Category: Relocation Programs

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Relocation Best Practices Relocation Management Relocation Policy Review Relocation Programs Relocation Technology

Centralization Advantages: What You Should Know

Companies benchmarking their relocation policies often learn about many centralization advantages that can be obtained by moving away from a decentralized business model for their relocation program. Often a company’s decentralized relocation program develops over time through business mergers and acquisitions. Challenges come to light when a transferee from one location moves to a new location that has different relocation policies.

What are the Challenges of Decentralization?

There are many challenges for companies that follow a decentralized business model for their relocation program. Reporting systems are often inconsistent. Therefore, it is difficult to obtain accurate information on the full scope of the relocation program. Costs are often excessive due to a high number of policy exceptions, use of multiple vendors for the same processes, and in-house costs related to maintaining multiple relocation programs. Since business units, HR teams, and other departments operate independently, lack of ownership hampers progress.

Impact on Employees

These challenges impact the satisfaction of new hires and transferees who are subject to decentralized relocation programs. There may be confusion for employees with currencies, visas and documentation, and reporting requirements. Ultimately, these challenges may reflect back on the company’s reputation among job seekers and other employees approached for relocation opportunities.

What are the Centralization Advantages for Relocation Programs?

Companies that develop a centralized business model for their relocation program gain in many ways. These centralization advantages cover all aspects of relocation, and include:

  • Consistency in operating platforms with robust integration options
  • Cost containment to reduce variation and increase forecasting and predictability
  • Customized billing processes that meet the company’s needs
  • Defined ownership across local, regional, and global entities
  • Global access to courtesy mobility consulting 24/7/365
  • Greater discounts across a streamlined network of vendors along with dual bid savings
  • Reporting capabilities across multiple platforms, anytime, anywhere

What Should Companies do to Obtain Centralization Advantages?

Companies should work with a qualified Relocation Management Company (RMC) that has extensive experience in helping companies obtain centralization advantages for relocation programs. GMS has published a Case Study on Decentralization that describes how a client was able to obtain centralization advantages that led to significant cost savings and greater employee satisfaction.

Companies should ask their RMC a wide range of critical questions to address all of their main concerns. The RMC will help them understand how to obtain centralization advantages for their relocation program. Also, the RMC will help them design their relocation program. As a result, this will help gain the most benefits for the company, new hires, and transferees.

Industry Benchmarking Studies Highlight Centralization Advantages

GMS has also recently published several Industry Benchmarking Studies that will help companies learn whether their relocation program is designed following industry-specific best practices. There are many benefits to a corporate relocation policy benchmarking. For example, employers can learn how they can ensure their competitiveness in their industry to attract and retain talent with the highest level of skills and experience.

Industry best practice is to schedule a relocation program and policy review every 12 to 18 months to ensure your company maintains its competitive position. This review will also help your company learn about how the relocation industry is evolving to meet increased employee demands.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients benchmark their relocation program and obtain significant savings and process improvements through centralization advantages. Our team can help your company understand how to obtain centralization advantages for its relocation program. As a result, your company will be positioned to make a number of improvements to its relocation program as it works to obtain centralization advantages.

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

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

Learn more about the centralization advantages your company can obtain for its relocation program. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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Choosing a Relocation Company Corporate relocation tips Domestic Relocation Tips Global Relocation Tips Household Goods Relocation Policy Review Relocation Programs

Affinity Programs and Relocation: How Your Company Can Benefit

Many companies can benefit by adding affinity programs to their relocation policy. Relocation offers ample opportunities for transferees and new hires to use services. As a result, a robust relocation policy with well-structured affinity programs may provide a revenue stream to help offset administrative costs. Also transferees and new hires may benefit from special programs and discounts offered through these programs.

What are Affinity Programs?

Affinity programs are a structured partnership between businesses that promotes use of a service or purchase of an item. The Association of Chamber of Commerce Executives notes that these programs must provide value and specific price advantages for members in order to be successful.

A typical affinity program may follow the following steps:

  1. Employer enters into an agreement with a business partner
  2. Employer then offers the services to their employees
  3. Employees gain a benefit from using the services (such as discounts on products and services)
  4. Profits attributed to the employee’s use of the service are shared between the employer and the business partner

Employees gain value when they receive exclusive discounts and services in return for their participation. They also gain expert, hands-on guidance of experienced support staff from the business partner. Staff members are ready to help guide affinity program recipients through the process of selecting, ordering, and tracking the various services they desire.

Employers gain from affinity programs in several areas:

  • Revenue stream from profit share
  • Increased employee satisfaction
  • Enhanced goodwill through offering valued services
  • Association with a trusted business partner
  • Seen as an employer of choice among job seekers

What are Typical Affinity Programs in Relocation?

Typical affinity programs in relocation might include profit sharing based on transferee and new hire use of services offered by a Relocation Management Company (RMC). Services that may be eligible might include household goods moves, home selling/buying, mortgages, housing, or travel. These programs can be structured in many ways to meet employer’s needs as well as provide clear and defined value for employees.

Example: Traditional Temporary Housing

For example, transferees may be offered the option of using traditional temporary housing while they search for a home in their new location. If the transferee chooses to use this option, the employer will gain in the form of a profit share.

Importantly, the employer will also gain from having the transferee use housing that meets specific requirements for maintenance, cleanliness, amenities, and security. Transferees are more likely to have a positive experience when they use traditional temporary housing, as opposed to other housing options. This in turn will increase employee satisfaction with their relocation experience.

Many other housing options might initially seem attractive and offer a lower cost, but they may not meet cleanliness standards, and may carry hidden costs and unexpected issues for the transferee.

What Should Employers do About Affinity Programs?

Employers interested in learning more about affinity programs in relocation should work with a Relocation Management Company that has knowledge and expertise with these programs. An experienced RMC can help employers design their relocation policy to provide value for employees while returning many benefits to employers.

GMS offers clients its exclusive MyRelocation® Affinity Program. Through this program, eligible clients are able to gain many valuable benefits for their companies and their employees, where available.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients develop value-added benefits as part of their relocation policies. Our team can help your company determine how to define affinity programs that provide positive returns and valuable benefits for employees.

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

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

Contact our experts online to learn more about how to define affinity programs in your company’s relocation policy, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Relocation Best Practices Relocation Challenges Relocation Policy Review Relocation Programs

Year-End Relocation Expense Reconciliation: How You Should Prepare

Companies with relocation programs should prepare for their year-end relocation expense reconciliation. The relocation program may have several parts that flow into multiple departments and functions such as Accounting, Human Resources, Travel, and Tax. Therefore, thorough preparation is critical to capture all relevant information. Approaching this requirement with sufficient attention to detail will help ensure data accuracy and on-time reporting.

GMS recommends companies follow best practices for their annual reporting processes. There are five steps companies should take to ensure a positive result.

5 Steps to Prepare for a Year-End Relocation Expense Reconciliation 

1. Create a Checklist for the Reconciliation

To start this process, begin writing a checklist. This checklist should include all of the information that accurate reporting requires. The checklist items should include several of the following data points:

  • Compensation data
  • Employees receiving tax filing services (those on the tax eligibility list)
  • Equity
  • Imputed income
  • Salaries/Wages
  • Taxes

Dates that are important for the year-end relocation expense reconciliation should be noted, such as:

  • Early cutoff dates
  • Due dates to receive data
  • Reporting deadline dates
  • Tax filing deadline dates

2. Schedule a Year-End Relocation Expense Reconciliation Preparation Meeting

Be sure to include representatives from all departments that must provide data for the reconciliation. Vacation time and holidays may impact work schedules, especially in the month of December. As a result, schedule this meeting to allow plenty of time for employees to learn what their role in the process is, what is needed from them, and to let them prepare the necessary data for reporting.

This meeting provides an opportunity to communicate expectations, as well as to develop relationships with colleagues who can assist with future year-end relocation expense reconciliation processes.

3. Confirm Data Accuracy

Companies should confirm all of the data that is reported for the reconciliation is accurate. Accurate accounting systems and processes should be in place to confirm data that is shared for the review. This step is absolutely vital to the entire process, as incorrect data could result in errors and additional costs. Data that should be confirmed includes:

  • Addresses
  • Benefits
  • Personal time (sick days)
  • Salaries/Wages
  • Social Security numbers
  • Tax ID numbers
  • Vacation time

Companies should ensure a thorough review of this data. An internal audit accountant might be helpful to confirm the accuracy of this data.

4. Finalize the Data to Prepare for Reporting

This step is to ensure the data includes all final reports through the end of the reporting period. Templates and sheets for the year-end relocation expense reconciliation may include blank lines or empty cells with highlights to note future data entry. For example, final year-end payroll figures may not be known until late December. All of this data should be stored on a server that is secure and continually backed up for easy retrieval if necessary.

5. Submit Reports

Confirm the reporting deadlines for every country that requires a report. Different groups of assignees or transferees may need to be further segregated for specific reporting requirements by tax reporting organizations. Whenever possible, send data early and confirm receipt. Note the final tax payment due dates for the year, and arrange for the payments.

What Does This Mean?

Companies should follow best practices to ensure accurate and on-time reporting for their year-end relocation expense reconciliation. By following best practices to confirm data and important dates, companies can avoid costly errors, expensive rework, and rush projects.

What Should Employers do About Their Year-End Relocation Expense Reconciliation?

Employers planning for their year-end relocation expense reconciliation should work with a qualified and experienced Relocation Management Company (RMC). RMCs will have knowledge that can assist companies in understanding all of the important parts of a reconciliation. They can also share recommendations and guidelines to ensure data verification and timely reporting processes. Companies should request an audit of their year-end relocation expense reconciliation to ensure they have a robust process.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients with reviews of their reconciliation processes. Our team can help your company understand how to design a year-end relocation expense reconciliation that follows industry best practices to ensure data accuracy and on-time reporting.

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.

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 request an audit of your year-end relocation expense reconciliation, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation program audit

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What are the Advantages of Centralization for a Relocation Program?

Many companies do not have a full understanding of the benefits that centralization can provide their relocation program. Larger companies or those that grow with acquisitions are often beset with the many challenges their relocation program presents with its focus on decentralization. While decentralization may be useful for local marketing efforts, when it comes to relocation, there are few advantages.

What is Centralization in a Relocation Program?

In our case study on decentralization, our team of global relocation experts describes centralization for relocation programs. Basically, relocation program centralization means the following:

Global or Corporate Level

  • Develops and manages the relocation program
  • Ensures uniformity
  • Provides guidance for regional and local units

By comparison, decentralization in a relocation program can result in many challenges including high operating costs, inconsistent reporting, and varying policies. As a result, employees often receive different experiences depending on what division or location handles their relocation. Also, the company has virtually no visibility, cost predictability, or tracking methods to ensure policies are effective.

Advantages of Centralization in a Relocation Program

Centralization in a relocation program provides many advantages. Companies and their employee benefit from a program that offers:

Centralization

What Should Employers do?

Companies should engage a qualified Relocation Management Company (RMC) that has knowledge and experience in centralization for relocation programs. Companies should be sure to ask their RMC a wide range of critical questions to ensure all of their main concerns are fully addressed. The RMC will help them understand the advantages of centralization and how to design their relocation program to gain the most benefits for the company and its transferees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients in overcoming the challenges they face with decentralization. As a result, our team can help your company understand how to gain the advantages of centralization for its relocation program.

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

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in centralization for your relocation program, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Relocation Management Relocation Policy Review Relocation Programs

What are the Top 5 Benefits of Managed Cap Relocation Programs?

Managed cap relocation programs provide several benefits for companies and transferees. These programs provide services and allowances up to a specific capped dollar amount. This amount is set by the employer and noted in the company’s relocation policy.

Companies seeking to develop a relocation program often inquire about traditional lump sum programs. However, once they learn about the top 5 benefits of managed cap programs, most companies prefer them over lump sum programs.

What is a Traditional Lump Sum Relocation Program?

A traditional lump sum relocation program is simple in its approach. Basically, an employer provides a relocating employee a specific amount of funds. The relocating employee works with a Relocation Management Company (RMC) to choose services within the parameters of their employer’s relocation policy. As a result, the employer has little involvement in the relocation beyond arranging the funds.

In a traditional lump sum relocation program, a relocating employee must:

  1. Review and choose van lines to move their household goods
  2. Pack their goods, or arrange for packing services
  3. Arrange travel to their new destination
  4. Find and arrange for new housing options
  5. Set up destination services including utilities and internet

What are the Disadvantages of a Traditional Lump Sum Relocation Program?

There are some disadvantages of a traditional lump sum relocation program. First and foremost is the relocating employee’s lack of expertise in making all of the arrangements to facilitate their move. Many people remember times they have moved to a new location, experiencing various challenges along the way. If these experiences are not all favorable, the memory of that experience may alter their perception of their new location, employer, or assignment. Also, any issues that arise may result in delays for the relocating employee to start their new position. If the lump sum amount is paid as a bonus on an employee’s paycheck, the amount will be taxed as income. As a result, this greatly reduces the amount of the relocation benefit to the employee.

Top 5 Benefits of Managed Cap Relocation Programs

Managed cap relocation programs offer several direct benefits for companies and relocating employees. The top 5 benefits of managed cap relocation programs are:

  1. Assists employers with talent acquisition
  2. Enables a strong focus on cost containment and savings
  3. Program administration requires minimal management resources
  4. Quick and easy implementation
  5. Requires limited quality assurance management

What Does This Mean?

Managed cap relocation programs include support services from the RMC. Relocating employees receive policy counseling from experts to help them allocate their relocation funds. The RMC answers employee questions and acts as a guide through their relocation process. Relocating employees in managed cap relocation programs experience fewer budget overages. Also, these employees consistently report higher satisfaction levels than those employees who use traditional lump sum relocation programs.

What Should Employers do Regarding Managed Cap Relocation Programs?

Companies currently looking to implement a lump sum relocation programs should consider implementing managed cap relocation programs. Companies will gain 5 distinct benefits by choosing this type of relocation program instead of a lump sum relocation program. Also, they will experience higher relocating employee satisfaction levels.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients determine the relocation program that is the best fit for their organization and employees. As a result, our team can help your company understand how to gain the 5 benefits of managed cap relocation programs.

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

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in managed cap relocation programs, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Corporate Relocation Corporate relocation tips Relocation Best Practices Relocation Challenges Relocation Management Relocation Programs

What are the Top 5 Points a Company Planning to Relocate Should Consider?

A company planning to relocate is usually doing so for several reasons. Some companies operate through extensive planning processes and may have short term objectives as well as long term objectives. When considering a corporate relocation, companies must examine several major factors that will impact their decision. Sometimes these major factors have been known to the company, especially if they experience challenges in talent acquisition and management.

Major Factors that Lead Corporate Relocation Efforts

1. Quality of life considerations for their employees.

This encompasses a wide variety of issues including housing and tax costs, commuting times, access to social and educational venues, and environmental concerns. Opportunities for spouses and partners are critically important for relocating employees to ensure success. Family matters and career support for spouses should be a part of any corporate relocation initiative.

2. Workforce issues such as being closer to employees with the necessary education and technical skills.

Companies seeking to hire talented employees often prefer to be near a locale that has a large talent pool of viable candidates for job openings and growth opportunities.

3. Upgrading facilities and equipment is an important factor for any company planning to relocate.

Some companies currently operating in outdated facilities may be at a competitive disadvantage. Their competitors may have newer facilities with access to new technology, high-speed communication, and other updated amenities. As such, the company can easily upgrade facilities and equipment during a relocation.

4. Access to new markets is a major factor for corporate relocation.

The ability to reach new clients and gain exposure in a new location can help a company reach corporate objectives quickly and successfully. In some cases, a corporate headquarters move is made to provide greater access to capital and financial decision makers. Many large companies have facilities in various locations to gain unique advantages specific to those areas.

5. Cost considerations may be a factor in some corporate relocations.

Many companies take the cost of a location into account. They want to assure continued success as they respond to rising costs and increasing competition

Once a company planning to relocate reaches a decision, there are many points to consider. As it plans for a corporate relocation, a company should consider each point to ensure it is fully aware of potential issues, plans are in place, and preparations are sufficient to ensure a smooth relocation experience.

Top 5 Points a Company Planning to Relocate Should Consider

1. A project team should be in place to plan the relocation.

There are many aspects to consider. Several elements in corporate relocation may take a considerable amount of time for review, discussion, and formulation of plans. Companies considering a corporate relocation should have a written plan. Also, they should review this plan for accuracy to ensure it meets stringent corporate, customer, legal, and operational requirements. Important consideration should be given to the relocation budget. Companies should be fully aware of all the costs their corporate relocation will incur.

2. Contingency planning should be an integral part of a company’s corporate relocation plan.

Outside factors such as weather may severely impact the ability to move people and equipment in a timely manner. For each contingency, companies should identify a proper protocol to ensure the relocation goes back on track as soon as possible.

3. Disruptions may occur.

Proper planning should include a review of backup systems for information networks, customer communications, and employee outreach. In all cases, everyone should have a way to contact the company to ensure business remains ongoing during the relocation.

4. Technology systems are usually the most critical component for a company to consider during a relocation.

Connectivity, security, adequacy of backups, and ability to restore systems should be reviewed to ensure full compliance with corporation needs, customer requirements, and business continuity plans.

5. Communication is a key point for any company planning to relocate.

A company planning to relocate must ensure employees, customers, vendors, and others receive information about the move. Often this is a good opportunity for positive Public Relations (PR) efforts that can highlight the corporate relocation’s benefits in many ways, while giving the company greater exposure to tout their growth and initiatives. Companies should consider the audiences that will receive their message. They should also determine how they will express the traditional PR messages of who, what, where, how, and when.

What Should a Company Planning to Relocate do?

A company planning to relocate should identify all of the factors leading to the corporate relocation decision. Also, the company should consider all of the Top 5 Points that may impact the relocation. Companies considering a corporate relocation should work with a qualified Relocation Management Company (RMC) that has knowledge and expertise in all of the planning and processes inherent to relocation. Corporate relocation experts provide valuable insight. As a result, they can help a company’s corporate relocation process run smoothly, quickly, and with the least amount of disruptions. Engaging a Relocation Management Company early in the process will ensure a company has a knowledgeable partner that can guide them through all phases of the corporate relocation.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop plans and processes to ensure a successful and efficient corporate relocation. As a result, our team can help your company planning to relocate understand how to proceed with a corporate relocation. This will keep your company operating at top capacity before, during, and after the relocation.

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

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

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

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Home Purchase Relocation Programs

7 Helpful Tips for Transferees to Prepare for a Relocation Property Assessment

Many of Global Mobility Solutions’ clients have transferees who may be participating in a home sale program as part of their relocation package and will require a Relocation Property Assessment. This Assessment is designed to provide helpful information for the client regarding the home’s condition. While not labeled as a home inspection, the Assessment entails a full review of the home by a professional who is fully qualified to perform the Assessment.

GMS spoke with Mark A. Gronke, Vice President at Fidelity Residential Solutions who agreed to share his advice and guidance on this topic.

How Should a Transferee Prepare for a Relocation Property Assessment?

According to Mark A. Gronke, Fidelity Inspection & Consulting Services provides seven helpful tips and recommendations for transferees to follow. These recommendations will allow the Relocation Property Assessment process to proceed in a quick and efficient manner. Prior to the Assessment, transferees should ensure the following:

Ensure Everything is in Working Order 

  1. Check fixtures and lightbulbs to ensure all are in working order.
  1. All utilities must be on for the Assessment, including any pilot lights for natural gas-fed appliances such as water heaters, stoves, and clothes dryers. Check appliances to ensure all are in working order.
  1. Consider servicing all furnaces and air conditioners prior to the Assessment. This will ensure these systems are in working order and may provide a written statement regarding system function.

Compile Records of Repairs

  1. Compile records and evidence for all repairs completed by qualified professionals and technicians. If desired, provide this information to the professional who is conducting the Assessment before it begins.

Provide Clear and Direct Access

  1. Provide clear and direct access to the home’s water heater, air conditioner, furnace, and electrical panels. If you store boxes and other items nearby, move them away so the professional conducting the Relocation Property Assessment can easily reach these areas and appliances.
  1. Ensure the professional conducting the Assessment has three-to-four feet of open space from all garage walls and all foundation walls. This will let them see electrical outlets and the condition of the walls and finishes. Be sure to clear boxes and furniture from storage areas, under any staircases, and crawl spaces. All of these areas should allow clear access during the Assessment.
  1. Remove leaves and snow, and clear away shrubs and brush along the exterior foundation of the home. Any wood piles, trash cans, or bins kept along the side of a home should be moved away from the home’s perimeter.

What Should Employers Expect?

Employers should expect that transferees who may be part of a home sale program understand their responsibilities to ensure clear and direct access to their home for the professional conducting the Assessment. The client for the Relocation Property Assessment is the employer, and they will receive the Assessment from the professional. Employers should understand that the Relocation Property Assessment is not a Home Inspection Report.

What Should Employers do?

Employers should communicate guidance for their transferees on how to prepare for a Relocation Property Assessment. Employers should work with their Relocation Management Company to understand the Assessment and how it relates to the home sale program.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their Relocation Property Assessments. We can help your company understand how a Relocation Property Assessment relates to your company’s home sale program.

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

Request your complimentary relocation policy review

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Relocation Policy Review Relocation Programs Relocation Technology

Top 5 Reasons Why You Should Benchmark Your Relocation Policy

Young businesswoman giving presentation on future plans to her colleagues at office

Industry best practice shows employers should benchmark their relocation policy every 12 to 18 months to ensure your company remains competitive with your industry peers. A thorough benchmark will also help you learn about how the relocation industry is changing to reflect higher employee expectations for relocations.

As an employer, are you confident that every internal stakeholder in your company understands the importance of your relocation policy? Do you think they understand how it relates to their functional discipline? Most employers understand their relocation policy impacts several departments. As the competitive landscape changes in their industry as well as in the relocation industry, the importance of why employers should benchmark their relocation policy becomes increasingly clear.

Top 5 Reasons You Should Benchmark Your Relocation Policy:

1. You Should Benchmark to Identify Enhancements and Cost Savings

Reviewing industry best practices can show areas where your company can save costs or enhance your relocation policy to reduce costly exceptions. Learning about new and changing regulations can help your company avoid costs that may arise from immigration, legal, or tax issues. A thorough benchmark will identify technological enhancements that may be useful for communications, processes, or cost savings.

2. Align Corporate Mobility Objectives on a Global Basis

Many companies have operations spread around the world. This may lead to significant differences in relocation policies and implementations. Employers should benchmark their relocation policy to identify such differences. They should also work to align all areas to a consistent policy that fully supports corporate objectives regardless of location.

3. Understand Your Industry’s Competitive Relocation Landscape

Most of your industry peers also have relocation policies they use to attract and retain new hires and transferees. Employers should benchmark their relocation policy to identify how their industry competitors are designing their relocation policies. With this information, employers can then design a relocation policy that ensures they remain competitive and will be able to attract highly skilled talent.

4. Learn About Relocation Innovations

Technology is useful for informing and engaging employees throughout their relocation process. It also increases the speed of communications and provides valuable information and assistance. Technology can help transferees receive reimbursements in a timely manner. Employers should benchmark their relocation policy to help them learn about new ideas and innovative solutions to employee relocation issues.

5. Increase Internal Stakeholder Knowledge on Why You Should Benchmark

At most companies, several departments interact with the relocation process. Internal stakeholders from finance, procurement, and legal can learn how transferees interact with each department, what their needs are, and what the best practices are related to their discipline. Employers should benchmark their relocation policy and include internal stakeholders in the process. This will ensure their understanding of relocation policy guidelines. Also, it will help provide transferees with a smooth and easy relocation process as they interact with diverse internal stakeholders.

What Should Employers Do?

Employers should benchmark their relocation policy with a knowledgeable Relocation Management Company (RMC). The policy benchmark should include a full assessment of the company’s current policy as well as corporate objectives. This allows the RMC to benchmark the relocation policy to industry best practices. As a result, the RMC will be able to present a full complement of recommendations to ensure the employer can implement relocation policy best practices. This will also help them maintain a competitive edge in their industry.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand why they should benchmark their relocation policy. We can help your company understand how to create a relocation policy that reflects industry best practices. As a result, this will ensure the policy attracts highly skilled new hires and transferees.

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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Choosing a Relocation Company Relocation Best Practices Relocation Management Relocation Policy Review Relocation Programs

Does Your Relocation Management Company Have a Business Continuity Plan?

Does Your Relocation Management Company Have a Business Continuity Plan?

Your company may have a Business Continuity Plan (BCP) in place. This will ensure your organization can continue operating during an unplanned event. Many companies go to great lengths to ensure essential business functions continue regardless of what kind of disruption may occur.

Do you know if your Relocation Management Company (RMC) has a similar document to ensure they can provide essential services? RMCs should have a BCP so they can assure their clients that relocation services will continue during any possible situation that could cause disruptions.

What Situations Might Cause a Disruption for Your RMC?

It is impossible to list every possible disruption that your RMC may encounter. However, a few specific situations illustrate the importance of ensuring your RMC can continue operations according to their Business Continuity Plan.

Weather

Relocations often are subject to adverse weather conditions. Household goods shipments as well as travel plans may face delays due to severe storms such as hurricanes, blizzards, and ice storms. Severe weather can cause destruction of transportation networks and storage facilities. In 2017, the United States endured 16 destructive weather and climate events that each caused over a billion dollars of damage, including floods, hurricanes, and tornadoes.

Human Error

Any business is subject to human error. However well-intentioned, simple mistakes could cause significant issues for transferees, new hires, and your company. Your RMC should have sufficiently secure processes and systems in their Business Continuity Plan to prevent human error from causing huge and costly issues for your business.

Cyber-Attack

A cyber-attack is when one or more computers launch an attack against another computer, several computers, or an entire computer network. The goal may be to disrupt service. Alternatively, the goal may be to gain information. Your RMC will likely have access to some of your company and transferee’s data. As a result, their BCP should include plans regarding the impact of cyber-attacks.

What Should Your RMC Include in Their Business Continuity Plan?

Every BCP should include basic information that tells the RMC what the plan includes, and how to implement the plan. Major points to look for:

  1. Contact information for the organization and employees who will implement the BCP
  2. Revision and change management for the BCP
  3. Business Continuity Plan purpose and scope of the plan
  4. Specific instances that indicate when users should activate the BCP
  5. Emergency organizations including contacts and responsibilities
  6. Information on insurance and other policies
  7. Procedures with detail so users have guidelines for how they should proceed
  8. Clear diagrams to show how the business will proceed
  9. Helpful checklists to remind Business Continuity Plan users what they should do
  10. Plan for reviewing, testing, and revising the BCP on a regular basis

What Should Your Company Do?

Your company should contact your RMC and ask for their Business Continuity Plan. Be sure the plan covers all of the major points noted herein. The plan should have details regarding continuity in the face of unplanned events regarding weather, human error, cyber-attacks, and other issues including supplier work stoppages, security concerns, and natural disasters.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients understand the importance of ensuring their RMC has a detailed Business Continuity Plan. We can help your company understand what should be included in a BCP. With this knowledge, you and your transferees can have confidence that relocation services will not face disruption.

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.

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

Request your complimentary relocation policy review

Categories
Buy a Home Corporate relocation tips Domestic Relocation Tips Domestic Relocation Trends Global Relocation Tips Global Relocation Trends Home Purchase Relocation Policy Review Relocation Programs

Why Companies Should Encourage Transferees to Buy Instead of Rent

Happy couple in front of their new home
Shot of a happy young couple holding the keys to their new home

Why should your company encourage transferees to buy instead of rent? Our team of global relocation experts review thousands of relocation policies on a regular basis. We work with our clients to incorporate best practices, so they can gain a competitive edge with their relocation policies and attract the highest caliber of talent.

Consistently, many relocation policies have not offered home purchase benefits to current renters. Instead, current renters received benefits that directed them to remain as renters. Recent consultation with several clients provides new insight into this practice.

Many clients are now offering home purchase benefits to current renters, to encourage transferees to buy instead of rent. This trend is increasing, as clients are learning that home purchase benefits for current renters return several benefits back to the client in terms of employee retention. As we examine this trend, a new best practice is appearing in relocation policies.

There are 7 distinct benefits for clients when they encourage transferees to buy instead of rent:

1. Transferees establish strong roots in a neighborhood and community.

Think of the time you may have taken a job and moved to a new location. You may have spent time finding a new home and exploring neighborhoods. Your family members may have expressed what was important for their needs as well. Factors may include nearby schools, or amenities like parks and shopping centers.

Each facet of a community becomes a part of a transferee’s life. As a result, those who put down strong roots by establishing home ownership are more likely to remain committed to their neighborhood, their city, and their employer.

2. Transferees can personalize a home so they can settle in comfortably, so encourage transferees to buy.

Transferees who buy can easily personalize a home to meet their distinct preferences. Everything from painting their front door to match a favorite color to decorating interior spaces to their liking can lead to greater transferee satisfaction with their living arrangements. Satisfaction with their home is more likely to lead transferees to feel satisfied with their relocation as well.

Renters, on the other hand, often are limited to moving into an apartment, and cannot easily customize the space. Even if they do some customization such as interior painting, they often must return the apartment to its original condition if they were to vacate. Renters face a strong disincentive when it comes to personalizing their living space. Living in a space they cannot personalize often makes renters feel as if they are nomads. The end of their lease is already defined, which seems to put a mark on their time in a specific location. This may lead transferees to believe they can easily move to another apartment, or another position.

Corporate talent acquisition should work in tandem with employee retention so relocation policies offer home purchase benefits. This will help encourage transferees to feel as if their relocation is permanent, and not a temporary state.

3. Monthly mortgage costs are consistent year to year, while rents can increase dramatically.

One of the benefits to buying a home versus renting is the stability of mortgage payments. Monthly costs for a mortgage tend to be consistent year to year, defined by the terms of the mortgage upfront. As a result, this allows buyers to know their monthly housing costs and provides for better budgeting and financial planning.

Renters could face a rent increase as soon as their lease expires. There are many reasons why landlords would increase rent, including higher property taxes, inflation, or higher building maintenance costs. They might just want to make more money, and if demand for rentals in the area is high, then rent increases are easy to implement because those who move are easily replaced with other renters. Increases in rent could be exceptionally high. Therefore, renters need to make a decision on a regular basis if they want to absorb the cost of the rent increase, or take on the additional expense of searching for a new rental, and paying to move their belongings.

Overall, transferees who rent often are subject to somewhat volatile conditions that can impair their job performance. If they must worry about their housing options in the face of rent increases on a regular basis, transferees certainly cannot easily focus on corporate objectives.

4. Home mortgages are similar to saving plans and investments, and owners can more easily move up to a larger home at a later date.

There are numerous benefits to home ownership, and transferees can gain greater satisfaction with their relocation with home purchase benefits. Home ownership lets transferees build financial equity, and a home is an investment that will increase over time. Homeowners have tax benefits they can claim as well. Mortgage interest, property taxes, and other items may provide tax deductions on an annual basis. As a home gains value over time, and as the homeowner builds greater equity each year as their mortgage balance declines, homeowners have a built-in savings and investment vehicle in real estate they can use in the future.

Employers benefit if they encourage transferees to buy instead of rent by reinforcing the high value homeownership returns to the transferee, cementing their interest in staying in a location.

5. In many markets, rentals are extremely competitive to secure and the costs exceed homeownership. Security deposits can often exceed a home purchase down payment.

Brooklyn

Several markets have seen the cost of rentals rise far beyond the cost of homeownership. A recent example can be found in Brooklyn, New York. A three bedroom, one bathroom apartment at 378 Grand Avenue is listed on Zillow at $3,900 per month (not including renter’s insurance costs).

A house located at 575 Jerome Street with five bedrooms and two bathrooms is listed for $599,000. Using a mortgage calculator, over a 30 year time period at a rate of 3.92%, with a mortgage balance of $575,000, taxes of $6,000, insurance of $1,500, and Private Mortgage Insurance (PMI) of 0.5%, the monthly mortgage costs for the house are $3,583.27.

In Brooklyn, a renter at 378 Grand Avenue can get a receipt for the rent they pay each month. Also, they may face a rent increase at the end of their lease. A homeowner can get more space, tax benefits, and an equity-building investment vehicle with a home on Jerome Street. It is easy to see how offering home purchase benefits can help transferees feel more satisfaction with their relocation.

Denver

Another recent example can be found in Denver, Colorado. A three bedroom, three bathroom apartment at 2590 Welton Street is listed on Zillow at $3,855 per month (not including renter’s insurance costs). A house located at 90 N. Lincoln Street with three bedrooms and two bathrooms lists for $610,000. Using similar parameters as the other example, with a mortgage balance of $585,559, taxes of $6,000, insurance costs of $1,500, and PMI of 0.5%, the monthly mortgage costs for the house are $3,637.59

6. If a transferee does not commit to their new community, they often view their opportunity as a job and not as a career.

Companies go to great lengths to acquire highly skilled talent. Often companies design relocation packages to highlight the benefits of an employment opportunity, to encourage prospects to accept job offers. In reality, it is in the company’s best interest to have the transferee think of the opportunity as a career offer. Finding and acquiring talent can be challenging.

Companies should have a career plan for the new hire, so they view the opportunity as a career, not as a job. This perception helps transferees commit to staying with their employer. Home purchase benefits let transferees commit to staying in their new community. Transferees that commit to their community are more likely to commit to their career.

7. A transferee who buys is more committed than a transferee who rents. Also, if a client offers home purchase benefits, then the employee knows the company is more committed to the employee.

A company can reinforce employee retention by showing employees they commit to them and their future. Employers should encourage transferees to buy instead of rent. This sends the message that the company wants the transferee to stay. If a company gives the impression to a transferee that they are temporary by only providing rental assistance, the transferee will get that message and feel as if they are a temporary employee.

Employers that give the impression to the transferee that they want them to join their company and their community by putting down roots and buying a home, will have transferees who believe they are part of the company’s future. In talent acquisition and employee retention, the message from the company should always be one of acceptance, inclusion, and permanence. Acquiring highly skilled talent is a difficult challenge. Companies that are successful in this endeavor should make employee retention efforts even more successful by offering home purchase benefits to transferees.

Rent Versus Buy Calculator Will Help Encourage Transferees 

Global Mobility Solutions has a wide range of online tools and resources for clients and transferees. GMS’ Rent Versus Buy Calculator is an easy to use, step-by-step program. This program compares the cost of renting versus the cost of buying a home. Employers that encourage transferees to buy instead of rent can use this online tool to encourage homeownership. This in turn helps the transferee make the decision to buy in their new community. This decision will help the transferee feel like a part of the company. As a result, they will be more willing to stay with the company on a long term basis.

What Should Employers do to Encourage Transferees to Buy Instead of Rent?

Employers should work with an RMC that has the qualifications, knowledge, and experience to ensure their relocation policies provide home purchase benefits to transferees who are current renters. As a result, this will promote stronger employee retention as transferees put down roots in communities and gain greater satisfaction with their relocation.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients design relocation policies that reflect best practices to promote employee retention. We can help your company understand how to leverage home purchase benefits for current renters to encourage transferees to buy and help ensure successful relocations.

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

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

Request your complimentary relocation policy review

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