Tag: relocation policies

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Centralization Advantages: What You Should Know

Companies benchmarking their relocation policies often learn about many centralization advantages that can be obtained by moving away from a decentralized business model for their relocation program. Often a company’s decentralized relocation program develops over time through business mergers and acquisitions. Challenges come to light when a transferee from one location moves to a new location that has different relocation policies.

What are the Challenges of Decentralization?

There are many challenges for companies that follow a decentralized business model for their relocation program. Reporting systems are often inconsistent. Therefore, it is difficult to obtain accurate information on the full scope of the relocation program. Costs are often excessive due to a high number of policy exceptions, use of multiple vendors for the same processes, and in-house costs related to maintaining multiple relocation programs. Since business units, HR teams, and other departments operate independently, lack of ownership hampers progress.

Impact on Employees

These challenges impact the satisfaction of new hires and transferees who are subject to decentralized relocation programs. There may be confusion for employees with currencies, visas and documentation, and reporting requirements. Ultimately, these challenges may reflect back on the company’s reputation among job seekers and other employees approached for relocation opportunities.

What are the Centralization Advantages for Relocation Programs?

Companies that develop a centralized business model for their relocation program gain in many ways. These centralization advantages cover all aspects of relocation, and include:

  • Consistency in operating platforms with robust integration options
  • Cost containment to reduce variation and increase forecasting and predictability
  • Customized billing processes that meet the company’s needs
  • Defined ownership across local, regional, and global entities
  • Global access to courtesy mobility consulting 24/7/365
  • Greater discounts across a streamlined network of vendors along with dual bid savings
  • Reporting capabilities across multiple platforms, anytime, anywhere

What Should Companies do to Obtain Centralization Advantages?

Companies should work with a qualified Relocation Management Company (RMC) that has extensive experience in helping companies obtain centralization advantages for relocation programs. GMS has published a Case Study on Decentralization that describes how a client was able to obtain centralization advantages that led to significant cost savings and greater employee satisfaction.

Companies should ask their RMC a wide range of critical questions to address all of their main concerns. The RMC will help them understand how to obtain centralization advantages for their relocation program. Also, the RMC will help them design their relocation program. As a result, this will help gain the most benefits for the company, new hires, and transferees.

Industry Benchmarking Studies Highlight Centralization Advantages

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

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

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients benchmark their relocation program and obtain significant savings and process improvements through centralization advantages. Our team can help your company understand how to obtain centralization advantages for its relocation program. As a result, your company will be positioned to make a number of improvements to its relocation program as it works to obtain centralization advantages.

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 more about the centralization advantages your company can obtain for its relocation program. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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Relocation Management Relocation Policy Review Relocation Programs

What are the Top 5 Benefits of Managed Cap Relocation Programs?

Managed cap relocation programs provide several benefits for companies and transferees. These programs provide services and allowances up to a specific capped dollar amount. This amount is set by the employer and noted in the company’s relocation policy.

Companies seeking to develop a relocation program often inquire about traditional lump sum programs. However, once they learn about the top 5 benefits of managed cap programs, most companies prefer them over lump sum programs.

What is a Traditional Lump Sum Relocation Program?

A traditional lump sum relocation program is simple in its approach. Basically, an employer provides a relocating employee a specific amount of funds. The relocating employee works with a Relocation Management Company (RMC) to choose services within the parameters of their employer’s relocation policy. As a result, the employer has little involvement in the relocation beyond arranging the funds.

In a traditional lump sum relocation program, a relocating employee must:

  1. Review and choose van lines to move their household goods
  2. Pack their goods, or arrange for packing services
  3. Arrange travel to their new destination
  4. Find and arrange for new housing options
  5. Set up destination services including utilities and internet

What are the Disadvantages of a Traditional Lump Sum Relocation Program?

There are some disadvantages of a traditional lump sum relocation program. First and foremost is the relocating employee’s lack of expertise in making all of the arrangements to facilitate their move. Many people remember times they have moved to a new location, experiencing various challenges along the way. If these experiences are not all favorable, the memory of that experience may alter their perception of their new location, employer, or assignment. Also, any issues that arise may result in delays for the relocating employee to start their new position. If the lump sum amount is paid as a bonus on an employee’s paycheck, the amount will be taxed as income. As a result, this greatly reduces the amount of the relocation benefit to the employee.

Top 5 Benefits of Managed Cap Relocation Programs

Managed cap relocation programs offer several direct benefits for companies and relocating employees. The top 5 benefits of managed cap relocation programs are:

  1. Assists employers with talent acquisition
  2. Enables a strong focus on cost containment and savings
  3. Program administration requires minimal management resources
  4. Quick and easy implementation
  5. Requires limited quality assurance management

What Does This Mean?

Managed cap relocation programs include support services from the RMC. Relocating employees receive policy counseling from experts to help them allocate their relocation funds. The RMC answers employee questions and acts as a guide through their relocation process. Relocating employees in managed cap relocation programs experience fewer budget overages. Also, these employees consistently report higher satisfaction levels than those employees who use traditional lump sum relocation programs.

What Should Employers do Regarding Managed Cap Relocation Programs?

Companies currently looking to implement a lump sum relocation programs should consider implementing managed cap relocation programs. Companies will gain 5 distinct benefits by choosing this type of relocation program instead of a lump sum relocation program. Also, they will experience higher relocating employee satisfaction levels.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients determine the relocation program that is the best fit for their organization and employees. As a result, our team can help your company understand how to gain the 5 benefits of managed cap relocation programs.

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 managed cap relocation programs, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Choosing a Relocation Company Corporate Relocation Corporate relocation tips Relocation Best Practices Relocation Management Relocation Policy Review Talent Mobility

The Future of Corporate Headquarters

Many companies face challenges when considering where to locate their corporate headquarters. Major global companies such as Amazon, Apple, General Electric, and Google have recently announced expansion or relocation efforts that will take them to their next-generation workforce.

Recent expansion and relocation efforts for corporate headquarters have focused on major metropolitan areas.

Corporate Headquarters of Major Companies

Amazon

Amazon plans to create a second corporate headquarters location in Arlington County, Virginia’s Crystal City neighborhood. The location is across from Washington, D.C. The company said it will receive $573 million combined from Virginia and Arlington in performance-based direct incentives. These incentives include Amazon creating several thousand jobs at the new location. Notably, although Amazon had originally also chosen a second location in Long Island City, Queens, New York for another headquarters, mounting opposition led the company to pull out of its plans. This speaks to the importance of building local support among all stakeholders for any new corporate headquarters development.

Apple

Apple is planning to expand its presence in Austin, Texas with a $1 Billion new corporate headquarters campus. Apple’s future plans will eventually make it the largest employer in Austin. The new campus will accommodate 5,000 employees to start, and feature capacity for up to 15,000 employees.

General Electric

General Electric relocated its corporate headquarters to Boston, Massachusetts in 2016 and instantly became the state’s largest public company. Company officials noted that the Boston metropolitan area’s concentration of top universities and startup technology firms was the main attraction for their relocation. The move is seen as a way for the industrial conglomerate to rebrand itself as a forward-looking technology company. Although GE continues to face challenging markets and a changing economic future, the fundamental reason for the company’s move is shown in their intent to remain in Boston.

Google

Google plans to spend $1 Billion to expand the company’s New York City Hudson Square facility. The campus will be the main corporate location for its New York-based global business organization. The company will double its New York City workforce.

Corporate Headquarters Require Workforce with Significant Skills and Education

Companies looking to expand or relocate their corporate headquarters require employees with skills and education. Typical functions at these locations may focus on executive and managerial roles, product engineering and development, talent acquisition and talent management, sales and marketing, corporate communications, legal concerns, and finance. Many of the positions within these functions require degrees from institutions of higher education. Employees must be proficient with technology across multiple platforms. They must also display a broad range of soft skills including verbal and written communication, coaching, and leadership. Any company looking at a new location should work to keep current employees with desired skills and education during the relocation.

What Should Employers Seeking to Expand or Relocate Their Corporate Headquarters do?

Companies that are looking to expand or relocate their corporate headquarters should work with a Relocation Management Company (RMC) that has expert knowledge and extensive experience in corporate relocation services. Corporate relocation programs provide companies and employees all of the resources and tools they need to ensure a smooth and successful relocation process.

Choose an RMC that provides ongoing employee support services, supplier management, relocation benefits, and expense management. Employers should provide many resources for their relocating employees and their families. As a result, they will feel confident in accepting their new assignments and enthusiastic about the company’s corporate headquarters relocation.

Conclusion

GMS’ team of corporate relocation experts has the knowledge and expertise to help your company manage its corporate headquarters relocation budget. We will also offer your employees the best relocation experience during a corporate headquarters expansion or relocation. This will increase your company’s ability to retain current employees as well as attract new hires at your new location.

Contact our team of experts to discuss how we can help your company’s corporate headquarters relocation budget stay within company guidelines, or call us directly at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Relocation Policy Review Relocation Programs Relocation Technology

Top 5 Reasons Why You Should Benchmark Your Relocation Policy

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Industry best practice shows employers should benchmark their relocation policy every 12 to 18 months to ensure your company remains competitive with your industry peers. A thorough benchmark will also help you learn about how the relocation industry is changing to reflect higher employee expectations for relocations.

As an employer, are you confident that every internal stakeholder in your company understands the importance of your relocation policy? Do you think they understand how it relates to their functional discipline? Most employers understand their relocation policy impacts several departments. As the competitive landscape changes in their industry as well as in the relocation industry, the importance of why employers should benchmark their relocation policy becomes increasingly clear.

Top 5 Reasons You Should Benchmark Your Relocation Policy:

1. You Should Benchmark to Identify Enhancements and Cost Savings

Reviewing industry best practices can show areas where your company can save costs or enhance your relocation policy to reduce costly exceptions. Learning about new and changing regulations can help your company avoid costs that may arise from immigration, legal, or tax issues. A thorough benchmark will identify technological enhancements that may be useful for communications, processes, or cost savings.

2. Align Corporate Mobility Objectives on a Global Basis

Many companies have operations spread around the world. This may lead to significant differences in relocation policies and implementations. Employers should benchmark their relocation policy to identify such differences. They should also work to align all areas to a consistent policy that fully supports corporate objectives regardless of location.

3. Understand Your Industry’s Competitive Relocation Landscape

Most of your industry peers also have relocation policies they use to attract and retain new hires and transferees. Employers should benchmark their relocation policy to identify how their industry competitors are designing their relocation policies. With this information, employers can then design a relocation policy that ensures they remain competitive and will be able to attract highly skilled talent.

4. Learn About Relocation Innovations

Technology is useful for informing and engaging employees throughout their relocation process. It also increases the speed of communications and provides valuable information and assistance. Technology can help transferees receive reimbursements in a timely manner. Employers should benchmark their relocation policy to help them learn about new ideas and innovative solutions to employee relocation issues.

5. Increase Internal Stakeholder Knowledge on Why You Should Benchmark

At most companies, several departments interact with the relocation process. Internal stakeholders from finance, procurement, and legal can learn how transferees interact with each department, what their needs are, and what the best practices are related to their discipline. Employers should benchmark their relocation policy and include internal stakeholders in the process. This will ensure their understanding of relocation policy guidelines. Also, it will help provide transferees with a smooth and easy relocation process as they interact with diverse internal stakeholders.

What Should Employers Do?

Employers should benchmark their relocation policy with a knowledgeable Relocation Management Company (RMC). The policy benchmark should include a full assessment of the company’s current policy as well as corporate objectives. This allows the RMC to benchmark the relocation policy to industry best practices. As a result, the RMC will be able to present a full complement of recommendations to ensure the employer can implement relocation policy best practices. This will also help them maintain a competitive edge in their industry.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand why they should benchmark their relocation policy. We can help your company understand how to create a relocation policy that reflects industry best practices. As a result, this will ensure the policy attracts highly skilled new hires and transferees.

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

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Choosing a Relocation Company Relocation Best Practices Relocation Management Relocation Policy Review Relocation Programs

Does Your Relocation Management Company Have a Business Continuity Plan?

Does Your Relocation Management Company Have a Business Continuity Plan?

Your company may have a Business Continuity Plan (BCP) in place. This will ensure your organization can continue operating during an unplanned event. Many companies go to great lengths to ensure essential business functions continue regardless of what kind of disruption may occur.

Do you know if your Relocation Management Company (RMC) has a similar document to ensure they can provide essential services? RMCs should have a BCP so they can assure their clients that relocation services will continue during any possible situation that could cause disruptions.

What Situations Might Cause a Disruption for Your RMC?

It is impossible to list every possible disruption that your RMC may encounter. However, a few specific situations illustrate the importance of ensuring your RMC can continue operations according to their Business Continuity Plan.

Weather

Relocations often are subject to adverse weather conditions. Household goods shipments as well as travel plans may face delays due to severe storms such as hurricanes, blizzards, and ice storms. Severe weather can cause destruction of transportation networks and storage facilities. In 2017, the United States endured 16 destructive weather and climate events that each caused over a billion dollars of damage, including floods, hurricanes, and tornadoes.

Human Error

Any business is subject to human error. However well-intentioned, simple mistakes could cause significant issues for transferees, new hires, and your company. Your RMC should have sufficiently secure processes and systems in their Business Continuity Plan to prevent human error from causing huge and costly issues for your business.

Cyber-Attack

A cyber-attack is when one or more computers launch an attack against another computer, several computers, or an entire computer network. The goal may be to disrupt service. Alternatively, the goal may be to gain information. Your RMC will likely have access to some of your company and transferee’s data. As a result, their BCP should include plans regarding the impact of cyber-attacks.

What Should Your RMC Include in Their Business Continuity Plan?

Every BCP should include basic information that tells the RMC what the plan includes, and how to implement the plan. Major points to look for:

  1. Contact information for the organization and employees who will implement the BCP
  2. Revision and change management for the BCP
  3. Business Continuity Plan purpose and scope of the plan
  4. Specific instances that indicate when users should activate the BCP
  5. Emergency organizations including contacts and responsibilities
  6. Information on insurance and other policies
  7. Procedures with detail so users have guidelines for how they should proceed
  8. Clear diagrams to show how the business will proceed
  9. Helpful checklists to remind Business Continuity Plan users what they should do
  10. Plan for reviewing, testing, and revising the BCP on a regular basis

What Should Your Company Do?

Your company should contact your RMC and ask for their Business Continuity Plan. Be sure the plan covers all of the major points noted herein. The plan should have details regarding continuity in the face of unplanned events regarding weather, human error, cyber-attacks, and other issues including supplier work stoppages, security concerns, and natural disasters.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients understand the importance of ensuring their RMC has a detailed Business Continuity Plan. We can help your company understand what should be included in a BCP. With this knowledge, you and your transferees can have confidence that relocation services will not face disruption.

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 or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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

European Union Member States Must Recognize Residency Rights of Same Sex Spouses

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A new rule from the European Court of Justice, located in Luxembourg, requires European Union (EU) countries to recognize the residency rights of same sex spouses. The rule applies even if the countries do not authorize marriage between persons of the same sex. These countries may not obstruct the freedom of residence of any EU citizen. They cannot refuse to grant their same sex spouse, who is a national of a country that is not an EU Member State, a derived right of residence in their country.

Why is this rule needed?

Prior to the new rule, several EU member states did not offer legal protection for same sex spouses. These countries include Bulgaria, Latvia, Lithuania, Poland, Romania, and Slovakia. They also did not offer residency rights for same sex spouses of EU citizens.

Who does this rule affect?

This new rule affects same sex married couples who reside in the countries of Bulgaria, Latvia, Lithuania, Poland, Romania, and Slovakia.

What should employers expect?

Employers should expect that all non-EU citizens who become residents by marriage to an EU citizen will now have full residency rights applicable to all EU citizens. This includes employment rights and health benefits for which they were previously not eligible. As a result, some employees may want to add their same sex spouses to their health benefit coverage, if applicable.

What should employers do?

Companies that have current EU citizen employees should take notice. Most especially if these employees reside in the countries of Bulgaria, Latvia, Lithuania, Poland, Romania, and Slovakia. Companies should review their employee’s eligibility under the new rule for benefits coverage. They should also review the eligibility for all other related services for their employee’s same sex spouses. EU citizen employees and their family members within these countries should also take notice. They should understand the impact of the EU’s new rule affording residency rights for same sex spouses.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their country-specific employment, visa, and residency rights requirements. We can help your company understand how to respond effectively to the EU’s new rule. We can explain the impact of residency rights for same sex spouses in these specific countries. Learn how to navigate the changing residency landscape in the EU from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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Buy a Home Corporate relocation tips Domestic Relocation Tips Domestic Relocation Trends Global Relocation Tips Global Relocation Trends Home Purchase Relocation Policy Review Relocation Programs

Why Companies Should Encourage Transferees to Buy Instead of Rent

Happy couple in front of their new home
Shot of a happy young couple holding the keys to their new home

Why should your company encourage transferees to buy instead of rent? Our team of global relocation experts review thousands of relocation policies on a regular basis. We work with our clients to incorporate best practices, so they can gain a competitive edge with their relocation policies and attract the highest caliber of talent.

Consistently, many relocation policies have not offered home purchase benefits to current renters. Instead, current renters received benefits that directed them to remain as renters. Recent consultation with several clients provides new insight into this practice.

Many clients are now offering home purchase benefits to current renters, to encourage transferees to buy instead of rent. This trend is increasing, as clients are learning that home purchase benefits for current renters return several benefits back to the client in terms of employee retention. As we examine this trend, a new best practice is appearing in relocation policies.

There are 7 distinct benefits for clients when they encourage transferees to buy instead of rent:

1. Transferees establish strong roots in a neighborhood and community.

Think of the time you may have taken a job and moved to a new location. You may have spent time finding a new home and exploring neighborhoods. Your family members may have expressed what was important for their needs as well. Factors may include nearby schools, or amenities like parks and shopping centers.

Each facet of a community becomes a part of a transferee’s life. As a result, those who put down strong roots by establishing home ownership are more likely to remain committed to their neighborhood, their city, and their employer.

2. Transferees can personalize a home so they can settle in comfortably, so encourage transferees to buy.

Transferees who buy can easily personalize a home to meet their distinct preferences. Everything from painting their front door to match a favorite color to decorating interior spaces to their liking can lead to greater transferee satisfaction with their living arrangements. Satisfaction with their home is more likely to lead transferees to feel satisfied with their relocation as well.

Renters, on the other hand, often are limited to moving into an apartment, and cannot easily customize the space. Even if they do some customization such as interior painting, they often must return the apartment to its original condition if they were to vacate. Renters face a strong disincentive when it comes to personalizing their living space. Living in a space they cannot personalize often makes renters feel as if they are nomads. The end of their lease is already defined, which seems to put a mark on their time in a specific location. This may lead transferees to believe they can easily move to another apartment, or another position.

Corporate talent acquisition should work in tandem with employee retention so relocation policies offer home purchase benefits. This will help encourage transferees to feel as if their relocation is permanent, and not a temporary state.

3. Monthly mortgage costs are consistent year to year, while rents can increase dramatically.

One of the benefits to buying a home versus renting is the stability of mortgage payments. Monthly costs for a mortgage tend to be consistent year to year, defined by the terms of the mortgage upfront. As a result, this allows buyers to know their monthly housing costs and provides for better budgeting and financial planning.

Renters could face a rent increase as soon as their lease expires. There are many reasons why landlords would increase rent, including higher property taxes, inflation, or higher building maintenance costs. They might just want to make more money, and if demand for rentals in the area is high, then rent increases are easy to implement because those who move are easily replaced with other renters. Increases in rent could be exceptionally high. Therefore, renters need to make a decision on a regular basis if they want to absorb the cost of the rent increase, or take on the additional expense of searching for a new rental, and paying to move their belongings.

Overall, transferees who rent often are subject to somewhat volatile conditions that can impair their job performance. If they must worry about their housing options in the face of rent increases on a regular basis, transferees certainly cannot easily focus on corporate objectives.

4. Home mortgages are similar to saving plans and investments, and owners can more easily move up to a larger home at a later date.

There are numerous benefits to home ownership, and transferees can gain greater satisfaction with their relocation with home purchase benefits. Home ownership lets transferees build financial equity, and a home is an investment that will increase over time. Homeowners have tax benefits they can claim as well. Mortgage interest, property taxes, and other items may provide tax deductions on an annual basis. As a home gains value over time, and as the homeowner builds greater equity each year as their mortgage balance declines, homeowners have a built-in savings and investment vehicle in real estate they can use in the future.

Employers benefit if they encourage transferees to buy instead of rent by reinforcing the high value homeownership returns to the transferee, cementing their interest in staying in a location.

5. In many markets, rentals are extremely competitive to secure and the costs exceed homeownership. Security deposits can often exceed a home purchase down payment.

Brooklyn

Several markets have seen the cost of rentals rise far beyond the cost of homeownership. A recent example can be found in Brooklyn, New York. A three bedroom, one bathroom apartment at 378 Grand Avenue is listed on Zillow at $3,900 per month (not including renter’s insurance costs).

A house located at 575 Jerome Street with five bedrooms and two bathrooms is listed for $599,000. Using a mortgage calculator, over a 30 year time period at a rate of 3.92%, with a mortgage balance of $575,000, taxes of $6,000, insurance of $1,500, and Private Mortgage Insurance (PMI) of 0.5%, the monthly mortgage costs for the house are $3,583.27.

In Brooklyn, a renter at 378 Grand Avenue can get a receipt for the rent they pay each month. Also, they may face a rent increase at the end of their lease. A homeowner can get more space, tax benefits, and an equity-building investment vehicle with a home on Jerome Street. It is easy to see how offering home purchase benefits can help transferees feel more satisfaction with their relocation.

Denver

Another recent example can be found in Denver, Colorado. A three bedroom, three bathroom apartment at 2590 Welton Street is listed on Zillow at $3,855 per month (not including renter’s insurance costs). A house located at 90 N. Lincoln Street with three bedrooms and two bathrooms lists for $610,000. Using similar parameters as the other example, with a mortgage balance of $585,559, taxes of $6,000, insurance costs of $1,500, and PMI of 0.5%, the monthly mortgage costs for the house are $3,637.59

6. If a transferee does not commit to their new community, they often view their opportunity as a job and not as a career.

Companies go to great lengths to acquire highly skilled talent. Often companies design relocation packages to highlight the benefits of an employment opportunity, to encourage prospects to accept job offers. In reality, it is in the company’s best interest to have the transferee think of the opportunity as a career offer. Finding and acquiring talent can be challenging.

Companies should have a career plan for the new hire, so they view the opportunity as a career, not as a job. This perception helps transferees commit to staying with their employer. Home purchase benefits let transferees commit to staying in their new community. Transferees that commit to their community are more likely to commit to their career.

7. A transferee who buys is more committed than a transferee who rents. Also, if a client offers home purchase benefits, then the employee knows the company is more committed to the employee.

A company can reinforce employee retention by showing employees they commit to them and their future. Employers should encourage transferees to buy instead of rent. This sends the message that the company wants the transferee to stay. If a company gives the impression to a transferee that they are temporary by only providing rental assistance, the transferee will get that message and feel as if they are a temporary employee.

Employers that give the impression to the transferee that they want them to join their company and their community by putting down roots and buying a home, will have transferees who believe they are part of the company’s future. In talent acquisition and employee retention, the message from the company should always be one of acceptance, inclusion, and permanence. Acquiring highly skilled talent is a difficult challenge. Companies that are successful in this endeavor should make employee retention efforts even more successful by offering home purchase benefits to transferees.

Rent Versus Buy Calculator Will Help Encourage Transferees 

Global Mobility Solutions has a wide range of online tools and resources for clients and transferees. GMS’ Rent Versus Buy Calculator is an easy to use, step-by-step program. This program compares the cost of renting versus the cost of buying a home. Employers that encourage transferees to buy instead of rent can use this online tool to encourage homeownership. This in turn helps the transferee make the decision to buy in their new community. This decision will help the transferee feel like a part of the company. As a result, they will be more willing to stay with the company on a long term basis.

What Should Employers do to Encourage Transferees to Buy Instead of Rent?

Employers should work with an RMC that has the qualifications, knowledge, and experience to ensure their relocation policies provide home purchase benefits to transferees who are current renters. As a result, this will promote stronger employee retention as transferees put down roots in communities and gain greater satisfaction with their relocation.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients design relocation policies that reflect best practices to promote employee retention. We can help your company understand how to leverage home purchase benefits for current renters to encourage transferees to buy and help ensure successful relocations.

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 or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Choosing a Relocation Company Corporate Relocation Domestic Relocation Global Relocation Relocation Policy Review Relocation Programs

Advantages of an Expedited Bidding Process

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More companies are using an expedited bidding process when it comes to outsourcing their relocation program to a Relocation Management Company (RMC). This fundamental shift in a company’s approach to outsourcing relocation has many benefits, including significant cost and time savings. As the pace of business continues to increase, expedited bidding has proven to be a boon for companies that are looking to enhance the management of their relocation program.

Global Mobility Solutions’ team of global relocation experts benchmarked 48 companies that have utilized this process to determine the reasons why this approach has risen in prominence in today’s relocation market. Our team has identified five distinct reasons for the increased utilization of expedited bidding.

Five Reasons Why Companies Prefer an Expedited Bidding Process:

1. Companies Buy Solutions, Not Parts

Purchasing relocation management is a much different process than sourcing parts or equipment. Companies understand that ensuring the right fit for the right reasons is the most important factor when sourcing employee-facing services.

2. Complimentary Mobility Consulting

Policy reviews, program design and recommendations, and policy development and revisions can easily be part of this process. This also allows companies to evaluate an RMC’s experience, knowledge of the relocation process, and the quality of their consulting work.

3. Faster Relocation Program Implementation With an Expedited Bidding Process

Over 90% of companies that utilize an expedited process are able to complete their implementation within 22 days. The speed of this approach allows companies to achieve immediate efficiencies in their programs.

4. Avoiding Formal Requests

Utilizing an expedited bidding process helps companies avoid the administrative burdens and resource-intensive approach typical of the more formal Requests for Information and Requests for Proposals.

5. Immediate Cost Savings

Competition inherent in this process often results in cost savings. Improved fee structures and reduced direct costs result in up-front savings for the client. Savings allow clients to increase their focus on strategic business initiatives while the RMC manages their relocation program.

What Should Employers do to Utilize an Expedited Bidding Process?

Employers should utilize an expedited bidding process as they consider outsourcing their relocation management. A Relocation Management Company with extensive knowledge of the global relocation market and the experience of moving hundreds of thousands of employees will provide the best resources for expedited bidding processes. An experienced RMC can also easily guide companies through the process and achieve highly successful results.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their relocation programs. We can help your company understand how to gain the most benefits from utilizing an expedited bidding process. Learn how to choose the best Relocation Management Company from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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What are the Critical Questions to ask a Relocation Management Company?

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Many companies approach their relocation program without a full understanding of what questions they should ask of a Relocation Management Company (RMC). Knowing which critical questions to ask is highly important for a company to get a full understanding of how the RMC will manage their relocation program. Missing critical questions can lead to a large gap in expectations and performance. It is in each party’s best interests to be sure the most important questions are asked, and answers returned for review and decision-making.

Global Mobility Solutions’ team of global relocation experts have identified 28 critical questions that they believe companies should ask an RMC. Answers to these questions will provide the company with the most critical knowledge they need in order to make confident and fully informed choices for their relocation program’s design and functionality.

The following five critical questions are representative samples of the types of questions that you should ask an RMC.

Five Representative Critical Questions:

1. What is your service delivery model?

Fully understanding the RMC’s service delivery model is of paramount importance to understanding how the RMC will manage your company’s relocation program. Purchasing relocation management is a much different process than sourcing parts or equipment. Ensuring the right fit for the right reasons is the most important factor when sourcing employee-facing services.

2. Describe your supplier network. Do you own or are obligated to provide business to your suppliers?

It is important to understand if the RMC owns their suppliers, or are in some way obligated to provide business to their suppliers. If this is the case, transferees may not have the ability to choose the provider they want for their relocation process. In some cases, fully qualified suppliers who would provide lower costs might not be able to provide services.

3. How do you ensure competitive pricing from your supplier base?

This is one of the critical questions that will provide great insight into how the RMC operates. In some cases, RMCs will provide for competitive pricing by opening up bidding to multiple suppliers. In other cases, an RMC will try to explain that they can provide competitive pricing by leveraging their own network and spreading costs over a large number of transferee relocations. Be sure you understand what these different responses actually mean. Either the RMC ensures competitive pricing by promoting competitive bidding, or they do not promote competitive bidding.

4. What metrics and service level agreements do you track and report on?

Service level agreements (SLAs) should be a standard part of an RMC’s quality program. Service quality promises might include on time delivery guarantee of household goods, or specific performance guarantees based on transferee ratings. SLAs might cover real estate services, household goods moving, destination services, and financial and reporting services.

5. How do you utilize technology in your approach to relocation management?

RMCs should have technology to complement their service models. Companies, their transferees, and their candidates should expect a seamless relocation experience. Look for RMCs that can provide a superior, proprietary, cross-platform, online relocation management suite. Systems should provide clients and their transferees an array of decision-making, tracking, and expense management tools, with anywhere, anytime access 365 days a year and 24 hours a day.

What should companies do with the answers they receive?

Companies should compare the answers they receive from each RMC to ensure they provide the desired result. Information should be complete, and the answers should be direct and clear without any cause for confusion. Good responses will help the company determine how the RMC will manage their relocation program. Companies should be sure to ask all 28 Critical Questions in order to get the best overall responses.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their relocation programs. We can help your company understand which critical questions to ask of an RMC. These questions will help ensure you address the most critical relocation program points. Learn how to choose the best Relocation Management Company from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Download the 28 Critical Questions to ask an RMC when submitting an RFP

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How to Position Your Request for Proposal so Suppliers Have Correct Information

Your task is to position your Request for Proposal for Relocation Services so suppliers have all of the correct information they need to provide you with full and useful responses. With all of the many aspects of relocation programs, where should you begin?

To get the best responses, position your Request for Proposal with the information the suppliers need to understand your company and its current processes. You want to be clear in each question you ask the supplier, so you need to provide them with information about who you are and what you are seeking in a relocation services provider. Answers will vary based on the information you provide.

At a minimum, you should provide these four main points of information in order to receive robust responses to your Request for Proposal:

Four Main Points

1. Company Overview, Scope of Program, and Facility Locations

Provide information about your company, including size, number of employees, facility locations, organizational structure, and any associated companies and divisions. The scope of your relocation program is critically important for suppliers to know. Is it going to be a global program that covers all facilities worldwide? Or is the program specific to one geographical region, or only one division of your company? Position your Request for Proposal to provide as much detail as possible about what kind of relocation program your company is seeking. Additionally, be sure to include information about what range of services your company is interested in using.

2. Relocation Volume, Percentage of Homeowners and Renters, Average Home Sale Values

Position your Request for Proposal to include the number of relocations. This information is important for suppliers to know, to ensure appropriate staffing levels and structure for your company’s account service. It is also important information for the supplier to know so they can present the best pricing possible. The percentage of relocating employees who are homeowners versus renters helps the supplier understand the range of services your company’s program should use. The supplier will also be able to provide suggestions on how best to design the relocation program’s features and benefits. For your relocating employees who are homeowners, you should provide the average home sale values over the last few calendar years. This will help the supplier plan for the resources necessary to give these homeowners the best range of services. As a result, they will be able to correctly budget for home sale programs.

3. Position Your Request for Proposal so it Clearly Defines Global Program Needs

Many companies think of relocation programs in basic terms of moving their employee and family members from one location to another. Depending on the locations involved, the employee and their family might need a wide range of services to ensure a successful relocation. Global relocation needs could include any or all of the following services:

  • Assistance with Visas, Work Permits, Immigration
  • Language Training
  • Cultural Training
  • Travel Assistance
  • Property Management
  • Short Term Housing
  • Home Finding Assistance
  • Settling in Services (Driver’s Licenses, Child Care, Utility Arrangements, Interim Health Insurance)
  • Vehicle Lease or Purchase
  • Spouse and Partner Employment Assistance
  • School Searches
  • Pet Arrangements and Relocation
  • Repatriation Services

4. High Level Policy Review, Lump Sums

Provide information about your company’s current relocation policy and program at a high level. Note any tiers within the current policy that are used to provide different levels of service. The number of lump sums is important to include. Many RMCs have structured programs that employees can utilize with their lump sum dollars.

For example, Global Mobility Solutions (GMS) assists relocating employees with maximizing their allocated lump sum relocation dollars through our vast network of partners. Employees can select the options that they need from our a la carte menu of services, providing those services are within the parameters of your company’s specific policy. The dedicated relocation coach provides advice and counsel along the way. Additionally, the coach will explain how to best utilize their lump sum relocation dollars.

GMS’ relocation experts might also recommend an alternative to your company’s lump sums in the form of a managed cap program. The GMS managed cap program gives the employee a specific amount of funds to spend along with the benefit of the support services offered by GMS. GMS provides expertise in policy counseling to the employee on the best allocation of their funds when choosing from an array of relocation services. In addition, they receive guidance on the taxation of particular components. The managed cap program has contributed to fewer budget overages and higher satisfaction levels than the lump-sum option. This results in a maximum benefit for both the company and the employee.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their requests for proposals. We can help your company understand how to position your request for proposal so that it has all of the information suppliers need for them to present the best solutions for your company’s relocation program. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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