Much of a company’s financial information is heavily dependent on technology and associated data security controls that must be part of a compliance review as noted in Section 404 of the Act. The law provides for harsher penalties for fraudulent financial activity. Also, Sarbanes-Oxley requires a stronger oversight role for boards of directors, and greater independence of outside financial statement auditors.

International Organization for Standardization

The International Organization for Standardization (ISO) creates and publishes International Standards that provide guidance and clear specifications to ensure a company’s products, materials, processes, and services are appropriate for their purposes. ISO publications include standards for Quality Management, Environmental Sustainability and Protection, and Management Performance.

General Data Protection Regulation

The European Union’s General Data Protection Regulation governs the processing of an EU resident’s personal data by an individual, a company, or an organization of personal data. This pertains to entities that do business within the region, or that provide services to individuals in the region. The rule provides people with more control over their personal data. For example, websites that collect data on visitors must let visitors know this. These websites must give visitors the option to opt out of such collection. Many additional laws have been passed in response to this new regulation, to provide local guidance on compliance. For example, in the United Kingdom, the Data Protection Act 2018 is a national law that complements the European Union’s General Data Protection Regulation.

TRUSTe Privacy Certification Standards

TRUSTe Privacy Certification Standards assist companies in establishing and maintaining strong privacy management practices. Compliance with TRUSTe demonstrates a company’s commitment to privacy protection in their online properties, customer and employee data management practices, and/or applicable regulatory frameworks.

For these and many other national, international, and industry regulations or requirements, a security assessment is necessary to ensure compliance. Companies that work with a Relocation Management Company (RMC) need to perform a security assessment of the RMC’s data and operational systems. Global Mobility Solutions’ team of global relocation experts believe the following 5 tips are essential to ensure an RMC’s compliance to a company’s security assessment.

5 Helpful Tips for Performing a Security Assessment on your RMC

1. Be Sure to Review the RMC’s Risk Rating and Access to Data During the Security Assessment

Your RMC should have a risk rating. The rating depends upon the likelihood of an event occurring. It also depends on the impact severity that might arise if the event does occur. You should determine whether the RMC has limited or full access to data. Important data fields to review for risk during a security assessment include:

  • Employee Name and Home Address
  • Employee Phone Numbers and Email Address
  • Family Member Contact Information
  • Social Security Numbers
  • Bank Name and Account Numbers
  • Logistic Information Related to Relocations
  • Travel Information Including Dates and Locations

2. Questionnaire Submission to RMC

Your company should have a document with several questions that will indicate the RMC’s compliance to important points in a security assessment. Provide sufficient time for the RMC to complete the questionnaire. The RMC will need to work with their Information Technology department to provide answers to many of these questions. Provide a contact from your company that can answer any questions the RMC may have related to the document’s specific points.

3. Share Results of the Initial Security Assessment

Once the initial security assessment is complete, share the results with your RMC. Offer to work with the RMC to remediate any areas that require attention to ensure compliance. Partnering with the RMC helps ensure the solution fully addresses your company’s requirements. Note the specific regulatory requirements that your company must meet to help the RMC understand how they might reach compliance.

4. Share Results of the Final Security Assessment

Be sure to indicate all control gaps. Note all categories that require submission of a formal remediation plan. Include specific dates and timelines critical for maintaining your company’s compliance to specific regulations. Provide guidance to the RMC on how to create and submit a remediation plan that will meet your company’s requirements.

5. Set Periodic Reviews for the Security Assessment

Working with the RMC, set a timeline for periodic reviews. Depending on your company’s specific regulatory compliance requirements, a security assessment may need to occur by date or by change in activity level. For example, if your company requests the RMC perform an additional service that requires sharing additional employee data, a review should be set to confirm the most recent security assessment is still valid.

GMS is the Industry Leader for Relocation Technology and Security

Global Mobility Solutions’ (GMS) team of global relocation experts has helped thousands of our clients understand how to conduct an effective security assessment on an RMC. We can help your company create and implement a security assessment to ensure compliance to all of your organization’s regulatory requirements.

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.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

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.

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

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Relocation Best Practices Relocation Management Relocation Programs

Tax Gross-Up for Miscellaneous Allowances

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The Best Way to Handle Taxes on Relocation Benefits

Offering relocation benefits to new or promoted employees is a great way to open up your talent pool. When a company is willing to help an employee move for a job, it means they can field applications from candidates from all over the country or even the world. This helps assure that they’re getting the right person in the right seat. 

However, with relocation, questions may arise in regards to tax rules and regulations that impact relocation. Taxes are confusing enough with simple W-2 entries. Moving to a new state can make it seem like there are added rules to be aware of. The best solution for this is to work with a relocation management company (RMC) that has the right processes and tax specialists in place to help sort out the confusion around tax rules. Each employee may receive different relocation benefits, based on what the company is willing to offer which adds different factors to consider when looking at the tax impacts of moving. 

Within a relocation policy, companies often elect to provide a Miscellaneous Expense Allowance (MEA) benefit option to their new-hired employees. For menu-driven relocation packages, MEA could be in the form of any small additional allowance. Other relocation programs leverage an MEA to help to cover unexpected relocation-related costs or relocation services that might be needed – but are not covered under the employee’s specific policy. There are many different variations of the MEA that companies can set up for employees, but how do taxes and tax gross-ups come into play?

First Off, What Is Tax Gross-Up?

In relocation terms, tax gross-up is a relocation benefit, whereby the employer adds additional financial compensation to an employee’s payroll records in order to offset state, federal, OASDI, and/or Medicare taxes. These taxes are on the majority of reimbursements on moving expenses or payments to relocation vendors on the employee’s behalf because these expenses are seen as taxable income in the eyes of the government. 

It is important to remember that tax gross-up is a talent mobility benefit provided in an employee’s relocation package, and there are multiple ways to calculate it. The hiring company can add relocation benefits as needed to up their offer and give more of an appeal to the relocation policy for the employee. It should be noted that payroll withholding is a requirement so companies need to remit payroll for taxable relocation expenses. The calculated amount of tax gross-up is used to cover a majority of the allotted payroll taxes.

Should Miscellaneous Allowances Get Gross-Up?

There are two common approaches used depending upon the relocation package offered. The first, expressing the amount in gross dollars and withholding taxes. The second, expressing the amount in net dollars and providing gross-up. In most cases, many RMCs would recommend working through the second approach.

Setting an MEA in a relocation policy using the net amount approach with an RMC can help assure there will be as few issues as possible during the relocation process. This allows the company to control costs by determining an appropriate MEA amount when factoring in gross-up. The net approach helps simplify the employee’s moving experience by providing them the actual amount received in their account so they know what is available to help relocate themselves and their families. Providing the MEA as a gross amount with taxes being withheld will result in the employee receiving a lower amount than what is listed in their relocation policy.

A Walk Through of How It Works

Consider the following “gross‐to‐net” example utilizing a Federal Supplemental tax rate of 22% State tax rate of 5% and the full FICA rate of 7.65% (Total withholding 34.65%):

Let’s say the hiring company’s relocation policy offers a gross MEA of $5,000. At first, the employee might think they can use the entirety of that on relocation costs. However, they must remember that the gross MEA of $5,000 is going to have taxes withheld. 

In other words, the $5,000 gross MEA you might provide to a relocating employee won’t actually give them $5,000 worth of assistance once the above taxes are considered. The actual dollar amount the transferee will receive to spend is $3,267.50 after taxes. 

To make it easier for the new-hire employee, if the MEA is listed as a net amount of $3,267.50 they will know exactly how much they have to spend. After factoring in the gross-up using the above tax rates the cost to the company is still $5,000. By changing the approach of listing the net MEA amount vs. the gross MEA amount the employee knows their budget while the company stays within spending targets.

Another important factor to consider is that the taxes employees are subject to vary depending on the state they are moving to. If providing the MEA as a gross amount, someone relocating to California may receive a lower amount than someone moving to Texas because the employee moving to California is subject to higher taxes. Providing the MEA as a net amount in the relocation policy ensures all relocators receive the same dollar amount in their account. This can be a great hiring incentive when trying to fill a seat.

GMS Can Help with Tax Gross-Up on Relocation Benefits

Global Mobility Solutions (GMS) is a full-service relocation management company that offers assistance with any talent mobility needs. Our certified team specializes in tax gross-ups and other financial services related to the relocation process. If the tax implications of your program are confusing or you need assistance in setting up the appropriate Miscellaneous Expense Allowances within your policies, let us know! We will listen to your concerns, answer your questions, and help you review your current policies to ensure they are competitive and in alignment with industry best practices. Reach out to us today to start getting all of your questions answered.

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Corporate Relocation Corporate relocation tips Domestic Relocation Challenges Domestic Relocation Tips Global Relocation Challenges Relocation Challenges Relocation Management

How to Overcome Relocation Challenges

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

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Domestic Relocation Global Relocation Relocation Best Practices Relocation Management Relocation Programs

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

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

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

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

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

Typical Costs Incurred During Domestic Relocation

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

Selling Your Home

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

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

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

Short-term Housing Options

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

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

Moving & Transportation

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

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

Typical Costs Associated with Global Relocation

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

Visa Fees

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

Moving Insurance

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

Storage Costs

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

GMS Can Help No Matter Where You’re Headed

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

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

We're Here to Help! Request a Courtesy Consultation

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

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

What Is a Zoom Town?

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

Learn More About Communities Growing Thanks to Remote Workers

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

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

Cost of Living and Housing Market Shifts Helped Form Zoom Towns

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

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

Top Growing Zoom Towns for Remote Workers

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

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

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

Relocating to a Zoom Town

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

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

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

We’re Here to Help! Request a Courtesy Consultation

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

Categories
Corporate Relocation Domestic Relocation Household Goods Relocation Best Practices Relocation Management

Understanding Third-Party Household Goods Shipping

Why Relocation Service Providers Use Third-Party Moving Companies

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

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

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

What Role Does the Third-Party Moving Company Play?

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

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

Third-party Specialty Services Might Have to Be Used

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

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

GMS Ensures Quality with Third-Party Household Goods Shipping

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

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

Categories
Buy a Home Corporate Relocation Domestic Relocation Relocation Management Relocation Programs Talent Mobility

Relocation Home Sale Programs: BVO, GPO, or Direct Reimbursement

A family with the realtor in front of the house they just had appraised

Keep your Program Competitive with Home Sale Assistance Benefits

When a new or existing employee accepts a position in a different location and is willing to move, some of the main concerns they will have right off the bat are real estate concerns. Selling their current home, then buying a new house in the new city can cause anxiety. But if the company relocating the employee offers benefits with home sale assistance or real estate sale programs, it can make the relocation process much easier for both the employee and the company. 

 

One of the most sought-after benefits to include in relocation packages is a home sale program. In basic terms, relocation home sale programs offer assistance to homeowners so that they can quickly move to their new city for the desired start date. While each relocation management company (RMC) will have different terms on their offered real estate programs, most usually include payments to cover real estate commissions and closing costs. Again, each home selling assistance program is different so it will depend on the seller’s/buyer’s situation on what can and cannot be covered or reimbursed. The type of program offered also depends on your company’s specific relocation policies and the level of support you offer to your relocating employees. Direct Reimbursement, Buyer Value Option (BVO), and Guaranteed Purchase Offer (GPO) are three of the most commonly offered relocation home sale programs. Here is a breakdown of each:

Direct Reimbursement

In most cases, this might be the simplest home sale assistance program for the company and the most involved for the employee. Under a typical direct reimbursement program, the employee is responsible for the sale and closing of their own home. This means they have to hire their own real estate agent and list the home (however many RMCs, like GMS, offer comprehensive home marketing assistance to help sell the property quickly and for top dollar). Once the property sale is complete, the employee then goes through the employer’s process of submitting expenses to be later reimbursed – generally these expenses cover the cost of the agent’s commission, closing costs, and the miscellaneous fees associated with selling a home.

 

With direct reimbursement, the payment to the employee is viewed by the IRS as income and is subject to income tax. This can result in the employee receiving a reduced overall amount of support due to their unique tax situation. However, If the employer is offering the employee tax gross-up options, this could help offset the amount of tax dollars that the employee is having to pay, providing them with an elevated level of financial assistance.

Buyer Value Option (BVO)

Known as a 3-party transaction, the Buyer Value Option program can seem a little confusing to those who are not in the industry. Under a BVO home sale assistance program the employee lists their home for sale until a competitive outside offer is received. Then, the RMC will purchase the home from the employee based on a set sales contract amount. The RMC will then immediately sell the property to the outside buyer. Unlike the single transaction reimbursement program, this option has two transactions. 

 

The main reason companies choose to offer BVOs in their relocation program has to do with the tax benefits, tax protection, and the reduced overall costs of this program. Under a Direct Reimbursement program (as described above), if the employee were to sell the home directly to the buyer, without the RMC middleman, then the IRS would view the reimbursement of expenses to the employee as taxable income. Companies help to offset this by grossing up the reimbursement, which drives up the total cost.

 

Under the advantageous BVO program, the home sale is tax-protected, occurs between the RMC/Company and the buyer, and no reimbursement or gross-up to the employee is required as the company pays the selling expenses. This reduces the tax liability for both the employee and their new company. The BVO home sale assistance program also helps cover the cost of the real estate broker’s commission and closing costs on the home sale. Lastly, the expense of an appraisal is mitigated, as the price of the home is driven by the offer received in the market.

Guaranteed Purchase Offer (GPO)

Sometimes called a Guaranteed Buyout (GBO), the GPO home selling assistance program is a popular one because it gives the moving employee a guaranteed home sale. Under this program, the employee lists the property for a set amount of days (typically 60-120 days) to try to sell on their own. If their home is not sold in the allotted time frame, the RMC/Company will then purchase the home from the employee, allowing them to move on to their ultimate destination without the stress of selling their property. The property then goes into the RMC/Company’s inventory and is now their responsibility to sell.

 

If the employee does get a qualified offer from a buyer within the specified timeframe, then the sale is completed similar to the BVO program (often called an Amended Value under these circumstances), where the RMC buys the home from the employee then sells it to the buyer for tax purposes. Again, making for two home sale transactions. 

 

The major difference between the Guaranteed Purchase Offer program and the BVO is that in a GPO program, an appraisal is completed on the property to establish a fair market value of the property to establish the purchase offer price. 

Choosing the Right Relocation Home Sale Program

Global Mobility Solutions has been helping relocating employees since 1987. Our team is always on hand to help your organization develop competitive and cost-effective home sale assistance programs. Reach out to us today with any questions regarding direct reimbursement programs, BVOs, or GPO. Our team is more than happy to help your company come up with the best relocation home sale programs possible to assist with meeting your talent acquisition objectives and improve the overall relocation experience for your transferees and their families.

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About

Contact Us

About Us

GMS Client Login

Privacy Policy

Other Services

Our Technology

Global Relocation

Group Moves

U.S. & Canadian Relocation

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

About

Contact Us

About Us

GMS Client Login

Privacy Policy

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

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