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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.
Learn why it’s important to include family and spousal support in relocation assignments
Relocating employees often have questions regarding their children’s education, family healthcare, eldercare, and the job market and career support for their accompanying partner or spouse. Understanding your employee’s needs is essential to their relocation process. By providing valuable resources for transferees and their families, your company can help ensure a successful relocation.
In Worldwide ERC’s report, U.S. Transfer Activity, Policy & Cost Survey, the average cost to relocate a home-owning employee is approximately $79,000. Family concerns about the relocation often make employees reluctant to accept transfer assignments. Reasons include fears about the new location, spouse reluctance to leave their current position, housing market issues, and cost of living differences. There are many actions employers can take to ensure their employees and family members have a positive relocation experience.
Pre-Decision Services
Your company should provide Pre-Decision Services for employees to help them learn about the relocation assignment. Candidate assessments and family pre-decision evaluations help your company determine the employee’s expectations, skills, personal qualities, family situation, and financial readiness for the relocation. Helpful information your company can provide to the employee and their family for their decision-making process includes:
Cost of living analysis
Market analysis for home sales
School reports
Moving cost estimates
Community searches and tours to familiarize employees and their family members with the new location
Significant benefits to the organization include increased job acceptances, accurate budgets, minimal policy exceptions, and cost savings. Benefits for employees include expert counsel to help understand all their relocation assistance, a dedicated consultant and support services for spouses and partners.
Career Support
Your company should provide career support services to the partners and spouses of relocating employees. An experienced and well-qualified Relocation Management Company (RMC) can provide industry best practices and a relocation benchmarking study for guidance on how to set up your relocation program. Career support should include the following:
Comprehensive career assistance that reviews a candidate’s experience, identifies personality type, discusses the importance of corporate culture, develops an application schedule and goals, offers resume review, provides networking and interview preparation, and assists candidates in navigating job listings and online resources.
Access to the company’s network of recruiters it uses for its staffing requirements; some Relocation Management Companies (RMCs) can provide access to a larger recruiter than the company’s current in-house program.
Partners or spouses may have a small business with unique needs and require specific guidance when relocating their business. Resources for partners or spouses looking to start a new business or relocate an existing company may include market analysis, networking assistance, and introductions to the startup community in the new location.
Family Support
Relocating employees and their family members often deal with several stressful factors and situations as they relocate. Your company can help smooth the process by providing resources to help everyone acclimate to their new location. Relocation programs should include resources for settling into the area, such as:
Access to online resources and community networks in the new location
Attaining a local driver’s license
Child care arrangements
Connecting utilities and arranging for installations
Interim health insurance coverage
Locating a primary care physician in the new location
Let GMS Assist Your Employees and Their Families
Providing a full range of career support and other resources for transferees and their families serves to ensure successful relocations. The corporate relocation experts at Global Mobility Solutions (GMS) have the knowledge and expertise to help your company assess candidates for assignments and provide your employees and their family members with the best relocation experience.
Contact our team of experts to discuss how we can help strengthen your relocation assistance offerings. We will ensure your company stays competitive in job offers with comprehensive relocation packages. Then, we will assist your employees in the most seamless relocation process possible.
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.
Learn what the industry leaders are using for international relocation services
Technology trends continue to shape the 2023 workplace and workforce. Companies need to rethink their talent mobility strategies to respond effectively within the new parameters of workplaces. Companies can more easily expand their organizations to meet market demands without restrictions or needs for solely geographically-limited talent.
Opening a division in a new location requires knowledgeable employees to be at the site to ensure processes are followed, and procedures are in place to match corporate requirements. A visual meeting platform like Zoom might work for meeting purposes. Still, it could be logistically challenging for an employee to conduct a factory tour or examine manufacturing processes in detail over a Zoom call.
This is why companies providing international relocation services instantly broaden their hiring pool. If you can hire the best candidate, no matter where they are currently located, you are more likely to get the right person in the right seat.
But moving employees internationally is a challenging process. There are lots of moving parts that have to be kept in mind. With that said, companies that offer international relocation programs should utilize up-to-date technology to keep all of these moving parts in one central database. With increases in global assignments, companies should examine the following three trends that impact talent mobility:
Cloud-Based Systems
The estimated increase in talent mobility highlights the need for companies to surround employees with the proper technological infrastructure to maintain productivity. Cloud-based systems may increase talent agility and flexibility since employees can access corporate information quickly with an established Wi-Fi connection. Relocation technology for transferees should reflect the most modern technology trends in providing service and solutions anytime, anywhere.
Having a cloud-based system allows all involved with the relocation process to have clear insight into how the move is going. Everyone means the employee, the employer providing the talent mobility benefits, and the company that is providing the international relocation services.
Relocation Technology Trends Attract Top Talent
Global assignments require a set of leadership competencies, including cultural awareness, open-mindedness, and flexibility. There is strong interest among employees of all levels for international assignments as technology trends provide more extraordinary learning experiences. Companies should examine their employee relocation needs with pre-decision services to ensure candidates will likely succeed.
Communication and Collaboration
Video conferencing is common in business as teams expand globally and the need for visual and verbal communication increases to replace the limitations of emails and texts. Employees drive the demand for easy solutions, so businesses must respond with practical tools and training to ensure security is not compromised as communication flourishes. Communication trends will improve with robotic process automation, which speeds up business processes, so employees have the information they need much faster than through manual processing.
GMS Provides the Best Relocation Technology
Global Mobility Solutions (GMS) created MyRelocation to make the relocation process seamless. Our cloud-based system acts as central insight for each employee’s relocation.
From bookkeeping on receipts and payout orders to pointing out key dates, such as when movers are supposed to arrive, MyRelocation keeps all involved in the know.
GMS believes that its award-winning MyRelocation technology and our expert team make us the US’s best international relocation service provider. We would love for you to set up a free consultation with us so that one of our relocation experts can walk you through why GMS is the best in the industry.
Our cloud-based relocation technology is designed to help you streamline your company’s relocation management.
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The Importance of Providing Spouse & Family Support for a Successful Relocation Process
Relocating for a job can bring many new opportunities to one’s professional career. But moving to a new destination for a job can also mean uprooting a partner, or even an entire family. When a candidate accepts a new position and agrees to move for the job, many negotiate to get relocation costs covered by the new company. Companies that are regularly involved in the talent mobility process work with relocation management companies (RMC) to construct relocation packages that are enticing and helpful to employees.
But do these relocation benefits ever include any support for the transferee’s spouse or family? Any modern RMC representative would highly recommend including partner/spousal support and family support offerings to recently hired employees. There are many reasons companies should be happy to help ease the transition for their new employees’ families. For example, if the employee knows their family will have an easier time moving, they are more likely to accept the position. Finding the right candidate quickly cuts down on the time of the job search. Also, knowing their family will be taken care of during the relocation process because of special relocation benefits, the employee can have their mind on their work.
There is no one size fits all relocation package. Each talent mobility assignment is different and should be treated as so. With that being said, there are numerous relocation services that RMCs can provide to moving employees’ spouses and other family members. Let’s look at some of the more common programs worked into the relocation process.
Area Orientation Trips
Orientation trips are a relocation benefit that tends to get overlooked. Many RMCs would recommend that companies cover at least one or two (if not more) orientation trips for the employee and their partner/spouse. The main reason to add this into a relocation package for the employee to utilize it as a house-hunting trip. Including this service helps the employee and their family get somewhat familiar with the lay of the land for their new destination. These trips can also be used to check out different schools and activities for those relocating with children. Taking a tour of a local school might help the family decide which neighborhood they might want to settle in. If the transferee’s kids play sports or participate in other after-school activities, then take advantage of the trips to meet and greet with coaches and directors so that they are not starting from square one once arriving in the new city. Area orientation trips can give kids and spouses a new, exciting spin on the move if a dream house is discovered while house hunting.
Spousal Career Services
Another perk that should be included in relocation packages is career services for the moving employee’s spouse or partner. It’s not unusual for a domestic partnership to make up a dual-career household; this means if the family is moving for one person’s job, there is a chance the other will have to quit or alter their career. But there are ways that companies can work with RMCs to include spousal career services in their talent mobility benefits. These programs can offer comprehensive career assistance along the lines of:
Spouses who are moving with their partner can use this time to their advantage. Some people hold off on a career change, but right after a relocation could be a perfect time. If the moving spouse has to resign from their current position anyway, then it could be a new beginning they need to switch industries or positions, maybe even start their own business. In very lucrative relocation offerings, there may even be grants and financial support benefits for the employee’s spouse to get special training for a new job. And sometimes, some RMCs might even work in entrepreneurial opportunities for relocating partners.
Language Training
For international relocation services, language training might be one of the most essential benefits needed. Those who relocate to a new country with a spouse and children will more than likely have to learn a new language. Learning a new language can be difficult if the family has not been preparing for it for a few years leading up to the move. Companies that plan to interview, and ultimately hire, global candidates should seriously consider covering or reimbursing for classes and tutoring for the employee and their family members to learn the language of their new home. Language training programs give the spouse and family a better chance of adjusting and liking their new surroundings making it more likely that the employee can succeed at their new job as well.
GMS Offers Relocation Services with Spousal Support
For international relocation services, language training might be one of the most essential benefits needed. Those who relocate to a new country with a spouse and children will more than likely have to learn a new language. Learning a new language can be difficult if the family has not been preparing for it for a few years leading up to the move. Companies that plan to interview, and ultimately hire, global candidates should seriously consider covering or reimbursing for classes and tutoring for the employee and their family members to learn the language of their new home. Language training programs give the spouse and family a better chance of adjusting and liking their new surroundings making it more likely that the employee can succeed at their new job as well.
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.
What Small-To-Medium Sized Businesses Need To Know About Offering Relocation Services To Candidates
Small to midsize businesses offer employees different advantages from larger corporate entities. Many employees gravitate towards smaller organizations because they feel like they’re treated as a person instead of a number. They may also feel that the job at hand is making a difference and feel included in major decisions. However, many smaller companies often have a tough fight to get top talent when hiring. When a highly qualified candidate is available for a position, it’s common for a larger company to out-match any offer the smaller company can muster. From salary and benefits, companies with deep pockets can spend what is needed to attract and retain their talent. This includes benefits such as relocation services for attracting candidates who might live outside of your immediate region.
When a company, no matter the size, can provide relocation services to their employees through a relocation management company (RMC), it opens up the talent pool for job openings. Most HR reps from smaller companies will probably just assume that their company cannot afford to offer relocation packages to interview employees. But when working with a qualified and experienced RMC, balanced relocation policies can be developed that are both affordable for the company and help your HR team find the best candidate for the job.
Let’s take a look at how offering relocation services to job candidates can help smaller companies when hiring for an open position:
Relocation Services Open Up the Talent Pool
When posting an open position, companies want the highest qualified candidates to apply. If the company is willing to relocate employees for new positions or promotions, then the talent pool is much wider since they’re able to cast a wide net that can include candidates from out-of-state or even internationally. Being able to choose from numerous resumes for an option position is a good problem to have and will give the hiring manager a wide range of skills and experience to consider for the role.
Reduce Vacancies with Relocation Services
Not every open position is filled within a few business days. If your company is only able to hire candidates from your local metropolitan area, it could take longer to find the right person. When anyone, from anywhere, is able to throw their name in the ring it can help with a quicker hiring timeline.
It Speaks Well to the Company's Culture and Brand
If a company were to just promote a position in the state where they have operations, and hire with whatever applications they were given (even if they are not the best possible talent), it may come across as a cost-saving measure. The offering of relocation benefits goes a long way to show that the company values its workforce and will do whatever it takes to get the right person in the right seat to ensure success for the entire team.
Improving Employee Retention with Relocation Services
Relocation benefits often are associated with new employees, which might be true in most cases. Many companies don’t realize that if they offer relocation packages it can also help existing employees and their ability to develop and move up within the company to new roles. For example, if an employee outgrows their current position and into a leadership role, the company can move that employee to a new location for the new position. This can also help improve your company culture because employees can be confident that they can grow within the company and that the company isn’t afraid to invest in their workforce.
It’s also a benefit to the company because they can move existing employees to varying locations to fill any skill/capability gaps instead of always needing to hire from the outside. Relocation services open up new possibilities for small to medium-sized businesses through capabilities such as short-term and long-term assignments, allowing your employees to oversee temporary projects in other company locations, open new offices supporting your company expansion, or perform other valuable functions that require a long-term (but not permanent) presence.
GMS Is Here to Help Small Businesses Compete with Relocation Packages
Global Mobility Solutions (GMS) has been helping companies of all sizes create competitive relocation policies for companies for almost 30 years. A full service relocation company, we listen to your wants and needs, then help develop a mix of the best relocation services possible for your organization. Our consulting team will make sure you are keeping up in your industry and offering the best perks possible to get the best candidate.
If you’re a small or midsize business owner or business HR manager and have questions about global mobility policies, please reach out to GMS today. Our relocation experts can help you through the entire process of creating or updating your relocation program.
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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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Moving Out-of-State for Work? Everything You Need to Know About Relocation Services
There’s little question that today’s job market is becoming more competitive. Many qualified job seekers receive multiple job offers, weighing the pros and cons of each. Employers who can offer the best compensation and benefits typically land the best talent. Typically, many people think of common benefits, such as health coverage, dental insurance, or 401k options. However, a benefit that is often overlooked when extending an offer to out-of-state job seekers is relocation assistance.
When sending outoffer letters to job candidates, companies should consider including relocation services. Relocation benefits may be the deciding factor for your preferred candidate as moving their family out-of-state is not cheap. With the right relocation package available to them, the employee can feel at ease knowing the company has their best interests in mind. HR departments that help relieve the employee of the burden of moving by including relocation services in the hiring process note increased job acceptance rates and employees that arrive at their destination ready to work.
Oftentimes, companies will work with a relocation management company (RMC) to develop and manage their relocation programs while delivering a wide range ofrelocation services. From the packing and shipping household goods to the delivery of visa or real estate assistance, there is a lot that goes into family moves. A reliable RMC can help companies have competitive relocation packages ready and will coach the moving employee and their family through the entire process.
Additionally, for companies that provide their employees a lump-sum relocation package (in lieu of a comprehensive relocation policy), having an RMC on your side can be a great benefit. The relocation company can provide value-added assistance to the employee by helping them manage their lump sum budget, source vetted vendors, such as household goods movers, andprovide access to technology that will assist the employee with their self-managed relocation.
Advantages of Relocation Services
There are plenty ofadvantages to leveraging relocation experts when utilizing relocation services in your talent acquisition efforts. The first and foremost benefit is a reduction of stress on your workforce. Moving across town is hard enough to coordinate but managing an out-of-state move while trying to start a new job is even more difficult. Relocation Consultants (Relocation Coaches at GMS) can help with the coordination of the move, allowing the employee to focus on their new job position and the onboarding process.
Cost savings is also another advantage that both the company and the employee will enjoy. For the employee, relocation costs can represent a significant financial burden. Largely, companies that offer relocation benefits include expense management as a core portion of their relocation policies, essentially providing financial assistance for a range of approved benefits related to the move.
Additionally, companies themselves can realize savings on the cost of relocation services through the usage of an RMC with a vetted and competitive network of providers. The usage of a multiple-bid process allows the RMC to “shop around” to obtain competing quotes of key services, such as household goods transportation. This results in a more cost-efficient program and increased customer satisfaction.
Time management is another huge advantage. RMCs have helped thousands of people move before with established processes and technology, so they are prepared to make it as time efficient as possible. The RMC will perform the coordination of services, such as booking short-term housing, setting dates with movers, and assisting with the sale of the employee’s home.
This time savings is beneficial to a relocating employee as they may only have a few weeks to get to their new destination. By allowing a quality relocation management company to orchestrate the relocation, you can mitigate the risk of delays, which could potentially push back an employee’s start date.
What Is a Relocation Package?
Relocation packages, also known as relocation policies, are benefits and support that companies offer employees who are transferring to a location for a position. These policies cover a range of supporting benefits spanning a wide range of relocation-related services. These may include visa/immigration assistance, real estate/rental assistance, the shipment of the employee’s household goods, global tax services, culture/language training, temporary housing assistance, spouse/partner career support, miscellaneous expense allowances, and more.
There are a variety of differentrelocation packages that a company may offer an employee, with differing levels of support that are aligned by the employee’s position, their assignment, or other factors, as determined by the employer. As every company has differing needs and objectives related to their workforce mobility program, the specific structure and benefits offered in their policies will vary from company to company. However, it is common practice across many industries to utilize a multi-tier program, generally separated by employee level.
What Should a Relocation Package Include?
The most common relocation services will include most of the basic relocation needs including:
Short-term housing: Also known ascorporate housing or temporary housing is a benefit that typically includes 30, 60, or 90 days in a furnished apartment while the relocating employee finds a full-time home in their new area.
Real estate & rental support: Buying and selling houses can be a confusing process. Most relocation service providers urge companies to include real estate assistance in their packages.Home sale programs allow employees to have options when it comes to selling their current home. Assistance with home finding is also commonly provided, allowing the employee to tour their destination and look at properties that align with their needs. For renters, benefits may include lease break assistance with their current apartment, tours of communities at their destination, and lease negotiation services.
Visa and immigration support: For companies that move employees internationally, assistance with the visa and immigration process is important. With the complex range of laws, visa types, and reporting rules, leveraging your RMC’s immigration experience will ensure your company is compliant with international laws.
Other benefits: Apart from the above, most companies decide to include the following relocation services: pet moving specialists, automotive transportation, destination services, travel assistance, family support programs for spouses and school-aged children, expense management services, and more.
How Much Do Relocation Services Cost?
Thecost of relocation services and packages will depend on the policies that the company is willing to offer for new or promoting employees. It can also depend on the specific needs of the employee who is moving. How many family members is the employee relocating with? What size is their home and what support is needed to move their personal items? Does the company feel the need to cover auto transportation? Does the employee have a home to sell or a lease to break? Is the employee receiving a comprehensive benefits package or a streamlined lump sum?
Depending on the answers, the total costs can vary. It is important to have a conversation with your relocation management company regarding program costs, methods of cost control, and when and where to use certain relocation benefits. Robust and detailed reporting should be provided by your RMC to ensure you have complete visibility into your program’s total spend and where that money is being spent.
How to Address Relocation Costs
Relocation packages have a range of what they can and cannot cover. Some of the more common methods used to address relocation expenses include:
Direct Billing: The RMC will source, coordinate, and pay the vendors hired in the relocation process. Invoices are handled and later paid by the employee’s company. This type of expense management can be pricey for the company but ensures the moving employee gets the most bang for their buck.
Expense Reimbursement: This solution is set up to where the employee pays for all relocation expenses upfront, then receives compensation checks from their employer after the move is complete. This type of package can be tricky to handle if the benefit is not written by a professional RMC.
It is also common to see a blend of direct billing (for large-ticket items, such as HHG transportation costs) and expense reimbursements (for smaller relocation expenses that may be covered by a miscellaneous allowance provided by the company).
Lump Sum: Alump sum relocation policy is basically a set amount of money given to the moving employee upfront to handle any moving costs as they see fit. Usually, the most popular type of relocation package due to its ability to provide simple controls over costs and easy budgeting, this method also provides the least amount of support to the employee and exposes them to potential risk.
Core-Flex: Some RMCs can offercore-flex relocation packages, where the relocation policies incorporate a core relocation benefit section, along with a menu of optional benefits. For example, a core relocation benefit may be HHG moving assistance. An optional “flex” benefit might include spouse/partner career transition assistance.
GMS Specializes in Relocation Services
Since 1987, Global Mobility Solutions has assisted companies and employees with all their relocation service needs. From creating relocation policies to coaching employees through the process, our experienced and talented team can assist in any way. We are always available to field your questions,contact us today to get all your corporate relocation or international relocation questions answered.
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.
Keep your Program Competitive with Home Sale Assistance Benefits
When a new or existing employee accepts a position in a different location and is willing to move, some of the main concerns they will have right off the bat are real estate concerns. Selling their current home, then buying a new house in the new city can cause anxiety. But if the company relocating the employee offers benefits with home sale assistance or real estate sale programs, it can make the relocation process much easier for both the employee and the company.
One of the most sought-after benefits to include in relocation packages is a home sale program. In basic terms, relocation home sale programs offer assistance to homeowners so that they can quickly move to their new city for the desired start date. While each relocation management company (RMC) will have different terms on their offered real estate programs, most usually include payments to cover real estate commissions and closing costs. Again, each home selling assistance program is different so it will depend on the seller’s/buyer’s situation on what can and cannot be covered or reimbursed. The type of program offered also depends on your company’s specific relocation policies and the level of support you offer to your relocating employees. Direct Reimbursement, Buyer Value Option (BVO), and Guaranteed Purchase Offer (GPO) are three of the most commonly offered relocation home sale programs. Here is a breakdown of each:
Direct Reimbursement
In most cases, this might be the simplest home sale assistance program for the company and the most involved for the employee. Under a typical direct reimbursement program, the employee is responsible for the sale and closing of their own home. This means they have to hire their own real estate agent and list the home (however many RMCs, like GMS, offer comprehensive home marketing assistance to help sell the property quickly and for top dollar). Once the property sale is complete, the employee then goes through the employer’s process of submitting expenses to be later reimbursed – generally these expenses cover the cost of the agent’s commission, closing costs, and the miscellaneous fees associated with selling a home.
With direct reimbursement, the payment to the employee is viewed by the IRS as income and is subject to income tax. This can result in the employee receiving a reduced overall amount of support due to their unique tax situation. However, If the employer is offering the employee tax gross-up options, this could help offset the amount of tax dollars that the employee is having to pay, providing them with an elevated level of financial assistance.
Buyer Value Option (BVO)
Known as a 3-party transaction, the Buyer Value Option program can seem a little confusing to those who are not in the industry. Under a BVO home sale assistance program the employee lists their home for sale until a competitive outside offer is received. Then, the RMC will purchase the home from the employee based on a set sales contract amount. The RMC will then immediately sell the property to the outside buyer. Unlike the single transaction reimbursement program, this option has two transactions.
The main reason companies choose to offer BVOs in their relocation program has to do with the tax benefits, tax protection, and the reduced overall costs of this program. Under a Direct Reimbursement program (as described above), if the employee were to sell the home directly to the buyer, without the RMC middleman, then the IRS would view the reimbursement of expenses to the employee as taxable income. Companies help to offset this by grossing up the reimbursement, which drives up the total cost.
Under the advantageous BVO program, the home sale is tax-protected, occurs between the RMC/Company and the buyer, and no reimbursement or gross-up to the employee is required as the company pays the selling expenses. This reduces the tax liability for both the employee and their new company. The BVO home sale assistance program also helps cover the cost of the real estate broker’s commission and closing costs on the home sale. Lastly, the expense of an appraisal is mitigated, as the price of the home is driven by the offer received in the market.
Guaranteed Purchase Offer (GPO)
Sometimes called a Guaranteed Buyout (GBO), the GPO home selling assistance program is a popular one because it gives the moving employee a guaranteed home sale. Under this program, the employee lists the property for a set amount of days (typically 60-120 days) to try to sell on their own. If their home is not sold in the allotted time frame, the RMC/Company will then purchase the home from the employee, allowing them to move on to their ultimate destination without the stress of selling their property. The property then goes into the RMC/Company’s inventory and is now their responsibility to sell.
If the employee does get a qualified offer from a buyer within the specified timeframe, then the sale is completed similar to the BVO program (often called an Amended Value under these circumstances), where the RMC buys the home from the employee then sells it to the buyer for tax purposes. Again, making for two home sale transactions.
The major difference between the Guaranteed Purchase Offer program and the BVO is that in a GPO program, an appraisal is completed on the property to establish a fair market value of the property to establish the purchase offer price.
Choosing the Right Relocation Home Sale Program
Global Mobility Solutions has been helping relocating employees since 1987. Our team is always on hand to help your organization develop competitive and cost-effective home sale assistance programs. Reach out to us today with any questions regarding direct reimbursement programs, BVOs, or GPO. Our team is more than happy to help your company come up with the best relocation home sale programs possible to assist with meeting your talent acquisition objectives and improve the overall relocation experience for your transferees and their families.
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United Van Lines’ newly published study of 2020 migration patterns in the United States shows where people are moving. The study ranks those states where the company has moved 250 or more into the state. Four of the top five states from the 2019 study make an appearance at the top of the 2020 list. One state that was in the top 5 in 2019 does not even rank in the top 10 for 2020—Washington. A new entrant into the top 5 is South Dakota, although it ranked at #8 in 2019.
Top 5 States Growing due to 2020 Migration Patterns
2020 Ranking
2019 Ranking
1. Idaho
1. Idaho
2. South Carolina
2. Oregon
3. Oregon
3. Arizona
4. South Dakota
4. South Carolina
5. Arizona
5. Washington
Note: Just as in 2019, for 2020 the state of Vermont actually had the highest overall percentage of inbound moves. However, United Van Lines performed less than 250 moves into the state
COVID-19 Impacts 2020 Migration Patterns
One major difference between 2019 and 2020 is the onset of the COVID-19 pandemic. Many companies allow workers to “work from anywhere” in order to reduce the spread of the disease. As a result, some large metropolitan areas have lost population. Employees are choosing to move to suburban areas and smaller cities.
How did South Dakota Rise from #8 to #4 in 2020 Migration Patterns?
South Dakota rose in the 2020 migration patterns due in part to a few specific reasons:
Governor Kristi Noem
Governor Kristi Noem encourages workers and businesses to relocate to South Dakota through the state’s “South Dakota Means Business” campaign. Messages in the campaign include the state will “never be shut down or face mandates.” New residents that have chosen South Dakota are leaving states that have been on lockdown for many months in response to the global pandemic. The Governor has been an effective leader and communicator, spreading the message of all that South Dakota offers to its residents.
Additionally, South Dakota has a favorable business climate. Business owners benefit because the state has less taxes.
South Dakota does not impose any of the following taxes:
Corporate income tax
Personal income tax
Personal property tax
Business inventory tax
Inheritance or estate taxes
Affordable Cost of Living
Overall, the cost of living in South Dakota is less than the US average. Looking at Sioux Falls, the state’s largest city with an estimated population of nearly 180,000 residents, the cost of living compares favorably across many categories:
Cost of Living
Sioux Falls
South Dakota
USA
Overall
88.6
88.3
100
Groceries
100.1
97
100
Health
91.6
101.5
100
Housing
81.4
83.8
100
Utilities
96.4
93.6
100
Transporation
74.8
71.2
100
100 = US National Average Source: Sperling’s BestPlaces.net
What Do 2020 Migration Patterns in the United States Mean for Employers?
For employers in the top 5 states, an influx of new residents and business may lead to business expansion and greater economic performance. As a result, demand for new employees may rise as local markets respond to increasing business activity.
What Should Employers do?
Employers should review their corporate initiatives and future growth plans. Requirements for job openings should be reviewed to ensure they attract the most qualified applicants. They should also determine if future growth will increase the need for new employees or facilities.
Conclusion
GMS’ team of corporate relocation experts has helped thousands of our clients develop highly effective relocation programs to attract and retain qualified employees. Our team can help your company leverage 2020 migration patterns in the United States for talent acquisition and management.
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 sets the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.
Contact our experts now to discuss your company’s interest in leveraging 2020 migration patterns, or call us at 800.617.1904 or 480.922.0700 today.
We're Here to Help! Request a Courtesy Consultation
Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.
Many job seekers looking for US job opportunities have their sights set on moving to find their new job. They often search for cities where there is a wide and growing number of employment opportunities. In this way, job seekers may increase their ability to find employment.
Where are the US Job Opportunities?
Several cities have shown tremendous growth in population, industries, and jobs over the past several years. Many of these cities are well positioned to leverage their strengths, from low cost of living to exceptional natural beauty. According to thetravel.com, the following 12 cities have the most US job opportunities:
While some cities on this list are often consistently cited as great engines of economic growth, others may seem somewhat surprising. Cities such as Sioux Falls, Boise, and Lake Charles do not often rub shoulders with shining tech industry stars like Austin, Boston, and San Francisco. What are the US job opportunities in these cities?
US Job Opportunities in Sioux Falls, Boise, and Lake Charles
Job seekers should look into cities like Sioux Falls, Boise, and Lake Charles for US job opportunities. These cities offer a wide range of industries and large variety of jobs. This bodes well for their future economic and employment growth.
Several resources are available to help job seekers learn about job openings in Sioux Falls, Boise, and Lake Charles. Social networking platforms such as Linkedin provide company information and searchable contacts for connection opportunities. Job seekers should leverage professional career services to enhance their job search and achieve success in their career objectives.
What Should Employers in Cities with Plentiful US Job Opportunities do?
Employers located in cities with plentiful US job opportunities should review their hiring plans and talent acquisition programs. High levels of economic growth means employers must compete for job seekers.
Employers seeking candidates with the best skills and qualifications should work with a Relocation Management Company (RMC). RMCs have knowledge and expertise to help employers design a robust and effective relocation program that promotes global talent acquisition
Many cities with growing industries often generate additional jobs in service and support industries. As employment grows, demand rises for housing, shopping, schools, and other services. Job seekers in service and support industries should also look at cities with plentiful US job opportunities.
Conclusion
GMS’ team of domestic relocation experts has helped thousands of our clients develop highly effective hiring and recruiting programs. As a result, our clients can easily attract highly skilled job seekers to cities with plentiful US job opportunities. Our team can help your company determine how to attract job seekers to fill openings and help your company reach its corporate objectives.
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 your company’s recruiting, hiring, and relocation program needs in the top cities for US job opportunities, or give us a call at 800.617.1904 or 480.922.0700 today.
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.
