Tag: Relocation Costs

How to Manage Finances When Relocating for a Job

Post author By Christina Urrutia
Post date January 16, 2024

father showing daughter their new home on an ipad — Young father and his cute small daughter having fun with digital tablet on couch.

Moving for a new job is a great career move; here are tips to keep relocation costs in check

Controlling expenses while moving to a different city can be challenging. Still, various approaches can assist in managing relocation costs and cutting expenses by opting for the services of a skilled long-distance moving company. Initially, planning your relocation effectively and contemplating reducing the number of possessions is crucial. This will effectively decrease transportation expenses and help cut down on the price of shipping household goods.

Moving to a different part of the country for a new job comes with a price tag and is costly. It is worth asking your new employer if they provide any global mobility benefits or work with a relocation service provider who can offer help at a lower price. To avoid any financial surprises, it’s crucial to create a relocation budget that covers various expenses like transportation, packing materials, and the services of cross-country movers.

Some Cost-Saving Tips for the Relocation Process

One way to save money on your cross-country move is to declutter before packing. Take the time to review your belongings and decide what you need and can live without. Selling or donating items you no longer use reduces the amount of stuff you have to move and puts some extra cash in your pocket. Additionally, consider packing some of your belongings yourself to cut down on packing service costs. However, properly label and secure your items to avoid any damage during transit.

Another cost-saving tip is to be flexible with your moving dates. Moving during the relocation off-peak season, typically during winter, can lower prices for moving companies. Additionally, avoid driving on weekends or holidays as these are more expensive due to high demand. By being flexible with your moving dates, you can save significant money.

Compare Moving and Utility Companies

When comparing cross-country moving companies, focus on more than just the price. It’s essential also to consider their reputation and customer reviews. Look for companies with a track record of providing reliable and efficient service. Reading testimonials from previous customers can give you a good idea of what to expect. Remember, the cheapest option may only sometimes be the best if it means sacrificing the safety and timeliness of your belongings’ arrival.

In addition to comparing moving companies, comparing utility companies is essential when moving to a new area. Research the different providers in your new location and compare their rates and services. Look for companies that offer competitive prices and reliable service. It’s also a good idea to read customer reviews to understand their customer satisfaction. Switching utility providers can sometimes be a hassle, but it can save you money in the long run. Take the time to compare your options and make an informed decision.

When it comes to moving, it’s easy to get caught up in the stress and excitement of the process. However, taking the time to plan and make wise choices can save you both time and money. You can ensure a smooth and cost-effective move by being flexible with your moving dates and comparing moving and utility companies. Remember, it’s not just about the price but also about the quality of service and the safety of your belongings. So, take the time to do your research and make the best choices for your move.

Remember to notify your utility providers, insurance companies, and other vital contacts about your move. This will ensure a smooth transition and prevent unnecessary service charges or disruptions. Taking these steps and proactively planning can make your cross-country move more affordable and stress-free.

What Does GMS Do to Keep Relocation Costs Low?

Global Mobility Solutions (GMS) understands the importance of lowering relocation costs for our clients. To this end, we have implemented several strategies.

Firstly, our extensive network of providers allows us to negotiate competitive rates for various relocation services. Whether it’s transportation, housing, or immigration assistance, we have established partnerships with trusted vendors who offer cost-effective solutions. This not only helps our clients save money but also ensures that they receive high-quality services.

Additionally, our Pre-Decision Program plays a crucial role in cost reduction. By getting involved in the relocation process early on, we can help clients make informed decisions. This includes assessing the feasibility of the move, considering the financial implications, and identifying any potential challenges. We can minimize the risk of unsuccessful relocations and costly setbacks by addressing these factors beforehand.

Furthermore, our Pre-Decision Program allows us to create an accurate client budget. We understand that financial planning is essential when it comes to relocation. Providing a detailed breakdown of anticipated expenses enables our clients to make well-informed decisions and avoid any unexpected financial burdens.

Another way GMS keeps relocation costs low is by eliminating the risk of rejection by the transferee or assignee. We understand that a rejected job offer or relocation can be costly for both the employer and the employee. Therefore, we work closely with our clients to ensure that the relocation package meets the individual’s needs and expectations. By addressing any concerns or preferences early on, we can increase the likelihood of job acceptance and minimize the need for costly re-negotiations.

Moreover, GMS assists clients in identifying any potential problems with selling a home. We understand that selling a property can be a complex and time-consuming process. We help our clients navigate the real estate market efficiently by providing expert guidance and resources. This saves them money and reduces the stress associated with selling a home.

Additionally, GMS simplifies house-hunting trips for our clients. Searching for a new home in an unfamiliar location can be overwhelming. Therefore, we provide comprehensive support, including personalized itineraries, local area information, and assistance with property viewings. Streamlining the house-hunting process minimizes the need for multiple trips and reduces associated costs.

Lastly, our commitment to minimizing the need for policy exceptions further contributes to cost savings. We understand that policy exceptions can lead to additional expenses and complications. Therefore, we work closely with our clients to develop comprehensive relocation policies that address their specific needs and minimize the need for exceptions.

For more information on how GMS can help you get from point A to point B, contact us today to set up a free consultation with one of our relocation experts.

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Tags cost to relocate, Relocation Costs

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Examining Common Employee Relocation Costs

Post author By John Fernandez | CRP, GMS, SSB
Post date October 31, 2023

What Kind of Costs Are Involved When Relocating an Employee?

A primary concern for companies when offering relocation packages is the cost. It can be expensive to move an employee and their family to a new destination. But frequently, companies who cover relocation costs for their new employees can hire from a much wider talent pool than those that can only make offers to local candidates. When a company’s relocation packages are constructed by an experienced relocation management company (RMC) there is an increased opportunity for savings and the elimination of unnecessary costs from your relocation budget at each stage of the talent mobility process.

Understanding what costs are associated with the relocation process and why they should be included in your relocation policies can help make sense of the price being paid. Before diving into some standard relocation costs, it’s important to point out that each company and its moving employees have different wants and needs when it comes to the moving process. This can make it difficult to generalize costs and prices for one-off relocations. However, these are some of the most common costs associated with talent mobility:

Real Estate and Corporate Housing Costs

One of the primary benefits offered in many relocation packages is real estate assistance. In many cases, employees only have a set number of days to move and will likely need help selling and buying a house or sourcing a temporary place to live in until a permanent home is found. Therefore, the most competitive relocation programs include a home-selling assistance program. Often, these programs have options where the company or the RMC will buy the home from the moving family then resell the property themselves to allow the employee to make their start date in their new destination on time. It is also prevalent for RMCs to urge companies to include specialized relocation real estate agents to assist moving families with selling and purchasing their homes during the relocation.

Other relocation costs most employees want to see covered are house-hunting trips. After an offer is made and accepted for the open position, the new or promoted employee will ask the company to cover or reimburse for a trip or two to look at potential new houses and schools with their real estate agent. While this can be expensive, it can show that the company cares about the employee and family settling in comfortably at their new destination.

For temporary housing assistance, many companies will cover anywhere from 30-90 days of corporate housing. Corporate housing, also known as short-term housing, is generally a furnished apartment for the employee to stay in while the relocation process is finalized. For example, employees may need to report to work for their new position while their family needs to stay back for a few days or weeks to tie up loose ends. Or, in some cases, the employee’s new home or apartment might not be available to move in for the first few days or weeks after they arrive.

Moving Costs and Shipping of Household Goods

The most obvious and sought-after relocation benefit is assistance with typical moving expenses, such as the movement of the employees’ household goods. There are a few different ways to approach moving assistance; in some cases, the company will handle hiring and coordinating the move with a vetted and approved moving company or van line. This type of relocation offer can usually save the company money as they can have direct insight into all expenses. In addition, multiple-bidding processes can further reduce costs by generating competition between potential suppliers.

The reimbursement of moving costs is another commonly extended benefit from another standpoint. Under this model, the employee may be responsible for sourcing their own movers while their company will reimburse a portion (if not all of) any allowable expenses, per company policy. Some companies may only offer assistance in the form of a lump sum relocation package. This means the employee will be provided a lump sum payment that is intended to help reduce the burden of moving costs to the employee – however the employee is generally left to their own devices in this scenario.

Household goods costs extend beyond “the movers.”. Many relocating employees need specialty or sensitive items shipped, such as automobiles or pets. And on top of that, many people who move need temporary storage units for their personal property while transitioning from corporate housing to their new full-time house.

Relocation Costs to Keep In Mind

While the list of relocation benefits a company can potentially cover is extensive, it’s essential to work with the RMC to ensure your policies are up to date by reviewing them every 12 months. This will ensure that your company stays competitive in the hiring field while also verifying the company is not wasting money on payouts for benefits that are not being utilized. Here is a quick look at some of the other typical talent mobility costs included in many relocation policies:

Schooling assistance
Spouse/partner career support
Temporary storage
Language/cultural education
Travel assistance
Tax gross-ups
Relocation coaching
And more

Evaluate Your Company’s Relocation Costs With a Courtesy Consultation

With current market forces, the price to relocate an employee can be unpredictable. It can also be costly if not done professionally. Global Mobility Solutions (GMS) is here to help with any questions about relocating employees. We make it a priority to assist your company in staying within its relocation budget. We know employee moving costs can add up quickly.

We offer various relocation tools and technology to make the relocation process for your employee as simple as possible. In addition, our qualified team can walk you through a comprehensive program review to see if your company can save money on your relocation packages. Contact us at any time when you’re ready to update or create global mobility benefits packages for your moving workforce.

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.

Tags Relocation Costs, relocation tips

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

Reducing Moving Costs Through Government Relocation Incentives

Post author By John Fernandez | CRP, GMS, SSB
Post date April 4, 2023

view of city with mountains in background — Aerial panorama of Downtown Tucson, Arizona at sunset.

Check Out These U.S. Cities with Relocation Benefits Programs

Moving to a new place for a new job can be an excellent move for your career and your personal life. Starting somewhere fresh can give new beginnings and new opportunities. But what if the new company does not offer a competitive relocation package? Relocating for a position can be expensive, especially for an employee paying out of pocket; however, if the employee faces a once-in-lifetime job opportunity that cannot be turned down, making the decision even harder.

A lot goes into the relocation process, from the home sale and purchase costs, movers to travel funds, and even food and temporary housing costs come into play. Even if the new job does not offer the employee relocation benefits, it might not be the end of the opportunity just yet.

Many U.S. cities and states offer relocation incentive programs to take advantage of. Corporate relocation state subsidy programs are designed to help cover the cost for people moving for a job opportunity. Depending on the program, these incentives may apply to the entire state, region, or city. Here are some cities with the best relocation programs, with many of the programs focused on enticing remote workers in today’s new normal.

Cities & States with Relocation Benefits Programs

When looking for a new job, consider these relocation incentive programs offered by each city or state. Depending on what the relocation assistance covers, it could significantly reduce the cost of moving while also helping to break a tie between two employer offers.

Tulsa, OK

This remote working program is an innovative one. Tulsa offers workers up to $10,000 cash to help with relocation costs and a free workplace within an office space for any remote worker who moves to and works from the city. All employees have to do to qualify for the program is be at least 18 years old, work remotely in a full-time job, be eligible to work within the U.S., and be able to move to Tulsa within 12 months of accepting the relocation incentive.

Northwest Arkansas

To attract professional talent, the Northwest Arkansas Council offers incentives of up to a $10,000 lump sum for those looking to relocate. Recipients will also be given a free street or mountain bike to use on the new 162 miles of paved trails, the 37-acre Razorback Regional Greenway, and the region’s 322 miles of mountain biking trails. If a bike doesn’t suit the fancy of the moving worker, participants can also choose an annual membership to arts and cultural institutions.

Newton, Iowa

In 2014, Newton, Iowa, initiated The Newton Housing Initiative to boost home buying and construction. Investing in Newton’s infrastructure with a $190,000+ home yields a $10,000 cash incentive plus a “Get to Know Newton” package worth ~$2,500, with discounts at local stores and eateries.

To be eligible for this program, you must buy or build a new home worth $190,000. The reward is given at the final loan signing, and a certified appraiser must appraise the home’s value. The Newton home’s construction has to be completed before you receive the incentive, confirmed with proof of occupancy by the City of Newton. Rental properties do not qualify for this relocation program.

Savannah, GA

The Savannah Technology Workforce Incentive is willing to reimburse relocating employees up to $2,000 of relocation expenses. To qualify, applicants must be willing to work with a technology company in the region, be self-employed, or be remote workers looking to relocate to Savannah. Additionally, the employee must relocate within 12 months, have a minimum one-year lease or purchase property, and have resided in the county for 30 days before being able to apply

Tucson, AZ

Thinking of living in the desert? StartupTucson offers incentives totaling up to $7,500 in cash and moving services. Relocation funds, internet setup, and housing support are just some of this program’s benefits

The Shoals, AL

Another program geared toward remote workers, this relocation benefits package, is willing to pay moving employees $10,000 cash, which can go a long way in the low cost of the living area of The Shoals. To be eligible for the money, workers must have a minimum annual income of $52,000, be able to move within six months, be full-time employees, and be at least 18 years old. $2,500 of the incentive is given upfront for moving costs. The rest is given in two payments, the first after six months and the last after a year.

GMS Can Help Relocating Employees Utilize Relocation Incentive Programs

Are you a company that has been exploring innovative new ways to utilize a remote workforce? GMS can help you craft creative relocation policies while maximizing the relocation incentives programs offered by various state and local governments across the U.S. Contact us today to discuss how your company can obtain and retain the best talent from anywhere in the country and how to do so affordably.

Or if you’re an employee looking to take advantage of relocating on remote work policies, then feel free to contact as well. GMS is happy to announce our new Employee Choice Program, where we help remote workers get network pricing on moving services as they relocate to an unknown destination.

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Tags government relocation incentives, Moving Costs, Relocation Costs, relocation incentives

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U.S. Domestic vs International Relocation Costs: More Than Just The Miles

Post author By Michael Barone
Post date December 21, 2021

American and Canadian flags waving at sunset

A Look Into the Major Difference Between Domestic and International Relocation Expenses

In today’s competitive job market, hiring the best employee for an open position can be a long, but rewarding process. In order to remain a top contender for talent, it is important to ensure your recruiting efforts are backed by well-optioned relocation services, allowing you to source talent outside of your immediate region. Companies who work with a relocation management company (RMC) give their HR department and recruiters access to important tools that enhance their ability to hire the best possible employees, taking the company to the next level.

The operation of any relocation program comes with necessary expenses, however, the relative cost of these expenses and their service categories will vary by the services utilized and the type of relocation being performed. For example, the service mixture (and by extension, the total cost) of a typical relocation that occurs within the United States and one that is international can be very different.

Let’s explore a few of the primary cost factor differences between a domestic relocation and an international relocation.

Typical Costs Incurred During Domestic Relocation

When accepting a position in a new state, the high-cost services are usually moving costs and real estate assistance. Most companies include assistance for both in most average relocation packages. Short-term or temporary housing is another benefit that is usually included in relocation services that can help to increase the overall cost. Let’s take a deeper look at some of the more common domestic relocation benefits:

Selling Your Home

Oftentimes, selling a home isn’t a simple process. Listings and showings alone can take weeks before the ball starts rolling with suitable offers to purchase. Additionally, the sale of a home is not considered cheap. The cost of selling your property can easily rise to several thousand, if not tens of thousands, of dollars. Many employees simply don’t have the liquidity or equity to cover such an expense.

Some relocation management companies include real estate assistance in their relocation benefits. These benefits can include home-sale programs like the BVO, GPO, and Direct Reimbursement, in simpler terms this part of the relocation package is real estate assistance. Each program has different pros and cons but overall can help in any situation. These various programs are all designed to help alleviate the financial stress of selling what many transferees would consider their most expensive asset.

Relocation companies typically are always up to date with real estate trends and offer real estate agents who specialize in the relocation process. There is also a chance that using one of these programs, if the relocating employee has a hard time selling their home, the RMC will purchase the home from them so they can continue their relocation on a reasonable timeline.

Short-term Housing Options

Also known as corporate housing or temporary housing, short-term housing is a great relocation benefit when utilized. These are usually furnished apartments where the relocating employee and their family can stay, usually for 30 to 90 days, while they await their belongings from the moving company and look for a more permanent home. This gives the employee a better chance to research neighborhoods and schools where they would want their family to live.

As with many things, time is money. The longer the stay in short-term housing, the higher the overall direct cost. This causes temporary housing costs to be one of the key cost considerations for many relocations.

Moving & Transportation

Moving locally can be complicated enough, when it comes to moving an entire household to a new city or state, many do not fully understand the costs involved. Manpower costs and shortage in the HHG industry are a historic challenge, but market pressures on items such as packaging materials and fuels have become a new dynamic that have caused transportation costs to climb in recent years.

The packing and transporting of the employee’s belongings to their new destination in a safe and timely manner is important for a successful relocation. Using a quality moving company to ship all household goods greatly reduces stress and increases efficiency in the moving process.

Typical Costs Associated with Global Relocation

When it comes to international relocation, there are (generally) additional costs to consider above and beyond those that occur in a typical domestic relocation. Most of the benefits stated above are also included with global mobility assignments or permanent relocations, along with some more in-depth benefits that have to be involved when relocating to a new country. One key benefit should be assistance in applying and obtaining the correct visa and immigration paperwork. Here are some of the benefits included in an international relocation package that will have their own impact on the overall cost of the move:

Visa Fees

Visa applications and renewals can be a trying process. Depending on the employee and their situation, it can cover over $1,000 for all paperwork to be filed. Relocation companies tend to work with visa experts to avoid missteps, which will save everyone time and money in the long run. Companies who are hiring international candidates typically include provisions in their policies to cover any visa and immigration applications that are needed to be able to work for them internationally.

Moving Insurance

There will be some common coverage for household goods through the household goods transportation company, but oftentimes when it comes to international moves, items are sent by sea. This requires different types and ranges of coverage when compared to a domestic move. Purchasing property transportation insurance can help cover any mishaps to items as they arrive at the new destination. Most RMCs will urge companies to cover this cost in their relocation packages.

Storage Costs

International moves can be hard to coordinate, so one may find themselves in need of storage for a period of time. In most cases, HHG storage assistance is needed because the transferee hasn’t been able to find a new home yet. Others may need long-term storage as they are on an extended assignment and it is not necessary to ship their entire household to their assignment location. When there are storage options available in the relocation package, it can help the relocating employee greatly.

GMS Can Help No Matter Where You’re Headed

Global Mobility Solutions has dedicated teams for both domestic and international relocation. Our certified relocation coaches and assignment managers have handled moves from almost any state or country and can help no matter where you’re headed. Our domestic relocation services include handling all aspects of the move, including pre-decision, departure, and destination services. On the international side, we provide assistance from pre-assignment to assignment management to repatriation.

Relocation costs can add up, but working with GMS, you gain access to a vetted and competitive mobility service provider network, complete end-to-end management of your program, and the industry know-how to ensure your program is running as efficiently as possible. Reach out to us today with any questions regarding global mobility.

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Tags Domestic Relocation, global relocation, international relocation, Relocation Costs

Choosing a Relocation Company Corporate Relocation Domestic Relocation Global Mobility Global Relocation Relocation Best Practices Relocation Management

Advantages of Creating Competition Between Suppliers for Relocation Services

Post author By John Fernandez | CRP, GMS, SSB
Post date September 21, 2021

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GMS Always Fields Multiple Bids from Suppliers on Key Services

No one wants to pay more than they need to, this is especially true when it comes to the outsourcing of employee relocation services to a Relocation Management Company (RMC). Cost is generally the #1 driver of any procurement process, and it is wise to ensure you’re getting the most for your money before you sign on the dotted line. While saving money is a no-brainer, have you considered what steps your RMC is taking to ensure they deliver on cost savings for your relocation program?

Many relocation companies have their own supplier base. These suppliers may consist of critical (and expensive) services, such as household goods transportation companies and temporary housing agencies. It is important to understand how your relocation company is leveraging these suppliers to reduce the impact of these services.

GMS Process to Keep Relocation Costs Down

Global Mobility Solutions, like most relocation companies, has its own, trusted network of suppliers. However, our network model is different due to our Multiple-Bid Process on key services. This process creates ongoing competition between our suppliers which ultimately results in lower prices and major relocation cost savings for our clients’ overall mobility spend.

So how does it work? GMS analyzes each relocating employee’s unique needs, develops a service delivery plan, and then reaches out to at least two different suppliers for bids on key services. The suppliers’ estimates are audited for accuracy and submitted to you for final selection and approval based on the criteria most important to your organization. It should be noted that these are not just random or first-time suppliers who place bids with GMS. Each supplier is trusted and vetted by our network management team to ensure great service and competitive pricing. The process also allows us to develop creative service strategies to address every unique relocation need from each transferee.

What makes GMS different is our independence and transparency in our supplier selection process. As we are not affiliated with any of our suppliers (van lines, corporate housing, real estate, destination services, immigration, or otherwise) we can subjectively vet our supplier base, ensuring the best possible quality for the best possible price across all of our key services. Some RMCs own or are owned by the suppliers they utilize which prevents the ability for true competition amongst the sub-suppliers servicing your account.

Additionally, GMS benchmarks and reviews our supplier pricing and negotiated rates on a quarterly to annual basis to ensure competitiveness by service in your specific relocating markets. These two features provide GMS clients with an umbrella of cost savings coverage while enhancing the quality of each relocation.

Let GMS Provide Relocation Services for Your Company

Operating a workforce relocation program can be expensive, but in many cases, it’s the best way to ensure your organization remains competitive in the acquisitions of talent to fuel your ongoing success. To have a better shot at cutting down relocation costs during the process, it is important to ensure your RMC utilizes a competitive bid process between suppliers on key services, such as household goods transportation, corporate housing, and more. Competition is always good for the consumer, driving down prices and increasing quality. GMS ensures the best price possible 100% of the time. For more information on corporate relocation services and program management from GMS, reach out today to schedule a call with one of our qualified team members.

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Tags relocation, relocation best practices, Relocation Costs, relocation programs

Business Services Choosing a Relocation Company Corporate Relocation Corporate relocation tips Domestic Relocation Challenges Domestic Relocation Tips Global Mobility Global Relocation Relocation Best Practices Relocation Challenges

Discover Your Potential Relocation Cost Savings

Post author By John Fernandez | CRP, GMS, SSB
Post date June 1, 2021

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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!

Tags managing mobility costs, Mobility Cost Management, Relocation Cost Management, Relocation Costs

Relocation Best Practices

2020 Year-End Reconciliation Process for Relocation Expenses

Post author By Sam Hoey | CRP, GMS
Post date October 27, 2020

A diverse business team in a planning meeting at the office, wearing face masks for protection.

If you manage your company’s relocation program, you should start preparing now to ensure a smooth 2020 year-end reconciliation process. Since many corporate departments interact with the relocation process, getting an early start will help everyone understand what they need to provide. Departments that manage accounting, travel, tax issues, and human resource functions may need to provide information for the reconciliation. A best practice is to focus on attention to detail from the beginning of the process.

Best Practice: Follow These 5 Steps to Ensure a Smooth 2020 Year-End Reconciliation Process

Step 1: Start by Writing a Thorough Reconciliation Checklist

When looking into your company’s relocation process, start noting the specific data points that apply in a well-written checklist. For example, considering the scope of a transferee’s relocation-related data, you will need the following information:

Salaries and wages
Compensation
Taxes (include any tax filing services for those eligible)
Imputed income (non-cash compensation)
Equity

Equally important are the dates that impact timing of the 2020 year-end reconciliation process. Be sure to correctly note and plan for dates such as:

Tax filing deadlines
Reporting deadlines
Early cutoff
Due dates to receive information

Step 2: Create Calendar Invitations for a 2020 Year-End Reconciliation Process Meeting

Identify all of the employees who will need to provide information for the reconciliation. Check their calendar availability and plan a meeting where all can attend. Be certain to look into vacations and holiday timetables so that everyone can be available for the meeting. Also, be sure to provide adequate notice so that invitees can make inquiries. For example, they may ask about their role in the process, or what data they should provide. Provide as much clarity as possible so they will know what to expect.

Step 3: The Three Most Important Words in a Reconciliation: Accuracy, Accuracy, Accuracy

It might go without saying, but it is critically important that all data reported for the 2020 year-end reconciliation process is accurate. Accounting systems, tax filing programs, and all other aspects of the process hinge on accuracy of the data. Incorrect data could lead to missed deadlines, additional fines and fees, and costs related to rework such as refiling tax paperwork. Before hitting the send button, confirm the accuracy of these important points:

Salaries and wages
Health and insurance benefits
Personal time, sick days, vacation
Addresses
Taxpayer Identification Numbers
Social security numbers

A good approach is to request an audit of the information and the process. Your company’s Accounting Department may include an internal financial auditor, or perhaps the Quality Department may have a process auditor. See if they might conduct an audit of the reconciliation. Alternatively, one of your department colleagues might be able to provide a review to check for any inconsistencies.

Step 4: Check all of the Company’s Final Year-End Reports

At this point you should have most of the data you need to prepare your reports. However, there may be something that was missed that will later show up in a year-end report. Also, any late data entries at the end of the year should be counted as well. Check all company year-end reports with data that needs to be included in your 2020 year-end reconciliation process.

Step 5: Press that Send Button!

Once you have confirmed all of the reporting deadlines for every country and entity that requires a report—press that send button! Keep in mind that some transferees may need to be grouped together for reporting to certain tax-related organizations. A best practice is to send data and reports early, before the deadlines, and confirm receipt at the entity. Once you have sent data, begin the payment processes. Identify when final tax payments are due for the year, and then arrange for the payments to be submitted.

What Does This Mean?

Companies should always follow best practice recommendations to ensure reconciliation data is accurate. They should also ensure on-time reporting for their 2020 year-end reconciliation process. By following these best practices to confirm data accuracy and filing dates, companies can avoid errors. They can also avoid the cost of any fines, fees, and necessary rework.

What Should Employers do about The 2020 Year-End Reconciliation Process for Relocation Expenses?

Employers planning for their 2020 year-end reconciliation process for relocation expenses should work with a qualified and experienced Relocation Management Company (RMC). RMCs will be able to help companies understand all of the required inputs for a successful reconciliation. They can also share best practices to ensure data accuracy and on time reporting. Employers should request an audit of their reconciliation to ensure data is correct and important dates are documented for action.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients with reviews of their reconciliation processes. Our team can help your company understand how to design a 2020 year-end reconciliation process of relocation expenses that leverages best practice recommendations. As a result, your company’s processes will ensure data accuracy and on-time reporting.

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 an audit of your year-end relocation expense reconciliation, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Tags 2020 year-end reconciliation process, Relocation Benchmarking, relocation best practices, Relocation Cost Management, Relocation Costs, Relocation Expense Reporting, year-end reconciliation, Year-End Relocation Expense Reconciliation

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

Post author By Sam Hoey | CRP, GMS
Post date September 1, 2020

Young woman collecting important documents — Shot of an attractive young businesswoman going through paperwork while sitting with her laptop

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:

Immigration issues
Travel restrictions
Costs to comply with COVID-19 sanitation guidelines
Virtual talent acquisition
Virtual office requirements
Tax compliance issues

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:

Home Sales
Home Purchases
Temporary Housing Costs
Tax Obligations
Household Goods Moves

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.

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

Home Purchase

California Solar Panel Mandate: What Does This Mean for Relocation?

Post author By Global Mobility Solutions
Post date August 13, 2020

Solar panel technician with drill installing solar panels on roof

As of January 1, 2020, the California solar panel mandate is the first statewide residential requirement for solar power in the United States. This mandate has several stipulations that require compliance for new construction homes. New residential homebuilders have direct impact, and must do one of two things:

Install solar panels on new homes
Build a solar power system that serves a group of new homes

The requirement may be waived if the property does not receive enough sunlight for the solar panels to be useful. However, the California solar panel mandate applies to virtually all new construction on buildings that are three floors or less, including:

Single family homes
Condominiums
Apartment buildings

Where Did the California Solar Panel Mandate Come From?

The California solar panel mandate was approved in 2018 by the California Energy Commission (CEC). The ruling is part of the state’s 2019 update of standards for building energy efficiency. The state is also working to reduce greenhouse gas emissions.

What is the Cost to Home Buyers?

On average, the new requirement may add $8,000 to $10,000 to the cost of a new home. The CEC estimates the California solar panel mandate will increase monthly mortgage payments by $40. However, it also estimates homeowners will save an average of $80 each month on energy costs.

What is the Difference between Leased and Owned Solar Panels?

Leased Solar Panels and the California Solar Panel Mandate

For home buyers, it is important to know if the solar panels on the home are purchased or leased. Solar panel leases may last several years. Some mortgage lenders will not allow leased solar panels to be included in a home’s valuation for mortgage purposes. Also, home buyers would need to agree to take over the payments on a leased solar panel system.

As such, home buyers should learn important points from the home seller such as:

Contract details
Length of lease term
Monthly fees
Warranty coverage
Manufacturer of the solar panels
Installation company
System size (how much power does the system generate)
Whether the local utility offers net metering (lets home owners sell excess electricity back to the power grid)
Does their company’s relocation program allow for leased equipment

Home sellers with leased solar panel systems should look into their options, including:

Should they pay for the remainder of the contract?
Can they find a buyer willing to take on lease payments?
What are the requirements to transfer a lease?
Is the warranty transferable? If yes, for how long?
What is the cost to remove or relocate the solar panels if the buyer requests this?
Will their relocation benefits be affected by leased equipment?

Owned Solar Panels and the California Solar Panel Mandate

Home sellers that own, rather than lease, their solar panels are in a comparatively better position. Several studies confirm that solar panels add value to a home. The California solar panel mandate will have the effect of increasing the value of homes that have solar panels installed by the home builder. Some estimates show homes with solar panels usually sell for around $15,000 more than other homes.

There are a few other significant benefits for home owners who choose to install solar panel systems:

There may be tax and other incentives
Solar panel prices continue to decline in cost
Owners may recover the cost of the system upon sale of the home

Also, some home owners may be able to receive credits on their energy bill under net metering systems when they send excess energy back to the utility company.

What Does The California Solar Panel Mandate Mean?

Home buyers should be aware of the new California solar panel mandate. This and other initiatives will continue to impact the real estate market in many ways. Employers with new hires and transferees who are looking to purchase a home in California or other markets with similar requirements should work with a Relocation Management Company (RMC). RMCs that have knowledge and experience with relocations are ideal sources for information relating to local housing market requirements.

The GMS network of real estate agents consistently leads the industry in the way its top agents market homes. Each agent has access to the latest technology and best practices for marketing real estate, and will understand how to approach issues relating to solar panel systems and the California solar panel mandate.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to provide solutions for their new hires and transferees who are looking to buy or sell a home. Our network of top agents market homes following industry best practices. As a result, they will have knowledge that helps home buyers and sellers understand what the California solar panel mandate means for their home buying and selling.

Contact our experts online to learn more about the impact of the California solar panel mandate on home buyers and sellers, or give us a call at 800.617.1904 or 480.922.0700 today.

Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Home Purchase Household Goods Relocation Best Practices Relocation Challenges Relocation Management Talent Mobility

Summer Move on Tap? Start Planning Now

Post author By Nancy Kritzer | CRP
Post date May 7, 2020

African descent family moving into a new home. Mother, father and daughter. Real estate sign. Home in background. Spring or summer season.

Many relocating employees choose a summer move over any other time of the year. However, several factors make this time of the year the busiest for relocation. As a result, the household goods (HHG) moving industry is often running at nearly full capacity to meet demanding schedules.

The current COVID-19 pandemic presents a significant number of additional considerations. However, transferees who plan ahead and learn basic guidelines for safe HHG moves can expect a smooth summer move.

Factors That Result in Preferences for a Summer Move

1. School Breaks

Families with children prefer to stay in place during the school year. The vast majority of school years follow certain patterns, with holiday or seasonal breaks. The months of June, July, and August are traditionally times when schools are not in session. This includes colleges as well, where students are often on the move back home once they have taken their last final exam. By planning a summer move, schoolwork is less likely to face any disruptions.

2. Weather Patterns

In much of the United States, the months of May through September offer warm temperatures, grounds covered with grass, and a number of bright sunny days. In comparison, other months offer less than ideal weather conditions. Snow and ice make travel difficult, streets and sidewalks may be muddy, and days may be gray with sleet and snow showers.

3. Common Beliefs and Practices

Many home buyers and sellers believe the best seasons for real estate transactions are spring and summer. Although other seasons offer a number of benefits, a summer move is often the result of a busy spring and summer home buying and selling season.

How to Plan Ahead for Your Summer Move

Companies that are planning to relocate employees should be aware of several important points that can make for a smooth and easy summer move. Communication is important to ensure that every relocating employee has a good experience. Employees who have a good experience in their relocation process will arrive at the destination ready to start their new job.

Top 4 Points to Ensure a Smooth Summer Move

1. Engage your Relocation Management Company (RMC) as Early as Possible

Employers looking to arrange an employee transfer or a new hire that will be relocating, early notification to the RMC is best. A best practice is to integrate all of the company’s pre-decision services directly with the RMC. This will help ensure the RMC has visibility for any upcoming summer move, and initial planning can quickly proceed.

2. Leverage Multiple Bids to Obtain the Lowest Costs

With HHG moving demand at its peak, RMCs should provide multiple bids for a summer move. However, this requires companies to provide enough time for the RMC to obtain these bids. The last week of June is the busiest week for moves. Companies that do not provide enough time for the RMC to obtain competitive bids may miss out on substantially lower costs for the summer move. In general, RMCs who obtain multiple bids for a summer move can save companies over $1,500 per move.

3. Providing a Range of Dates is Better Than a Specific Date

As with many things in life, the ability to be flexible works well for planning a summer move. HHG moving companies appreciate flexibility for their scheduling needs. Transferees also have many other things to take care of related to their relocation. Relocating employees who can provide a range of dates for pickup and delivery are often likely to have their household goods picked up and delivered on their preferred date or the nearest alternative date.

4. When Time is of the Essence, Services Can be Provided at Additional Cost

Some situations require an employee to be on site in a new location by a specific date. Critical delivery dates may arise due to home sale closings, expiring leases, and company requirements. These situations may require services that cost extra, above and beyond the traditional summer move cost. Companies that need a transferee to be on site in a new location by a certain date should provide enough time for the employee to make the move.

NOTE: Transferees that are given very short notice for a summer move often face significant issues in terms of cost to move and space for their household goods on moving company vans and trucks. Late requests for space may result in a moving company providing space but only for a specific size such as 10,000 pounds of goods. As a result, transferees with 2,500 pounds of household goods may have no other option but to pay for the extra unused space in order to meet the deadline set by their company. Best practice is to provide a quote that covers only the space needed for the transferee’s household goods. This way, they transferee is not paying extra for space they cannot use.

What Should Employers do About a Summer Move?

Employers should contact their RMC as early in the relocation process as possible. Best practice is to work with the RMC for pre-decision services. To ensure this engagement starts as early as possible, employers should create an Application Programming Interface, or relocation API.

An API provides a framework for different computer systems to communicate and share information. Employers with a relocation API will have their internal Human Resource Information System (HRIS) integrated with their RMC’s relocation technology. RMCs with industry-leading relocation technology solutions have designed their platforms to quickly and easily integrate with each client’s HRIS.

Employers should work with a qualified and experienced Relocation Management Company (RMC) that can provide guidance and insight as to best practices for obtaining multiple bids and arranging for a summer move. RMCs can help clients and transferees understand how to communicate important dates and other information relating to their summer move with HHG moving companies.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to leverage the multiple bid process to save on a summer move. Our team can help your company follow industry best practices to communicate early, incorporate flexibility, and understand all of the various options that are available for relocating employees facing a summer 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.

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 interest in learning best practices relating to arranging a summer move for your relocating employees, or give us a call at 800.617.1904 or 480.922.0700 today.