Tag: Mobility Cost Management

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Discover Your Potential Relocation Cost Savings

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Relocation Cost Savings

To have the most successful and efficient workforce mobility program, mobility specialists and HR professionals should regularly evaluate their company’s relocation costs, benefits, and policies in order to uncover cost savings or areas in your relocation policies that may need improvement. Many companies manage their relocation needs in-house while others use relocation management companies to mobilize their workforce. Relocation policies should be reviewed with regularity to assure the company is spending wisely and saving money where possible. 

 

GMS makes this process simple with our industry-leading MyRelocation® technology. In addition to its client and employee-facing portals, MyRelocation® offers a suite of tools designed with your needs in mind. 

 

GMS is happy to announce our new Relocation Cost Savings Calculator. This easy-to-use tool provides companies with insight as to how much they could be saving when it comes to their current relocation program. If it has been a while since your company’s policies have been reviewed, or you are just starting to look into mobility services, this calculator can help determine your organization’s potential cost savings. 

 

It is not uncommon for companies to go years without changing or updating their relocation policies. While common, this practice can add up to serious costs over time as the direct costs related to relocation benefits react to various factors. Transportation prices change, home prices fluctuate, temporary housing costs increase, and the cost of living is constantly changing. To assure that your company is saving the most money while giving your employees the best relocation experience possible, it is important to check in on how you can be saving.

Calculating your Relocation Cost Savings

The innovative GMS Relocation Cost Savings Calculator looks at a range of common relocation program areas for cost-saving opportunities. With a user-selectable option for companies who handle mobility in-house or with an outsourced relocation management company. Key mobility policy elements that the calculator can highlight include: 

  • Program Fees
  • Real Estate Services
  • Household Goods Transportation and Storage
  • Temporary Housing Programs
  • International Relocation Services
  • Program Funding

The Cost Savings Calculator is quick and easy to use, and once various data points are input, the relocation calculator will compute your potential savings in a downloadable PDF to allow you to easily compare your current relocation costs against your potential savings. After that, a GMS Mobility Pro will reach out personally to help validate your potential relocation costs savings estimate, provide no-pressure guidance, and answer any questions you may have.

Validate Your Savings Using Our Relocation Cost Calculator

Are you ready to discover how and where your mobility program may benefit from a reduction in relocation costs? Simply complete the form below and a GMS Mobility Pro will provide you with a link to work through the tool. It is easy to use and only takes a couple of minutes if you have the right information handy. 


The GMS Relocation Cost Savings Calculator is free to use and comes with no obligation and no pressure to use. Get started now to discover how much your organization could be saving today.

Ready to Calculate YOur Program Savings? Request Access Now!

Are you ready to calculate your potential relocation program savings? Request access to our easy-to-use Relocation Cost Savings Calculator. Your Mobility Pro will grant your access request within 1 business day.

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Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Household Goods

Small Shipments and Relocation: What You Should Know

Shot of an adorable little boy helping his father pack on moving day

Transferees may have a need for small shipments as part of their relocation. These are household goods moves of items that may weigh approximately 2,000 pounds or less. Some household goods moving companies have specific definitions and special programs for these types of moves. For example, United Van Lines has SnapmovesSM, their small moves program. This program includes guaranteed moving dates, loading and unloading services, and à la carte service options such as packing and storage.

By working with a qualified and experienced Relocation Management Company (RMC), transferees will learn which small shipments program is the best one for their relocation requirements. Transferees can often save a significant amount of money on their relocation when they work with an RMC. For example, Global Mobility Solutions has several relationships with household goods moving companies and other moving service providers that provide for discounted costs to our clients.

Generally, the amount of household goods found in the average one-bedroom apartment would fall into the category of small shipments. Also, household goods moving companies may use different terms for these types of moves, including:

Small…

  • Load Moves
  • Loads Moving
  • Load Shipments
  • Load Shipping
  • Moves
  • Moving

Small Shipments: Benefits

There are several benefits for transferees who only need small shipments for their move. These moves may provide cost savings depending on levels of service chosen for the move. Transferees often have a greater amount of flexibility and choices for how they want to move. Also, moves of this size are often easy to manage with the use of portable moving containers.

Cost Reduction

Many household goods moving companies often charge for a minimum weight for each shipment. Choosing a provider that offers small shipments as an option helps the transferee avoid paying for weight they are not using. This in turn may reduce relocation costs for companies that provide moving expense reimbursement.

Flexibility with Small Shipments

Transferees with small shipments may have a variety of methods to arrange for the move. Some may choose to pack their own items and arrange for pickup. Alternatively, packing services might be the best option for those looking to move as soon as possible. Household goods can easily be delivered door to door. Alternatively, they can be delivered to another location such as a dock or warehouse for pickup at a later date.

Portable Moving Containers

Some companies specialize in providing containers for small shipments of household goods, such as U-Pack®, 1-800-PACK-RAT, PODS®, SMARTBOX®, and U-Box® by U-Haul. These containers may be delivered to a transferee’s current location. Transferees may be able to fill these containers over time, rather than try to meet a specific date. This also helps transferees to gain more space, since they do not have to fill up a small space with boxes and items ready for transport. Instead, as they work to complete packing their household goods, transferees can move boxes or other items directly to the container.

What Does This Mean?

Companies with transferees who need small shipments may be able to provide several options for household goods moves. Also, companies and transferees may be able to reduce moving costs and avoid paying for minimum weights and unneeded services.

What Should Employers do About Small Shipments?

Employers with transferees that have small shipments should work with a qualified and experienced Relocation Management Company (RMC). RMCs understand the household goods moving industry. As a result, they can provide guidance to help companies determine the options that might work best for their relocation program. Global Mobility Solutions works with several household goods moving companies and other moving service providers to provide discounted costs to our clients.

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. RMCs understand the top 5 points an employer should consider when employees choose to self-move. This industry knowledge in turn helps companies provide transferees with the best experience, ensuring successful relocations.

Industry Benchmarking Studies Help Employers Compare Their Relocation Program

GMS has recently published several Industry Benchmarking Studies to help employers 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 small shipments managed in their relocation program compare to those offered by competitors in their specific industry.

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

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to provide transferees with a variety of solutions for small shipments. Our team can help your company provide the best experience for transferees and their household goods move.

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 interest in learning more about small shipments for household goods moves, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Electronic Logging Devices and the Impact on the Household Goods Moving Industry

"18 Wheeler shot from a low perspective with a Canon digital camera. Exposure is 1/80s, f/22, ISO100. Work path is included."

Beginning in December of 2017, all drivers with applicable tractors had to install and operate Electronic Logging Devices (ELDs). These devices replace the outdated and cumbersome log-book that drivers had been using for several years.

The ELD offers many benefits for both drivers and their respective carriers

Benefits of Electronic Logging Devices

  • Limits the hours a driver can be behind the wheel, which should reduce the number of Tractor Trailer accidents.
  • The device does all of the work and drivers no longer need to keep a log.
  • The Federal Motor Carrier Safety Administration (FMCSA) will be able to track and report on driver trends and statistics with greater accuracy.

However, despite the many benefits that ELDs provide, there are several disadvantages which have negative impacts on the household goods moving industry.

Disadvantages of Electronic Logging Devices

  • Drivers may not drive/work for more than 11 hours in a 24 hour period. There is also mandatory rest time per week. These new restrictions will lengthen the time it takes for the driver to make it to destination, which may increase other costs such as per diems, corporate housing, and rental cars.
  • ELDs start tracking with the pre-trip inspection, which had not typically been included in log books. This will reduce the length of time a driver will be on the road.
  • When the ELD notifies the driver that they are done for the day, they must stop immediately or be subject to fines from not just FMCSA, but also their own van lines.
  • Routes with heavy motor vehicle traffic will be greatly impacted because ELDs measure total time on the road whether the driver is moving or at a stand-still on the freeway. Traffic jams will cause drivers to time out faster.

What should employers with relocating employees expect with ELDs?

Employers who have plans relocate employees should prepare for longer times related to their relocating employee’s household goods move. This may impact employee starting times at their new location, as well as lead to higher costs for the relocation.

What else should employers be aware of?

Driver and Labor Shortage: An additional challenge facing the Household Goods Moving Industry is the driver and labor shortage. Over 40% of drivers are over 50 years old, and are aging out of the business at a very high rate due to the physical demands of the job. The industry has been facing this problem for the past 10 years, and attracting more talent continues to be challenging. According to the American Transportation Research Institute (ATRI), only 4.4% of drivers are in the 20-24 year age range. This could impact the availability of drivers to move household goods for relocating employees, possibly lengthening the time needed to reach the final destination and delay positon start times.

Tax Rule Impact: Also, employers should be aware of the tax rule change impact on moving costs. Employers who choose to gross up moving costs for relocating employees will face higher costs as this benefit is now taxable. IRS Code Section 217 no longer creates a tax payer deduction for the Qualified Moving Expenses of household goods moving costs and final move expenses. These formerly non-taxable employee reimbursements and payments to third party vendors are now taxable income to the employee. If employers choose not to gross up, then going forward these expenses should be treated just like other taxable relocation expenses – reported as earnings to the employees, subject to income and payroll taxes, and reported on their annual W-2 as wages.

What should employers do?

Employers should review their hiring and relocation plans and timelines to account for possible delays related to any household goods moving processes, and the cost impact of the tax rule change eliminating the tax payer deduction for Qualified Moving Expenses.

Conclusion

Global Mobility Solutions’ team of global relocation experts have helped thousands of our clients with household goods moves and everything a relocating employee and their family need during the process. We can help your company understand how to plan for the impact of ELDs as it relates to your relocation program, and the cost impact of tax rule changes. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Corporate relocation tips Domestic Relocation Domestic Relocation Tips Global Mobility Global Relocation Global Relocation Tips Relocation Best Practices Relocation Management

5 Easy Steps for Year-End Relocation Expense Reporting

Confident young businessman holding a tablet in the office.

While most people are busy preparing for the holidays, you’re scrambling through the year-end reconciliation of your relocation expense data. Well, even though it’s only November, here is a gift that will help you navigate your year-end process this year and for years to come.

Though many relocation managers might prefer holiday gift shopping to year-end reporting, the process tends to go more smoothly when run by the relocation department. To maximize efficiency, be sure to follow these five steps:

1. Checklist

Create a year-end checklist. A detailed checklist will identify the information you need to accurately report year-end compensation. Your checklist should include due dates, responsible individuals, and departments. Establishing the responsibility for reporting relevant compensation data is critical and may include several components such as wages, imputed income, benefits, equity, and taxes. This year-end checklist will help you identify all the resources you need to create a complete and accurate report. Your itemized checklist should include items such as early cutoff dates, all employees who will receive the tax filing services (employees on the tax eligibility list), and provide for the time needed for verification, approval, and processing. A well-developed checklist will also set firm deadlines for reporting and tax filings.

2. Preparation Call

Set up a year-end preparation call. When setting due dates, remember the mandatory vacation times required by some countries toward the end of December. During the call, review your year-end checklist with all involved parties to ensure they are aware of their role and deadlines. Use this call as an opportunity to build understanding and develop relationships that will make year-end reporting easier in the future. If you have not already held a year-end preparation call, schedule one as soon as you finish reading the rest of this article!

3. Verify Data

Verify all of your data. Accuracy is vital, especially for compensation reporting. Data such as addresses and tax ID numbers/Social Security numbers should be confirmed, as well as wages, benefits, sick days, and vacation time. Verifying relocation expense data eliminates backtracking and costly errors.

4. Finalize Data

Finalize your relocation expense data. Make sure that the final payroll reports of the year have been included, plus any end-of-the-year benefits. Be sure to back up the program data again and save it in a secure location for easy future reference.

5. Submit Report

Get ready to submit your report. Double-check the deadlines for all the countries on your list and be prepared to provide specific data for each country. Tax providers may ask for data for different assignee/transferee populations. Be sure to adhere to your year-end deadlines and, whenever possible, send the data ahead of time. Some international locations may have very tight turnaround times to make that final tax payment of the year.

Modern Mobility Made Easy™

What this means for you and your relocating employees

As with anything, practice makes perfect. The more you follow these five steps, the easier your year-end reporting will become. Global Mobility Solutions – a leader in mobility management since 1987 – has expert relocation consultants who can help you quickly implement relocation policies custom-tailored for your needs, as well as expense reporting to make your year-end reconciliation easier. Request a professional audit of your year-end process.

Request your complimentary relocation program audit

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Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Tips Household Goods Relocation Best Practices Relocation Management

Best Practice for Relocation: Multiple Bids for Mortgage Services

small business owner working with employees

Very few people will walk into a car dealership, point to a vehicle, and say “Let’s sign a contract.” Most of us will compare the prices offered by a few area dealerships. When the salespeople know that they have competition, they begin reducing the initial price of the vehicle.

However, a lot of relocation management companies (RMCs) either own, or are owned by, mortgage companies. Therefore, when a client company wants to move its employees, the employees do not have a choice of lenders. The RMC and the mortgage lender know that the transferee is at their mercy with regard to price, scheduling, and customer service.

On the other hand, some RMCs use a multiple bid process in order to ensure that transferees are getting the best price and service. There are some significant benefits to going through an RMC and having their mortgage lenders compete for relocation business:

  • It encourages the lenders to provide the lowest reasonable rates and closing costs
  • Lenders provide very lenient underwriting guidelines to applicants coming from an RMC
  • Access to discounted rates and programs only offered to RMC-referred borrowers

This is all accomplished by having at least three lenders provide bids for the transferee to create mortgage estimates based the transferee’s ability to repay the loan, the amount borrowed vs. the cost of the property, and the terms of the mortgage programs available, as a best practice.

Each lender understands that its objective is to win the business. Therefore, they try to provide mortgage estimates that are fair and accurate with relatively no cushion to the costs.

When utilizing multiple bids for mortgage services, transferees save an average of .32% on their mortgage rate. What does this mean for transferees? Based on information at the time of this article, the average 30-year fixed mortgage rate in the United States is 4.16%. Having lenders compete can get that rate down to 3.84%. Let’s see what happens with a $285,000 home loan:

Global Mobility Solutions - Savings realized through multiple mortgage bids

The lower rate will allow transferees to explore more options like larger houses, better neighborhoods, or simply enjoying the monthly savings.

While cost is very important, so is the transferee’s experience. By allowing the transferee to meet with multiple mortgage lenders, he or she will feel more engaged in his or her relocation process. This promotes an overall good experience, because transferees tend to be happier if they feel that they are being heard throughout the relocation process. And we all know that happy employees are productive employees.

Global Mobility Solutions (GMC) is the pioneer of the “Freedom of Choice” model in relocation. By providing multiple bids for an array of providers, client companies and their transferees have saved money on services like household goods movement and, of course, mortgage loans. GMS continues to be an innovator of best practice workforce mobility programs in an effort to make relocations easy and practical for clients and their employees.

Learn more about the multiple bid process for mortgage loans, as well as other relocation services.

Need to include multiple bids in your relocation policy? Ask for a complimentary policy review.

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Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Household Goods Relocation Best Practices Relocation Challenges Relocation Management

Best Practices for Relocation: Multiple Bids for Household Goods Moves

It is no secret that competition leads to an array of benefits, including significant savings for the end user. We have seen the opposite when a company owns a monopoly on a product. Examples can range from Mylan raising the price of retail EpiPens over 400% in a very short time to dealing with customer service of the only cable provider offered in a neighborhood. Having one choice has never worked out well for consumers. The same applies to corporate relocation.

A lot of relocation management companies (RMCs) either own, or are owned by, van line companies. Therefore, when a client company wants to move its employees, the employees do not have a choice of van lines. The RMC and the van line know that the transferee is at their mercy with regard to price, scheduling, and customer service.

However, some RMCs use a multiple bid process in order to ensure that transferees are getting the best price and service. There are some significant benefits to having van lines compete for relocation business:

  • It encourages the providers to “sharpen their pencils” to provide the lowest reasonable cost
  • It ensures adherence to a company’s relocation policy guidelines
  • It is a way to eliminate any service day surprises

This is all accomplished by having at least two carriers meet with the transferee to create estimates based on how much needs to be moved, what needs special handling, and to where it all needs to be moved. Then the RMC audits the estimates to look for inconsistencies, for example:

  • Do the pickup and delivery dates correspond with the move?
  • Does one company estimate more crates than another?
  • Does one company show specialty items that the other company may have missed?
  • How close are the estimated prices?

Auditing the bids ensures an apples-to-apples understanding of the van line options and helps weed out the opportunity for overages.

Each carrier understands that its objective is to win the business. Therefore, they try to provide estimates that are fair and accurate with relatively no cushion to the costs. Many relocation policies that deal with van lines will also include a “not to exceed estimate” guarantee. This ensures relocation best practices are followed and provide the best solution.

Companies that utilize a multiple bid process save an average of $1,547 per move! This breaks down to an average of $1,473 to $1,604 for household goods movement and an average of $175 to $289 for car shipments per move.

While cost is very important, so is the transferee’s experience. By allowing the transferee to meet with multiple van lines, he or she will feel more engaged in his or her relocation process. In some cases, the transferee is actually empowered to choose the van line they prefer. Even if an estimate is slightly higher than another, if it falls within a certain percent (based on the client company’s relocation policy) of the lower bid, a transferee may select the more expensive carrier if he or she feels more comfortable with that specific household goods mover. This promotes an overall good experience, because transferees tend to be happier if they feel that they are being heard throughout the relocation process. And we all know that happy employees are productive employees.

Global Mobility Solutions (GMC) is the pioneer of the “Freedom of Choice” model in relocation. By following relocation best practices and providing multiple bids for an array of providers, client companies and their transferees have saved money on services like household goods movement and, of course, mortgage loans. GMS continues to be an innovator of workforce mobility programs in an effort to make relocations easy and practical for clients and their employees.

Learn more about the multiple bid process for household goods movement, as well as other relocation services.

Need to include multiple bids in your relocation policy? Ask for a complimentary policy review.

Categories
Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Global Mobility Global Relocation Global Relocation Challenges Global Relocation Tips Relocation Best Practices Relocation Challenges Relocation Management

Managing Mobility Costs

Businesspeople in a meeting

Department heads all over the globe are constantly asked to identify cost-saving opportunities within their departments. Human resources, employee mobility, talent acquisition, and procurement are no exceptions. As you scrutinize your budget, try utilizing these three steps to help better manage and ultimately reduce your relocation expenses:

Cost Estimates

Managing mobility costs starts with understanding what those expenses are. First estimate what costs should be involved with your vision of a successful mobility program. A cost estimate will provide you with a clear picture of the potential costs of individual relocation assignments. You can then use these cost estimates to correctly establish a budget prior to initiating any relocations.

One effective way to determine your cost estimates is by utilizing cost estimate technology. There are many software programs that by using the latest upgrades will help you:

  • Save time
  • Reduce human error
  • Ensure compliance

Policy Reviews

By reviewing your relocation policies, either internally or with an outside relocation management company (RMC), you will be able to identify cost-saving opportunities and eliminate expensive exceptions. When reviewing your mobility management policies, you should:

  • Do so in conjunction with cost
  • Benchmark against other companies within your industry
  • Leverage technology for key services (i.e. Virtual destination tours, online school reports, etc.)

Example:

Using online language tools can reduce relocation costs by roughly $5,000 - $20,000.

Tracking and Reporting

Lastly, you want to ensure that you are continuously tracking all expenses and reporting any overages or savings. Get a detailed account of how your cost estimates match up with your actual spending. Then the whole process repeats itself. Once you have your data:

  • Take action – Make any necessary adjustments to your budget, policy, or both
  • Review – Go over the detailed reports to identify more cost-saving opportunities
  • Incorporate technology – Save time and money by offering key services online

Global Mobility Solutions (GMS) is an award-winning RMC and, since 1987, has been helping companies save time and money with regard to their corporate relocations. As a courtesy service, GMS will review your current relocation policies and provide expert feedback to ensure that your policies are competitive within your industry and to identify any cost-saving opportunities, so you can focus on managing mobility costs.

Click here for your free relocation policy review

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About

Contact Us

About Us

GMS Client Login

Privacy Policy

Other Services

Our Technology

Global Relocation

Group Moves

U.S. & Canadian Relocation

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

About

Contact Us

About Us

GMS Client Login

Privacy Policy

Address

Global Mobility Solutions
15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904
Available 24/7/365

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