Category: Relocation Management

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Relocation Models for 5 Major Industries

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Traditional vs. Lump Sum Relocation Programs

Which is best model for your company?

There is more than one way to get your relocating employees to their new assignments. Many companies opt for either a traditional relocation program, a lump sum/managed cap program, or a combination of the two, depending on the position of the transferee and other special circumstances.

What are the Differences?

With a lump sum or managed cap model, relocating employees are given a pre-determined amount of money to cover all aspects of their move. From the shipping of goods to temporary housing, the transferees are responsible for researching and obtaining all the services needed to get them to their new destinations. There is no tracking or reporting available to HR or finance departments to let them know whether their relocation policies are too generous, costing the company more money than necessary to relocate their employees, or too limited, forcing transferees to pay out of pocket unnecessarily. This approach leaves the entire move is managed by the transferees, many who might not have any prior moving experience.

Conversely, a traditional relocation model is managed by a relocation management company (RMC). The RMC coordinates everything for the transferees. This includes, but is not limited to, home selling, household goods movement, temporary living, and home purchasing. The RMC sets up the various services with reputable, vetted network partners. Since the RMCs use direct billing back to the client companies, the transferees rarely have to open their wallets. HR and finance departments receive detailed expense reports from the RMCs that capture all the costs related to relocating their transferees.

Based on comprehensive relocation surveys, here are findings of how companies in five different industries utilize either traditional, managed cap/lump sum, or a combination of these relocation programs:

Relocation Models by Industry: Energy, Healthcare/Medical, Manufacturing, Retail, Technology

The figures above illustrate that across all the industries in this survey, traditional relocation programs are used more frequently than lump sum or managed cap programs. However, in all the industries, there is a large percentage of companies that utilize a combined approach. A best practice consideration is to adopt a combination of traditional and managed cap relocation models.

Modern Mobility Made Easy™
Helping you manage your relocating employees

Global Mobility Solutions, an innovative leader in corporate relocations since 1987, can analyze and create mobility management programs customized for your unique needs. Additionally, we have compiled benchmarking studies and relocation best practices for numerous industries. To learn more about what type of relocation model would fit best with your company, get the full relocation benchmarking study for your specific industry:

Download your industry benchmarking study

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Global Mobility Solutions Expands Headquarters

Phoenix Arizona city skyline at dusk, showing a beautiful city destination for companies considering a 2020 Phoenix Relocation

Scottsdale Mayor kicks off the headquarters expansion celebration

Headquarters Expansion – Global Mobility Solutions (GMS), a leader in corporate relocation solutions and technology, held an Open House Wednesday, September 20th, to celebrate its headquarters expansion.

The Open House ran from 3:00 pm to 5:00 pm and Guest of Honor was Jim Lane, the Mayor of Scottsdale, performed a ribbon-cutting ceremony to officially commemorate the new office.

Global Mobility Solutions ribbon-cutting ceremony. (From left to right) Rich Ganley, GMS Founder and Board Member; Steven Wester, GMS President and Board Member; Jim Lane, Mayor of Scottsdale; Mark Hiegel, President and CEO of Scottsdale Chamber of Commerce; Steve Ziomek, GMS Founder, Designated Broker, and Board Member.
Global Mobility Solutions ribbon-cutting ceremony. (From left to right) Rich Ganley, GMS Founder and Board Member; Steven Wester, GMS President and Board Member; Jim Lane, Mayor of Scottsdale; Mark Hiegel, President and CEO of Scottsdale Chamber of Commerce; Steve Ziomek, GMS Founder, Designated Broker, and Board Member.

GMS president, Steven Wester, praised his staff and network partners for their role in the expansion, and stated that the company shows no sign of slowing its growth.

“This is a big milestone for Global Mobility Solution. Not only are we celebrating our thirtieth anniversary this year, but to expand by fifty percent is a testament to all our wonderful employees.” Mr. Wester continued, “This growth is also attributed to innovative technology solutions and our strong client partnerships.”

Mayor Lane stated, “It’s always great to see success here in Scottsdale.” The Mayor reminisced, “In this particular case, thirty years ago, I had a consulting company and these guys were my clients. So,” said the smiling Mayor, “I take a little bit of responsibility for their success.”

Mark Hiegel, President and CEO of the Scottsdale Chamber of Commerce, also provided some words of congratulations before Mr. Wester invited the guests to tour the office and enjoy the food and beverages.

This event provided an excellent opportunity for clients and network partners to meet the individuals with whom they do business, and for neighboring companies to learn about Global Mobility Solutions.

About Global Mobility Solutions

Founded in 1987, Global Mobility Solutions is a relocation management company that specializes in supplier management and relocation program development. The company’s relocation services include global assignment management and domestic relocation management, as well as a range of pre-decision solutions and relocation technology applications. To learn more about how Global Mobility Solutions can help you with your relocation management, contact us now.

 

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Germany Implements ICT Directive

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Will you or your transferees be affected?

What has changed?

Effective immediately, Germany Implements ICT Directive – the German parliament has implemented an ICT Directive which intends to regulate the conditions for entry and residence of thirty-country nationals within the intra-company transfer (ICT) process.

Who is affected?

  • Employees working at the same group of companies for at least six (6) months being sent to Germany on an intra-company transfer
  • Employees working at the same group of companies for less than six (6) months intending to be sent to Germany on an intra-company transfer
  • Clients transferring employees to the same group of companies from another EU country to Germany

What to expect

The ICT Directive provides two different categories: firstly, third-country nationals who want to enter Germany directly from their home country (third-country); secondly, third-country nationals who already hold an ICT residence permit in another European Union (EU) Member State and are transferred to Germany for short or long-term transfer within the same group of companies.

The law divides it as follows:

1) ICT card for intra-company transferred workers (third-country nationals) must fulfill the following requirements:

  • Transfer must take place within the same company group
  • The employee must be either a leader (e.g. manager with leading function) or a specialist
  • Employee must have been with the company for at least six (6) months
  • The transfer must be for more than ninety (90) days, but cannot exceed three (3) years
  • An approval from the Federal Employment Agency must be obtained in advance
  • For the duration of the transfer, the assignee must have a valid assignment contract with his/her home employer and return to the home entity after the transfer
  • The remuneration (salary and monetary benefits) and working conditions (working time, leave, wage advancement in case of illness, etc.) must be comparable with a local employee

2a) Short-term mobility for intra-company workers (third-country nationals) must fulfill the following requirements:

  • Application in Germany up to ninety (90) days within 180 days
  • The assignee has a valid residence permit issued by another EU Member State pursuant to the ICT Directive
  • Proof that the domestic branch office belongs to the same company/group
  • Must have a valid passport
  • Confirmation on the entitlement to enter and residence for the purpose of intra-company transfer issued by the Federal Office for Migration and Refugees (Bundesamt für Migration und Flüchtlinge BAMF)

2b) Mobile ICT Card must fulfill the following requirements:

  • Transfer must take place within the same company/company group
  • The assignee must either be a leader (e.g. manager with a leading function) or a specialist
  • The assignee has a valid residence permit issued by another EU Member State according to the ICT Directive
  • The transfer is for more than ninety (90) days
  • An approval from the Federal Employment Agency must be obtained in advance
  • For the duration of the transfer, the assignee must have a valid assignment contract with his/her home employer and return to the home entity after the transfer
  • The remuneration (salary and monetary benefits) and working conditions (working time, leave, wage advancement in case of illness, etc.) must be comparable with a local employee

If the application was submitted at least twenty (20) days before the start date of the assignment and the assignment has already been submitted to the authorities of the other EU Member State on the first application, the stay and assignment in Germany will be allowed for a period of up to ninety (90) days before the decision was made by the German authorities.

Please note there will be a period of transition as Germany Implements ICT Directive and the authorities will need some time to get use to the new process. We anticipate having more details on the practical implementation and application procedures to share with you in the near future.

 

Modern Mobility Made Easy™

Planning ahead

To learn more about Germany Implements ICT Directive or any other issues that affect you or your mobile employees, be sure to speak with one of the Global Consultants at Global Mobility Solutions. From pre-decision to visa and immigration to language and cultural training, GMS has the award-winning programs and innovative technology to make relocating your employees and tracking their expenses simple and worry-free.

Request your complimentary Visa Program Assessment

Provided by Global Mobility Solutions network partner Emigra World News

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The Real Truth: Managed Cap vs. Lump Sum

Managed Cap vs Lump Sum – Key Things You Need to Consider

As a mobility manager, lump sum payments might seem like the fastest and easiest method of providing your employees with the funds they need to move. However, when looking at managed cap vs lump sum, lump sum payments come with their own unique set of problems. Some of the challenges include:

  • Transferees often left alone in the relocation process
  • No cost controls and often budgetary overages
  • Limited process or service structure
  • Non-taxable benefits are lost
  • Frustrated transferees mean elevated HR involvement and escalations

Fortunately, a managed cap program alleviates many of the problems associated with a lump sum. It also provides:

  • The desired simplicity and predictability of a lump sum program
  • Enhanced employee tax benefits, resulting in more dollars for relocation.

Let’s see the difference between a $15,000 lump sum payment and the same $15,000 from a managed cap program:

GMS-Managed-Cap-vs-Lump-Sum-Chart

A Winning Scenario

The Managed Cap Program provides the transferee with $4,351 more for relocation services!

 

Modern Mobility Made Easy™

What this means for you and your relocating employees

A Managed Cap program will ensure that your transferees get the most out of their relocation dollars and that you will reduce the amount of administrative burden dealing with exceptions. Global Mobility Solutions – a leader in mobility management since 1987 – has expert relocation consultants who understand how a Managed Cap program can benefit you and your company. Contact Global Mobility Solutions and learn how we can quickly implement a managed cap program custom-tailored for your needs. Request your complimentary managed cap program demo to see how much you can be saving.

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Global Mobility Solutions Celebrates 30 Years of Relocation Success

A scene from Downtown Scottsdale at dusk with a canal and reflections in the foreground. Scottsdale is part of the Phoenix Metropolitan area.

Founded in 1987, Global Mobility Solutions (GMS) has been providing companies around the world with an array of innovative domestic and global relocation services. In the past thirty years, GMS has helped nearly 240,000 transferees for many companies in a variety of industries.

GMS has always been a leader in the relocation industry. From being the first to pioneer and perfect pre-decision programs to developing cutting edge online relocation tools, GMS is continually recognized for its breadth of solutions and world-class customer service by both clients and independent entities. GMS has been named to HRO Today’s “Baker’s Dozen” as one of relocation companies in satisfaction, quality and breadth of services for four years in a row. GMS has also recently been recognized as a 2017 LEAD Award winner for being both a top 10 company in the “Best Sales Leadership Program” category and a top 20 company in the “Best Global Leadership Program” category.

While GMS has been growing steadily since 1987, the company still places a high priority on giving back to the community. Working with its main charity, Move for Hunger, GMS helps donate food and money to local charities. GMS and its service partners donated have donated over 7,000,000 pounds of food, delivered to food banks across North America.

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Global Mobility Solutions Recognized as a Leader

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Leader Recognition – For the past 34 years, the LEAD Awards have identified and recognized organizations with the top leadership programs, strategies, and solutions with regard to global leadership development. These prestigious leadership awards salute the world’s top leadership practitioners and programs and highlight their roles in developing their most important asset – their people.

Global Mobility Solutions (GMS) was recognized as a leader for its excellence in leadership training and education. GMS placed in the top 10 of 100 companies for Best Sales Leadership Program and Top 18 of 200 for the Best Global Leadership Program.

 

Global Mobility Solutions a winner of Best Sales Leadership Program

Global Mobility Solutions a winner of Best Global Leadership Program

 

The competition was strong as GMS went up against such household names as 3M, Boston Scientific, Cisco, Dell, Microsoft, and many others. In fact, the other winners have a combined average annual revenue 453% larger than GMS and an average of 383% more employees. It is an honor and accomplishment to be recognized amongst such giants of industry.

 

Learn how GMS can help your transferees become leaders in their new destinations

Is your relocation program the best it can be? Receive your free relocation policy review.

 

About LEAD2017 LEAD2017 is a 2-day leadership forum, February 7th and 8th, 2017 in Nashville, Tennessee, at the Music City Center. Designed to inspire leadership in people from all walks of life in person at the conference as well as live simulcast to hundreds of remote host sites internationally. The event brings together top thought leaders and the world’s best leadership practices that can be shared by attendees to develop leadership programs in their own organizations and communities http://www.lead2017.com/ February 8th will be broadcasted globally with the goal of touching 1 million lives to choose leadership.

About HR.com and the LEAD Awards HR.com, the largest global social networking and resource site for HR Professionals is committed to providing a deeper understanding of the HR function for over 290,000+ members by offering an annual global leadership annual event – LEAD, the LEAD Awards, HR Certification Exam Prep Courses, certification programs, a personal development app, monthly themed HR e-publications, 4,500+ webcasts, 1,200+ eLearning credits, 230+ virtual conferences, blogs, community networks, industry news and advisory boards. See www.hr.com for more information.

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Managing Mobility Costs

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Department heads all over the globe are constantly asked to identify cost-saving opportunities within their departments. Human resources, employee mobility, talent acquisition, and procurement are no exceptions. As you scrutinize your budget, try utilizing these three steps to help better manage and ultimately reduce your relocation expenses:

Cost Estimates

Managing mobility costs starts with understanding what those expenses are. First estimate what costs should be involved with your vision of a successful mobility program. A cost estimate will provide you with a clear picture of the potential costs of individual relocation assignments. You can then use these cost estimates to correctly establish a budget prior to initiating any relocations.

One effective way to determine your cost estimates is by utilizing cost estimate technology. There are many software programs that by using the latest upgrades will help you:

  • Save time
  • Reduce human error
  • Ensure compliance

Policy Reviews

By reviewing your relocation policies, either internally or with an outside relocation management company (RMC), you will be able to identify cost-saving opportunities and eliminate expensive exceptions. When reviewing your mobility management policies, you should:

  • Do so in conjunction with cost
  • Benchmark against other companies within your industry
  • Leverage technology for key services (i.e. Virtual destination tours, online school reports, etc.)

Example:

Using online language tools can reduce relocation costs by roughly $5,000 - $20,000.

Tracking and Reporting

Lastly, you want to ensure that you are continuously tracking all expenses and reporting any overages or savings. Get a detailed account of how your cost estimates match up with your actual spending. Then the whole process repeats itself. Once you have your data:

  • Take action – Make any necessary adjustments to your budget, policy, or both
  • Review – Go over the detailed reports to identify more cost-saving opportunities
  • Incorporate technology – Save time and money by offering key services online

Global Mobility Solutions (GMS) is an award-winning RMC and, since 1987, has been helping companies save time and money with regard to their corporate relocations. As a courtesy service, GMS will review your current relocation policies and provide expert feedback to ensure that your policies are competitive within your industry and to identify any cost-saving opportunities, so you can focus on managing mobility costs.

Click here for your free relocation policy review

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