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Learn how offering relocation benefits can help hire top talent
It’s no secret that your company must set itself apart from the competition if you want top talent for job openings. What factors can put your company above the rest when hiring for vacant positions? Offering relocation benefits to those who have to move for the job could be a great way to lure top talent. But just how much does the offering of global relocation packages help persuade candidates to your side? Korn Ferry’s study “Global Talent Crunch” highlights the skilled talent shortage impacting countries and specific industries worldwide. Many countries are already facing a skilled talent shortage across several industries. The study examines the talent shortage issue across twenty major developed and developing countries, including:
Americas: Brazil, Mexico, United States
EMEA: France, Germany, Netherlands, Russia, Saudi Arabia, South Africa, United Arab Emirates, United Kingdom
Asia Pacific: Australia, China, India, Indonesia, Japan, Malaysia, Singapore, Thailand
Which industries are most at risk due to talent shortage?
The financial and business services industries are the most at risk due to talent shortage. According to the study, these industries could be facing a shortage of nearly 11 million workers by 2030, with about $1.3 trillion negative impact. Across the globe, technological advancement is at risk due to a skilled talent shortage of over 4 million Technology, Media, and Telecommunications (TMT) workers by 2030. Additionally, manufacturing will have a surplus of workers through 2023, quickly becoming a skilled talent shortage of nearly 8 million workers by 2030.
Which countries are most at risk due to talent shortage?
The greatest vulnerability to talent scarcity lies in advanced nations. France and Germany in Europe and Japan in Asia encounter the highest levels of risk. The United States and Australia also confront a significant deficit in skilled personnel, with the US anticipating a staggering loss of approximately $1.8 trillion in yearly earnings by 2030. Conversely, India stands alone among the countries examined, as it remains in possession of an excess of skilled talent until 2030.
What should employers expect?
Employers should expect to find it increasingly difficult to recruit and hire in several countries and industries. Those with plans to expand into new markets should consider this as they develop their hiring plans and corporate objectives.
Employers finding difficulties hiring and recruiting for positions in specific countries and industries should consider highlighting their relocation program’s benefits in their recruiting materials. The healthcare industry has been facing a critical talent shortage for several years. Healthcare employers have responded in several ways, including:
Providing Exceptional Candidate Experiences
Using Data to Enhance Recruiting
Recruiting for Cultural Fit
Creating a Superior Employer Brand
Speeding the Process to Keep Candidates Engaged
Relocation Management Companies (RMCs) are ideal sources for information on global candidate recruitment and relocation. Pre-Decision Services are critical for employers as they provide valuable information about a candidate’s ability to accept a position and be successful. Assessment data can be paired with structured interview questions to understand better the candidate’s interests, goals, and motivations.
Contact GMS for More Resources
The team of professionals at Global Mobility Solutions (GMS) specializes in assisting companies with corporate relocation, creating effective relocation programs that can successfully appeal to and maintain skilled employees. By implementing industry-leading strategies, our team can help your company design a relocation program that enhances your ability to attract and retain new employees and alleviate the challenges of a talent shortage.
GMS became the inaugural relocation firm to become a registered .com. Additionally, they developed the initial digital tools and calculators, which significantly changed the relocation sector. GMS persists in leading the industry by introducing pioneering innovations and technological solutions through their exclusive MyRelocation™ technology platform.
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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.
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Use These Tips & Templates for a Relocation Assignment Offer Letter
An employee transfer letter or relocation offer letter is a document given to an employee being transferred to another department, branch, or location under the same employer. These letters not only provide transferees common professional courtesy on the company’s behalf, but it also gives the relocating employee an overview of what they can expect and their benefits for the process. These ground rules should provide the moving employee an understanding of all costs and services they are entitled to during their move.
Larger companies or companies that often relocate employees more than likely have relocation policies in place. These are typically lengthy 10 to 30-page documents covering every relocation protocol aspect. Companies that might have such policies will rely on customized employee relocation offer letters and emails for each employee willing to do so.
Here is a look at some top tips for constructing employee relocation offer letters, along with an example of a basic offer letter format.
Tip 1: Identify the Reason for Relocation Offer
While the employee will most likely understand it, you’ll want to cover in the offer letter why, how, and when the employee will be transferred. This will help with recordkeeping and provide the employee with in-depth insight into why their position is needed in the new location.
Giving a specific explanation to the relocating employee in writing can help show the employee that you care. This will also take the stress off of your HR department because the employees will know all of the details about why they will be offered the relocation. As a result, this should help set the stage, allowing things to run smoothly from the beginning.
Tip 2: State the Exact Effective Date(s) the Transfer Will Take Place
Companies cannot expect an employee to relocate the next day; however, it also shouldn’t be up to the employee entirely as to when the transfer will occur. Setting realistic dates and times for the employee to move and to get settled is vital in ensuring a smooth transfer experience.
It should also be stated at this stage in the letter, how long the employee is eligible for relocation benefits. For example, many companies will allow employees X number days or months to utilize the short-term relocation policy stated in the transfer letter. There are many variables that come into play when an employee is trying to move out of state.
Tip 3: Provide Names and Contact Info
The transferring employee is probably nervous, but excited to take on the new role for the company. It is a good idea to provide the employee with the name and direct contact info for who they will be reporting to. This will give the employee a chance to reach out to the manager with any questions or concerns regarding their new position. It also gives the employee the opportunity to let their new manager know if there are any roadblocks with the relocation process.
Conversely, it could also be a good idea to urge the new manager to reach out to the employee directly. This communication will allow the manager to inform the transferring employee of any necessary information.
Tip 4: Note Every Detail of the Employee’s New Job
The employee should be well-informed about this step, but to cover the company and the employee it is a good idea to list out all expectations, requirements, wages (including bonuses), benefits, and anything else that will be different for the employee once they move. This provides documentation for both parties if there are ever any issues after the relocation has occurred. Being crystal clear at this stage helps straighten out any communication breakdowns later on.
Use This Employee Transfer Letter Example
[Date]
[Sender’s Name]
[Sender’s Address]
Dear [Recipient’s Name],
We are pleased with the work you’ve completed with us so far and management sees great potential for you to grow in [transfer location]. The management team would like to extend you an offer for promotion to [new position] where you will be responsible for [responsibilities of the position].
This will provide you with an opportunity to expand your skillset as you move from the [current position] in [current location] to a new position in [transfer location].
The company is here to help you and your family relocate and readjust to your new role by providing relocation benefits. This letter summarizes that support in several areas.
New Job Title: New Supervisor/Manager: Department: Effective Date of Transfer:
New Duties:
New Compensation/Bonuses:
Below is a summary of the relocation benefits that are extended to you as part of this offer.
Relocation Expenses [Details of what the company will and will not cover.]
Household Goods Moving [Moving expenses the company will or will not pay for.]
Home Marketing Assistance [Info on home selling assistance ]
Home Finding Assistance [Explain which resources the company can provide]
Repayment Agreement Terms [Details of the repayment agreement that the employee is subject to]
Please review this information at your earliest convenience. You can contact me directly or Human Resources with questions, comments, or concerns. I would appreciate your acceptance or denial of this new position by [desired date].
From,
[Sender’s position and name]
GMS Is Here For You
Global Mobility Solutions (GMS) is a leader in the employee relocation industry. In addition to assisting with employee transfer letters, GMS would love to help your company create and implement customized relocation policies for your mobile workforce. Our team specializes in almost every area of the relocation process, so we can equip your staff and transferees with the knowledge and technology they need to make their move as seamless as possible.
Getting started with us is easy. Contact us today for a free consultation with one of our relocation experts. From there, we will help you decide the best course of action for your company regarding your global mobility needs. Whether your company relocates internationally or just within the US or Canada, we can assist you in creating the best offer letters and relocation policies in your industry.
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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.
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Some companies are turning to blind recruiting methods to hire open positions
Recent job searchers prioritize workplace diversity when assessing potential employers. Most job seekers believe this is vital to a company’s identity. Establishing a DE&I strategy early in the recruitment process can attract the best talent, and blind recruitment can help ensure no one is overlooked.
It has been demonstrated that organizations with various qualified employees are 25% more likely to be successful and profitable. More and more companies are beginning to recognize the importance of having a diverse workforce, yet many need assistance achieving this goal. Unintentional bias in the hiring process may lead to fewer opportunities for diversity, so it is vital to have the correct recruitment approach to decrease this risk and maintain inclusivity.
What Is Blind Recruiting?
The practice of ‘blind’ or anonymous recruiting seeks to remove personal specifics from an applicant’s profile in the evaluation stage. This most often means the removal of names. However, in certain situations, like when using Applied, more information is taken away, such as age, address, and educational background, to eliminate potential bias.
To ensure fair and equitable treatment of job applicants, blind CVs have been gaining traction in recent years as they effectively remove personal biases that might come into play when viewing a candidate’s resume.
Currently, various recruiting techniques focus on diversity. One of these is blind recruiting, which eliminates a job applicant’s personal information to prevent anything from harming the hiring process.
By eliminating any type of recruiter prejudice—whether intentional or not—quality applicants are more likely to be hired based solely on their abilities and work history, as opposed to their identity, orientation, cultural heritage, impairment status, or history.
Biases can prevent impartial hiring practices, but blind sourcing can limit the effect of these biases by obscuring information that could lead to prejudicial decisions.
How to Incorporate Blind Recruiting Techniques
It can be challenging to overcome unconscious prejudice, but blind hiring can assist recruiters in making unbiased decisions when selecting the most suitable applicants. Taking the following steps can make the pursuit of a diverse recruitment strategy more effective:
Set up training for hiring managers about hiring bias.
Use anonymity on job applications and résumés.
Review the current recruiting process to ensure it complies with state and federal hiring equity laws.
Perform regular metrics assessments on HR teams and hiring managers.
Relocation Pre-Decision Services Can Assist in Recruiting
Global Mobility Solutions (GMS) leads the global mobility industry with our award-winning pre-decision services. We offer 30% more benefits than any other relocation company. The expert team at GMS understands that relocating employees is a hard job involving much more than moving an employee’s household goods.
That is why our pre-decision services can help you when recruiting new employees. Having relocation packages ready for employees and other benefits can allow your recruiting and hiring managers to brag about the smooth process.
Schedule a free consultation today if you are ready to get more info on our pre-decision services. One of our relocation experts will share how we can assist you.
Our cloud-based MyRelocation® relocation technology is designed to help you streamline your company’s relocation management. Schedule a demo with a Mobility Pro for a no-pressure look at how our technology can help you.
How to overcome an employee denying a relocation assignment
It is no secret that most people are creatures of habit. Moving to a different city or country may sound fun in theory, but when it comes down to it, most are still deciding whether to leave their comfort zone. Here are some common reasons why employees don’t want to relocate for work. If your employee seems reluctant about accepting a relocation assignment, you may want to find ways to make the offer more tempting. Take their concerns into account and try to win them over by negotiating and including a competitive relocation package that provides full-service mobility programs.
Prioritizing Family
One of the most common reasons why employees don’t want to relocate for work is family. The move will affect everyone if the employee is married with children. If the kids are small, the transition can be done more efficiently. However, if the employee’s children are older, it may be challenging toyank them out of their environment. They will be against leaving behind their friends, school, neighborhood, football team, or drama club. In addition, the other spouse may also have an important work commitment they cannot abandon. All in all, it may be pretty challenging to get this employee on board with the relocation.
To make the offer more attractive, create relocation programs that includebenefits for spouses and children. A health plan, school options, and similar incentives may make the offer more appealing.
Not Wanting to Deal with the Hassle of Moving
No matter how you look at it—moving is a big undertaking. Just to start, the employees need to sell their homes and deal with the hassle that comes along with that. That hurdle alone would deter most people at the get-go. Not to mention the ever-changing housing market, that the home sale can end up losing them money. And this is just scratching the surface. Even if they manage, they must pack all their belongings and move them to the new location. Moving advisors fromMaster Moving Guide say that one of the more stressful parts of moving is having to deal with switching utility providers, updating all of the information at the new location, and many more bureaucratic tasks that come with the move. It is no wonder that some employees may give up at the thought of having to go through all that, especially if they have had an experience with a similar task recently.
The Cost of Living and the Pay Do Not Add Up
The relocation needs to make sense for the employee in more ways than one. In addition to the hassle and turning their lives upside-down, they need to have an incentive in the form of pay. And even if that seems like a good deal, what if the cost of living is higher in the new location? The employee must weigh all the options and conduct proper research before deciding. If the pay raise does not cover the increased cost of living posed by the new location, they are unlikely to accept the offer.
Relocating employees needs to come with great benefits, a significant pay raise, and an evident opportunity for future promotions. If the employee sees that the move is disorganized, in the spur of the moment, and at a professional dead-end, they will be more inclined to stay put. Finding a higher-paid job where they are will seem like a much better compromise.
Work with GMS to Relocate Employees
Although a move may seem like an adventure and a new leaf for some employees, many will not be thrilled by the idea of relocating. Many employees don’t want to relocate for work because they are not tempted enough by your offer. Weigh all your options and ways to keep those employees essential to your business. If they are someone who has proven to be an asset to your company, ensure you offer them a relocation package that will make long-term sense for them and their family.
At Global Mobility Solutions (GMS), our employees are top service providers in the mobility industry. We know first-hand that relocating for a job can be a scary thought for many employees. But working with us to create comprehensive relocation programs can help the move look more appealing to employees.
And when working with GMS, we assign a specialized relocation coach to each employee. The coach ensures that the relocation process can be as smooth as possible for them and their family.
Schedule a free consultation today if you are ready to update your current relocation policies or create new packages altogether. One of our relocation experts will meet with you to hear all of your needs and wants. From there, we will be able to understand your relocation needs better and execute them.
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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A Countdown on the Most Spoken Languages in Business
Learning a second or third language is a great way to open the door to more job and business opportunities. Business is conducted throughout the world in every single language and between every culture.
Being bilingual as a call center representative, helping close the lucrative sales deal in a foreign language, or even relocating a family to a new country, the benefits of speaking more than one language are endless. Not to mention the number of doors that open in any particular career field for multilingual candidates.
However, some languages can serve you better than others. Let’s explore the top 10 languages spoken in the business world. These top ten business languages feature markets with high growth, language demands for business, diverse industries, and many future opportunities:
1) English – The True Global Language
It might not be surprising to learn thatEnglish is the most prominent language in business, science, and academics. English is spoken widely in 94 countries by over 1.1 billion people as a native and supplementary language. Being fluent in English opens up massive opportunities for people all around the globe.
In fact, English is the most commonly used language on the Internet. It accounts for 25.9% of languages used on websites. And it is a diverse language that takes the form of American English, United Kingdom English, and Commonwealth English. Together, they make for the most critical language to be fluent in.
2) Mandarin (Chinese) – The Language of Purchasing Power
China’s heated economic expansion and vast population make Mandarin a top business language. Mandarin is the official language of the People’s Republic of China and is spoken globally by over 1.2 billion people. The economic leaps that China has undergone means that nearly every country in the world deals with it. That means a huge opportunity for those looking to learn the world’s most widely spoken business language.
3) Arabic – The Dynamic Language of Growth
Arabic is spoken widely across the Middle East, Africa, and the rest of the world. Arabic is also one of the world’s fastest growing languages in addition to being one of the Internet’s fastest growing languages. EMEA’s diversifying economies mean more opportunity for foreign investment.Learning Arabic can open up opportunities in varied industries like infrastructure, architecture, and even fashion design.
4) Spanish – The Language of Greater Opportunity
Spanish is the world’s second most spoken native language and the second most spoken language in the United States. Spanish speakers range from Spain itself to North and South America. However, the amount of Internet content in Spanish isestimated to be only 4%. This presents a massive opportunity for companies looking to expand into the Latin American, Caribbean, and Spanish markets.
5) Russian – Where Old and New Money Mix
The capital of Russia, Moscow, has more billionaires living in it than any other city in the world. Russia is a nation with vast deposits of oil, minerals, metals, and an educated populace. It also is a large economy that does extensive business with European and Asian countries. Russian-speaking countries in Eastern Europe and Central Asia and their developing economies means that Russian is great to learn for business.
6) German – Science, Industry, and Finance
Germany is a stable and prosperous economic and industrial powerhouse of Europe. It is also one of the three procedural languages of the European Commission. Learning German as a business language opens up businesses to the United Nations’ science, industry, and financial leader. Learning German also helps for doing business in German-speaking countries, like Belgium, Austria, Holland, Switzerland, Liechtenstein, Luxembourg, and Denmark.
7) French – Bridging Europe and Africa’s Futures
French is the official language of more than 29 countries. Growing and resource-rich nations in Africa, such as Cote d’Ivoire, Rwanda, Mozambique, Tanzania, and the Democratic Republic of Congo, all feature French-speaking populations. France is also the United Kingdom’s largest trading partner. The future of European and African trade and economic partnerships will rely on French as a language that links the two continents.
8) Portuguese – The New Frontier of Science and Medicine
Brazil’s and Portugal’s economies drive the importance of learning Portuguese as a business language. Portuguese is becoming a major source of scientific and medical research thanks to Brazil’s investments in the biotech and energy industries. The growing Brazilian economy means a larger-than-ever demand for Portuguese speakers. Increased interest from European, Asian, and American companies means new frontiers for fluent speakers.
9) Japanese – Combining Research, Development, and Tech
Japan’s reputation for technological advancement and e-commerce is rightly earned. Its diverse economy and high GDP are coupled with a highly educated populace. The combination of massive corporations and medium-sized technology firms means that Japan is a global leader in cutting-edge research, development, and investment. Learning Japanese is an important first step in understanding how to thrive in its lucrative market.
10) Hindi – The Burgeoning Internet Giant
India is a large and diverse country united by its official language of Hindi. Hindi is the world’s 10th most spoken language and is also widely spoken throughout South Asia. This massive region is undergoing an investment effort to build up its Internet and technology infrastructure. Learning Hindi will open people up to doing business in one of the world’s future consumer superpowers.
Additional Business Languages for Consideration
While the world speaks well over 6,000 different languages, the above-mentioned languages are some of the most prevalent in business and major economies today. What languages a professional chooses to learn may be influenced beyond simple numbers, such as the size of a given economy. These decisions may be influenced by geography or the desire to enter a smaller market. Some additional business languages to consider include Dutch, Italian, Korean, Polish, and Swedish.
GMS Is Here to Create a Better Business Future for your Organization
Global Mobility Solutions feels that there are no downsides to learning any of the top 10 most spoken languages in the business world. The best way to start your journey is to ensure you are working with a partner that is dedicated to teaching your professionals to become fluent in a new language. GMS has a proven, award-winning network that is geared towards helping your relocating employees and their families learn new languages and settle into their new country.
Our language partners deliver private in-person lessons and online language lessons direct to our clients. These talented language instructors and translators provide customized lessons for your fluency level and needs. These language learning services are combined with flexible scheduling and an easy-to-use online learning content management system. To learn more, reach out to GMS today and we will help guide you in the right direction to speaking a new language.
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Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.
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A Look at Typical Relocation Packages
Relocation packages, also known as relocation benefits, are policies and support that companies offer employees who are transferring to a location for a position. Each company will have different needs when it comes to relocation benefits, and it can be difficult for companies to know exactly what should be covered in these policies and what the employee should be responsible for on their own. In order to make the chosen candidate a qualified and competitive offer, it’s always a good idea to have a competitive and comprehensive relocation package to offer moving employees.
Companies typically have the ability to tailor relocation programs based on each hiring situation. Some companies choose to have their HR department handle employee transfers, but if the company is looking to be consistent with their relocation packages on each hire, it’s probably a good idea to use a reliable relocation management company.
What Does A Standard Relocation Package Include?
Most relocation policies outline some sort of reimbursement or coverage for many of the common needs of moving. Relocation benefits often include full packing and unpacking services along with a quality and reliable moving company to get the employee’s household goods from point A to point B.
On top of moving expenses, home sale assistance is another common benefit offered to transferees. This can include selling programs using vetted real estate agents who specialize in the relocation process to help assure a quicker and more successful home sale for the moving employee. Some policies may offer lease-breaking assistance for those employees who rent, in the event that the employee has to pay a penalty for breaking a lease early. House-hunting trips can also be included in the real estate portion of the relocation package. This means the company might cover a trip or two for the moving employee to scout out their new area and tour some homes or apartments before making the full move.
Corporate housing options, or temporary housing, are usually included in most relocation policies. This gives the employee a place to stay short-term after they’ve moved in order to find a full-time home in their location, without having to miss their desired start date for the position.
Many companies also offer transportation coverage or reimbursement in their relocation offerings. This might cover airfare for the employee and their family or expenses for driving across state lines. In some instances, companies will cover the employee’s vehicle transportation as well.
What Expenses Are Typically Covered During Relocation?
While not an exhaustive list, the below are common relocations costs for which many companies provide support to their relocating employees:
Corporate housing options
Household goods transportation (HHG)
Storage facility (temporary storage of the HHG shipment
Miscellaneous expense allowance
Home sale costs
Spousal employment assistance
Travel-related costs, such as airfare, meals, hotel nights
As every company has different goals and objectives for their relocation program it is common to see many relocation policies that are tiered, offering different levels of support for each employee.
Here is a breakdown of the most common U.S. domestic relocation policy tiers per GMS research:
What Types Of Employees Receive Relocation Packages?
This aspect will depend upon the company’s need for each position and how important it is to get that employee to the new location. The best practice for relocation programs is to build a tiered system based on employee level. These tiers are commonly built around entry-level employees, professionals, directors, and vice-presidents. Additionally, many companies have executive relocation packages to cover most executive-range employees. For some companies, they may also have international relocation package examples for employees moving globally.
Common Methods to Address Costs in Relocation Packages
Different policy tiers within your relocation program may necessitate different strategies for paying for your employee’s relocation costs. It is important to understand the advantages and disadvantages of these common methods.
Direct Billing: On your behalf, the relocation company sources, coordinates, and directly pays the vendors used in the relocation of your employee. Invoices are audited, consolidated, and then passed through to you for payment. While potentially more costly, this method ensures that your employee is getting the most out of their benefits and is able to make it to their new destination on time without the need to stress over the costs of the move.
Expense Reimbursement: The employee pays for the cost of moving expenses up front and the company cuts a reimbursement check toward the end of the process. While not generally intended to be used to cover an employee’s entire move (few families have the cash on hand to pay tens of thousands of dollars for a move), reimbursements are commonly used for miscellaneous expenses as outlined in the company’s relocation policy. Typically, reimbursements are used for items such as travel costs, or other related items.
Lump Sum: As opposed to an expense reimbursement, a lump sum is commonly used as the primary financial benefit provided to a relocating employee. In a lump sum policy, a set amount of money is given upfront to the employee so that they can handle the moving expenses as they see fit.
Generally provided to entry level or lower level employees, the lump sum itself is commonly the only relocation benefit provided. While the lump sum is seen as an excellent cost control tool for companies, it places additional burdens on the employee as they are left to their own devices to manage their move. This is in addition to the lump sum typically qualifying as income which is taxable. Employees who receive their relocation benefits in the form of a lump sum should be sure to note the payment for tax purposes. Employers should consider adding a tax gross up to the lump sum to help mitigate the effects of the income tax on the employee’s benefit.
Ready to Set Up Relocation Packages for Employees?
Global Mobility Solutions is a full-service relocation management company who specializes in assisting companies in creating comprehensive relocation packages that benefit both the company and the employee. For more than 30 years, GMS has helped companies get their new employees situated in a new place, assuring the process is seamless for the transferee. If you’re ready to set up or update your relocation policies, reach out to us 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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How to Handle Tax Gross-Up Methods When Relocating
The relocation process can be hard to understand. Relocation policies and rules may seem like insurance terms that don’t always make sense to those who are utilizing the policies. Tax gross-up is one of the more common aspects of a solid relocation policy offered by companies to employees.
Tax gross-up (when it comes to relocation terms) refers to money that an employer can add to an employee’s payroll records to help offset federal ,state, OASDI or Medicare taxes. These taxes come into play as the majority of moving expense reimbursements, or payments to service providers on the employee’s behalf, are seen as taxable income to the employee in the eyes of the government.
In simplest terms, tax gross-up is a benefit included in an employee’s relocation package, and there is no right or wrong way to calculate it. Employers can add as much as needed to make the relocation policy appealing for the employee to relocate. However, payroll withholding is a requirement and companies should remit payroll taxes on taxable relocation expenses. The calculated amount of tax gross-up is used to pay a solid portion of the required payroll taxes on that company’s payroll.
How Should Relocation Tax Gross-Up Methods Be Applied on Policies?
Global Mobility Solutions advises our clients to keep gross-up simple, allowing employees to understand the method used and verify the amount. Also, GMS cautions companies from telling transferees that they can completely avoid any tax liability resulting from their move. Instead, companies should refer to tax gross-up as a “tax assistance” program. This way relocating employees do not get the impression that they will be “made whole” and avoid paying taxes altogether.
The Different Methods of How to Calculate Tax Gross-Up
There are a few different tax gross-up methods that companies can utilize when it comes to helping employees. Here are some of the more common methods used for relocation policies:
Inverse Supplemental: Tax on Tax
This is the most common method to calculate tax gross-up. This method uses the current Federal and State supplemental rates for calculation. This method is the easiest to administer and explain to relocating employees.
Typical methodology includes:
Federal Rate: Supplemental Rate (currently 22%)
State Rate: Supplemental rate of applicable payroll state
OASDI: 6.2% up to the applicable annual cap
Medicare: 1.45% + Surtax when applicable
Total to be added – 34.65% assuming a 5% State. But remember that this is also taxed so it is a complex situation that GMS can help with.
Marginal Rate: Tax on Tax
This calculates the employee’s estimated taxable income before receiving the relocation expense reimbursement and then compares the estimated taxable income to the IRS Tax Tables. The tax table rate is then used to determine the tax assistance amount. The tax rate will not change for the expense and therefore is not blended.
While this method provides for additional tax protection by considering the employee’s actual income level, it will typically add to the gross-up cost for the company.
Typical methodology includes:
Federal Rate: Based on the higher annualized actual salary. Includes company source income only
State Rate: Supplemental rate of applicable payroll state
OASDI: 6.2% up to the applicable annual cap
Medicare: 1.45% + Surtax when applicable
Flat Rate
This method determines a fixed percentage to be used in the tax-assistance calculation. This option does not take deductions, exemptions, or child credits into account.
Client Directed
Because gross up is a policy decision, there are other methods available. If the methods above do not align with your objectives, we can work with you to create a custom gross-up policy that satisfies both your needs and those of your relocating workforce.
Questions Companies Should Ask When Selecting a Gross-Up Methodology
Why are we asking employees to relocate? Are we recruiting or downsizing?
Downsizing may be saving jobs by offering employees an opportunity to relocate and remain employed with the company. Thus, a company may not need to be as generous.
Recruiting may require a company to provide a more generous gross-up benefit.
What is the typical income of the relocating employee population?
What is the company gross-up philosophy?
Did the company request the employee to relocate or is relocation a mutually beneficial partnership?
GMS Can Help with your Tax Gross-Up Policies
At GMS, our financial services offer employees access to tools and technologies including gross-up calculators that our competitors don’t offer. On top of that, our financial team is qualified to help you implement a tax gross-up methodology that works best for your needs. Our team is always willing to field questions or concerns relating to our service offerings, including how to effectively utilize tax assistance policies for relocation programs. Reach out to GMS for any of your relocation-related tax needs.
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Global Mobility Solutions Memberships
The relocation process consists of a lot of moving parts when it comes to getting employees from one side of the country (or world) to the other. There are numerous logistics that have to be worked out, accounted for, and coordinated in order to make the process as smooth as possible. Global Mobility Solutions (GMS) puts an emphasis on enhancing the overall transferee experience and ensures a seamless relocation for the company and for their relocating employee and their family.
The GMS leadership team takes pride in knowing our team is able to assist companies to relocate any number of employees anywhere they are needed. We are able to do that because of our knowledgeable, certified, and experienced relocation team. Our expert teams are members of various relocation associations that allow us to give the best possible service in the industry. We also encourage our employees to keep their relocation certifications up to date, as well as support webinars, training, and industry conference attendance.
Here at GMS, we are proud to have team members that belong to the following associations.
The Worldwide Employee Relocation Council (Worldwide ERC®)
The global relocation industry is one that is always changing and transforming to meet the needs of companies, which can make it hard to set benchmarks and standards within the industry. However, The Worldwide Employee Relocation Council (Worldwide ERC®) is seen as the premier trade association for talent management and global mobility knowledge.
Corporate mobility managers and relocation management companies from around the world encourage employees to become members of Worldwide ERC® to ensure that their staff has a strong education and firm understanding of the skills and knowledge useful in the relocation industry.
GMS is proud to note that all of our client-facing team members and every level of our leadership team are members of Worldwide ERC®. Each of these employees has confidence knowing that they can deliver the best experience for a transferee because of the training they gained through Worldwide ERC®’s certification and ongoing education platforms. These offerings allow GMS employees to work through Worldwide ERC®’s program to become fully capable of handling almost any talent mobility situation.
Local & Regional Relocation Councils
In addition to Worldwide ERC®, GMS also has employees who are associated with various local and regional mobility councils:
Bay Area Mobility Management (BAMM)
Arizona Relocation Association (ARA)
Southern California Relocation Council (SCRC)
Executive Board Member for the Southern Regional Relocation Council (SRRC)
Member of the Tennessee Relocation Council (TRC)
Forum for Expatriate Management (FEM)
Forum for Expatriate Management (FEM)’s mission is to provide valuable networking opportunities for relocation companies. Their multiple platforms of content and events provide mobility professionals the chance to engage with one another in hopes of growing their network. FEM aims to inspire global mobility and HR professionals by providing them with crucial news stories and insights that impact international mobility. They also host events ranging from roundtable discussions to multi-day summits.
Being associated with FEM proves that an employee is in tune with the issues impacting global mobility and assists in their understanding of related relocation practices and policies. In addition to the summits that FEM puts on annually, there are also local chapter meetings that members can attend. With chapter meetings taking place all over the world, members of the GMS team are involved in local and regional FEM chapters for mobility individuals and vendors, here in Arizona.
International Association of Movers (IAM)
Holding more than 2,000 corporate members, the International Association of Movers (IAM) is the moving and forwarding industry’s biggest global trade association. Since 1962, IAM has provided guidance to moving and shipping service providers with operations in more than 170 countries.
The moving and shipping of household goods and automobiles are one of the most important aspects of any relocation, which is why it is so important to be up-to-date on best practices. The GMS transportation team are proud members of IAM, enhancing our ability to ensure employees’ goods are moved safely, quickly, and efficiently across the country and arrive on time for the employee to begin their new job.
International Airlines Travel Agent Network (IATAN)
The International Airlines Travel Agent Network (IATAN), also known as the International Association of Travel Agents Network, has a primary goal of setting travel standards of professionalism while administering meaningful business standards. Additionally, IATAN works to provide cost-effective services that benefit the travel and mobility industries. This helps provide a vital link between mobility suppliers and the US travel distribution network. The GMS travel team, and many additional team members, are members of IATAN.
Society for Human Resource Management (SHRM)
The Society for Human Resource Management (SHRM) tries to create better workplaces for employers and employees. With more than 300,000 HR executive members in over 165 countries, SHRM is an expert in aligning all HR needs. Because relocation deals so heavily with HR representatives, GMS sees it as vital for key team members to participate in SHRM.
GMS is Qualified to Help
With our team members having a great blend of different relocation associations and memberships, GMS knows that we can help with any relocation need. Whether a company needs to move an employee a few states away, or send dozens of employees from one country to another, GMS can help you every step of the way. Contact us online today. One of our global mobility experts will respond quickly to answer your questions.
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.
Millennial generation father working from home with small children while in quarantine isolation during the Covid-19 health crisis. Little boy is two, little girl is four. Father has tattoos and a beard. Horizontal indoors waist up shot with copy space.
Many parents entering the school year may now be working from home with kids. Several school districts throughout the nation are using online classes during the COVID-19 pandemic. The ease of logging in to a classroom and listening to a teacher may sound appealing. However, for some parents there are new challenges to address that they did not have while working in an office or facility. Beyond managing their own time, now they must manage time for the kids. Also, many homes may not have been set up to create an ideal at-home learning environment.
GMS Experts Share Their Tips and Ideas for Working from Home with Kids
Similar to many of our clients and network partners, GMS has several employees who are parents and are currently working from home with kids. Many of these employees have had to learn how to manage the “new normal” of supervising their kids all day while also managing a full workload. We asked them if they would be willing to share their experiences. In this way, several of their best practice tips and ideas might help our clients, network partners, and their employees who are also working from home with kids.
Ryan: We’ve got 2 girls in Kindergarten and 4th grade who have been learning in a virtual environment since the 2020 Spring Break began. Fortunately, both my wife and I are able to work remotely from our home offices on both floors of our house. We have the kids separated in their own working areas, one on each floor. As a result, this allows us to keep an ear out while they work with their classes on Microsoft Teams in the event of a technical issue, or if one of our girls needs some “redirection” to focus on the task at hand.
Zooming Along
Sam: We have two middle school girls who are on zoom calls most of the day. They have desks set up in their rooms with all the supplies they need. The downside to this though is that it can be very dangerous since I have caught both of them napping this week during a morning class.
Wesley: We have 4 kids (12, 9, 6, and 4). Currently they are doing distance learning where they have zoom chats with their teachers and classmates. Our youngest is at home with us working on Pre-K workbooks while the other kids are meeting with their teachers. Some kids are handling the added stress of distance learning better than others, but we all do the best we can.
Danielle: We have three children. Two in Middle School and one in High School. All three have online schooling three days a week, and in person schooling twice a week. The children log into a different zoom meeting for each class.
2. How you are juggling work time with supervision and/or teaching the kids’ time?
Ryan: To help keep the girls in the groove, we’ve come up with a pretty nifty schedule for them, with plenty of “brain breaks” throughout the day. These include times for them to step away from the computer, play in the back yard with our dogs, read a new book, FaceTime their friends, and maybe even unload the dishwasher every now and then (I’m still waiting for that to happen on its own). We’ve found that by segmenting their day in to dedicated times for learning and for having fun, they’re able to finish their “school day” on time.
Lunch with the Kids
Throughout the day, my wife and I pop out of our respective offices every hour or so, or between meetings, to check in with them and make sure they’re staying on target and on schedule. Rather than working through lunch, as I’m apt to do, I’ve been stopping to eat lunch with the kids daily, which gives me to opportunity to spend some time with them in the middle of the day, talk about what they’re working on, and help them to plan out their afternoon. Connecting with the girls over lunchtime makes working from home with kids a fun experience.
To-do Lists
Sam: This can be challenging. I check in with both girls in the morning, at lunchtime, and then in the evening to help review their emails and To-do’s together. This helps us ensure that they are meeting deadlines and prepared for any upcoming tests.
Wesley: My spouse owns a business doing professional wedding photography, unfortunately with COVID-19 her business has slowed dramatically as weddings were canceled/moved. She has stepped into an additional role as teacher with this change. I wish we had a nickel for each time the kids have heard “Stay quiet dad is on a call!”…we might have enough to retire.
If Necessary, Contact the Teacher
Danielle: I check in with the children at lunch and after school to ensure they understand their assignments and responsibilities. Any time there is a question that we can’t assist with the kids e-mail their teacher and cc me on the communication. We are lucky that our children are old enough that they don’t require constant supervision during the day.
3. What have you purchased or modified to help working from home with kids be as good as possible?
Ryan: A useful set of gadgets we’ve purchased that have helped in keeping the girls on task has been a handful of Amazon Echo Dots (which I lovingly call “wiretaps”). Small and unobtrusive, we’re able to set timers and reminders throughout the day for the kids. When my wife and I are both on conference calls, our Echoes can remind the kids to log in to their next meeting, or notify them that it’s time to take a brain break.
Tutoring Options
Sam: I have one daughter who has ADHD and has trouble focusing and another who has high anxiety about her advanced classes – two extreme different cases. I called the girls’ middle school and asked if there were any teachers who were interested in a tutoring gig. One of the teachers happily accepted the job and comes to our house a few days a week. Honestly, she’s the best therapy around since she is able to calm the situation, provide the advice from a teacher’s perspective and help with the math skills that my husband and I have forgotten how to do. I constantly tell her that she’s better than a fine glass of wine!
Retail Strategy Pays Dividends for Working from Home with Kids
Wesley: We watched IKEA’s online stock like a hawk and when kid’s desks went on sale we ran to the store and bought one for each of them (under $50 for each!). Having their own little workspace has helped them get in the mood for school. Having over the ear headphones so they can tune out some of the ambient noise and focus on their lessons has also been very helpful.
Danielle: We are fortunate that each child already had a dedicated work space. We have placed limits on their I-Phone access during the school day. The only apps left on are school-related.
4. Can you provide any recommendations based on your experience that might help others in your situation?
Ryan: Set up a dedicated area for your children to do their work, preferably away from a family living area or where they spend the majority of their free time. We wanted our kids to have the ability to finish their school day and “walk out” of their physical learning area. Being able to close a real office door and walk into a space dedicated for family time has been an extremely successful element in my personal work/life balance so far in 2020. Allowing our kids to have a similar set up allows them to check out mentally for the day and go back to “just being kids.”
There’s Always Tomorrow!
Sam: When feeling overwhelmed, reach out to teachers, counselors and other parents for support. Everyone is in the same boat working from home with kids, and have all had frustrating days that don’t go very well. Take deep breaths and remember that tomorrow is a new day.
We are all in this Together
Wesley: I think remembering that this is hard for everyone is important. It can feel isolating when we are all struggling with our individual challenges. I think we need to extend grace to our teachers who are struggling as much or more than we are. I also think we need to give ourselves some grace too as we are all trying to deal with an unprecedented challenge.
Danielle: Plan each home school day as if your child was actually going to school. Have your children get fully dressed, make their beds, and pack a lunch.
5. Do you have any specific tips for managing the work hours versus school hours intersection?
Ryan: My advice is to set up a routine and stick to it. It may not look or feel glamourous, but a schedule is one of the few things you have complete control over during the madness of 2020. By generating a predictable, repeatable routine, you’re able to settle in and relax because you know exactly what you’re going to be doing next.
Sam Hoey’s dog, Macy, dressed as a UPS delivery driver for Halloween
Walk the Dog for a Quick Break
Sam: When stress levels are high, I send the girls on a bike ride or outside to walk the dog. Taking a quick break and getting some fresh air and exercise works wonders. Also, a quick run to the Starbucks or Dunkin Donuts drive thru is another winner!
Alexa to the Rescue
Wesley: We have an Amazon Alexa upstairs and downstairs. The kids have learned to get in the habit of setting timers for themselves. For example, we might tell them for the next 45 minutes they need to focus and get their homework done. Helping them schedule dedicated time to specific tasks has been instrumental in all of us keeping our sanity.
Healthy and Nutritious Snack Options
Danielle: We write out afterschool chores and snack options on a white board at the beginning of each week to help manage their down time. We do not ask the kids to start homework until their father gets home from work, typically between 5:30-6:00. That way they have some down time before evening activities begin.
What Should Employers do to Help Employees Working from Home with Kids?
Employers should encourage employees who are parents working from home with kids to develop optimal solutions to issues such as time management and productivity. Talent Management programs should take into account how remote workplaces might affect employee performance. Helpful resources should also be made available for employees.
Conclusion
GMS’ team of corporate relocation experts has helped thousands of our clients navigate issues that impact employees working at remote locations. As a result, our team can help your company share tips for parents who are working from home with kids. Remote work environments should be conducive to the employee’s health, welfare, and productivity.
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.
Contact our experts online to discuss how your company can share tips for parents who are working from home with kids, or give us a call 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.
Many GMS clients have transferees who require special needs relocation services. Sometimes the need is for a family member who will be relocating with the transferee. Other times, the need is for the transferee. Pre-decision services help employers identify specific points so they can provide the appropriate resources and solutions. Often these solutions require a compassionate approach, to help the transferee and their family members have peace of mind for the relocation.
GMS spoke with Ann Hinch, International Destination Service Manager at Go Destination Services who agreed to share her knowledge and expertise on this topic.
Three Situations that Require Special Needs Relocation Services
Relocating a transferee often requires attention to the needs of their immediate family members as well. In some cases, there may be special needs relocation services. According to Ann, there are three types of situations requiring a compassionate approach:
Providing information and options for elder care
Education options for children with special needs
Home-finding for transferees moving with an assistance animal
Elder Care
A Pew Research Center survey in 2018 found that 14 percent of older adults living in someone else’s household were the parents of the head(s) of that household, up from just 7 percent in 1995. Transferees moving with an aging parent may ask for special attention to the type of accommodations in the home they will need to rent or purchase. They may want to know about elder care services in their destination city, including:
If a transferee is seeking separate housing for an elderly or special-needs adult family member, there are a number of options available, depending on the destination area’s resources. Nursing homes provide an intensive level of medical and personal care around the clock. However, assisted living communities allow residents more of a measure of independence. Independent-living communities are geared for those who can take care of themselves but may require meal preparation, housekeeping, laundry, or transportation services.
Ann notes that it is recommended that those caring for elder and special-needs family members research and visit these specialized facilities ahead of placement. Medicare’s Nursing Home Compare aggregates care quality data for every Medicare- and Medicaid-certified nursing home in the United States. Nursing Home Inspect, run by independent journalism site ProPublica, uses data from the U.S. Centers for Medicare and Medicaid Services. The site provides an unbiased database of nursing homes across the country.
Children with Special Needs Relocation Services
According to the U.S. Department of Education’s National Center for Education Statistics, in May 2019 14 percent of students under age 21 in U.S. public schools received special education services. Connecting families with districts that serve special-needs children may start with a state’s Department of Education website. Alternatively, it may begin with calling the office for that agency to learn about special-needs schools and programs in the destination city.
Ann believes that another valuable lead is social media. For instance, a parent can join and follow a Facebook group for a school they have an interest in. This way, they can see what other families have to say about the special-needs programs and learning environment.
Research Tools
There are non-government online research tools valuable for helping narrow the field of learning institutions to contact in a given region. Two such tools are Public School Review and Private School Review. Both offer a categorical search of many fields of requirement, including special-needs education. Each school includes data such as rankings, opportunity for comments by parents, contact information, tuition, and much more. Another helpful research tool is Niche.
According to Ann, GO’s best resource for local schools and other special needs relocation services program information is their database of talented area consultants in destination cities. GO’s in-house research team also frequently supplements the area consultants’ efforts. Ann shared that sometimes GO is asked to provide research that affects a relocation decision. For example, a recent request came from a couple who were considering relocating from China to New Jersey. Their son had special needs, and GO was tasked by the father’s employer to compile a list of public and private schools with relevant programming. This research greatly aided the family in deciding to accept the employer’s relocation offer to the U.S.
Assistance Animals
Since domesticating dogs thousands of years ago, humans have valued them and many other animals for companionship and protection. Some domesticated animals have special training to provide service or assistance. This could include helping someone who has limited vision, or monitoring and alerting someone to the onset of seizures.
In Ann’s research, she has found that the U.S. Department of Housing and Urban Development defines an assistance animal as one that “works, provides assistance, or performs tasks for the benefit of a person with a disability, or that provides emotional support that alleviates one or more identified effects of a person’s disability.” Assistance animals are not classified as pets when it comes to seeking most types of rental housing, though there are some exemptions for single-family homes rented without an agent and owner-occupied buildings with four or fewer units. Also, breed and weight restrictions do not apply.
Fair Housing Act
The Fair Housing Act requires housing providers to allow reasonable accommodation for assistance animals if the request to have the animal is supported by reliable documentation for the disability and meets other requirements – such as that having the animal would not pose a direct threat to the health or safety of others, or would not result in significant physical damage to property. “Reasonable accommodation” also means providers must waive pet fees, though a pet deposit may still apply.
In booking a hotel or temporary accommodations for a transferee with a service dog, the Americans with Disabilities Act states any such person must be provided the same opportunity to reserve any room as other guests. It is important to note for purposes of the ADA that “service dogs” and “assistance animals” are separate categories. Therefore, it is a good idea to consult a hotel or other public accommodation ahead of arrival. Be sure to inquire about documentation for any animal that is not a service dog.
What Should Employers Do About Special Needs Relocation Services?
Employers should leverage pre-decision services to help identify any special needs relocation services their transferee may need. A Relocation Management Company (RMC) with knowledge and experience will help employers understand how to provide a compassionate approach to address specific transferee needs. As a result, transferees and their family members will have peace of mind. Their relocation process will also be smooth and successful.
Conclusion
GMS’ team of global relocation experts has helped thousands of our clients understand how to identify if transferees require any special needs relocation services through our robust pre-decision services. As a result, our team can help your company understand how to identify specific points of concern. In turn, this will help your company provide the appropriate resources and solutions.
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.
Contact our experts online to learn more about special needs relocation services, or give us a call 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.
