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Skills-Based Immigration Plan in United States on Target for 2020’s FY 2021 H-1B Visa Lottery Process

visa application - approved

The Trump administration’s skills-based immigration plan is on target for implementation in 2020 and will impact the FY 2021 H-1B visa lottery process. Acting Director of U.S. Citizenship and Immigration Services (USCIS) Kenneth Cuccinelli II notes the immigration system is for the benefit of the nation. According to Cuccinelli, the approach is to improve the economy and the nation’s overall experience with immigration.

Basic Elements of the Skills-Based Immigration Plan

The Trump administration’s approach is similar to other points-based systems in use by countries such as Australia and Canada. The new merit-based plan provides opportunities for immigrants provided they have:

  • Specific skills sets
  • Current job offers

The administration’s goal is to increase the number of legal immigrants who are selected based on skill from 12% of the total to a much larger 57%. These immigrants must also meet the following requirements:

Of particular note, the administration believes that modernizing the current immigration process will create a fair system. As a result, the new skills-based immigration plan will promote equality and opportunity for all. The administration believes giving preference to skills over family ties increases the country’s competitiveness. Also, the approach gives the needs of employers and the skilled employees they seek higher priority over other immigrants.

H-1B Visa Lottery System Online Registration System Also on Track for 2020 Implementation

Cuccinelli also notes the USCIS’ new online H-1B visa lottery registration system, currently in testing, should be ready for use in 2020 as well. The new online system requires petitioners seeking to file H-1B cap-subject petitions, including any that are eligible for the new advanced degree exemption, to use the online system and register with USCIS. Petitioners must pay a $10 fee for every petition they submit that is subject to the H-1B cap.

What Does the Skills-Based Immigration Plan Mean for Your Company?

HR teams that are looking to hire foreign national employees through the H-1B visa lottery system should investigate and understand the new system’s requirements. The Trump administration’s skills-based immigration plan along with the new online registration tool and fees may present significant challenges without sufficient preparation.

HR teams should start the process of identifying employees that may be subject to the H-1B visa lottery cap as soon as possible. This with help ensure they can submit applications at the start of the lottery through the new online registration system.

Where Should You Start?

Global Mobility Solutions has a team of global relocation experts who can help you with the new FY 2021 H-1B visa lottery process. Our team’s knowledge and access to visa and immigration resources is without match in the relocation industry. As a result, we have helped thousands of companies with the H-1B visa lottery process reach successful results.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients prepare for the H-1B visa lottery. Our team can help your company understand the new skills-based immigration plan and fully prepare for the new FY 2021 H-1B visa lottery process.

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

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

Contact our experts online to learn more about the new skills-based immigration plan and the FY 2021 H-1B visa lottery process, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Visa Program Consultation

Properly managing a visa and immigration program involves meticulous coordination, precise communication, and worldwide interaction with government agencies, corporate personnel, and relocating employees.

At GMS, we provide you with peace of mind in knowing your mobility program is fully compliant and being managed by the best in the industry.

Request a no-pressure, courtesy consultation from a GMS Mobility Pro. We’ll be in touch within 1 business day.

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Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Visas and International Travel

United Nations Report Show How Aging Impacts Country Demographics

happy senior asian couple looking at mobile phone at home, happy and smiling

The United Nations Department of Economic and Social Affairs/Population Dynamics report on World Population Prospects shows how aging impacts country demographics. The 2019 revision is the 26th round of official UN population estimates. Many countries will experience a dramatic shift in the proportion of people aged 65 and older. As a result, this shift will impact each country’s economy, politics, budget, immigration, and a number of other areas.

Aging Impacts Country Demographics in Japan More Than Any Other Country

The country of Japan will remain the world’s oldest country by demographics for several decades. In fact, the population of Japan that is 65 years and older will rise to 38% by the year 2050. Another trend during this timeframe is a decline in Japan’s total population. The report indicates the country of Japan’s total population will decline by 20%. Japan’s National Institute of Population and Social Security Research confirms these trends.

These two trends in Japan will lead to significant changes throughout the nation. The country’s aging population will increase the demand for nursing, health care, and products and services unique to this demographic. The declining population will impact the nation’s economic output and hamper employers’ ability to find qualified workers for open positions. Areas that face significant changes include:

  • Medical Care
  • Long Term Care
  • Nursing Care
  • Pensions
  • Social Services

Working-Age Population in Japan Also Projected to Decline

Along with the increase in Japan’s population of people aged 65 and older comes another significant population shift. Japan projects its working-age population to decline from 60% of the population as of 2017 to just 51.4% of the population by 2065. As a result, a smaller share of Japan’s population will support a larger share of elderly residents.

Japan Working to Mitigate How Aging Impacts Country Demographics

Japan has been working to increase immigration into the country by introducing a new work permit and two new visa categories for qualified foreign workers. Currently, foreign residents make up approximately 1.5% of Japan’s total population. The country’s amended Immigration Act in 2019 is expected to increase the nation’s pool of qualified workers.

However, Japan does not currently have structures in place to support a significant influx of workers from other countries. The Immigration Services Agency is considering a new Japan Public Certification System to support a rising number of foreign workers. Through June 2019, a record number of foreign people were registered in Japan as residents. The newly arriving foreign people in Japan have been entering the country on visas for engineers and international services, highly skilled professionals, and technical trainees.

Global Relocation can Help Employers in Japan Recruit Foreign Workers

Employers in Japan should consider highlighting their relocation program’s benefits in their recruiting materials. In the same way that aging impacts country demographics, aging also impacts industries. The healthcare industry has been responding effectively to mitigate critical talent shortages in several ways, including:

  • Defining a Superior Brand That Clearly Identifies the Employer
  • Focusing on Cultural Fit During Recruitment
  • Delivering Exceptional Candidate Experiences
  • Leveraging Data to Increase Recruiting Effectiveness
  • Keeping Candidates Engaged with Quick Processes

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. Data gathered with Pre-Hire Assessment tools can be paired with structured interview questions to better understand the candidate’s interests, goals, and motivations.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees. Our team can help your company mitigate the effect of how aging impacts country demographics. Our experts will use industry best practices to design your relocation program. As a result, this will increase your company’s ability to attract and retain new employees.

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

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

Contact our experts online to learn more about how global relocation can be used to mitigate how aging impacts country demographics, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Immigration Rules Relocation Challenges Talent Mobility Visas and International Travel

Travel Ban Expansion is Under Consideration by Trump Administration

Smiling young woman traveling by bus and using smart phone

The Trump Administration is considering a travel ban expansion. The travel ban arose through Executive Orders and Presidential Proclamations. Presidential Proclamation 9645 suspends entry of foreign nationals into the United States from countries that fail to meet minimum requirements for immigration vetting and screening. The Supreme Court upheld this Proclamation. The Trump Administration believes it is the President’s duty to take action to ensure the safety of the American people.

Countries Currently Covered by Travel Ban and Expected to Continue with Travel Ban Expansion

Currently, the travel ban in place covers seven countries:

  1. Iran
  2. Libya
  3. North Korea
  4. Somalia
  5. Syria
  6. Venezuela
  7. Yemen

There are several points of concern for the Trump Administration with respect to these countries. Issues include deficiencies on management of identities, ability to share information, and various practices and protocols that do not meet minimum requirements to ensure the security of the United States.

Countries That May Be Included in the Travel Ban Expansion

As reported by The Associated Press, up to seven additional countries may be included in the travel ban expansion. These countries might include several that had been noted in earlier iterations of the current travel ban, but were later removed ostensibly to withstand legal objections. Countries that had been noted in the original travel ban but were later removed include:

  1. Chad
  2. Iraq
  3. Sudan

What Does This Mean?

Companies with facilities located in countries that are included in the travel ban expansion may face delays or new requirements for transferees and their family members. Companies that have employees originating from these countries may need to provide additional assistance on issues related to family support services.

Many countries currently included in the travel ban have economies operating on a sub-par or extremely uneven level, as compared to other countries experiencing economic growth. Often these countries face difficult issues including military conflicts and significant out-migration. For example, select metrics show the following economic performance for Iran, Venezuela, and Yemen, all currently included in the travel ban and likely to continue with the travel ban expansion:

Iran Economy

 2015201620172018
GDP (USD bn)$44.$392$424$459
Economic Growth4.6%-1.3%13.4%3.8%
Inflation Rate14.3%8.4%8.2%7.2%
Public Debt (% of GDP)11.8%38.4%47.5%39.5%

Source: Focus Economics

Venezuela Economy

 2015201620172018
GDP (USD bn)$212$324$279$144
Economic Growth-3.9%-6.2%-17.0%-15.7%
Inflation Rate68.5%181%274%863%
Public Debt (% of GDP)28.5%74.7%92.3%–

Source: Focus Economics

Yemen Economy

 2015201620172018
GDP (USD bn)$33.2$26.7$24.8$28.0
Economic Growth-10.6%-30.3%-14.8%-5.9%
Inflation Rate8.2%12.0%-12.6%24.7%
Public Debt (% of GDP)48.7%54.9%68.0%76.2%

Source: Focus Economics

What Should Employers Impacted by the Travel Ban Expansion do?

Employers should keep informed about the upcoming travel ban expansion. They should also review the extent of the company’s operations in these countries. They should determine the number of employees that may be impacted by the travel ban expansion and develop communication plans that address points of concern for employees and their family members.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with visas, work authorizations, and travel documentation requirements. Our team can help your company understand how to prepare for the upcoming travel ban expansion.

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

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

Contact our experts online to discuss how your company can prepare for the travel ban expansion, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Visa Program Consultation

Properly managing a visa and immigration program involves meticulous coordination, precise communication, and worldwide interaction with government agencies, corporate personnel, and relocating employees.

At GMS, we provide you with peace of mind in knowing your mobility program is fully compliant and being managed by the best in the industry.

Request a no-pressure, courtesy consultation from a GMS Mobility Pro. We’ll be in touch within 1 business day.

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Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Immigration Rules Visas and International Travel

Japan Public Certification System to Support Influx of Foreign Workers

A new Japan Public Certification System is under consideration by the Immigration Services Agency (ISA). The ISA is responding to an increasing number of foreign workers in the nation. Japan recently instituted new visas to increase the number of foreign workers and expand its supply of skilled labor. As a result, the ISA has been providing support services to a rising number of foreign workers.

Current Requirements as Precursor to Japan Public Certification System

Currently, a number of entities, businesses, and individuals have registered as support organizations for foreign workers. The ISA now requires these organizations and individuals to:

  1. Arrange employment for the foreign worker that matches their skills and needs
  2. Provide adequate support for the foreign worker

Japan does not currently have much infrastructure in place to support foreign workers. As a result, the need to support foreign workers will continue to increase. However, the ISA’s current priority remains the registration of support organizations.

What is the ISA’s Vision for the Japan Public Certification System?

The ISA envisions the Japan Public Certification System as part of a larger foreign worker support system. Certification of a dedicated profession to provide support for foreign workers is seen as a step in the right direction. ISA Commissioner Shoko Sasaki notes that such a system may become a central pillar of the nation’s visa programs for foreign workers.

Why is Japan Seeking Foreign Workers?

Japan issued a new work permit and two new visas specifically to address the country’s severe labor shortage. The work permit and both of the two new visas are seen as solutions to assist up to 14 designated employment sectors that are in extreme need of foreign workers. These employment sectors include agriculture, construction, and nursing.

Type 1 Visa

  • Renewable for five years
  • Requires successful completion of Japanese test
  • Must possess specific skill level in work field
  • Cannot bring family members into Japan

Type 2 Visa

  • Renewable indefinitely contingent on employment status
  • Skill level significantly higher than Type 1 Visa skill level
  • Allowed to bring family members into Japan

What Does This Mean?

The ISA recognizes that foreign workers need support as they enter the country and believes the Japan Public Certification System is the correct solution. Prime Minister Shinzo Abe adopted an action plan in December 2018 with several measures designed to help foreign workers obtain the support they need to better assimilate in Japan. This action plans notes 126 steps the Japanese government plans to take, including:

  • Improving Japanese language education
  • Increasing multilingual services at public institutions and municipal offices
  • Encouraging foreign workers to enroll in social insurance programs

What Should Employers do About the Japan Public Certification System?

Employers currently in Japan should continue to stay informed about the country’s changing and expanding work permit and visa programs. They should expect to see an increase in the number of foreign workers seeking jobs as part of the new work permit and visa programs.

Employers should be prepared to register as a support organization with the ISA. They should also stay informed about the ISA’s progress with developing the Japan Public Certification System.

Employers not currently in Japan might consider the country as a strategic location for corporate expansion. The services of an International Professional Employer Organization (PEO) may be useful to help an employer enter Japan and quickly test the local market.

Work with a Qualified and Experienced Relocation Management Company

Employers looking to transfer workers to the country or hire new foreign workers should also provide as much information about Japan as possible. They should work with a qualified and experienced Relocation Management Company (RMC) that can provide a wealth of valuable resources to assist relocating employees and their family members. RMCs have experience with overcoming challenges in relocation programs. They also have knowledge about the challenges that relocating employees face with their move to a new location.

Destination spotlights that highlight many aspects of Japan are helpful resources to share with transferees during their pre-decision process. Video destination spotlights are an excellent resource to visually show employees and their family members their new location.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to grow their company’s international employment. Our team can also help your company understand how to respond to Japan’s new working permit and visas. We can also help your company understand the importance of being fully prepared to participate in the Japan Public Certification System.

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

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

Contact our experts online to discuss your company’s interest in learning more about the Japan Public Certification System, working permit, and two new visas, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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Global Relocation Challenges Global Relocation Trends Immigration Rules Talent Mobility United States Economy Visas and International Travel

What are the 2019 US Immigration Trends?

The 2019 US immigration trends may have a direct impact on whether companies can achieve corporate goals. Corporate success is often the direct result of its employees who have specific skills, talents, and education. Many companies benefit by drawing from a large global talent pool. According to the Migration Policy Institute, immigrants tend to be in the US labor force at higher rates compared to their representation as a percentage of the US population. Specifically, MPI’s data shows the following:

 19801990200020102017
Immigrants as share of US Labor Force6.7%9.2%12.4%16.5%17.1%
Immigrants as share of US Total Population6.2%7.9%11.1%12.9%13.7%

What are Key Facts about US Immigration Policies?

The Pew Research Center notes that approximately 34 million immigrants legally reside in the US. Current policies impacting the 2019 US immigration trends focus on two priorities:

  • Employment-based migration to the US
  • Reunification of family members separated by migration

Reform Proposal will Impact 2019 US Immigration Trends

In 2013 under the Obama administration, the US Congress considered an act to provide for comprehensive immigration reform. In 2019, the Trump administration presented a proposal to change how immigrants are admitted to the US. The proposal includes points such as:

  • Prioritization for workers with high levels of job skills
  • Eligibility increases for applicants who have:
    1. Job offers
    2. Desirable educational backgrounds
    3. The ability to speak the English language

Proposal to Reduce Immigration of Future Public Charges

The Trump administration has also sought to reduce immigration for those who will use, or are most likely to use, forms of public assistance. US immigration laws have a long history (established by Congress in 1882) of limiting immigration for those who would become a “public charge.” However, the Trump administration has pushed to expand the definition of benefits to include Medicaid, Section 8 Housing Vouchers, and the Supplemental Nutrition Assistance Program (also known as “SNAP”). The final rule was published in August 2019 and is scheduled to take effect on October 15, 2019. This may negatively impact 2019 US immigration trends.

How are 2019 US Immigration Trends Impacting Companies?

Envoy Global recently published its 2019 US Immigration Trends Report. In this report, Envoy Global notes several important points that companies are pursuing, such as:

Sending

Identifying other countries with favorable immigration policies and sending employees to those countries to work and train new employees. Alternatively, sending employees to other countries as part of a global assignment rotation system to increase employee retention and promote employee development. The impact on 2019 US immigration trends may be difficult to discern.

Simplification

Focusing on simplification of the US immigration system to help expedite the migration process.

Sponsorship

Providing immigrants with easy paths to permanent US residence in order to gain competitive advantages in talent recruitment and acquisition. This includes Green Card sponsorship as well as covering some or all of the costs for the program. This may positively impact 2019 US immigration trends.

Streamlining

Streamlining internal corporate systems relating to immigration to promote a better employee experience.

What Should Employers do About the 2019 US Immigration Trends?

Companies should continue to stay informed about US immigration system proposals. These proposals may have a significant impact on an employer’s ability to recruit and hire foreign talent. As a result, knowing what to expect can help companies strategically pivot and respond accordingly to meet corporate objectives.

Companies should also work with a qualified and experienced Relocation Management Company (RMC). RMCs can help companies design a robust talent acquisition program. Also, RMCs can help a company design an industry-leading relocation program that will give them a competitive advantage in the global market for highly skilled employees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to develop industry-leading hiring and relocation programs that draw foreign national talent. Our team can help your company understand how to leverage 2019 US immigration trends to benefit its talent acquisition program.

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

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

Contact our experts online to discuss your company’s interest in learning more about the 2019 US immigration trends, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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Global Mobility Global Relocation Global Relocation Tips

Global Opportunities for Growth with the China Belt and Road Initiative

The China Belt and Road Initiative recently hosted its second forum. Over 5,000 delegates from over 150 countries, including  the leaders of 37 nations, attended the forum held in Beijing in April 2019. The infrastructure project began in 2013 as a way to rebuild several historical trading routes across Europe and Asia that had been lost over the years, previously known as the “Silk Road.” The road was basically a widespread network of routes that connected China to other nations in the Far East, Middle East, and Europe. The Han Dynasty opened trade with the West along these routes in 130 B.C. However, the routes were closed over 600 years ago when the Ottoman Empire boycotted trade with China.

China’s New Silk Road Created by the China Belt and Road Initiative

China’s “New Silk Road” is a signature project for President Xi Jinpeng. The project is officially known as the “One Belt, One Road” (OBOR) initiative. In addition to large infrastructure projects across the region, the hope is that trade along these routes will increase. China is looking for a global resurgence in a push to expand the country’s international influence. Some initiatives preceded the OBOR, such as China’s flagship economic corridor development with Pakistan. China is seeking to become the center of global economic activity, with all of the power and influence this status will bring. Additional benefits of the China Belt and Road Initiative include:

  • Opportunities to absorb China’s current excess industrial capacity
  • Access to new capital for large state firms that already carry a significant amount of debt
  • State banks avert any financial crises arising from large state firm’s non-performing loans
  • Larger State Owned Enterprises gain pathways to develop into internationally competitive firms

International Cooperation for the China Belt and Road Initiative

China has been developing strong international ties with nations critical to the success of its Belt and Road Initiative. China’s success is clearly seen in its interactions with the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NBD) for BRICS nations. In fact, China has long been considered one of the top emerging international markets. With the NDB headquarters in Shanghai, China’s influential role as a financial center among the BRICS nations is a certainty. BRICS nations include:

  • Brazil
  • Russia
  • India
  • China
  • South Africa

Increasing Imports from Nations Participating in the China Belt and Road Initiative

At the April forum, President Xi Jinping chose to address criticism of the China Belt and Road Initiative by publicly supporting several trade-oriented policies and frameworks. Specifically, China will:

  • Focus on the highest quality and sustainability for projects undertaken by the China Belt and Road Initiative
  • Increase its imports from developing countries to spur investment in those nations
  • Reduce existing barriers to trade to further open China’s markets to international imports
  • Implement structural changes to promote foreign investment in China

President Xi Jinping’s message on trade included a focus on implementation of trade and international agreements. While agreements can easily be made, implementation has been challenging without a sustained commitment from China to ensure full follow-through. As a result, such issues can be extremely difficult to understand and resolve, including:

As of the 2nd Forum, the nation has signed over 170 China Belt and Road Initiative agreements with 125 nations. China’s total investments may reach upwards of $1.3 trillion by the year 2027.

What Does the China Belt and Road Initiative Mean for Employers?

Employers in nations where the China Belt and Road Initiative projects are in planning stages may be able to leverage opportunities to participate directly or indirectly in various parts of the initiative. Although China’s focus is for its State Owned Enterprises to benefit from these projects, local firms in the countries will benefit as the projects come to fruition. The benefit may arise through direct investment in project-related activities. Alternatively, it may arise through increased trade resulting from the China Belt and Road Initiative.

What should Employers do?

Employers currently located in countries where China Belt and Road Initiative projects are planned or underway should investigate opportunities where they might be able to participate. They should also review future production plans that might need adjustment for potential increased trade opportunities with China.

Employers should review their talent acquisition and management programs to ensure they remain competitive to attract and retain new hires and transferees. Some countries may face talent shortages, so employers should look into global relocation as a solution to find and hire qualified employees. Relocation Management Companies (RMCs) can provide expert assistance to employers to benchmark their relocation policies and add enhancements that attract talent.

Employers not currently located in countries participating in the China Belt and Road Initiative might consider these countries as a strategic location for future corporate expansion. The services of an International Professional Employer Organization (PEO) may be useful to help an employer enter these countries and quickly test the local market.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees to various destinations. Our team can help your company determine how to attract and retain new hires needed to leverage opportunities arising from the China Belt and Road Initiative.

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

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts. Contact our experts online to discuss your company’s relocation program needs in countries that benefit from the China Belt and Road Initiative, or call us at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Global Relocation Global Relocation Tips Global Relocation Trends Immigration Rules Talent Mobility Visas and International Travel

British Workers Fill Jobs As EU National Job Seekers in the UK Decline

As the United Kingdom’s (UK) economy continues to grow even while facing the prospect of a “no-deal” Brexit, British workers fill jobs since European Union (EU) nationals are declining in the workforce. Migration to the UK from the EU continues to fall as it has been doing since 2018. In our 2019 Industry Update – Talent Mobility, Real Estate, Household Goods, and Immigration white paper, we present several Brexit scenarios that may impact global mobility. Whether the UK can reach a deal with the EU or not, the UK economy still needs workers, and British workers fill jobs that otherwise would have been filled by EU nationals.

Declining labor force participation from EU nationals in turn creates openings for unemployed British workers. As a result, employers in the UK have been adjusting their talent recruitment programs to fill job openings. UK unemployment has fallen to lows not seen in the country since the 1970’s, and job openings have risen to record levels. According to the UK Office for National Statistics:

  • UK employment increased by 179,000 workers in the three months to February 2019
  • Total employment of 32.72 million workers is a record high
  • Employment growth is mostly due to increasing labor force participation by women
  • UK unemployment rate of 3.9% and economic inactivity rate of 20.7% represent a joint record low

Service Industry Sectors Where British Workers Fill Jobs

The first part of 2019 saw several service industry sectors in the UK experience high growth, including:

  • Computer Programming
  • Healthcare
  • Retail Trade

Manufacturing Industry Sectors Where British Workers Fill Jobs

Additionally, UK manufacturing output rose due to strong demand for computer and electrical components. Computer, electronic, and optical products manufacturing in the UK tend to be of products with higher value. They are also not as price-sensitive as lower cost commodity-type items. Within the UK, the manufacturing sector:

  • Employs 2.6 million workers
  • Contributes up to 11% of Gross Value Added (GVA), the measure of the value of goods and services produced in the UK
  • Represents 44% of total UK exports
  • Accounts for 70% of UK business research and development (R&D)

What Does This Mean?

Despite the uncertainties surrounding Brexit, UK wages and employment continue to grow. UK business sentiment remains strong and steady, and manufacturing appears to have rebounded. Some of the growth in manufacturing is due to acceleration in the growth of raw materials held as stock. As a result, raw materials, work in progress, and finished goods held as stock has risen. Part of this growth may be due to manufacturers anticipating production glitches due to Brexit. Business confidence in the UK increased to -13 in the second quarter of 2019, from the prior quarter’s reading of -23. All of these trends provide positive momentum and help British workers fill jobs as the UK economy expands.

Job seekers in the UK should investigate opportunities in the service sector for openings in computer programming, healthcare, and retail trade. They should also investigate opportunities in the manufacturing sector for openings at companies that produce computer, electronic, and optical products. Job openings may vary by region, so job seekers should be open to global relocation opportunities that let British workers fill jobs. They should also utilize the best online job sites in the UK, including Adzuna, Indeed UK, and Monster UK. Job seekers should utilize professional career services to enhance their job search and achieve success in their career objectives.

What Should Employers do?

Employers in the UK should examine their employment needs. 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 that has the knowledge and expertise to help them design a relocation that promotes global talent acquisition. RMCs with knowledge and experience will provide expert guidance on designing a relocation program to attract qualified new hires and relocating employees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop hiring and recruiting programs to attract highly skilled job seekers in the UK. Our team can help your company determine how to attract job seekers looking for employment opportunities. We can help British workers fill jobs that EU nationals no longer pursue.

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

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

Contact our experts online to discuss your company’s recruiting, hiring, and relocation program needs in the UK to help British workers fill jobs, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Global Mobility Relocation Best Practices Relocation Management Talent Mobility

What are the Top 5 Reasons to Outsource Global Mobility Management?

There are several reasons why a company would move to outsource global mobility management. Often these programs require a level of expertise that is not inherent within an organization. Issues regarding international visas and work permits can be particularly vexing and cumbersome. Consistency in application across departments, divisions, and throughout locations is an important consideration for fair and equitable treatment of all employees.

The Top 5 Reasons to Outsource Global Mobility Management:

1. Compliance

Companies that choose to outsource global mobility management gain significant advantages in tax and compliance related to national regulations.  Programs may offer benefits to both employers and relocating employees. The importance of compliance cannot be understated, as noncompliance may include penalties.

2. Cost Management

Relocation Management Companies (RMCs) may offer industry-leading technology solutions that provide easy and simple tracking and reporting capabilities for mobility costs. Companies gain accuracy and simplicity for reporting and budgeting purposes.

3. Core Responsibilities

When a company chooses to outsource their relocation program, it frees internal departments to focus on corporate objectives. Mobility management often is not a core competency within a company. Eliminating costly and excessive administrative burdens by moving to outsource global mobility management lets organizations pursue valuable goals.

4. Courtesy Enhancements

RMCs with significant knowledge and experience will offer a number of complimentary solutions that are extremely valuable to companies and their relocating employees. Programs such as Pre-Decision Services result in employees that start work sooner, stay longer, and are a better fit in the company’s culture.

5. Cost Savings

RMCs can help a company identify a number of cost savings upon their move to outsource global mobility management. Relocation Policy recommendations from courtesy mobility consulting often generate significant savings in areas such as in-house costs versus fees, household goods moves, and home sale programs.

What Does This Mean for Companies That Want to Outsource Global Mobility Management?

Companies can achieve significant operational improvements and cost savings when they outsource global mobility management. As a result, internal departments can focus on achieving company objectives while reducing administrative costs and burdens.

What Should Employers do to Outsource Global Mobility Management?

Employers should work with a qualified Relocation Management Company (RMC) that can provide a full range of relocation programs. Employers should consider a move to outsourcing their relocation program to achieve significant operational and cost advantages. This will help increase relocation success.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients manage the transition to outsource global mobility management. As a result, our team can help your company understand how to benefit from the advantages such a move affords.

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

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

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

Request your complimentary relocation policy review

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United States Economy

Leveraging the Growth of World Economies for Corporate Success

Petronas Towers, also known as Menara Petronas is the tallest buildings in the world from 1998 to 2004.

How can a company grow and achieve corporate success as world economies change? Many companies think the answer is to determine how best they can get their products into these growing markets. While this seems straightforward, international trading laws, customs, and tariffs may drastically alter a company’s chances for success.

Local Market Preferences

Additionally, products should be suited to markets to ensure success. For example, clothing choices that are common in the United States would not necessarily find success in other markets. Another example is water filtration technology, where advanced markets seek to improve water taste and appearance, while emerging markets may seek to increase access to potable water or focus on basic filtration to ensure safe drinking water supplies.

Local tastes and preferences should always be considered to help ensure corporate success. Many successful businesses have struggled and failed to achieve success in their international growth initiatives. Much of this could have been prevented with stronger test marketing programs and in-depth local marketing research.

Alternate Routes to Success

Companies pursuing world economies as part of their corporate growth and success strategy might consider alternate routes to reach these markets. This may provide them with valuable market information to help increase their chances for success. Such information may include geographic area, general types of target customers and their demographics, information about local competitors, and information about government regulations, taxes, and requirements.

Which World Economies are the Fastest Growing?

Looking forward over ten years, the face of the world’s economic leaders will change. By 2030, the leading world economies will reflect the rise of Asia as a dominant economic force.

According to a Standard Chartered report, by 2030 Asian Gross Domestic Product (GDP) will account for approximately 35% of the global GDP. India is seen as the largest driver of this growth in Asia. This is due to the introduction of several reforms including the Indian Bankruptcy Code and a new National Goods and Services Tax (GST). Also, six of the largest world economies will be in Asia:

  1. China (Asia): $64.2 trillion
  2. India (Asia): $46.3 trillion
  3. United States (North America): $31 trillion
  4. Indonesia (Asia): $10.1 trillion
  5. Turkey (Europe/Asia): $9.1 trillion
  6. Brazil (South America): $8.6 trillion
  7. Egypt (Africa/Asia): $8.2 trillion
  8. Russia (Eastern Europe): $7.9 trillion
  9. Japan (Asia): $7.2 trillion
  10. Germany (Western Europe): $6.9 trillion

How can a Company Grow with World Economies?

There are several ways a company can grow with world economies. The traditional route of exporting goods into these markets has its limitations. As a result, examining alternatives is a valuable pursuit.

One way is to consider business expansion with a local operation. This may entail setting up a legal entity such as a Wholly Foreign Owned Enterprise, a foreign subsidiary, or a local distributor. A company might acquire a physical location through sale or lease. Staffing decisions may be made either through relocation, local direct hiring, or a combination of both. All of these activities may take a significant upfront investment in both time and funds.

Another way is to consider the services of an International Professional Employer Organization (PEO), an “Employer of Record” solution. International PEO is a global employment solution where a third-party in a foreign country hires your employees, acting on your behalf. The International PEO becomes an extension of your Human Resources Department. They manage all of the traditional HR functions including:

  • Payroll and Tax Withholdings
  • Remittances to Local Authorities
  • Benefits
  • Health and Social Security-Related Programs
  • Onboarding
  • Health Insurance
  • Pensions
  • Terminations and Separations

International PEO lets a company add full-time team members to their global operations within a matter of days. Companies can easily test new markets for their products without making significant investments in time or funds.

What Does This Mean?

The growth of world economies means that companies may have greater opportunities to find new markets for their goods and services. This also means that companies should examine market data from emerging economies. This information will help them determine if their products and services should be tailored to meet local demand. Companies may consider investing in local market research, conduct test marketing trials, and examine alternate routes to conducting business in world economies.

What Should Employers Interested in World Economies do?

Companies that are looking to leverage the growth of world economies should work with a Relocation Management Company (RMC) that has knowledge and experience in helping companies expand into new markets. Choose an RMC that provides ongoing employee support services, supplier management, relocation benefits, and expense management.

The RMC should also provide access to helpful solutions such as International PEO for companies looking to enter new markets to ensure:

  • Full compliance with local requirements on international employment.
  • The company expends the lowest monetary cost to save funds for use on other corporate objectives.
  • They spend the least amount of time so the company can identify and pursue valuable opportunities.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how to grow their company’s international employment to leverage the growth of world economies. Our team can also help your company understand how to work with an International PEO. As a result, this will help your company gain all of the benefits this solution provides for international employment.

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

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

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

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Global Relocation Global Relocation Challenges Global Relocation Tips Global Relocation Trends Talent Mobility Visas and International Travel

Upcoming Skills Gap in United Arab Emirates Requires Workforce Planning and Education Reforms

Effective workforce planning and education reforms in the United Arab Emirates (UAE) will help the seven emirates address an upcoming skills gap in their labor market. The Knowledge and Human Development Authority (KHDA) expects 40% of current jobs to disappear from the market over the next decade.

The decline of current jobs will impact the labor market across the range of all seven states within the UAE:

  1. Abu Dhabi (the capital of the UAE)
  2. Ajman
  3. Dubai
  4. Fujairah
  5. Ras Al Khaimah
  6. Sharjah
  7. Umm Al Qalwain

Fourth Industrial Revolution Helps Create Upcoming Skills Gap

All of the emirates are experiencing the effects of the “Fourth Industrial Revolution.” This revolution reflects the velocity, scope, and systems impact of a digital transformation that is changing economies, jobs, and work as it is currently known. Characteristics of the revolution include a fusion of technologies across the physical, digital, and biological spheres. As a result, the revolution impacts many areas, including:

As a result, many current jobs will disappear in the future, and employees are facing an upcoming skills gap. New jobs will appear that require skills applicable to the digital revolution’s needs.

How is UAE Planning for the Upcoming Skills Gap?

KHDA recognizes that new jobs will emerge in the labor markets, and these jobs will require technical skills. As a result, KHDA notes that a 10-year visionary planning effort must be undertaken to find solutions. KHDA believes these solutions will be found in several areas, including increasing family involvement, understanding the growing economy’s job requirements, and identifying future opportunities.

A strategy shift to address the upcoming skills gap will also require changing the education system. This change will equip residents with the appropriate technical skills that will enable them to successfully obtain new jobs in the future. As the KHDA recognizes what needs to be done, the organization and other UAE entities note the need to focus on education as well as practical, working-knowledge skills. Ideas in the planning stage include using the final year of education for internships and assignments at companies.

What does this mean?

The UAE recognizes that the digital revolution will create new job requirements. They also recognize at the same time that current jobs will disappear. This creates a need for appropriate planning to address the upcoming skills gap. Additionally, emirates growing at exceptional rates such as Dubai may have a surplus of jobs that require new technical skills. This surplus of jobs may require transferees from outside the emirates to relocate to the region in order to sustain economic growth.

What should employers expect?

Employers in the UAE should expect that current jobs may decline and employees may face an upcoming skills gap. Employers should also expect a rise in the need for new jobs that require new and extensive technical skills to meet the needs of the digital revolution.

What should employers do?

Employers in the UAE should review their company’s growth plans and requirements for jobs across all levels of skill sets. They should also determine how their company’s growth plans will impact the jobs required to meet business plans and goals. Employers should consider how they can address current employees who may face the upcoming skills gap. They should focus on training, education, and retaining employees who have valuable company experience and talent. Also, employers should review their relocation programs to determine how to present their company’s opportunities in the best light to attract highly skilled new hires and transferees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees across the world. Our team can help your company determine how to plan for the UAE’s upcoming skills gap and its impact on employees, new hires, and transferees.

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

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