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Corporate Relocation Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Global Relocation Global Relocation Challenges Global Relocation Tips Relocation Policy Review Talent Mobility

Family Matters and Career Support for Spouses Impacted by Relocations

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.

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Global Relocation Global Relocation Tips Global Relocation Trends

What are the Top Calgary Industries Leading the City’s 2023 Economic Development?

Updated for 2023

What are the top Calgary industries leading the city’s 2023 economic development? For the last few years, much of the local economic news has been filled with the effects of the COVID-19 pandemic. The Conference Board of Canada reported that the province of Alberta took a massive hit during the pandemic, with the most damaging effects due to the pandemic and declining global oil prices. Calgary is the largest city in Alberta, the city and the surrounding region will experience these adverse effects.

However, the population of the Calgary Metropolitan Region exceeds 1.2 million residents. As a result, both the city and the region are positioned well for significant future growth. Before the pandemic, this year was projected to be Alberta’s first year of full economic recovery.

Top Calgary Industries

According to Calgary Economic Development, 8 Key Sectors drive Calgary and Alberta’s economy. Each sector, in turn, helps Calgary industries to grow with investments and jobs.

1. Aerospace & Logistics

Calgary is home to one of Canada’s busiest airports. Also, one of the nation’s major airlines is in the city. Several Calgary companies are focused on commercializing aerospace technologies such as drones. Aerium Analytics provides Unmanned Aerial Vehicle (UAV) flight and analytics to address issues such as airport wildlife management, building inspections, and forestry management.

2. Agribusiness

Agribusiness is one of the top Calgary industries. This sector is poised to be the fastest-growing adopter of several transformative digital technologies. Spending on these technologies is expected to increase by 23% from 2019-2022. Decisive Farming focuses on precision agronomy, farm management, and crop marketing with services and technologies.

3. Creative Top Calgary Industries

The Calgary Film Centre is located just 25 minutes from the city’s airport. The Centre includes:

4. Energy

The energy sector represents a significant portion of the top Calgary industries. Clean technologies include those that derive from solar, wind, bioenergy, and geothermal sources. Calgary industries focusing on energy are the most well-known in the city. Alberta is Canada’s largest producer of natural gas and oil. Over 70% of the province’s CleanTech company headquarters are in Calgary.

5. Financial Services

What is FinTech? This term describes the use of new technology to improve and further automate both the delivery and use of financial services. It may also include concepts such as cryptocurrencies like bitcoin. Companies like Bitfury are leading the effort in implementing blockchain technology and artificial intelligence solutions.

6. Interactive Digital Media

Over 60 companies in Calgary produce video games and/or immersive media products. The Calgary Game Developers Association has over 800 members and represents a strong talent pool.

7. Life Sciences Top Calgary Industries

There are over 110 life science companies in Calgary, making for a sizable segment of the top Calgary industries. Oncolytics Biotech Inc. is developing an immuno-oncolytic virus to kill cancer. The Calgary Cancer Centre is scheduled to open in 2023. The centre will increase capacity and add to Calgary’s leading role in cancer services.

8. Technology

Calgary businesses are projected to spend $7.5B on digital transformation (DX) from 2019-2023, representing a 20% compound annual growth rate. What is DX? DX refers to applying new technologies to change work processes and customer experiences and enhance value. It’s not just making current technologies work better in a defined process. It uses new technologies to change the function and gain advantages through innovation and disruption.

What Should Employers in the Top Calgary Industries Do?

Employers in the top Calgary industries should examine their employment needs as economic growth fosters competition for job seekers with requisite skills and training. They should review their relocation program to determine if it benefits their talent acquisition goals and corporate objectives. Employers should work with a Relocation Management Company with the knowledge and expertise to help them design a relocation program promoting talent acquisition.

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

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

Stay up-to-date with GMs

GMS’ team of global relocation experts has helped thousands of our clients develop hiring and recruiting programs to attract highly skilled job seekers. Our team can help your company determine how to attract job seekers looking for employment opportunities in any of the top Calgary industries.

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 as they relate to the top Calgary industries, 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.

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Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips

What Does The Employee Relocation Timeline Look Like?

Breaking down the standard outline preparation of the relocation process

Relocating for a new job can be an excellent move for both career and personal reasons. New scenery for work and life can provide new growth opportunities. If you accepted a position with a different company, there is probably a lot going through your head. That’s normal, moving can also be a testing process. 

 

If your new company is providing you and your family with corporate relocation benefits, it’s essential to review all aspects of those benefits to take advantage of each one. 

 

It is also highly recommended to speak with a representative from the relocation management company (RMC) that your new company works with for their talent mobility needs. Most companies work with an RMC to set up their corporate relocation programs, and RMCs in some cases, will provide one-on-one consultations for all transferees. The point of this is to keep the employee relocation process as understandable as possible. 

 

Moving to a new job can raise many questions, especially if there is a tight start date with the new company. Of course, the relocation timeline is not always the same for every employee, but some commonalities can be covered to ensure the process can be completed in a timely manner. Here are a few things to review when you are about three to four weeks out from moving to your new destination:

4 Weeks Out

Many corporate relocation packages will include a destination visit. This will give employees a chance to see their new office, maybe do some meet and greets with teammates, and hopefully have time to check out some real estate options. 

 

When researching places to live, it could be a good idea to add soon-to-be teammates on LinkedIn to ask them about the office building, parking, and commutes from certain areas. As far as housing options go, it would be worth asking the RMC if corporate housing can be utilized. 

 

Corporate housing options are places where relocating employees can stay anywhere for 30-90 days while they look for their new home. Companies tend to provide corporate housing so that employees are not forced to make real estate decisions on the spot within the four weeks they typically give for their start date. 

 

This gives you more time to look for a home in which your family will be happy and comfortable. Short-term housing options also allow you to go ahead while kids finish school or your partner finishes their notice at their current job. 

 

It should also be noted that prepping for household goods to be moved should start almost as soon as the offer letter is signed for your new position. Anything that can be wrapped, boxed, or packed now helps save time before the moving rush hits. 

3 Weeks Out

Once all the major pieces like home buying and selling and packing have been set in motion, it is a good idea to review the budget for the actual move. The relocation timeline moves quickly, you want to make sure you know everything your talent mobility benefits cover so that you do not go over budget. 

 

A reliable RMC will provide transferees with cloud-based technology so that they can track their move with expenses and receipts in order to stay within budget. Having a platform to track the move also helps the RMC, company, and employees know exactly where they are at in the process. 

The three-week mark is always a good time to plan with the movers. Assure they will be able to come to get your household goods, leaving enough days for them to travel to the new destination and unload. Depending upon your corporate relocation package, there can be different ways to go about paying for movers. Some packages will be through employee reimbursement, other packages will be worked out by the company to have already moving vendors paid for. 

GMS Is a Top RMC Who Is Here to Help

Global Mobility Solutions (GMS) is the industry leader when it comes to providing corporate relocation programs. We help companies build, or update, talent mobility packages that are sure to attract the top talent for any job. 

 

We provide each of our transferees a relocation coach. This coach is a relocation expert who will guide the moving employee every step of the way. On top of personal coaches, we also set every transferee up with a Relocation login. This is a cloud-based platform that assists moving employees track their relocation timeline from start to finish. 

 

For over 30 years, GMS has assisted companies with their employee relocation needs. If you have any questions, please set up a free online consultation. We will listen to your needs and help you take the best course of action, getting your employees from point A to point B while staying within your budget. 

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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Choosing a Relocation Company Global Mobility Global Relocation Tips Global Relocation Trends Relocation Management Talent Management

Common Employee Relocation Packages

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:

 

chart of relocation policy tiers

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.

Categories
Domestic Relocation Domestic Relocation Trends Job Market Job Seekers

What are the 2020 Fastest Growing Industries in the US?

What are the 2020 fastest growing industries in the US? Although the COVID-19 pandemic dampens business and social activities, US economic growth continues its blistering pace. With 3rd Quarter 2020 Gross Domestic Product (GDP) increasing by a record-breaking 33.1%, the US economy has been gaining ground lost to the pandemic. The initial pandemic closures resulted in significant economic losses with 2nd Quarter 2020 GDP declining by 31.4%.

The United States Department of Commerce Bureau of Economic Analysis attributes 3rd Quarter 2020 growth to businesses reopening and resuming activities that were postponed or restricted due to COVID-19.

Several industries also act as growth engines for the US economy. The 2020 fastest growing industries in the US reflect the impact of the COVID-19 pandemic, and to a lesser extent technology trends. IbisWorld reports that the top 10 as measured by revenue growth include:

Consumer Market

  • Massage Business Franchises
  • Grocery Store Sales via Online Portals
  • Pet Food and Supply Store Sales via Online Portals

Energy

  • Hydraulic Fracturing Services (also known as “fracking”)

Finance

  • US Stock Exchanges and Commodity Markets

Manufacturing

  • Autonomous Underwater Vehicles
  • 3D Printing and Prototype Services

Medical

  • Medical and Recreational Marijuana Farms
  • Thermometer Manufacturing
  • Medicines for Colds and Coughs

2020 Fastest Growing Industries on both 2019 and 2020 Lists

Interestingly, the only two industries that were at the top of the list in both 2019 and 2020 are:

  • Massage Business Franchises
  • Medical and Recreational Marijuana Farms

These two industries benefit from consumer’s shifts in perceptions. Many consumers spend more on luxury goods, and enjoy the therapeutic benefits of massage therapy. Consumers are also more accepting of legal access to medical marijuana.

The 2019 industries that dropped off the list in 2020 include:

  • Social Networking Platforms
  • Solar Power Installation and Production
  • Wind Turbine Installation
  • Online Mortgage Brokers
  • Peer-to-Peer Lending Platforms
  • Automated Guided Vehicle Manufacturing
  • Telehealth Services
  • Medical and Recreational Marijuana Retail Stores

What Trends Drive the 2020 Fastest Growing Industries?

One major trend drives most of the 2020 fastest growing industries: the COVID-19 pandemic. Online shopping accelerated dramatically in 2020. As retail stores closed or limited hours, consumers turned to online portals. Online shopping lets them avoid contact with other people. They can also find products that could be delivered right to their front door, so there is no need to travel to retail locations.

Medical product sales rose as consumers stocked up on medicines, thermometers, and other items to help them with illnesses as they avoided going to doctor offices. A major trend is for businesses and offices to take temperatures of staff and visitors, since that is an early sign of exposure to coronavirus.

Highlight on Autonomous Underwater Vehicles

What is an Autonomous Underwater Vehicle (AUV)? These are vehicles for conducting underwater research that are not manned by a pilot, and are not physically connected to another vessel with a line or tether. They operate independently, and some fully autonomous vehicles carry their own power in the form of batteries, fuel cells, or rechargeable solar power

The top AUV manufacturers include several with US locations, such as:

Boston Engineering Corporation (Waltham, Massachusetts, US)

Fugro (Nootdorp, the Netherlands)

General Dynamics Corporation (Reston, Virginia, US)

Graal Tech Srl (Genoa, Italy)

International Submarine Engineering Limited (Port Coquitlam, British Columbia, Canada)

Kongsberg Maritime (Kongsberg, Norway)

Lockheed Martin Corporation (Bethesda, Maryland, US)

Teledyne Technologies Incorporated (Thousand Oaks, California, US)

The ECA Group (La Garde, France)

What Should Job Seekers do About the 2020 Fastest Growing Industries?

People seeking a job should look into the 2020 fastest growing industries opportunities. A number of resources are available to learn about jobs in the AUV Industry. Professional networks such as Linkedin also have useful information on companies and contacts in this industry.

Job seekers may want to focus on a specific location such as Boston or Washington, and then target companies in those cities. It is a good idea to leverage professional career services to enhance job searches. Job seekers are more likely to find success in their search and objectives.

What Should Employers in the 2020 Fastest Growing Industries do?

Employers in the 2020 fastest growing industries should look into their needs for employees. Continuing economic growth creates stiff competition for job seekers with the necessary experience, education, skills, and training. They should review their relocation program to determine if the program supports their specific talent acquisition goals and corporate objectives.

Employers should work with a Relocation Management Company (RMC) that has knowledge and experience helping companies in the 2020 fastest growing industries. RMCs will help employers develop a relocation program that follows industry best practices and promotes their talent acquisition goals.

Industry Benchmarking Studies Help Employers Ensure Competitiveness

GMS has several Industry Benchmarking Studies that describe industry-specific best practices. These studies will help employers in the 2020 fastest growing industries learn if their company’s relocation program is designed to support their corporate objectives.

Corporate relocation policy benchmarking provides many benefits for employers. By benchmarking their relocation policy, employers can ensure their policy is comparable to their industry competitors. As a result, this will help them attract and retain talent with the highest level of skills and experience.

Industry best practice is to schedule a relocation program and policy review every 12 to 18 months to ensure your company maintains its competitive position. A thorough policy review will help your company learn how the relocation industry continues to evolve to meet increased employee demands. During the COVID-19 pandemic, the demands of compliance for safety leads to rapidly changing requirements for both employers and employees.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop hiring and recruiting programs to attract highly skilled job seekers. As a result, our team can help your company determine how to attract job seekers looking for employment opportunities in the 2020 fastest growing industries.

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 as they relate to the 2020 fastest growing industries, 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.

Categories
Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends

Florida Gains Residents for Several Reasons

News on state-to-state relocation often notes that Florida gains residents as part of a broader domestic US migration trend. Recently it was noted that Florida is gaining even more residents due in part to the impact of the COVID-19 pandemic. Several factors are driving this domestic migration trend, including:

  • Availability of jobs and future job growth
  • Corporate relocations
  • Retiring workers moving to warmer climates
  • Desire for lower costs of living
  • Seeking lower tax environments

Many states in the Northeast and Midwest are losing residents to Florida. A review of tax filings shows many new Florida residents hail from the Tri-State region of New York, New Jersey, and Connecticut, as well as Massachusetts and Illinois. Comparing these factors between states illustrates why Florida gains residents while other states lose residents.

New York versus Florida Tax Environment Helps Illustrate why Florida Gains Residents

High taxes are often cited as a major reason that residents depart New York. How high are New York taxes versus Florida taxes? Recent analysis shows New York is the state where residents pay the most in taxes.

In 2018 the US government put limits on individual state and local “SALT” tax deductions for income tax filing purposes. The $10,000 cap on SALT deductions can result in a significant increase in a resident’s federal tax burden. As a result, many high income residents have been fleeing high tax states. The situation has caused some state governments to try to enact workarounds to prevent this effect. However, the IRS is disallowing several of these workarounds. Only a limited number of workarounds relating to “pass-through entities” appear to be excluded from IRS disallowances.

In the case of New York and New York City, unless an individual can leverage some kind of pass-through entity to avoid the cap on SALT tax deductions, they may face many of the following taxes:

New York State Taxes

  • Income tax
  • Sales tax (goods and services)
  • Property tax
  • “Sin” tax (liquor, tobacco, gambling)
  • Estate tax
  • Motor Fuel tax (excise tax, petroleum business tax, petroleum testing fee)

New York City Local Taxes

  • Income tax
  • Sales tax (goods and services)
  • Metropolitan Commuter Transportation District (MCDT) surcharge

In the case of Florida and Miami, it may not be easy to see why Florida gains residents, as individuals may face many of the following taxes:

Florida State Taxes

  • Sales tax (goods and services)
  • “Sin” tax (liquor, tobacco, gambling)
  • Motor Fuel tax

Miami Local Taxes

  • Property tax
  • Sales tax (goods and services)

Major Differences between New York and Florida Taxes Shows Why Florida Gains Residents

There are some major differences in the tax situation between New York and Florida. These differences help explain why Florida gains residents while New York loses residents. In particular, Florida does not impose any state or local income tax. There is also no estate tax in Florida.

Additionally, the tax rates may be significantly different, such as in sales taxes. Sales taxes may include state, county, city, and other local taxing jurisdictions.

New York City versus Miami Sales Taxes

Comparing the rates for New York City and Miami:

New York City total sales tax rate: 8.875%

  • City sales tax 4.5%
  • State sales tax 4%
  • MCTD surcharge 0.375%

Miami total sales tax rate: 7%

  • County surtax 1%
  • State sales tax 6%

As Florida Gains Residents, What Does This Mean?

There are several points to consider as Florida gains residents. The construction industry will continue to grow with job opportunities as housing, commercial, and infrastructure projects proceed. With a greater number of employees able to work anywhere with new corporate policies, local Florida employers may benefit from their proximity to a larger pool of local employees. There may be further shifts in political representation as the 2020 US Census takes note of Florida’s population growth and New York’s population decline.

What Should Employers do as Florida Gains Residents?

As Florida gains residents, employers should review their talent acquisition and retention programs to ensure they remain competitive in their market. Employers should consider the impact of employees relocating to Florida on current staffing as well as tax withholding considerations. Work from anywhere policies should be examined to ensure employees are encouraged to remain with the employer.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to consider the impact of US domestic migration trends. As Florida gains residents, our team can help your company understand how to identify important issues that may impact talent acquisition and retention programs. We can also help your company understand if a relocation to Florida or a corporate headquarters relocation might be a future opportunity for corporate growth.

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.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online to learn how to position your company’s relocation program for success as Florida gains residents, or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is not a CPA firm, and is not giving financial advice. Everyone’s financial situation is different; individuals and employers should consult their financial advisors prior to making any decisions.

Request your complimentary relocation policy review

Categories
Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Challenges

Temporary Housing Solutions in Times of Crisis: 2020 California and Oregon Wildfires

Temporary housing solutions have applications beyond providing homes for transferees on short-term assignments. Recently GMS was contacted by several clients and prospective clients seeking assistance for employees displaced by the 2020 California and Oregon wildfires. Many of these employees lost their homes to fires or had to be evacuated to another location.

Each of the stories is heartbreaking for the employee and their family members. Ultimately, GMS was able to provide immediate assistance for everyone who called seeking temporary housing.

Sam Hoey, Senior Vice President, Business Development, oversaw the GMS response for our clients and prospects. Sam agreed to share the solutions that GMS implemented.

Traditional Temporary Housing Solutions

GMS recommends clients choose traditional temporary housing solutions for a number of reasons. Important criteria that are addressed with traditional solutions include:

  1. Move-in Inspection covering several points
  2. Cleanliness meeting specific standards
  3. Emergencies and Maintenance Issues
  4. Security Standards including the Wi-Fi System

Traditional temporary housing gives clients and employees peace of mind that these major areas of concern are taken care of down to the last detail.

Scope of Client’s Immediate Needs for Temporary Housing

Destruction from the 2020 California and Oregon wildfires is vast and widespread:

California

Oregon

The wide area of destruction spread over both states impacts many employees. In some cases, over 400 employees were displaced in just a few days, with many actually losing their entire homes. Employers seeking to help for their displaced employees contacted GMS to discuss how best to help those in need.

GMS Leverages Temporary Housing Solutions

  • After receiving requests for assistance, Sam sent the clients and prospects a clearly written communication. The instructions were to send the communication to their employees about who to contact at GMS for immediate assistance.
  • GMS set up every employee in need with a GMS Relocation Coach. The Coach assessed their needs, and in many cases then sent the request to a client-directed preferred temporary housing provider, ATB Housing.
  • A few cases required specialized responses. One employee displaced in Salem, Oregon, also had 4 large dogs. Instead of sending the dogs to a boarding kennel, GMS sourced a nearby fully furnished apartment for the employee on a 30 day rental basis.
  • Some employees preferred booking extended stay hotels instead of temporary housing for the time being since they did not know what insurance would be offering them for their specific cases. ATB Housing also arranged the hotel options for these employees.

What Does This Mean?

GMS has a team of experts that help clients address nearly any relocation issue, including an emergency request for temporary housing. Clients should work with a Relocation Management Company (RMC) that has extensive knowledge and experience in housing solutions for employees.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to respond to emergency situations and changing employee needs. Our team can help your company understand how to find appropriate temporary housing solutions during any type of local crisis, including wildfires.

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.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts. Contact our experts online to learn about temporary housing solutions for your employees, or give us a call at 800.617.1904 or 480.922.0700 today.

Categories
Domestic Relocation Domestic Relocation Tips Employee Development Global Relocation Global Relocation Tips Labor Force Talent Mobility

2020-21 Employee Relocation: Location, Location, Location

If your company’s 2020-21 employee relocation plans require a mix of new hires and current employee transferees, how can you be sure you will attract the most highly qualified candidates? Many job seekers are looking for career opportunities. However, they also have other interests such as home ownership and a desire to live in a growing and vibrant location.

With the COVID-19 pandemic leading many employers to institute Work from Anywhere policies, some may think relocation is no longer necessary to attract talent. Employers that pursue this line of thinking may believe they are offering a great value in their talent acquisition programs. Unfortunately, they may also be seen as a less desirable employer for job seekers to consider. Why? Because the employer’s location may be one of the most desirable points for job seekers who are seeking opportunities.

Location, Location, Location

When employers benchmark their relocation policy, they should keep “location, location, location” at the top of their mind for talent acquisition. Key point to remember: the employer’s location is where the job seeker wants to work and live. While the job opportunity carries significant weight, location is often a deciding factor for employee relocation.

Location Often at Top of the List for 2020-21 Employee Relocation

Location is often at the top of every job seeker’s list when looking for employment. Many people see moving for a new job an exciting adventure. Looking at the best cities to find a new job is almost a rite of passage for new college graduates. Even during the pandemic, many cities have more job openings than candidates with the requisite skills and qualifications. Location, then, is a critical consideration for job seekers, and one that employers should leverage in their 2020-21 employee relocation plans.

Beyond location, job openings, and future company growth, job seekers also consider a wide range of location-specific factors in their search. These factors may include:

  • Cost of living
  • Housing options
  • Demographics
  • Social networks
  • Weather
  • Safety
  • Educational opportunities
  • Professional networks
  • Local amenities

Pre-Decision Services are Critical for Success with 2020-21 Employee Relocation

The value of pre-decision services to talent acquisition programs has increased dramatically. Employers can more readily determine if new hires and transferees will result in a successful relocation. These services also help the potential employee learn about the area and understand all aspects of the relocation. Career support services for spouses and partners are also provided, and family matters are taken into full consideration.

There are many benefits of pre-decision services for both the client and the candidate, including:

Client Benefits

  • Increases job acceptance ratios
  • Highlights candidate concerns and issues prior to relocation
  • Minimizes policy exceptions
  • Provides cost savings
  • Increases budget accuracy
  • Increases successful relocations
  • Identifies candidates unable/unwilling to relocate

Candidate Benefits

  • Thorough orientation tours for candidate and family members
  • Expert counsel and assistance for all aspects of the relocation
  • Relocation industry professionals provide support and attention
  • Spouse, partner, and family support services
  • Dedicated consultant available to discuss any concerns

MyRelocation® Video Destination Spotlights Highlight the Employer’s Location

With so much interest in location and location-specific factors from job seekers, employer should consider how they present relocation opportunities to candidates. GMS offers its clients Destination Spotlights to North America and Global locations that provide a wealth of helpful information. GMS’ MyRelocation® Video Destination Spotlights are professionally crafted videos. These beautiful and engaging videos provide an overview of the location for the candidate.

What Should Employers Do About 2020-21 Employee Relocation?

Employers should examine their 2020-21 employee relocation plans to determine how they can be successful in attracting candidates with the necessary skills and qualifications. They should work with a Relocation Management Company (RMC) with knowledge and experience in developing relocation policies that follow industry best practices.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to develop relocation programs that attract candidates with the necessary skills, education, and experience. Our team can help your company understand how to use 2020-21 employee relocation plans to design an effective relocation policy. As a result, your company will be able to remain competitive in its industry and attract the best candidates for job openings.

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.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online to schedule a complimentary policy review for your 2020-21 employee relocation plans, 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.

Categories
Corporate Relocation Domestic Relocation Global Relocation

Virtual Destination Services: Ideal Solutions for our Virtual World

Virtual destination services provide transferees with the tools and resources they need to navigate their relocation from a distance. Many GMS clients have transferees who benefit from using convenient formats and technology. In today’s virtual world many processes are changing to ensure health and safety during the COVID-19 pandemic. As a result, transferees have access to new tools and resources to assure a successful 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 Convenient Formats for Virtual Destination Services

For services such as searching for schools, finding homes, and getting to know the new location, there are three convenient formats:

  1. Real-Time Community Video

Live video lets transferees review specific areas, discuss their interests, and share their preferences. The local destination contact provides direct communication on specific points and can answer questions that may arise.

  1. Webinar Presentation and Consultation

Transferees access a 1-on-1 presentation through a web-based platform. They also receive consultation for their destination needs.

  1. Custom Pre-Recorded Video

A personalized video is recorded and shared with transferees. They are then free to review the recording at a time that is convenient to their schedule.

Ann notes these virtual destination services are a terrific option for transferees and their family members. The services provide benefits such as:

  • Providing direct support when needed
  • Keeping assignments on track for success
  • Recruiting and retaining key employees
  • Assisting and supporting family members
  • Developing and growing relationships

Example #1: Home Finding

More people are buying homes sight-unseen due to several factors including the pandemic, the speed of business, and preference. Transferees using virtual destination services to find a home receive a number of helpful resources, including:

  • Initial consultation/needs assessment to allow for service personalization
  • Research conducted using transferee’s timeline, preferences, and budgetary requirements
  • Appointment-setting services to provide a virtual review
  • Virtual review of lease
  • Move-in inspection using virtual services
  • Personalized 1-on-1 consultation for questions and answers

Finding Homes

GO Destination Services has helped many clients find homes utilizing resources such as real-time video, webinar presentations, and consultations. One example is a recent transferee who was relocating from Canada to the U.S. West Coast for her job. Pre-pandemic, she would have flown to her destination city for a pre-move tour and to view available properties a month or more before the date of her move. However, that was complicated by the fact Canada is imposing a mandatory 14-day quarantine for anyone arriving from outside national borders, including residents returning from the U.S. – this would have created a delay for her local preparations toward her final move.

Video Conference

To solve this, one of GO’s area consultants in her destination city put together a virtual presentation that included an area tour and orientation, as well as video and information about potential homes she had selected ahead of time, and went over these with her during a real-time video conference. She was able to ask questions, discuss the properties with the consultant, and ultimately chose her new home – all without leaving the country. GO then assisted with the lease review and signing, inspection, and arranging landlord repairs before she arrived, lessening the stress of her move-in date.

Ann notes the recommended service length for home-finding is eight hours.

Example #2: School Search and Consultation

Families moving with children often have specific needs for their home, location, and schools. Transferees using virtual destination services to find a school participates in a virtual search, support, and coaching sessions on school choices. These services include:

  • Initial consultation/needs assessment for service personalization
  • 1-on-1 personal consultation
  • Appointment-setting services
  • Extensive and thorough question-and-answer sessions through phone and video

GO Destination Services recommends transferees participate in a webinar presentation and consultation for this service. Ann notes the recommended service length for school search is also eight hours.

Additional Virtual Destination Services

Ann notes that several destination services can be provided virtually. These include tours and orientation, departure services and support, and area consultations. All of these services provide transferees with 1-on-1 consultation and support to ensure their peace of mind.

Area Tours

Some of GO’s clients use virtual services for area tours for potential new hires at the interview stage. Candidates who are doing video interviews with clients and cannot travel to the destination city are connected to GO. Then they are afforded the opportunity to talk with a local area consultant. The consultant inquires about their preferences and other items of importance when considering a new job and relocation. Using that information, the consultant and GO prepare a web-based platform presentation highlighting local attractions, services, and even rentals – using such tools as video, mapping features to virtually “move around” the city, and, of course, opportunity for question-and-answer time.

Settling-In Services

Other virtual services include assistance with settling-in steps. When the Social Security Administration first closed offices in March because of the pandemic, it was not allowing applications for new Social Security cards for international work visa holders. Later, some locations began adding the ability to schedule in-person appointments even with offices still closed. Many offices will not allow area consultants to accompany the transferee inside for appointments; a number of those even require the transferee to call and schedule their own appointment. In these instances, the consultant offers instructions and support to the transferee through the process, including being on standby by phone or video during the application appointment.

What Should Employers Do About Virtual Destination Services?

Employers should leverage virtual destination services. This will provide transferees with easy to use resource that also promote health and safety in our virtual world. A Relocation Management Company (RMC) with knowledge and experience will help employers understand how to how to access a wide range of tools and resources to meet their relocation program’s 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 can benefit from virtual destination services. Our team can help your company understand how to identify specific points of concern and issues. As a result, this will help your company provide appropriate virtual resources and solutions. We also have a wide range of North America and Global Destination Spotlights and MyRelocation® Video Destination Spotlights to help new hires and transferees learn about their new location.

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.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

  • Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
  • Comprehensive guide to national, international, and local online sources for current data
  • Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

Contact our experts online to learn more about virtual destination 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.

Categories
Corporate Relocation Domestic Relocation Global Relocation Global Relocation Challenges Relocation Best Practices Relocation Management Relocation Policy Review Relocation Programs Talent Mobility

2020-21 Corporate Relocation Budget: Start Planning Now

It is not too early to start thinking about your company’s 2020-21 corporate relocation budget. Many companies start reviewing budgets on a regular timeframe. However, the year 2020 has been anything but regular. Every nation in the world has been dealing with the impact of the COVID-19 pandemic. From border restrictions to stay-at-home orders, the vast majority of companies have been facing multiple disruptions.

As a result, these disruptions are bound to have some type of impact on corporate budgets. Companies will find it difficult to determine the “new normal” in their business and industry.

Issues That May Lead to 2020-21 Corporate Relocation Budget Increases

Business Growth

Some companies have seen increasing demand for their products and services. For example, Amazon’s recent second-quarter report earnings call indicates tremendous growth for the company:

  • Earnings per Share: $10.30 (average analyst’s estimate: $1.46)
  • Revenue: $88.9 billion (average analyst’s estimate: $81.56 billion)
  • Sales: up 40% year over year in the quarter
  • Drivers: online retail, cloud services

Of special note is Amazon’s online grocery and delivery services, with significant progress in this area.

New Corporate Expansions

Other companies are planning significant expansions. Nikola Motor Company announced it will break ground on a manufacturing plant in Coolidge, Arizona. The plant should create thousands of jobs within Pinal County. Nikola expects to produce up to 35,000 hydrogen electric and electric semi-trucks.

Not to be outdone, Tesla recently announced it will build its next factory in Austin, Texas. Known as a Terafactory, the next Tesla Gigafactory will make the Tesla Cybertruck electric pickup truck and the Model Y. Additionally, Tesla’s headquarters location may also soon relocate to Austin.

Issues That May Lead to 2020-21 Corporate Relocation Budget Changes

Immigration Limitations

Beyond business growth and new corporate expansions, other issues may lead to budget changes. Limits on immigration may decrease a company’s ability to hire foreign nationals to work inside the United States. However, alternatives may still allow companies to hire qualified staff. These alternatives require specific conditions, with possible increases in costs in some areas such as travel and facilities.

Need for Highly Qualified Staff

Other issues could include staffing requirements. Some industries such as healthcare have seen a dramatic rise in the need for corporate housing solutions. This is due in part to a dramatic increase in a truly mobile workforce to deal with effects of the COVID-19 pandemic.

How Should a Company Approach Reviewing its 2020-21 Corporate Relocation Budget?

Every company looking to review its 2020-21 corporate relocation budget should consider the following 5 specific points:

1. Relocation Policy Review

It is imperative that companies undertake a review of their relocation policy. Best practice is to review this policy every 12 to 18 months. With changes impacting nearly every component of a company’s 2020-21 corporate relocation budget, a policy review will help define areas that should be examined for compliance, utilization, and cost savings.

Do you know if your company’s business continuity plan includes points related to its relocation program? A relocation policy review will highlight areas that should be considered, such as employees on temporary assignment who may need to be quickly reassigned to a different location.

2. Historical Data Review

A thorough review of expenses will provide a good indicator of areas in need of attention. That being said, it is now critically important to also factor in multiple forces that may impact the future budget, including:

A number of points specific to each company’s needs can be considered in light of new business operating guidelines.

3. Significant Cost Generators

Many costs in relocation budgets are due to significant cost generators. Often these costs are driven by specific activities such as moving an employee to a new destination, or reimbursing temporary housing costs during a short term assignment. A thorough review should include examining these activities in detail as they impact the relocation budget:

Be sure to compare and account for cost differences between global relocations and domestic relocations.

4. Accounting Accruals

Companies often account for business expenses that occur in one period by setting aside amounts known as accruals. Future expenses are then allocated toward the accrual amount. Reviewing your 2020-21 corporate relocation budget, consider those expenses that might be better accounted for through accruals.

A good practice is to review the prior year’s accruals to determine if similar amounts should be in the budget through accrual accounting methods. This will also help ensure a smoother expense tracking and recording process. It may also assist the company with cash management requirements.

5. 2020-21 Corporate Relocation Budget Strategic Initiatives

Consider the impact of any strategic initiatives that might result in additional employee relocations, new hires, or corporate expansions. Is the company planning to build a new manufacturing facility or open a sales office? Are there discussions of future partnerships with other firms? Are new talent management programs in development?

With the advent of COVID-19, today’s workforce is even more responsive to changing company requirements. Given the swift nature of how companies responded to the pandemic, be sure to plan for future contingencies, changes, and disruptions.

What Should Employers do for Their 2020-21 Corporate Relocation Budget?

Employers should work with a Relocation Management Company (RMC) that has knowledge and experience with relocation budgets and managing for contingencies. RMCs are ideal sources for industry best practices. RMCs also have valuable knowledge on global issues relating to immigration, travel, and how the relocation industry and service providers are changing to meet new requirements due to the COVID-19 pandemic.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to develop and prepare robust relocation programs that follow industry best practices. Our team can help your company understand how to account for each of these 5 specific points during the review of its 2020-21 corporate relocation budget.

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 request a relocation policy review as part of your 2020-21 corporate relocation budget review process, 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.

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