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The Shipment of Household Goods

Shipment of Household Goods Explained

When planning a family move or relocating for a new job, one of the main points that may come to mind is how to move everything in one’s home. Looking around the house to take stock of your many possessions can cause stress. From clothes to dishes, artwork to vehicles, office equipment to bedroom furniture – decisions must be made on what stays and what goes. Working with a reliable moving company that can promptly and safely pack, and then move your household goods can make that process easier. 

 

What are household goods? While there is no exact definition, household goods (commonly abbreviated as HHG) are most often referred to as a mix of items, utensils, clothing, and furniture that reside in your house. Because there is such a wide range of what fits into the concept of “household goods” it can be difficult (mentally and physically), risky, and time-consuming for an individual or family to move on their own. 

 

If the move is taking place because of a new job or a personnel transfer, many corporate relocation benefit packages include some form of provision for the shipment of the employee’s household goods. In many cases, the relocation management company (RMC) that is managing the employee’s move has access to a reliable HHG transportation company to perform the heavy lifting related to the move. Conversely, some organizations may leave their relocating employees to their own devices to find an appropriate moving company. In these situations, some limited financial support or reimbursement is provided to the employee once the move is complete.

Why You Should Use a Professional Moving Company

Let’s start by pointing out the obvious. If household items are not packed by professionals there is a risk of items being broken or damaged upon delivery. Companies that specialize in household goods shipping can properly pack items to assure reduced risk of the item being broken. Many reliable moving companies will also have insurance for items if something is broken, damaged, or misplaced. In fact, eligibility for shipment coverage may be predicated on the movers performing the complete packing of the household goods.

 

It is also worth stating that if the relocating employee attempts to pack, move, and transport their household goods in a rental truck, there runs a risk of serious injury. The movement of larger items, improper lifting techniques, and repetitive movements can lead to an injury. This may impact the timeline of the relocation, or possibly result in a workers compensation claim if the move is company-sponsored.

 

Another fact that many might overlook is the transfer of these personal goods to the new city or state. Traveling cross country in an unfamiliar truck or pulling a trailer is not easy, and can take more time than many might realize. If the relocation is international, the logistics become increasingly complicated and out of the reach of the majority of transferees.

 

Allowing a professional moving company to pack, handle, and ship the employee’s household goods is more time-efficient. Every relocation consists of many moving parts. Stressing about the packing and moving of the transferee’s household goods doesn’t need to be a complicating factor. Additionally, if moving for a new job or position, there might be a short timeframe in which the relocation has to be completed due to a job start date. Hiring a moving company can help ensure that the household goods are moved quickly and will not hold up the relocation.

The Networks That Support Household Goods Shipping

Unlike the local movers many might think of when discussing moving, relocations generally occur over great distances. The van lines that are contracted to perform these types of moves will use larger trucks and a sophisticated logistics network to move the goods across the nation, or even around the world. Components of this network will include semi-trucks, train/rail cars, airlift vans (special containers for air shipments), and even ocean containers loaded onto vast ocean-based vessels. These networks are used to consolidate shipments and speed the overall transportation process. Commonly, local agents of the transportation company on both sides of the move will be called upon to assist with the loading and unloading process. 

 

Additionally, specialty companies may be called in to perform special crating services, remove and package wall-mounted televisions, prepare sensitive items for transport, or even ship your automobile. Storage solutions are also on tap in the event you need temporary storage at your destination while you find a home, or if you are on an overseas assignment.

 

Lastly, animal shipments are a commonly overlooked necessity for those relocating. Pets are more than just animals, they are beloved members of anyone’s family. As such, specialized animal transport companies help to ensure the transferee’s pets are traveling under safe conditions. Transporting pets can require additional documents, immunizations, quarantines, and specialized kennels/crates. Transportation methods geared towards animals significantly reduce the amount of stress on the pet as well as instill confidence in the employee’s knowledge that their beloved family member is being well-cared for.

Why You Should Use a Corporate Relocation Company

Working with a corporate relocation company like Global Mobility Solutions can help reduce the stress of household goods shipping. We provide access to our vetted, certified, and highly competitive network of household goods specialists. By including HHG services in a thoughtfully designed relocation policy and moving process, you can ensure that your transferees arrive at their destination on time and with as little distraction as possible, ready to focus on their new position. GMS can be contacted as early as today to discuss the shipment of household goods to any location in the world.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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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

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.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Household Goods

Why You Should Plan Ahead for Summertime Household Goods Moves

Relocating employees often face the prospect of summertime household goods moves. Families with children prefer to move while schools are not in session. Moving during the summer means children will not miss any classes, and the move will not disrupt schoolwork. Also, many home buyers and sellers believe that spring and summer are the best seasons for real estate sales. As a result, over 70% of all moves occur between Memorial Day and Labor Day weekend.

During summer, most moving companies are extremely busy with full schedules. Also, transferees often compete with others who move during this timeframe. College students, seasonal workers, and many other people prefer to move when weather is usually warm and pleasant. As a result, they compete with transferees for space in moving company vans and trucks for summertime household goods moves.

Best Practices for Summertime Household Goods Moves

Companies should plan ahead for summertime household goods moves. Best practices for companies that need to move relocating employees during summer include:

1. Contact your Relocation Management Company (RMC) as early in the process as possible.

Best practice is to integrate your company’s pre-decision process with your RMC. This allows the RMC to have visibility for any potential summertime household goods moves.

2. RMCs should provide companies with options to obtain the lowest cost for moves.

Best practice is to provide multiple bids for summertime household goods moves. However, the RMC will not be able to obtain multiple bids if time does not permit. The busiest week for moves is the last week of June. Companies should be aware that contacting an RMC to arrange moves without enough notice may prevent them from obtaining competitive bids. As a result, the RMC will not be able to find lower costs for the move. Generally, the ability to obtain multiple bids will save companies a significant amount for each move.

3. Best practice is to provide flexibility on dates for summertime household goods moves.

Flexibility on dates helps the moving company with their scheduling. It is also beneficial for transferees since they have many things to take care of related to their relocation. To obtain the lowest cost bids on moves, transferees should provide alternate pickup and delivery dates. Moving companies try to meet preferred dates or nearest alternative dates for relocations.

4. Timing can be a significant issue for some transferees.

Critical delivery dates due to expiring leases, home sale closings, and company requirements to be on site in a new location may require an extra-cost service. Companies that need a transferee to be in a new location by a specific date must provide enough time for them to make the move.

Transferees that are given very short notice for their summertime household goods moves often face significant issues in terms of cost to move and space for their goods on moving company vans and trucks. Last minute requests for space may result in a moving company providing space but only for a specific size such as 10,000 pounds of goods. Transferees with 2,500 pounds of goods may have no choice except to pay for the extra unused space in order to meet the due date set by the company. Best practice is to provide a quote that covers only the space needed for the goods. As a result, transferees would not pay extra for space they cannot use.

What Should Employers do About Summertime Household Goods Moves?

Employers should engage their RMC as early in the relocation process as possible, preferably at the pre-decision stage. An easy way to ensure this engagement starts as early as possible is to 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). RMCs provide guidance and insight as to best practices for obtaining multiple bids and arranging for summertime household goods moves. RMCs can help clients and transferees understand how to communicate important dates and other information relating to summertime household goods moves with 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 summertime household goods moves. Our team can help your company follow industry best practices to communicate early and incorporate flexibility. We can also help your company understand options that are available for relocating employees facing a summertime 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. GMS is dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in learning best practices relating to summertime household goods moves, or give us a call at 800.617.1904 or 480.922.0700 today.

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Buy a Home Domestic Relocation Domestic Relocation Trends Job Market Job Seekers Talent Mobility United States Economy

United States Migration Patterns: Where are People Moving To?

United States Migration Patterns: Where are People Moving To?

A recent study by United Van Lines tracking 2018 United States migration patterns shows which states people are moving to.  According to the study, the top 5 states experiencing the highest rates of inbound migration are:

Top 5 States Growing due to United States Migration Patterns

  1. Vermont
  2. Oregon
  3. Idaho
  4. Nevada
  5. Arizona

To understand these patterns, it is best to look at a number of local as well as national trends and how these trends impact each state.

Vermont

Vermont benefits from United States migration patterns impacting employment and jobs. This state has a relatively small population compared to other states. Therefore, significant growth in employment is due mostly to people moving to the state to take new jobs or as a transferee within their company. Vermont industries experiencing exceptional growth include:

  • Renewable and Clean Energy including the highest number of solar jobs per capita in the nation
  • Tourism and Outdoor Recreation including top destinations for skiing, camping, and hiking
  • Food Processing including craft beer, cheeses, and maple products
  • Financial Services and Insurance including #1 ranking in the world for assets under management in captive insurance

Vermont is also well known for its beauty, with mountains, lakes, and four distinct seasons. The state has many pristine areas, and tourism is a significant industry. As a result, retirement is another factor driving United States migration patterns with Vermont as a choice retirement destination.

Oregon

Oregon benefits from United States migration patterns impacting employment and jobs. The state’s economy is one of the fastest-growing in the nation. This is due in part to significant job growth in the manufacturing sector including:

  • Computer and electronic products
  • Machinery
  • Primary metal

Oregon’s landscape includes mountains, lakes, rivers, forests, and waterfalls. The natural areas encourage an outdoor lifestyle, and several state parks are ideally situated for camping, hiking, biking, and boating.

Idaho

Idaho has seen growth from United States migration patterns relating to retirement. More than half of movers into the state were in the age range between 55 an 74 years old. New residents to Idaho gain access to several lifestyle features they could not have in more populated areas, including:

  • Outstanding National Parks
  • Mild climate with four seasons
  • Neighborhood walkability
  • Low cost of living
  • Educational and cultural centers

Idaho has a relatively low estimated population of 1,790,000 residents. Comparing Idaho to other states, population density is 19.8 people per square mile versus the national average of 434.9 people per square mile. New York by comparison has 419.0 people per square mile. Idaho is known for wide open spaces.

Nevada

Nevada benefits from United States migration patterns impacting employment and jobs. Most migration to the state is for people to take a new job. The state’s growth industries include:

  • Tourism including Gaming
  • Clean Energy Initiatives including Solar, Wind, and Geothermal
  • Mining including Gold, Silver, and Lithium
  • Aerospace and Defense including several Air Force Bases
  • Information Technology powered by a strong Digital Infrastructure

With no income tax, low property taxes, and a warm climate, retirees find Nevada a welcoming place. Around half of movers into the state were in the age range between 55 an 74 years old.

Arizona

Arizona benefits from United States migration patterns relating to retirement. Most of the moves to Arizona were for retirement, followed closely by moves for a new job or as a transferee. There are several reasons people choose Arizona for retirement, including:

  • Generally pleasant climate
  • Exceptional natural attractions such as the Grand Canyon
  • Low cost of living
  • Greater number of retirees for social groups
  • Tax-friendly policies

Arizona is increasingly diversifying its economy, with growth in a number of industries including:

  • Bioscience Research and Development
  • Technology and Innovation
  • Manufacturing including High Tech
  • Aerospace and Defense including top ranking University Programs
  • Business and Financial Services including Data Centers

According to a new economic report by State Policy Reports, Arizona ranks #3 in the nation for economic momentum. The momentum is based on Arizona’s growth in categories such as population, employment, and personal income.

What Do United States Migration Patterns Mean for Employers?

Employers in the states of Vermont, Oregon, Idaho, Nevada, and Arizona benefit from United States migration patterns that draw a variety of new residents. Growing industries with burgeoning job opportunities tend to generate additional jobs. As a result, communities grow in population and related services are needed such as housing, retail, insurance, and child care. Demand for employees may be strong in these states and many other locations, especially during tight labor markets.

What Should Employers do About United States Migration Patterns?

Employers in locations that benefit from United States migration patterns should review their company’s growth plans and requirements for jobs across all levels of skill sets. A company’s growth plans will impact the number and type of jobs required to meet business plans and goals.

Since the nation is experiencing low unemployment, employers should review their talent acquisition and management programs to ensure they remain competitive to attract and retain new hires and transferees. Relocation Management Companies (RMCs) can provide expert assistance to employers to benchmark their relocation policies and add enhancements that attract talent.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees. Our team can help your company determine how to leverage United States migration patterns for talent acquisition and management.

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s relocation program needs. Since United States migration patterns may lead to a growing local population and potential future workforce, be sure your company’s relocation program supports talent acquisition. Give our experts a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Domestic Relocation Domestic Relocation Tips

Massachusetts May Retain Deduction for Moving Expenses

The state of Massachusetts may retain deduction for moving expenses that the 2017 Tax Cut and Jobs Act (TCJA) eliminated at the Federal level. According to the Massachusetts Revised Working Draft TIR 19-XX: Impact of Selected Provisions of the Federal Tax Cuts and Jobs Act on Massachusetts Personal Income Tax under Chapter 62 published on April 1, 2019:

Section B., “Amendments to which Massachusetts does not conform for the purposes of G.C. c. 62,” notes in sub-section III that the exclusion from gross income afforded under IRC § 132(a)(6) and (g) and the deduction allowed under IRC § 217 are still allowable for eligible Massachusetts taxpayers.

What does the 2017 Tax Cut and Jobs Act Require?

Beginning in 2018, the TCJA requires the following changes:

  • Eliminates the deduction for moving expenses
  • Unreimbursed moving expenses are also not deductible
  • Employer reimbursed moving expenses are:
    • Not deductible (this is the basis for Massachusetts choosing to retain deduction)
    • Included in income
    • Taxable to the taxpayer

What is the Impact of Massachusetts Choosing to Retain Deduction for Moving Expenses?

Massachusetts taxpayers may benefit from the state choosing to retain deduction for moving expenses. These taxpayers may also benefit from the state choosing to exclude moving expenses from gross income calculations. Governor Charlie Baker signed the state of Massachusetts’ Fiscal Year 2019 budget into law in July 2018. The plan supports his administration’s full commitment to balancing the state budget from a structural standpoint. Since Massachusetts currently has a healthy budget status, the ability to retain deduction for moving expenses should not materially impact state finances.

What Should Employers do Since Massachusetts is Choosing to Retain Deduction?

Employers in the state of Massachusetts should keep aware of changes to local tax laws. They should highlight the state’s interest to retain deduction for moving expenses to new hires and transferees. This is a favorable benefit for those choosing to relocate to Massachusetts.

Massachusetts has a need for workers. Recently Massachusetts had the largest construction worker shortage in the United States. Employers should work with a qualified Relocation Management Company (RMC) that has the experience and knowledge to help them understand how to leverage tax law changes for their relocation program.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients understand how local tax laws may impact their relocation programs. Our team can help your company determine how to highlight the benefit of Massachusetts choosing to retain deduction for moving expenses to new hires and transferees.

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 relocation program and ways to highlight Massachusetts choosing to retain deduction for moving expenses, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Home Purchase

What is a Concierge Utility Service?

Employers can help their relocating employees by providing direct access to a concierge utility service. Relocating employees often spend a significant amount of time and effort to set up new utility accounts or transfer services. This is time the employee could use for much more worthwhile pursuits. Providing access to a concierge utility service gives employees a valuable time saving tool. Also, they may be able to save costs through various utility bundle pricing options, or through provider package comparisons.

How Does a Concierge Utility Service Work?

A concierge utility service constantly monitors the utility market, service providers, and product offerings. For each home, the service performs research to identify various options the relocating employee is eligible to choose.

When a relocating employee enters their new address, the portal quickly shows comprehensive results. With information at their fingertips, relocating employees can quickly and easily choose the packages and options they prefer.

Once options are chosen, the service provider will:

  • Connect the services for the relocating employee
  • Compile information on the start dates
  • Summarize details for each utility connection

Relocating Employee Time Savings

A concierge utility service lets relocating employees schedule and set up their utility services in less than five minutes, without ever waiting on hold. Since the service does all of the setup work, the relocating employee can save from four to six hours of time.

Relocating Employee Cost Savings

The technology pulls prices and plans directly from utility providers, guaranteeing accurate data. As a result, relocating employees can obtain cost savings of up to 25% on their utility connection spend.

Concierge Utility Service Experts Readily Available for Consultation

A relocating employee has quick and easy access to concierge utility service experts. Whatever communication method is most convenient for the relocating employee, the experts will respond, including:

  • Phone call
  • Online chat
  • Text message
  • Email

Client Experience and Savings

Global Mobility Solutions (GMS) introduced its concierge utility service to a select group of clients in March 2018 as part of a pilot test run. During the pilot test run time period, several clients participating in the program achieved outstanding results. On average, clients achieved savings of up to nearly $250 for each relocating employee. Also, 100% of these savings accrue directly to the client, since GMS offers the service at no cost.

All Clients Now Eligible for Concierge Utility Service

As a result of the favorable pilot test run, GMS will roll out its new service to all clients. This way, every client and all of their relocating employees can utilize this exceptional program and enjoy significant time and cost saving benefits.

What Should Employers do?

Companies should inquire as to whether their relocation program provides a concierge utility service at no cost. A qualified Relocation Management Company (RMC) with knowledge and experience should offer valuable services that provide time and cost savings for companies and their relocating employees.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients learn about industry-leading programs and services. Our team can help your company understand how to gain all the benefits of a concierge utility service for your company and your relocating employees.

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

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s interest in a concierge utility service, 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

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.

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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.

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