Category: Relocation Policy Review

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Global Mobility ROI Gaining New Attention

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A Shift in How Global Mobility Services Are Being Viewed

Global mobility is stepping into a new level of visibility, as organizations place greater focus on how global mobility services and corporate relocation services support business growth and workforce strategy.

Across organizations, HR and mobility leaders are increasingly part of broader conversations — not just about moving employees, but about how mobility connects to employee benefits, talent strategy, and long-term organizational priorities. At the same time, expectations are evolving. There’s growing interest in understanding not only what relocation costs, but what it enables across the business.

As explored in the GMS Mobility ROI Playbook, this shift is creating an opportunity to view mobility through a more complete lens — one that aligns global mobility services with measurable business outcomes.

Expanding the Role of Corporate Relocation Services

For many organizations, corporate relocation services have traditionally been measured through operational metrics such as cost management, policy alignment, and vendor performance. These remain essential and reflect strong program discipline.

What’s emerging now is a more expanded perspective. In many cases, a relocation — whether delivered through corporate relocation services or international relocation services — supports a much broader business objective. It may enable market entry, maintain continuity for a key client, or ensure that a critical role is filled at the right time. When these outcomes are included in the conversation, mobility becomes easier to align with business priorities and demonstrate its full value.

How Global Mobility Services Support Business Priorities

Every relocation decision is tied to a business need. Whether it’s supporting expansion, strengthening a team, or building leadership capability, global mobility services play a central role in how organizations execute their strategy.

The playbook frames this clearly: mobility can be viewed as a strategic investment — one that supports growth, productivity, and long-term performance. For many organizations, international relocation services are no longer just logistical support. They are becoming integrated into how companies deliver employee benefits, manage global talent, and maintain competitive advantage across markets.

A Practical Way to Think About Mobility Impact

Rather than trying to measure everything at once, many organizations are focusing on a few areas where global mobility services naturally create impact. One of the most visible is growth. Placing the right talent in the right location can support expansion, strengthen regional performance, and accelerate key initiatives.

Mobility also expands access to talent. Through corporate relocation services, organizations are no longer limited by geography when identifying the best candidate for a role. Timing is another important factor. The ability to move quickly — and support employees in reaching productivity sooner — helps maintain momentum across projects and business operations.

Over time, mobility also contributes to leadership development. Experience gained through international relocation services continues to be one of the most effective ways to build capability and prepare future leaders.

Getting Started with Mobility ROI Measurement

Taking a more outcome-focused approach doesn’t require a complete redesign of your program. Many organizations are beginning with a small set of metrics that connect mobility to business performance. These may include time to productivity after relocation, retention of relocated employees, or performance in regions supported by mobility.

The key is consistency. Tracking these elements over time — and aligning them with HR, finance, and business leaders — creates a clearer and more complete picture of how global mobility services contribute to organizational success. As the playbook highlights, structured measurement helps translate mobility activity into meaningful business insight.

What Strong Global Mobility Programs Share

Organizations that are advancing their mobility programs are not necessarily making dramatic changes. Instead, they are gradually expanding how corporate relocation services and global mobility services are understood internally.

They continue to manage operations effectively while also highlighting outcomes such as growth support, talent access, and employee experience. This balanced approach helps mobility align more closely with broader business goals while reinforcing its role as part of a company’s overall employee benefits and talent strategy.

Final Thoughts

Whether through corporate relocation services, international relocation services, or broader global mobility services, mobility continues to play an important role in how organizations grow, adapt, and support their people. What’s changing in 2026 is the opportunity to make that impact more visible — in a way that connects clearly to business outcomes, talent strategy, and employee experience.

The GMS Mobility ROI Playbook explores this approach in more detail, offering practical ways to align global mobility services with measurable business outcomes and long-term value.

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Corporate Relocation Corporate relocation tips Relocation Policy Review

5 Benefits of Corporate Relocation Benchmarking

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Two handsome, diverse colleagues are seen engaging in a productive conversation while utilizing wireless technology and a digital tablet in a modern office setting. Their smart casual attire adds to their professional appearance as successful employees.

What Are the Benefits of Benchmarking relocation policies?

It’s an unfortunate commonality that many businesses create relocation policies and benefits, only to keep them for years without revisiting them. Some companies may provide exceptions to their policies on a case-by-case basis for new hires, but in the end, failing to renew or check these policies could cost companies thousands of dollars. 

 

That is why it is important to benchmark relocation benefits every 12 to 18 months. There are many benefits to staying on top of corporate relocation benchmarking to make sure policies are competitive against peers and competitors. Using relocation benchmarking data can help ensure that transferees have the best possible relocation experience. Here are five benefits of using benchmarking numbers to update relocation programs annually. 

1. Identify Cost Savings and Enhancements

Reviewing how other companies design corporate relocation programs can point out areas where a company can achieve significant cost savings. Taking time to review policies can help highlight parts of the company’s relocation benefits that can be enhanced. Obtaining multiple quotes for services can help save costs and keep your program competitive. These quotes can be obtained across multiple services, such as HHG, visa, and corporate housing. In some cases, you may discover your relocation management company (RMC) does not have an independent vendor network, preventing them from shopping around for the best deals on services. 

 

Using relocation benchmarking data to learn about new and updated regulations can help avoid penalties and costs arising from tax, legal, or immigration issues. The application of technology to processes such as reporting and reimbursement can help save time and money.

2. Ensure Industry Competitiveness

For companies to attract and retain the best talent in their industry, their relocation policies must offer employees a competitive edge compared to their peers. A relocation benchmark will show how industry competitors design their mobility benefits. A company can adjust policies to maintain an advantage and use them as leverage in the offer phase. 

 

If an employee is fielding multiple offers for jobs that require a move, the tiebreaker is often the relocation package. Checking relocation policies yearly can assure that you offer the best relocation benefits in your sector to entice new hires to accept your offer.

3. Learn About New, Innovative Ideas

Companies and industries evolve to respond to the dynamic workforce, changes in the regulatory environment, and increasing employee expectations. When major changes occur, your mobility solutions and relocation policies should address them. A good relocation management company will use mobility technology to its advantage to help the moving employee. Companies and employees can use relocation technology platforms to stay informed throughout the relocation process and to increase communication speed among the employee, company, and RMC. It also provides more visibility into reimbursement numbers. 

 

That being said, it is important to benchmark relocation policies to ensure that there isn’t mobility technology out there that could save time or money when relocating employees.

4. Educate Internal Stakeholders

Most successful companies recognize that several departments and functions interact with their employee’s relocation process. Internal stakeholders from diverse areas, such as legal, finance, and human resources, can learn how the transferee interacts with each department, what their needs are, and what the best practices are related to each function. Involving internal stakeholders in the policy benchmarking process ensures their understanding of policy guidelines and knowledge of how the company’s policies stack up against those of other companies in the same industry. This helps provide for a smoother relocation process for the transferee, as less will be lost in translation during the hiring process.

5. Maintain Alignment Objectives

Many companies that relocate employees regularly have multiple locations across the country, sometimes even worldwide. This is why those companies need to ensure communication of corporate plans and objectives, keeping the entire company up to date. A company’s relocation policy benchmarking should incorporate policies that affect all employee levels, regardless of geography, so that local objectives align with corporate objectives. Knowing that certain areas might have plans for future expansion helps all departments prepare to respond accordingly to employee relocation needs.

Need Help Benchmarking Relocation Policies?

Is your program competitive? Global Mobility Solutions has benchmarked over 1,000 relocation policies spanning 27 unique industries.

GMS provides comprehensive benchmarking services of your policies against industry best practices, while also showcasing what others in your industry are doing. This data has been an important tool in helping companies create and renew their relocation policies.

 

Our team can help write competitive, cost-saving policies by staying on top of numbers across numerous industries for benchmarking. We strive to keep our relocation benchmarking data up to date.

 

If it’s been more than 18 months since your company reviewed its relocation policies, now is the time to contact GMS for benchmarking data to ensure your policies are the best they can be.

What's happening in your industry? Request a Courtesy Benchmark report

At GMS, we make it a priority to know how talent mobility is changing in each major industry. What are the best practices? How are other companies changing their programs to retain a competitive edge? Your Mobility Pro will be in touch within 1 business day to help answer your questions and benchmark your industry.

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Reviewing Common Relocation Costs

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What Employers and Employees Should Expect

Employee relocation is a strategic investment that supports business growth, talent development, and workforce flexibility. Whether relocating an employee domestically or internationally, understanding the full scope of relocation costs is essential for employers and employees alike. Reviewing common relocation costs helps organizations create realistic budgets, design effective mobility policies, and deliver a positive relocation experience.

Housing and Pre-Move Expenses

One of the most significant cost areas in a relocation program involves pre-move and housing-related expenses. For homeowners, this often includes real estate commissions, home marketing costs, appraisals, inspections, and potential loss-on-sale assistance if market conditions are unfavorable. Employees may also require temporary housing while their home is listed or while searching for a new residence. Renters can incur expenses such as lease break penalties or forfeited security deposits, which are often addressed within corporate relocation policies.

Household Goods and Moving Costs

Household goods transportation is another significant relocation cost and one that directly affects the employee experience. This typically covers professional packing and unpacking services, loading and transportation, and final delivery of household items. In some cases, short-term or long-term storage is required if there is a gap between move-out and move-in dates. The overall cost of moving household goods is influenced by distance, shipment weight, timing, and service level, making vendor management a critical component of cost control.

Temporary Living and Housing Support

Temporary living expenses are often needed when employees cannot move directly into permanent housing. These costs may include furnished accommodations, utilities, and, in some cases, daily living allowances. Temporary housing is essential in high-demand or competitive real estate markets, where securing a home can take longer than anticipated. While temporary living increases short-term costs, it provides stability and reduces stress for relocating employees.

Travel and Transportation Expenses

Travel and transportation costs also factor into most relocation budgets. These expenses generally include airfare or mileage reimbursement, lodging during travel days, and meal allowances. Some relocation programs also cover a pre-move house-hunting trip to help employees make informed housing decisions. Establishing clear guidelines around travel benefits helps organizations manage costs while supporting employee needs.

Destination Services and Onboarding Support

Destination services play a critical role in helping employees transition successfully into their new location. These services often include area orientation, rental or home-finding assistance, school search support, and help navigating local resources. While destination services add to overall relocation costs, they frequently shorten adjustment timelines, improve employee satisfaction, and reduce the risk of assignment failure.

Tax Assistance and Compliance Considerations

Tax assistance is another commonly overlooked but important relocation cost. Many relocation benefits are considered taxable income, which can create unexpected financial burdens for employees. To address this, employers may offer tax gross-ups or year-end tax reconciliation services to offset the impact. Although tax assistance increases employer spend, it supports fairness, transparency, and compliance within relocation programs.

Relocation Program Administration and Management

Administrative and program management costs are essential to a well-run mobility program. These include policy development, vendor coordination, compliance oversight, and employee counseling. Partnering with a relocation management company allows organizations to centralize these functions, improve visibility into spending, and ensure a consistent employee experience across all relocations.

Building a Cost-Effective Relocation Strategy

Reviewing common relocation costs enables organizations to make informed decisions, control expenses, and support employee success. With the right strategy and expert guidance, relocation can be both cost-effective and impactful. At GMS, we help organizations design mobility programs that balance financial responsibility with an exceptional relocation experience.

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Maximizing Your Relocation Package: Essential Considerations for Assignees

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How to make sure you’re not leaving relocation benefits on the table

Relocating for work can be an exciting yet challenging journey. As companies increasingly offer lump sum payments to facilitate employee relocations, assignees need to plan and strategize to make the most out of these funds. If you’ve just received a lump sum for your move, here’s a comprehensive guide on what to consider to maximize your budget without sacrificing time and quality service.

Work with an RMC to Create a Relocation Plan

The first step in ensuring a successful move is developing a detailed plan. As each relocation is different, consider your family’s unique needs. Working with a relocation management company (RMC) can help get you on the right track. Many RMCs will assign moving employees a relocation coach, who can help outline a plan—but getting ready for the move on behalf of you and your family, ask yourself:

  • Housing Needs: Will you need to break a lease, pay security deposits, or cover home sale/purchase costs? Understand the local housing market to make informed decisions.
  • Final Move Costs: Factor in expenses related to your final move, including transportation (driving or flying), meals, and accommodation during transit. These costs can add up quickly if not accounted for early on.
  • Relocation Tax Implications: Be aware that lump sum payments may be taxable. Consulting a tax professional can help you understand how these funds will impact your overall tax situation.
  • Time Considerations: Planning your moving arrangements can be time-consuming. Be realistic about how much time you can devote to organizing your move while balancing work and personal commitments.

Make a Detailed Budget

Creating a comprehensive budget is essential once you have a plan in place. Outline all anticipated expenses related to your move, ensuring you include:

  • Moving Supplies: Boxes, tape, and other packing materials.
  • Transportation Costs: Fuel, flights, or vehicle rental.
  • Temporary Housing: Costs related to short-term rentals or hotels.
  • Miscellaneous Expenses: These include utility connection fees and pet care.

Establishing a detailed budget can help you track your spending better and identify areas where you can cut costs without compromising quality.

Optimize Your Shipment

When shipping your belongings, consider using a full-pack shipment managed by a Global Mobility Solutions (GMS) provider. Here’s why:

  • Expert Support: A GMS provider offers professional packing and handling, ensuring your belongings are safeguarded throughout the move. In the event of damages or losses, having professional assistance can be invaluable.
  • Reducing Shipment Costs: While saving money by managing your shipment independently may be tempting, a GMS provider often has established relationships with shipping companies, leading to better rates and less hassle.

Leverage a Destination Services Provider (DSP)

A Destination Services Provider (DSP) can be an indispensable asset during relocation. Here’s how they help:

  • Local Expertise: A DSP offers insights into the local area, helping you find suitable housing, schools, and amenities tailored to your family’s needs.
  • Advocacy Upon Arrival: It is crucial to have a local advocate. They can navigate challenges, ensuring a smoother transition into your new community.

Plan for Budget Holds

As you prepare your budget, consider including budget holds for unexpected expenses. Here are some common areas where extra funds might be necessary:

  • Customs Fees: If you’re relocating internationally, customs can be a significant expense.
  • Shuttles and Logistics: Don’t overlook transportation from the airport or rental car services.
  • Unexpected Carry Costs: If your new home isn’t easily accessible, you may incur additional costs for moving your belongings from the moving truck to your new residence.

By anticipating these potential costs, you can avoid the stress of overspending or being caught off guard.

Weigh Temporary Housing vs. Airbnb

Finally, when considering where to stay during your transition, weigh the pros and cons of temporary housing versus Airbnb.

  • Temporary Housing: Often offers more space and amenities, making it a comfortable choice for families. However, it may come at a higher cost and involve longer-term commitments.
  • Airbnb: Provides flexibility and can be a more economical option. Still, consider the trade-offs regarding space and amenities, especially if you’re moving with a family or pets.

GMS Gets Employees from Point A to Point B

Relocating with a lump sum requires thoughtful planning and budgeting. You can maximize your lump sum by creating a comprehensive relocation plan, making a detailed budget, and utilizing the resources available to you, such as GMS. Always think ahead to account for unexpected costs and weigh your temporary housing options wisely. With careful consideration, you can ensure a smooth transition into your new home without compromising the quality of your relocation experience. 

Work with GMS to create comprehensive relocation packages. These packages can be tailored to meet your specific needs, whether you require assistance with finding a new home, settling into a new community, or managing the logistics of the move itself. GMS offers various services, including home search assistance, school search support, and cultural training for those relocating to a new country.

Remember, relocating is not just about moving your belongings; it’s about starting a new chapter in your life. Embrace the change, and don’t hesitate to seek support from friends, family, or professionals during this time. With the correct planning and resources, you can turn what may seem daunting into an exciting opportunity for growth and adventure.

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.

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Lump Sum Relocation Packages: What are the Advantages? What are the Disadvantages?

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What are lump sum relocation packages?

Global Mobility Solutions recently surveyed its clients to determine the impact of lump sum relocation packages on their organizations. Industry trends arising this year are having a direct effect on transferees. Often, these trends become visible through business intelligence and data analytics.

Lump sum relocation packages are a specific amount of money that employers offer to transferees or new hires. This money replaces relocation benefits such as household goods moves, culture and language training, or home-finding assistance. Employers expect employees to receive a lump sum payment to manage their relocation process.

Advantages of Lump Sum Relocation Packages

The advantages of lump sum relocation packages relate to helping employers simplify the process. The main benefit is that employers and their mobility managers have fewer complications around relocation support. Providing support during an employee’s relocation is reduced to answering questions about when the lump sum funds will be available. Additionally, lump sum packages allow employees greater flexibility in how they choose to spend the money. Instead of being tied to specific services, employees can allocate funds according to their unique needs and preferences. For instance, some may prioritize hiring professional movers, while others might opt for temporary housing or travel expenses. This autonomy can lead to a more personalized and satisfying relocation experience.

Lump sum packages also encourage employees to take responsibility for their relocation. With a set amount of money, employees must plan and budget their expenses wisely. This can foster a sense of ownership over the relocation process as they make decisions that best suit their circumstances. It can also lead to more thoughtful planning as employees weigh the pros and cons of different options.

Budgeting and Forecasting

Another simplification for employers revolves around budgeting and forecasting. Instead of working to understand the actual costs of hiring new employees or transferring employees from one location to another, the budget process is tied to a number that is applied across the board based on tiers in the relocation program. An executive homeowner with a family relocating from Duluth, MN, to New York, NY, is given the same lump sum payment as another executive renter relocating from Las Vegas, NV, to Fort Wayne, IN. The renter will pocket a significant amount of money. However, the homeowner will not have enough funds to move their family.

Disadvantages of Lump Sum Relocation Packages

Lump-sum relocation packages make administration and budgeting more accessible for employers. However, there are several disadvantages employers are beginning to see in their organizations. First among these disadvantages is that many lump sum payments do not adequately cover all of an employee’s relocation costs. GMS’ 2019 Lump Sum Survey shows that employees spend more, sometimes significantly more, on their relocation than their lump sum payment. This includes:

  • 61 % of homeowners reported spending more
  • 50% of renters reported spending more

Employee Dissatisfaction

Ultimately, more than half of relocating employees need more lump sum cash to cover expenses. Naturally, this results in a higher level of dissatisfaction with the organization’s lump-sum relocation packages. Overall, dissatisfaction with lump sum payments follows these patterns:

  • 58% of homeowners reporting dissatisfaction
  • 53% of renters reporting dissatisfaction

Loss of Control

A significant disadvantage is the employer’s loss of control over spending budget dollars. Lump sum relocation packages disbursed directly to employees may result in company funds being spent on non-relocation expenses, including cars, televisions, vacations, or other items. Funds spent on non-relocation costs do not support the successful relocation of the employee. As a result, the relocation may be at a higher risk of failure. 

Additionally, this lack of oversight can lead to inconsistencies in how employees utilize their relocation funds. Some may prioritize essential moving expenses, such as hiring professional movers or securing temporary housing, while others might allocate their budgets toward personal indulgences. This disparity can create a sense of inequity among employees, as those who spend wisely may still face challenges in their relocation process. In contrast, others may find themselves financially comfortable but unprepared for the logistical aspects of moving.


Moreover, the unpredictability of lump-sum payments can complicate the relocation experience. Employees may underestimate the true costs associated with moving, leading to financial strain when unexpected expenses arise. For instance, last-minute repairs on a home, increased transportation costs, or the need for additional storage can quickly deplete the funds, leaving employees feeling stressed and unsupported.

To address these issues, organizations might consider offering more structured relocation packages that balance flexibility and support. For example, a tiered approach could allow employees to access funds based on specific needs, prioritizing essential relocation expenses while giving them autonomy over their choices. This way, companies can maintain better control over their budgets while enhancing employee satisfaction and reducing the risk of relocation failure.
Ultimately, a thoughtful approach to relocation packages can foster a more positive employee experience, leading to smoother transitions and greater overall satisfaction with the organization’s support. By recognizing the complexities of relocation and adapting their strategies accordingly, employers can create a win-win situation that benefits both the company and its employees.

Inefficiencies

Many GMS clients achieve significant spending reductions with relocation programs that follow industry best practices. A major GMS client recently conducted an in-depth study of their relocation program expenses. This client learned that if their organization moved to a lump sum program, they might increase their relocation program expenses by 40%. In other words, by following industry best practices, this client keeps relocation budget dollars that otherwise would have been spent on inefficient lump-sum relocation packages. Any GMS client can achieve the same reduction in relocation costs through:

  1. Benchmarking their relocation policy to industry best practices
  2. Efficient relocation program operation
  3. Providing support to transferees that they need
  4. Using business intelligence and data analytics to understand the actual costs of their relocation program
  5. Utilizing a competitive vendor network of relocation service providers

What Does This Mean?

Companies that offer lump sum relocation packages could save a significant amount of budget by following industry best practices. Lump sum payments let employers simplify their internal support, budgeting, and forecasting processes. However, this simplification may cost employers up to 40% or more of their relocation budget. It also results in over half of transferees reporting dissatisfaction with their relocation packages.

What Should Employers Do About Lump Sum Relocation Packages?

Employers with transferees or new hires who are recent college graduates, individual contributors, or new to their professional careers may be the best candidates for lump sum relocation packages. These employees are often renters and may not have a significant amount of household goods to move to a new location. Also, they tend not to require a significant investment in talent acquisition, as they compete for lower-tier positions.

Industry best practice is to provide a range of benefits for employers who have new hires and transferees at higher tiers. Employees at higher tiers often require a significant investment in talent acquisition. Benefits that help ensure successful relocations also result in higher employee satisfaction.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to create relocation policies that attract and retain talent. Our team can help your company provide the best experience for transferees and new hires with lump-sum relocation packages.

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 relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.

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

Contact our experts online to discuss how your company can leverage lump sum relocation packages for new hires and transferees, or call us at 800.617.1904 or 480.922.0700 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.

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Relocation Policy Review

2024 Trends: Top 5 Relocation Policy Risks

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Stay in the know about relocation services

In today’s relocation and talent mobility sector, there is a growing concern about unexpected risks related to relocation policies. These risks cover a range of areas, such as tax implications, cyber security threats, employee well-being, and other essential factors. It is crucial to comprehensively understand these risks and how they could affect your organization’s relocation program.

As organizations navigate the ever-changing landscape of relocation and talent mobility, staying informed about the top risks that could impact your relocation policies is essential. By being aware of potential tax implications, cyber security threats, and employee well-being concerns, you can proactively address these risks and ensure a smooth relocation process for your employees.

One key factor to consider is the impact of tax implications on your relocation policies. Changes in tax laws and regulations can significantly impact the cost of relocating employees and the overall budget for your relocation program. By staying up-to-date on tax laws and seeking guidance from tax experts, you can mitigate the risk of unexpected tax liabilities and ensure compliance with all relevant regulations.

Another substantial risk to consider is cyber security threats. With the increasing reliance on technology for managing relocation programs, organizations are vulnerable to cyber attacks that could compromise sensitive employee data. You can protect your organization and employees from potential data breaches by implementing robust security measures, such as encryption and multi-factor authentication.

Employee well-being is also critical to consider when assessing relocation policy risks. Relocating employees may experience stress, anxiety, and other challenges during relocation, impacting their productivity and overall well-being. By providing support services, such as counseling and relocation assistance, you can help employees navigate relocation challenges and ensure a successful transition to their new location.

In conclusion, understanding and addressing the top risks related to relocation policies is essential for ensuring the success of your organization’s relocation program. By staying informed, implementing security measures, and prioritizing employee well-being, you can mitigate risks and create a positive employee relocation experience.

Top 5 Relocation Policy Risks Your Company is Facing Today

1. “Work from Anywhere” Policy Risks: Possible Looming State Tax Issues

At the start of the pandemic in the US, many companies hastily arranged to allow employees to work from home. While this solution had apparent safety and cost savings benefits, unintended consequences became apparent.

  • Employee Taxes: Many employees living and working across state lines may have additional state tax and reporting obligations.
  • Employer Taxes: Work from Anywhere policies essentially resulted in a corporate relocation, often involving the employee, office equipment, and company records.

While this unforeseen complication is being considered in the courts, companies should examine the impact and implications of this corporate relocation on the employer and the employees. Consideration should be given to the impact on payroll tax withholding and reporting obligations. State tax issues could have ramifications for new hires, transferees, employees suddenly working from home, and employers.

2. Cyber Security Policy Risks: Phishing versus Vishing

Another year, another new cyber threat. With more employees working from home, organizations have faced new security challenges. Vishing is the latest threat, a verbal form of phishing. With vishing, a scammer might masquerade as a computer technician from the company’s IT team and call an employee to inquire about their computer setup. By asking a few critical questions of the unsuspecting employee, the scammer can now suddenly enter the company’s data system.

Understanding the risks that both phishing and vishing present to employees working remotely is important to employers. With some companies now working 100% remotely, employees working remotely should be considered a possible risk for these scams. Robust security policies and training adapted for the new normal should be weighed and implemented.

3. Travel Policy Risks: Guidance, Changes, and Emergencies

The idea that “change is a constant” is easily applied to travel. Travel has become more complicated with new guidance, bans, and updates daily. Frequent changes to travel policies and rules impact companies’ ability to attract talent, relocate employees, and conduct business. The challenges associated with travel are applicable not only internationally but also domestically.

At any point, one state may require something new from travelers arriving from another state. Various borders between countries may be subject to restrictions or closures, generating emergency repatriation requests. Agencies such as the U.S. State Department or the U.S. Centers for Disease Control and Prevention (CDC) might revise previously stated guidelines.

Employers should recognize a duty to provide updated information and guidance for all traveling employees. Correct information and advice will help employees better understand how to travel safely during the pandemic.

4. Immigration Policy Risks: Nearshoring may be an Option

COVID-19 has resulted in border restrictions and closures, which, in turn, impact immigration. However, other efforts in the immigration system further dampen an employer’s ability to hire global talent. One solution is the concept of “nearshoring.”

By leveraging a location in Canada or some other nearby country, a company can hire foreign talent and bring them near to the US. Often, this helps the new hire acclimate to life in North America. Future changes in the immigration system may allow them to enter the US at a later date. Relocation policies should be reviewed, along with consultation with a qualified visa and immigration expert, to account for alternative options such as nearshoring.

5. Health and Safety Compliant Providers: Ensuring Safety Policies are in Place

It should not come as a surprise that, during a global pandemic, companies must ensure enhanced health and safety policies are in place for their employees. All relocation services provided during a move should be analyzed for policy risks to help minimize exposing their employees and families to the dangers of COVID-19.

Top-rated Relocation Management Companies, like Global Mobility Solutions (GMS), regularly work with their supplier networks to ensure the latest guidance from officials (like the CDC) is observed and incorporated into their operations. Appropriate social distancing, regular hand washing, face coverings, and virtual relocation services are vital in protecting our client’s employees and the team members assisting with the relocation.

What Should Companies Do for Relocation Services?

Employers should schedule a relocation policy review with a trusted mobility expert to identify how this article’s top 5 policy risks may affect aspects of their relocation program. By working with an experienced relocation management company, organizations can leverage the mobility provider’s expertise in benchmarking their policies and identifying areas that will reduce the risks of COVID-19 on their relocating employees and their families.

GMS’ team of global relocation experts has helped thousands of organizations understand how to develop relocation policies that provide the best experience for new hires, transferees, and their family members. Our team can help your company understand how to review your relocation policy and address issues relating to the top 5 policy risks outlined above. As a result, your company will be able to remain competitive in its industry. It will also continue to attract the best candidates for job openings.

Contact our experts online to schedule a complimentary relocation policy review, or call us at 800.617.1904 or 480.922.0700 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.

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Family Matters and Career Support for Spouses Impacted by Relocations

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Learn why it’s important to include family and spousal support in relocation assignments

Relocating employees often have questions regarding their children’s education, family healthcare, eldercare, and the job market and career support for their accompanying partner or spouse. Understanding your employee’s needs is essential to their relocation process. By providing valuable resources for transferees and their families, your company can help ensure a successful relocation.

In Worldwide ERC’s report, U.S. Transfer Activity, Policy & Cost Survey, the average cost to relocate a home-owning employee is approximately $79,000. Family concerns about the relocation often make employees reluctant to accept transfer assignments. Reasons include fears about the new location, spouse reluctance to leave their current position, housing market issues, and cost of living differences. There are many actions employers can take to ensure their employees and family members have a positive relocation experience.

Pre-Decision Services

Your company should provide Pre-Decision Services for employees to help them learn about the relocation assignment. Candidate assessments and family pre-decision evaluations help your company determine the employee’s expectations, skills, personal qualities, family situation, and financial readiness for the relocation. Helpful information your company can provide to the employee and their family for their decision-making process includes:

  • Cost of living analysis
  • Market analysis for home sales
  • School reports
  • Moving cost estimates
  • Community searches and tours to familiarize employees and their family members with the new location

Significant benefits to the organization include increased job acceptances, accurate budgets, minimal policy exceptions, and cost savings. Benefits for employees include expert counsel to help understand all their relocation assistance, a dedicated consultant and support services for spouses and partners.

Career Support

Your company should provide career support services to the partners and spouses of relocating employees. An experienced and well-qualified Relocation Management Company (RMC) can provide industry best practices and a relocation benchmarking study for guidance on how to set up your relocation program. Career support should include the following:

  • Comprehensive career assistance that reviews a candidate’s experience, identifies personality type, discusses the importance of corporate culture, develops an application schedule and goals, offers resume review, provides networking and interview preparation, and assists candidates in navigating job listings and online resources.
  • Access to the company’s network of recruiters it uses for its staffing requirements; some Relocation Management Companies (RMCs) can provide access to a larger recruiter than the company’s current in-house program.
  • Partners or spouses may have a small business with unique needs and require specific guidance when relocating their business. Resources for partners or spouses looking to start a new business or relocate an existing company may include market analysis, networking assistance, and introductions to the startup community in the new location.

Family Support

Relocating employees and their family members often deal with several stressful factors and situations as they relocate. Your company can help smooth the process by providing resources to help everyone acclimate to their new location. Relocation programs should include resources for settling into the area, such as:

  • Access to online resources and community networks in the new location
  • Attaining a local driver’s license
  • Child care arrangements
  • Connecting utilities and arranging for installations
  • Interim health insurance coverage
  • Locating a primary care physician in the new location

Let GMS Assist Your Employees and Their Families

Providing a full range of career support and other resources for transferees and their families serves to ensure successful relocations. The corporate relocation experts at Global Mobility Solutions (GMS) have the knowledge and expertise to help your company assess candidates for assignments and provide your employees and their family members with the best relocation experience.

Contact our team of experts to discuss how we can help strengthen your relocation assistance offerings. We will ensure your company stays competitive in job offers with comprehensive relocation packages. Then, we will assist your employees in the most seamless relocation process possible.

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Engage Your Relocation Management Company Early in the Relocation Process

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Learn why it’s essential to work with an RMC every step of the way

Employers should engage their Relocation Management Company (RMC) early in the relocation process. Employers often go to great lengths to define the questions they ask RMCs in their Request for Proposals. Several employees from departments including Human Resources, Accounting, Legal, and Procurement may spend a significant amount of time finding and selecting an RMC with the knowledge and experience that will ultimately serve the needs of the company, transferees, and new hires.

With all of the effort to find an RMC that best matches their requirements, wouldn’t you think employers would actively engage the RMC in their relocation process? Most companies do a good job communicating to their hiring managers and others throughout the organization how to utilize their RMC’s resources. However, even with this communication, the hiring manager or others sometimes do not engage the RMC early in the process. This may lead to several consequences for transferees and new hires.

Actual Case of an Employer That Did Not Engage Early

What happens when employers must engage their RMC early in the relocation process? Global Mobility Solutions’ Senior Vice President of Business Development, Sam Hoey, met a transferee and heard a first-hand account of their experience. Their employer’s hiring manager did not initiate their relocation process promptly, and they were left scrambling to find their own movers, real estate agents, mortgage provider, and temporary housing, all within just a few weeks before the new job start date. As a result, the transferee was stressed and unduly burdened by processes that the company’s RMC could have managed for them with greater ease. Let’s look at a few of these areas in detail to understand better what they entail.

Van Line Delays

The busiest time of the year for relocations is during the summer months. Children are out of school, travel is relatively easy to arrange, and weather delays are minimal. As a result, van lines that move household goods are often hectic during this time. They may have bookings for moves going out four, five, or up to six weeks in advance.

Employers looking to relocate an employee should understand the length of time their RMC needs to arrange to book a move of household goods at van lines, keeping in mind the preferred van lines may already have several weeks of booked moves on their schedules. With enough time, transferees may be able to find their household goods movers.

Real Estate Processes

When a transferee or a new hire receives notice of a job offer that requires them to start work within a few weeks, this gives them little time to make living arrangements. They may have a short time to determine how to proceed in several areas. Here is a list of just a few of the specific points they might need to address before starting their new position:

Specific Points

  • Engaging a real estate agent/company to handle a home sale
  • Selling a home
  • Handling the closing process for the home sale
  • Finding temporary housing
  • Engaging a real estate agent/company to handle a home purchase
  • Finding a new home
  • Obtaining a mortgage, including applications and paperwork
  • Handling the closing process for the home purchase

If you have ever bought or sold a home, had to find an apartment, or sought a mortgage, think of those processes. How long did they take you to complete? These processes often require several steps, including applications, reports, inspections, financial transactions, arranging the services of a notary public, and research to verify the new location meets the needs of everyone who is relocating, such as spouses, partners, children, and pets.

Employers looking to relocate an employee should be aware of the processes their RMC needs to manage to help the employee find suitable housing arrangements. RMCs with experience in these processes are vital to ensuring the success of a relocation, as they help the transferee or new hire in many areas. This, in turn, helps the employee feel happy and confident in their choice to relocate.

What should employers do?

Employers should review their relocation programs to better integrate their RMC into the front end of the relocation process. Helpful tips to ensure the RMC is engaged early in the process include the following:

  1. Implement Pre-Decision Services, so the employer, hiring manager, transferee, and/or new hire are actively engaged with the RMC early in the relocation process, and information can be shared that is helpful to the employee, the employer, and the RMC.
  2. Insert language into offer letters describing the RMC and the programs specific to the transferee or new hire.
  3. Integrate the RMC into Human Resource Information Systems and Talent Management Programs so hiring managers and program administrators always have ready access to information they can share with the transferee or new hire.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees. Our team can help your company by using industry best practices to design your relocation program so that you engage your RMC early in the relocation process.

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

Contact our experts online to discuss your company’s relocation program needs.

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5 Terms to Include in a Competitive Relocation Package

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a young family move into their new home and have pizza for their first meal

Make your relocation offer competitive by including these policies

Every year millions of people move for new jobs. Relocating for your professional career is familiar, but the relocation industry has changed since the Covid-19 pandemic. When it comes to offering relocation packages to employees willing to move for a new position, studies show that employees are more reluctant to move if there is a higher cost of living in their new destination. 

Another factor for employees not wanting to relocate is the start date. Companies often ask employees to be in their new seats within 30 days of signing the offer letter. So, what can companies do to work around these distresses? 

Companies who are asking talent to relocate for a position should look into offering employee relocation packages. These packages help offset the stress of moving by providing financial assistance and corporate housing so that the employee can relocate as seamlessly as possible. 

While every company has different opinions on what should and should not be covered regarding talent mobility, a few basic policies should be included in every relocation package. Here are five terms to make your company’s relocation package appealing to applicants so that they cannot refuse your offer:

1) Real Estate Programs or Lease-Break Assistance

A survey by Worldwide ERC showed that selling a home for less than it is worth is the most expensive part of relocating. When time is limited, employees are often forced to accept a lower sale price or pay a financial penalty for ending a lease. Often, employees are scared they will get stuck paying two mortgages or rent payments for multiple months, which could hurt them financially. 

If companies want a shot at landing top talent for an open position, they will include financial aid coverage for breaking a lease. If the employee can get out of their current rental at little or low cost to them, they are more likely to accept your relocation offer. 

For applicants who are homeowners, offering home sale assistance and home-buying assistance programs in the relocation package would be a massive perk for them. Standard relocation real estate programs include BOV, GPO, or Direct Reimbursement. Each of these programs has different pros and cons. But every moving employee will have different needs, so options can make any offer even more appealing.

2) Moving Expenses

This one may seem too easy to list, but it is essential. Very few people save thousands of dollars regularly if they may have to move unexpectedly. So, if an employee is mulling over your offer, the price of moving may be daunting in the back of their mind. But if your company were to cover or assist in the moving expenses, it could quickly put those thoughts to the rest of the employees. 

There are numerous ways to assist an employee with relocation costs. Most companies go the route of reimbursement programs, but there are packages where the company will handle everything on behalf of the employee so that they do not have to worry about it. Again, each different kind of program will have its pros and cons. 

It’s worth noting that no matter which method your company chooses to use for handling relocation expenses, some relocation technology can help keep spending within a budget.

3) Transportation Costs

Moving can be costly, by car or plane. Visiting the new spot before relocating is necessary to find housing and get to know the area. Relocation packages typically include reimbursements for two or three trips. This can also be a chance for the transferring employee to search potential neighborhoods and schools for their family.

4) Tax Implications

Relocating employees can face an unanticipated problem with taxes concerning relocation benefits. An employer may give a ‘relocation lump sum’ to cover relocation expenses, which is taxed as extra income at the employee’s ordinary tax rate.

Employees with a 25% tax rate will be taxed $2,500 on a $10,000 lump sum. This can be a financial strain, so many companies increase the lump sum to cover taxes.

5) Miscellaneous Expenses

One last suggestion to make a solid offer to a potential candidate is to have a miscellaneous expenses policy in your relocation package. Employees may incur costs when relocating. Ask them what expenses they anticipate and offer assistance to cover them, such as vacation days, spousal income loss, and packing services.

GMS Specializes In All of These Terms and Conditions

Look no further if your company needs help updating or creating employee relocation packages. Global Mobility Solutions (GMS) has been helping companies with their relocation services needs since 1987. Our expert team will listen to your wants and needs, then assist you in putting together the best relocation policies to make all your offers to new employees appealing for them to accept a relocation assignment. We specialize in helping companies provide their employees with the terms mentioned above. 

Reach out to us today to set up a free consultation. Within 24 hours, one of our business development managers will be in touch to get you started on setting up the most competitive relocation package in your industry.

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.

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Cost-Effective Strategies for Managing Employee Relocations

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Young Asian couple or family feeling happy relaxing and play with their cat after moving to new house or apartment.

use these tips to keep relocation costs within budget

It’s no secret that relocating an employee is a costly endeavor. Creating global teams for your business can be highly beneficial. However, you might lose money on the project if you fail to play your cards right. It’s easy to feel overwhelmed with all the expenses you encounter during this process. There is so much to account for when managing employee relocations. Just a few of these things would be: 

  • Moving company expenses
  • Benefits packages
  • Acquiring accommodation
  • International transport (when applicable)
  • HR department bonuses

And the list goes on. However, it’s not all bad news. If you work strategically, you can save on relocation costs while keeping your employees happy when getting them from point A to point B.

Create tiered packages for employee relocations

The first strategy you can use to stay on budget when relocating an employee is creating tiered relocation packages. This means that the benefits package for an entry-level employee who has been with the company for three months should differ from that of an executive. This is a widespread and very effective strategy. Many employers have three or even four relocation benefit packages. You can create additional layers to those categories based on employee productivity.

Secure housing before the move

There are a lot of hidden expenses that come with moving on a whim, from renting out storage for your employee’s items to an indefinite time spent in short-term accommodation. And since using a storage unit isn’t tax deductible for businesses anymore, it’s even more expensive. Securing housing for your employee before moving is an excellent way of managing employee relocations while saving money.

Additionally, one of the most common reasons employees won’t relocate for work is that the move seems too hassle. So, securing everything in advance will not just help you save money; it’ll also help with employee satisfaction.

Introduce expense caps

Introducing expense caps is a great way to ensure your relocation program stays on budget. Expense caps are a great way to ensure no employee abuses their allowance. It’ll prevent surprise expenses from becoming the norm within your relocation program. 

When introducing expense caps, there are two essential factors to keep in mind: 

  1. Permissible exceptions – You should have some leeway in your budget if something goes wrong during your employee’s relocation. If they need to make an unplanned expense that is deemed necessary, you should be able to provide that;
  2. Expense caps should be personalized – It’s important to remember that living expenses differ in different areas. Ensure that your expense caps are calculated with the average cost of living in the area in mind.

Managing employee relocations is not ‘one-size-fits-all’

While offering every employee the same budget, guidelines, and services when managing their relocations may seem much more straightforward at first glance, you’ll quickly realize that it’s not. For example, a young single employee will require very different services than an older married employee with two kids. 

It’s essential to account for the individual needs of every employee you are relocating. Don’t worry if some mistakes come up the first few times. After a while, you’ll learn which services and guidelines are necessary for which group of employees. Ensuring that benefits packages and relocation services are tailored to the needs of your employees will help you save in two main ways: 

  1. You’ll be able to cut out any expenses that aren’t necessary for that worker; 
  2. You won’t be cutting out vital things to your employee. This will help keep morale (and productivity) up.

Other Relocation Costs to Keep in Mind

Conversely, a great option is to secure a fully furnished new home for them. That way, they only need to bring essentials and valuable personal possessions. Some other ways to cut costs on a long-distance move would be: 

  1. Choosing the suitable date – Moving during the off-season (winter and fall) can usually get you lower prices; 
  2. Shopping around – Getting estimates from a few moving companies is a great way to ensure you’re getting the most bang for your buck; 
  3. Compound expenses – If you plan on hiring professional packers in addition to movers, try finding a company that offers both. That way, you can get a deal on both services instead of paying the total price for each.

Ready for the best deal on relocation services?

Global Mobility Solutions (GMS) is your best bet to get a proper quote when it comes to relocation services. First off, all of our service providers are strictly vetted. And second off, we use a multi-bid approach when it comes to hiring vendors for each move. 

Most relocation services companies (RMC) will have a trusted partner vendor they use most of the time. Which is why their prices stay set at what they are. But GMS will get multiple bids from different vendors so that our savings on relocation costs get passed on to you. 

If you’re ready to hear more about how GMS can help save your company money on relocation costs, contact us today to schedule a free consultation.

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