Tag: relocation programs

Company Relocation Policy Checklist for 2024

Post author By Sam Hoey | CRP, GMS
Post date December 12, 2023

Use this checklist to perform a review of your company relocation policy — Aerial view of the Bay Bridge in San Francisco, CA

Things to keep in mind when reviewing Relocation policies

Offering relocation benefits to new or promoted employees is a great way to ensure that your company can hire the most qualified candidate for the position. As the new year is now upon us, HR managers should start to review their company’s relocation policies. Most relocation assistance companies recommend checking and renewing policies annually, usually in Q4. As the global mobility industry sees continuous change over time, reviewing policies at least once per year helps ensure that the relocation policies offered are still competitive within your industry, and ensure cost efficiencies are adapted to your current business environment.

Whether you are going out to bid for a new relocation company or just want to ensure that your relocation policies are above the standard, use this 2024 relocation policy checklist to ensure all of the joint pain points are met.

Our recommendations for global mobility planning cover both short-term and long-term initiatives. Here is the 2024 relocation checklist:

Short-Term Assignment Policy Review Points

Identify all instances relating to immediate and upcoming needs for your relocating employees, including visas, work permits, immigration status changes, and cross-border travel. Determine appropriate action plans for each case.
Document policy exceptions relating to the pandemic. Consider adjusting the company relocation policy or adding an addendum to account for the effects of the pandemic and other major relocation disruptions.
Review all assignments that were placed on hold during 2022 and 2023. Determine if they are still critical to corporate objectives for 2024. If yes, implement a talent acquisition plan.
Examine all data sources and information flows for integrity and accuracy. Form a relocation integration program project team to Identify instances that can be automated with effective relocation advanced programming interfaces (APIs).
Identify current short-term assignments that can be further extended in support of corporate objectives. This will reduce costs relating to repatriation and re-assignment.

Long-Term Assignment Policy Review Points

Determine areas in the relocation process where the company owes a higher duty of care than previously expected. Examples include programs and costs relating to transferees unable to return to their original locations due to pandemic-cause restrictions.
Correlate talent acquisition and management programs to ensure consistency in achieving objectives across the company.
Leverage virtual relocation solutions that enhance the transferee’s experience and provide added value to the company.
Focus on process simplification and cost reduction. Use the lessons from 2020’s expanded virtual relocation solutions to modify your company relocation policy to adopt new technologies and procedures.
Look to future corporate initiatives to determine appropriate company relocation policies, plans, and budgets. Ensure alignment with company objectives relating to growth, expansions, mergers, acquisitions, and divestitures.

Get in Touch with GMS for More Helpful 2022 Tips

At GMS, we understand that each company runs differently, meaning everyone will have different needs regarding relocation benefits. Our team has been helping companies construct some of the most competitive relocation packages for over 25 years. With 2024 now here, it’s time to ensure all your bases regarding relocation are covered. GMS recommends that clients thoroughly review their company relocation policy every 12 to 18 months. Following all the impacts of the COVID-19 pandemic on relocation, this review is critically important to ensure your company can respond effectively for regulatory, tax, and reporting purposes.

If you found this company relocation policy checklist useful, please refer to our Knowledge Base for more helpful blogs, case studies, and industry news. If you want to continue success with your employee relocation program and relocation packages, please feel free to reach out to Global Mobility Solutions for all your corporate relocation needs.

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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.

Tags checklist, company relocation policy, global mobility, long term, long term assignment policy, Relocating Employees, relocation package, relocation programs, short term, short term assignment policy

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Benefits of Pre-Decision Services

Post author By Kimberly Chacon
Post date May 2, 2023

Pregnant couple shopping online while packing their things.

What Are Pre-Decision Services? Learn more about the relocation process, starting with pre-decision services

Global Mobility Solutions (GMS) is the original pioneer of the benefits of pre-decision services. Our clients know that partnering with us at the start of the relocation process helps identify the markers of a successful relocation and greatly enhances transferee productivity. Our wide range of services allows clients to identify those employees who are the best fit for the assignment. Relocation technologies and systems let clients manage employee relocation programs with ease.

Among the many services GMS offers, candidate assessments have become critical for clients to assess expectations, skills, qualities, and financial and family issues impacting relocation success. Clients should examine candidate circumstances to identify prospects likely to succeed. For the candidate, pre-decision services provide valuable information they can use to determine, including helpful information about the cost of living, housing markets, school reports, and moving expenses.

Candidates indicate that community searches and tours benefit them in understanding the new location and helping them select areas best suited to their needs.

There are several benefits of pre-decision services for both the client and the candidate:

Benefits of Pre-Decision Services for the Client

Increase job acceptance ratios
Budget accuracy
Eliminate the risk of non-acceptance
Streamline orientation to the new location
Minimal policy exceptions
Identify candidate concerns and issues
Cost savings

Benefits of Pre-Decision Services for the Candidate

Personal support and attention from industry professionals
Thorough orientation tours for families
Expert counsel and assistance regarding all aspects and impacts of relocation
Support services for spouses and partners

Systems and Processes

Our relocation experts have created systems and processes to help clients manage their Global and North America relocation programs quickly and efficiently. We provide high-touch customer service, policy expertise, benchmarking, and flexible reporting options. Clients succeed most with a customized, right-fit relocation program designed to meet their unique requirements. Employees and their families expect a broad range of services to help them during their relocation process. Our pre-decision services help clients and employees throughout the relocation process and help ensure successful relocations.

Get Pre-Decision Services from GMs

The benefits of pre-decision services to clients and candidates serve to ensure successful relocations. The corporate relocation experts at GMS have the knowledge and expertise to help your company assess candidates for assignments and provide your employees with the best relocation experience. Contact our team of experts to discuss how we can implement pre-decision services in your company’s relocation process.

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Tags Domestic Relocation, global relocation, Global Relocation Tips, Pre-decision, Pre-Decision Programs, relocation programs

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What Are The Benefits of Outsourcing Global Relocation Programs?

Post author By Christina Urrutia
Post date April 12, 2023

young woman with friendly dog in their new house with moving boxes. — Woman and dog flooring in new home

learn why your company should work with a relocation management company for talent mobility

What are the benefits of outsourcing global relocation programs? For companies that have steady moving needs, there are many benefits to outsourcing this strategic function. Most learn they need to gain the knowledge and experience to manage talent mobility with in-house resources effectively. Outsourcing this critical activity provides them access to the industry’s best practices and thought leadership that will help their company’s international relocation program achieve success with virtually all relocation assignments.

There are five distinct benefits clients can gain from outsourcing their global relocation services with a trusted relocation management company (RMC):

Cost Management

For most clients, managing relocation costs is one of the most important reasons driving their choice to outsource relocation. 71% of companies working on relocation in-house need to be made aware of their total internal operating expenses. A lack of knowledge of the actual costs of relocation prevents the company from understanding how to utilize resources efficiently. They also cannot gain the most benefit from their global relocation program. A solution that provides full expense tracking and reporting is one of the top features clients seek as they consider outsourcing their global relocation program so that costs can be fully identified and reviewed for budgetary impact and program performance.

Savings With Outsourcing Global Relocation Programs

Outsourcing global relocation services should allow clients to obtain more significant cost savings. Some RMCs are not independent. As a result, they often do not seek multiple bids for household goods shipments and other services. An independent RMC provides clients with several opportunities to receive and review bids on services, and this helps keep costs lower than other RMCs that don’t seek competitive bids.

Compliance

Transferees and their families often have questions about tax issues, visa applications, and other reporting requirements related to their global relocation assignment. To avoid putting the client’s company at risk for providing incorrect or insufficient guidance and advice, outsourcing global mobility management can provide expert guidance on unique relocation needs to help transferees find the right solution and help clients avoid any risks related to transferee requests.

Program Enhancements Through Outsourcing Global Relocation Programs

In-house programs only sometimes provide enhancements such as pre-decision tools, candidate assessments, auto lease programs, home purchase programs, and other value-added services. Choosing to outsource relocation services provides access to these services. Transferees and their families highly value these relocation program enhancements. Additional valued services include community tours, language training, outplacement services, school reports, and moving cost estimates.

Focus on Their Core Competencies

Working with an RMC lets human resources, compensation, benefits, and recruiting professionals focus on their core competencies. As a result, they can provide the best service in these business areas. In turn, experts at an RMC give the client’s international relocation program the best service. Choosing an RMC with the knowledge and experience to manage their entire program provides peace of mind and assurance that costs will be managed effectively, relocations will be successful, and transferees and their families will be satisfied with their experiences.

Work with the Best Global Relocation Service Provider

Global Mobility Solutions (GMS) has been helping customers get their employees from point A to point B since 1987. Our wide range of services and expert relocation specialists give your company the opportunity to get the package they need. GMS will assist your company put together a global relocation plan that makes sense for your company and employees, all while staying within a realistic budget. If you are ready to discuss more about our offerings, please set up a free consultation with one of our business development managers, by filling out this form. We look forward to working with you!

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Tags corporate relocation, Domestic Relocation, global relocation, Global Relocation Tips, relocation companies, relocation management, relocation policies, relocation programs, relocation services, relocation technology, Workforce Mobility, workforce mobility management

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What Should be Included in New-Hire Relocation Packages?

Post author By Sam Hoey | CRP, GMS
Post date July 26, 2022

new hired employee being greeted by boss — Colleagues enjoying to meet and talk in the office

What does an employee relocation package typically include?

There are numerous approaches to take when putting together employee relocation packages, but in the end, every company is trying to do the same thing; that is, to find the perfect middle ground on relocation benefits that don’t blow the company’s budget while also being lucrative enough to attract the right candidate for the open position.

It’s not uncommon for a company to try to construct relocation policies on their own before realizing they are in over their head and need the assistance of a relocation management company (RMC). RMCs give insight and can provide statistics and studies that help companies form relocation packages that land in that happy middle ground mentioned before.

But even working with an RMC, it can be hard to know what should be included in talent mobility options offered to newly hired employees. So here’s a look at some of the common aspects that should be covered in relocation packages:

House-Hunting Trips

That’s why it is recommended that companies cover at least one or two house-hunting trips. These trips allow employees to scoop out their new destination and view some homes with a specialized relocation agent. Employees can also check out some schools for their kids.

Temporary Housing

Temporary housing, also known as corporate housing, is usually given from 14 to 90 days. This can help the employee transition to the moving process. There are a few different factors that require a new-hired employee to need corporate housing. The most common is if the relocating employee’s new home isn’t ready. Another common is if the employee could not purchase a place to live within the timeframe given.

RMCs can help companies set up corporate housing leases with apartment complexes or townhome owners so that it is affordable for the company and extremely helpful for the transferee.

Family and Spousal Support

It’s not always just the employee moving, and it can be their whole family. Language and spousal career support add some family assistance benefits to relocation packages. Language training is an obvious one for those who are relocating internationally with kids. Giving them the resources to learn a new language can help them in school.

And the transferee’s spouse may have to leave their job when the relocation occurs. This is why it can be beneficial for the family if the relocation policies include career services such as help with the job hunt and resume review assistance.

Real Estate Assistance

Employees’ main stress points about relocating are selling and buying a home. Real estate transactions can take weeks or months, making it a scary process when the move takes place in a short period. Any reputable RMC would recommend relocating employees with some home buying and selling programs.

Three of the most used real estate assistance programs RMCs refer to are Direct Reimbursement, Buyer Value Option (BVO), and Guaranteed Purchase Offer (GPO). Of course, each will have different advantages depending on the transferee’s needs. But giving the new-hired employee some help in either buying or selling their home can help assure they can get to their new destination promptly.

Shipping of Household Goods

When people think about the relocation process, it is the only part that comes to mind but moving a transferee’s household goods is a crucial stage so it should not be overlooked. Packing, moving, and storing the employee’s furniture and belongings should be done by a reliable moving professional who can provide a great price. Every transferee’s nightmare is that the movers will not show up on the right day or their stuff will get broken.

Any knowledgeable RMC will get multiple quotes from moving companies for the transferee. This way there are options to assure both the company and the employee are being taken care of for costs and customer service.

How Much Should Companies Spend on Relocation Packages?

That is the age-old question that is hard to answer. Too many variables must be reviewed before a realistic quote can be given on how relocation costs should be allocated. Some variables on this include number of relocations per year, distance on the moves, what relocation services the company is willing to cover, and visa and immigration services needed?

One of the best ways to keep relocation costs under control is to update relocation policies every 12 to 16 months at a minimum. Service prices change so much that if companies are not updating their relocation packages, they could be spending unnecessary money or in some cases, they might not be spending enough money, forcing qualified candidates to walk away from the job.

GMS Will Help Put Together the Best Relocation Package

Global Mobility Solutions (GMS) is the industry leader in employee relocation. Our expert team has been assisting companies put together comprehensive and competitive relocation packages for 30-plus years. We listen to your needs and then tailor relocation policies that best suit those needs at a cost-efficient price so that you can get your employees from point A to point B in a seamless transition. In addition, we will make sure that all the relocation services you need are included in all new hire’s offer letters.

GMS strives to be the best in customer service, so we will assign a relocation coach to each of your employees to help in the relocation process every step. If you’re ready to hear more about how GMS can help, contact us today to schedule a free consultation. And to get other questions you may have about talent mobility answered, check out our Knowledge Base.

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Tags Domestic Relocation, relocation, relocation package, relocation programs, relocation tips

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Performing a Security Assessment on Your Relocation Management Company

Post author By John Fernandez | CRP, GMS, SSB
Post date May 13, 2022

Cropped shot of a handsome young male programmer at work

There are a lot of moving parts when it comes to the relocation process. Many vendors and suppliers are involved in getting the transferee from point A to point B. With that being said, there is a great deal of information and personal info that has to be shared across all parties. But what are relocation management companies (RMC) doing to keep transferee’s info safe?

Most companies understand the importance of performing a security assessment on their data and operational systems. In many industries, specific standards require a security assessment on a regular basis to maintain compliance. Often these standards require the company perform a security assessment on any supplier that may receive company data. Specific control areas in a security assessment may include:

Information Security Management
Physical Security
Network Security Management
Platform Security
Remote and Mobile Access
Change Control
Identity and Access Management
Application Security

A security assessment will often include a request to receive a copy of the company’s Business Continuity Plan (BCP). A company’s BCP should cover several elements related to security issues surrounding a company’s data and operational systems. In the event of an unplanned disruption or other emergency situation, the BCP will indicate how the company’s operations will recover and proceed.

Different Types of Regulations and Requirements

Sarbanes-Oxley Act

The Sarbanes-Oxley Act came into effect in 2002. Sarbanes-Oxley is a United States federal law. This law set new or expanded requirements for all U.S. public company boards, management, and public accounting firms. As a result, the law requires that a company’s top management must individually certify the accuracy of financial information. Much of a company’s financial information is heavily dependent on technology and associated data security controls that must be part of a compliance review as noted in Section 404 of the Act. The law provides for harsher penalties for fraudulent financial activity. Also, Sarbanes-Oxley requires a stronger oversight role for boards of directors, and greater independence of outside financial statement auditors.

International Organization for Standardization

The International Organization for Standardization (ISO) creates and publishes International Standards that provide guidance and clear specifications to ensure a company’s products, materials, processes, and services are appropriate for their purposes. ISO publications include standards for Quality Management, Environmental Sustainability and Protection, and Management Performance.

General Data Protection Regulation

The European Union’s General Data Protection Regulation governs the processing of an EU resident’s personal data by an individual, a company, or an organization of personal data. This pertains to entities that do business within the region, or that provide services to individuals in the region. The rule provides people with more control over their personal data. For example, websites that collect data on visitors must let visitors know this. These websites must give visitors the option to opt out of such collection. Many additional laws have been passed in response to this new regulation, to provide local guidance on compliance. For example, in the United Kingdom, the Data Protection Act 2018 is a national law that complements the European Union’s General Data Protection Regulation.

TRUSTe Privacy Certification Standards

TRUSTe Privacy Certification Standards assist companies in establishing and maintaining strong privacy management practices. Compliance with TRUSTe demonstrates a company’s commitment to privacy protection in their online properties, customer and employee data management practices, and/or applicable regulatory frameworks.

For these and many other national, international, and industry regulations or requirements, a security assessment is necessary to ensure compliance. Companies that work with a Relocation Management Company (RMC) need to perform a security assessment of the RMC’s data and operational systems. Global Mobility Solutions’ team of global relocation experts believe the following 5 tips are essential to ensure an RMC’s compliance to a company’s security assessment.

5 Helpful Tips for Performing a Security Assessment on your RMC

1. Be Sure to Review the RMC’s Risk Rating and Access to Data During the Security Assessment

Your RMC should have a risk rating. The rating depends upon the likelihood of an event occurring. It also depends on the impact severity that might arise if the event does occur. You should determine whether the RMC has limited or full access to data. Important data fields to review for risk during a security assessment include:

Employee Name and Home Address
Employee Phone Numbers and Email Address
Family Member Contact Information
Social Security Numbers
Bank Name and Account Numbers
Logistic Information Related to Relocations
Travel Information Including Dates and Locations

2. Questionnaire Submission to RMC

Your company should have a document with several questions that will indicate the RMC’s compliance to important points in a security assessment. Provide sufficient time for the RMC to complete the questionnaire. The RMC will need to work with their Information Technology department to provide answers to many of these questions. Provide a contact from your company that can answer any questions the RMC may have related to the document’s specific points.

3. Share Results of the Initial Security Assessment

Once the initial security assessment is complete, share the results with your RMC. Offer to work with the RMC to remediate any areas that require attention to ensure compliance. Partnering with the RMC helps ensure the solution fully addresses your company’s requirements. Note the specific regulatory requirements that your company must meet to help the RMC understand how they might reach compliance.

4. Share Results of the Final Security Assessment

Be sure to indicate all control gaps. Note all categories that require submission of a formal remediation plan. Include specific dates and timelines critical for maintaining your company’s compliance to specific regulations. Provide guidance to the RMC on how to create and submit a remediation plan that will meet your company’s requirements.

5. Set Periodic Reviews for the Security Assessment

Working with the RMC, set a timeline for periodic reviews. Depending on your company’s specific regulatory compliance requirements, a security assessment may need to occur by date or by change in activity level. For example, if your company requests the RMC perform an additional service that requires sharing additional employee data, a review should be set to confirm the most recent security assessment is still valid.

GMS is the Industry Leader for Relocation Technology and Security

Global Mobility Solutions’ (GMS) team of global relocation experts has helped thousands of our clients understand how to conduct an effective security assessment on an RMC. We can help your company create and implement a security assessment to ensure compliance to all of your organization’s regulatory requirements.

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.

New SafeRelo™ COVID-19 Knowledge Portal

GMS recently launched its new SafeRelo™ COVID-19 Knowledge Portal featuring a number of helpful resources including:

Curated selection of news and articles specific to managing relocation programs and issues relating to COVID-19
Comprehensive guide to national, international, and local online sources for current data
Program/Policy Evaluation (PPE) Tool for instant relocation policy reviews

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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Tags corporate relocation, Domestic Relocation, global relocation, relocation management, Relocation Models, relocation policies, relocation programs, relocation technology

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Relocation Policy Review: Anticipating Changes and Challenges

Post author By Sam Hoey | CRP, GMS
Post date January 18, 2022

Shot of a group of colleagues having a meeting in a modern office

Why Companies should review their Relocation Policies?

It is important, and highly recommended, that companies review their relocation policies at the start of each year. This will help your company remain at the forefront of your industry, ahead of your competitors, and in line with best practice recommendations. Most companies are not completely immune to global forces, market changes, and unique challenges such as the COVID-19 global pandemic. Often these issues directly impact employees on international assignments.

There are several reasons why companies need relocation benefits. Often, relocation perks are used for hiring a recruit for an open position. Other times, companies may use relocation to transfer knowable employees to different job sites or as part of a development program offered through the company when promoting an existing employee. But no matter the reason, all sizes of company who offer talent mobility should have their relocation policies reviewed with some regularity. Here is a breakdown of why relocation policy review is important:

Address Strategic Objectives in Your Relocation Policy Review

Growing companies often have strategic plans that guide activities and investments. Many of these plans lay out specific goals and actions. For example, a company that wants to grow into a new market might leverage their relocation policy review in several ways to achieve this goal. This may include investigating the services of an International Professional Employer Organization (PEO). PEOs can help a company establish a presence in a new market within a very short timeframe and with no direct investment. As a result, companies can focus on achieving strategic objectives and responding nimbly to market changes. In return, the company saves time, effort, and resources. Also, the overall costs of service fees and financing international employees’ payroll are significantly lower than the cost of establishing a foreign entity.

Cost Reductions and Process Improvements Can Be Found

Relocation Management Companies (RMCs) with extensive industry knowledge and experience can help identify cost reductions. There may be several areas that offer cost reduction opportunities during a relocation policy review. Also, the mobility industry often changes rapidly in response to needs, preferences, and regulations. As a result, knowledgeable RMCs can easily identify and share new ideas for cost reductions.

RMCs are often drivers in the mobility industry for process improvements. Technology can lead to dramatic increases in productivity. For example, a Relocation API can replace many time-consuming data entry tasks and responsibilities. In turn, valuable resources are freed up to focus on critical business and department issues.

Maintaining Your Company’s Competitive Market Position

Every relocation policy review should include and reference benchmarking studies. These studies should show what your company’s industry competitors are providing in their policies. Your company should have information to know whether its relocation policy provides benefits that at least match the competition. A thorough relocation policy review can help identify areas that need to change in order to maintain your organization’s competitive position.

Ensures Company Policy Remains Compliant

National and international regulations can frequently change. Constant changes in visa requirements, immigration, tax laws, health recommendations, and other regulations directly impact relocation programs and employees. Conducting a relocation policy review helps your company learn what is changing, what may change in the future, and how to adjust your relocation policy accordingly. The review also provides information that your company can share with internal company stakeholders and employees who utilize the policy.

When Should Relocation Benefits Be Reviewed?

Companies should arrange a relocation policy review about every 12 months. As markets and global dynamic forces change at an ever faster pace, transferees are often some of the first employees to face direct impacts. As a result, the company’s relocation policy should be current and provide industry-leading solutions. This will result in greater employee satisfaction, and enhance talent acquisition and retention efforts.

GMS’ team of global relocation experts has helped thousands of our clients with their relocation policy review. Our mobility consulting team understands the dynamic nature of the corporate relocation market. GMS provides expert guidance for relocation policies, as a result, our team ensures that our clients’ transferees receive immediate assistance as required, clients remain competitive, their relocation programs maximize efficiencies, and they can leverage several cost reduction opportunities.

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.

To schedule your relocation policy review or to receive an industry-specific policy benchmarking overview, contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

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Tags Domestic Relocation, Domestic Short Term Assignments, global relocation, Global Relocation Tips, relocation, relocation best practices, relocation policies, Relocation Policy Benchmarking, Relocation Policy Review, relocation programs, relocation services, Workforce Mobility

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Relocation Home Sale Programs: BVO, GPO, or Direct Reimbursement

Post author By Jules Matz | AHWD, ABR, CNE, CRP, GRI
Post date September 28, 2021

A family with the realtor in front of the house they just had appraised

Keep your Program Competitive with Home Sale Assistance Benefits

When a new or existing employee accepts a position in a different location and is willing to move, some of the main concerns they will have right off the bat are real estate concerns. Selling their current home, then buying a new house in the new city can cause anxiety. But if the company relocating the employee offers benefits with home sale assistance or real estate sale programs, it can make the relocation process much easier for both the employee and the company.

One of the most sought-after benefits to include in relocation packages is a home sale program. In basic terms, relocation home sale programs offer assistance to homeowners so that they can quickly move to their new city for the desired start date. While each relocation management company (RMC) will have different terms on their offered real estate programs, most usually include payments to cover real estate commissions and closing costs. Again, each home selling assistance program is different so it will depend on the seller’s/buyer’s situation on what can and cannot be covered or reimbursed. The type of program offered also depends on your company’s specific relocation policies and the level of support you offer to your relocating employees. Direct Reimbursement, Buyer Value Option (BVO), and Guaranteed Purchase Offer (GPO) are three of the most commonly offered relocation home sale programs. Here is a breakdown of each:

Direct Reimbursement

In most cases, this might be the simplest home sale assistance program for the company and the most involved for the employee. Under a typical direct reimbursement program, the employee is responsible for the sale and closing of their own home. This means they have to hire their own real estate agent and list the home (however many RMCs, like GMS, offer comprehensive home marketing assistance to help sell the property quickly and for top dollar). Once the property sale is complete, the employee then goes through the employer’s process of submitting expenses to be later reimbursed – generally these expenses cover the cost of the agent’s commission, closing costs, and the miscellaneous fees associated with selling a home.

With direct reimbursement, the payment to the employee is viewed by the IRS as income and is subject to income tax. This can result in the employee receiving a reduced overall amount of support due to their unique tax situation. However, If the employer is offering the employee tax gross-up options, this could help offset the amount of tax dollars that the employee is having to pay, providing them with an elevated level of financial assistance.

Buyer Value Option (BVO)

Known as a 3-party transaction, the Buyer Value Option program can seem a little confusing to those who are not in the industry. Under a BVO home sale assistance program the employee lists their home for sale until a competitive outside offer is received. Then, the RMC will purchase the home from the employee based on a set sales contract amount. The RMC will then immediately sell the property to the outside buyer. Unlike the single transaction reimbursement program, this option has two transactions.

The main reason companies choose to offer BVOs in their relocation program has to do with the tax benefits, tax protection, and the reduced overall costs of this program. Under a Direct Reimbursement program (as described above), if the employee were to sell the home directly to the buyer, without the RMC middleman, then the IRS would view the reimbursement of expenses to the employee as taxable income. Companies help to offset this by grossing up the reimbursement, which drives up the total cost.

Under the advantageous BVO program, the home sale is tax-protected, occurs between the RMC/Company and the buyer, and no reimbursement or gross-up to the employee is required as the company pays the selling expenses. This reduces the tax liability for both the employee and their new company. The BVO home sale assistance program also helps cover the cost of the real estate broker’s commission and closing costs on the home sale. Lastly, the expense of an appraisal is mitigated, as the price of the home is driven by the offer received in the market.

Guaranteed Purchase Offer (GPO)

Sometimes called a Guaranteed Buyout (GBO), the GPO home selling assistance program is a popular one because it gives the moving employee a guaranteed home sale. Under this program, the employee lists the property for a set amount of days (typically 60-120 days) to try to sell on their own. If their home is not sold in the allotted time frame, the RMC/Company will then purchase the home from the employee, allowing them to move on to their ultimate destination without the stress of selling their property. The property then goes into the RMC/Company’s inventory and is now their responsibility to sell.

If the employee does get a qualified offer from a buyer within the specified timeframe, then the sale is completed similar to the BVO program (often called an Amended Value under these circumstances), where the RMC buys the home from the employee then sells it to the buyer for tax purposes. Again, making for two home sale transactions.

The major difference between the Guaranteed Purchase Offer program and the BVO is that in a GPO program, an appraisal is completed on the property to establish a fair market value of the property to establish the purchase offer price.

Choosing the Right Relocation Home Sale Program

Global Mobility Solutions has been helping relocating employees since 1987. Our team is always on hand to help your organization develop competitive and cost-effective home sale assistance programs. Reach out to us today with any questions regarding direct reimbursement programs, BVOs, or GPO. Our team is more than happy to help your company come up with the best relocation home sale programs possible to assist with meeting your talent acquisition objectives and improve the overall relocation experience for your transferees and their families.

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Tags bvo, gpo, home sale assistance, Real Estate, reimbursement, relocation programs

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Advantages of Creating Competition Between Suppliers for Relocation Services

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

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GMS Always Fields Multiple Bids from Suppliers on Key Services

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

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

GMS Process to Keep Relocation Costs Down

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

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

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

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

Let GMS Provide Relocation Services for Your Company

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

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

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Common Employee Relocation Packages

Post author By Sam Hoey | CRP, GMS
Post date August 3, 2021

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A Look at Typical Relocation Packages

Relocation packages, also known as relocation benefits, are policies and support that companies offer employees who are transferring to a location for a position. Each company will have different needs when it comes to relocation benefits, and it can be difficult for companies to know exactly what should be covered in these policies and what the employee should be responsible for on their own. In order to make the chosen candidate a qualified and competitive offer, it’s always a good idea to have a competitive and comprehensive relocation package to offer moving employees.

Companies typically have the ability to tailor relocation programs based on each hiring situation. Some companies choose to have their HR department handle employee transfers, but if the company is looking to be consistent with their relocation packages on each hire, it’s probably a good idea to use a reliable relocation management company.

What Does A Standard Relocation Package Include?

Most relocation policies outline some sort of reimbursement or coverage for many of the common needs of moving. Relocation benefits often include full packing and unpacking services along with a quality and reliable moving company to get the employee’s household goods from point A to point B.

On top of moving expenses, home sale assistance is another common benefit offered to transferees. This can include selling programs using vetted real estate agents who specialize in the relocation process to help assure a quicker and more successful home sale for the moving employee. Some policies may offer lease-breaking assistance for those employees who rent, in the event that the employee has to pay a penalty for breaking a lease early. House-hunting trips can also be included in the real estate portion of the relocation package. This means the company might cover a trip or two for the moving employee to scout out their new area and tour some homes or apartments before making the full move.

Corporate housing options, or temporary housing, are usually included in most relocation policies. This gives the employee a place to stay short-term after they’ve moved in order to find a full-time home in their location, without having to miss their desired start date for the position.

Many companies also offer transportation coverage or reimbursement in their relocation offerings. This might cover airfare for the employee and their family or expenses for driving across state lines. In some instances, companies will cover the employee’s vehicle transportation as well.

What Expenses Are Typically Covered During Relocation?

While not an exhaustive list, the below are common relocations costs for which many companies provide support to their relocating employees:

Corporate housing options
Household goods transportation (HHG)
Storage facility (temporary storage of the HHG shipment
Miscellaneous expense allowance
Home sale costs
Spousal employment assistance
Travel-related costs, such as airfare, meals, hotel nights

As every company has different goals and objectives for their relocation program it is common to see many relocation policies that are tiered, offering different levels of support for each employee.

Here is a breakdown of the most common U.S. domestic relocation policy tiers per GMS research:

What Types Of Employees Receive Relocation Packages?

This aspect will depend upon the company’s need for each position and how important it is to get that employee to the new location. The best practice for relocation programs is to build a tiered system based on employee level. These tiers are commonly built around entry-level employees, professionals, directors, and vice-presidents. Additionally, many companies have executive relocation packages to cover most executive-range employees. For some companies, they may also have international relocation package examples for employees moving globally.

Common Methods to Address Costs in Relocation Packages

Different policy tiers within your relocation program may necessitate different strategies for paying for your employee’s relocation costs. It is important to understand the advantages and disadvantages of these common methods.

Direct Billing: On your behalf, the relocation company sources, coordinates, and directly pays the vendors used in the relocation of your employee. Invoices are audited, consolidated, and then passed through to you for payment. While potentially more costly, this method ensures that your employee is getting the most out of their benefits and is able to make it to their new destination on time without the need to stress over the costs of the move.

Expense Reimbursement: The employee pays for the cost of moving expenses up front and the company cuts a reimbursement check toward the end of the process. While not generally intended to be used to cover an employee’s entire move (few families have the cash on hand to pay tens of thousands of dollars for a move), reimbursements are commonly used for miscellaneous expenses as outlined in the company’s relocation policy. Typically, reimbursements are used for items such as travel costs, or other related items.

Lump Sum: As opposed to an expense reimbursement, a lump sum is commonly used as the primary financial benefit provided to a relocating employee. In a lump sum policy, a set amount of money is given upfront to the employee so that they can handle the moving expenses as they see fit.

Generally provided to entry level or lower level employees, the lump sum itself is commonly the only relocation benefit provided. While the lump sum is seen as an excellent cost control tool for companies, it places additional burdens on the employee as they are left to their own devices to manage their move. This is in addition to the lump sum typically qualifying as income which is taxable. Employees who receive their relocation benefits in the form of a lump sum should be sure to note the payment for tax purposes. Employers should consider adding a tax gross up to the lump sum to help mitigate the effects of the income tax on the employee’s benefit.

Ready to Set Up Relocation Packages for Employees?

Global Mobility Solutions is a full-service relocation management company who specializes in assisting companies in creating comprehensive relocation packages that benefit both the company and the employee. For more than 30 years, GMS has helped companies get their new employees situated in a new place, assuring the process is seamless for the transferee. If you’re ready to set up or update your relocation policies, reach out to us today.

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Tags employee relocation, Lump Sum Relocation Packages, relocation benefits, relocation packages, relocation programs

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2021 Ushers in Fully Virtual Relocation from Start to Finish

Post author By John Fernandez | CRP, GMS, SSB
Post date May 4, 2021

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Virtual solutions in relocation management were well on their way to becoming the preferred choice long before the COVID-19 pandemic made them a requirement to do business. Supporting the working world’s “anytime, anywhere” focus, the relocation industry has been creating tools and resources to bring solutions to clients that are easy to use and do not require any physical contact. 2021 will see virtual solutions continue to grow in both popularity and functionality due to their convenience, speed, flexibility, and accuracy.

Virtual Relocation services span the relocation spectrum, including the following:

PRE-DECISION SERVICES

A valuable tool, pre-decision allows for a relocation management company to work with your new hires or transferees before an offer is extended or the decision to relocate is made. All of the following services can be provided through online solutions, reports, and electronic communications:

Candidate Assessment – Assess candidate expectation, skills, personal qualities, family circumstance, and financial preparedness
Cost of Living analysis – Cost of living comparison of origin and destination cities to help determine an acceptable or competitive salary range
Market analysis – Determine the likely home sale timeline and identify potential home sale challenges such as negative equity
School Reports – Public and Private School reports provided to the relocating employee to aid community selection
Moving Cost Estimates – Cost estimates on household goods transport to help budget for relocation costs
Community Search and Tours – Virtual Neighborhood Walks let buyers explore new neighborhoods and communities, and help them see nearby local features such as parks, schools, and shopping centers

VIRTUAL VISA AND IMMIGRATION SERVICES

In today’s new normal, the virtual experience extends to the visa application and immigration process:

A knowledge base of helpful information and resources
Virtual visa and legal consultation
Online application and form filing
Electronic fee payment
Online tools to track and manage case status and processing times

HOME SELLER VIRTUAL EXPERIENCE

The global pandemic forced home sellers, agents, and relocation companies to rethink the real estate process from beginning to end. Including the following.

Consultation, Digital Marketing

Virtual consultations using popular meeting platforms such as Zoom or Google Hangouts
Document signatures captured electronically using Dotloop real estate transaction management solution or other e-signature programs
Virtual walk-through and preparation for the home
Virtual staging using seller-provided photos combined with current furnishings and décor
Virtual experience “Open House” event with advertising and promotion
Virtual private showings

Offer, Contract, Deposit

Electronic offer submittal (once seller receives an acceptable offer, that specific buyer can see the property in person within 24 hours; following the viewing, the seller will execute the offer)
Contract to purchase the home is executed electronically
DepositLink or other financial service is used to electronically transfer the deposit

Inspections, Appraisal, Financing, Closing

Inspections are ordered and conducted (if not waived)
Purchase and Sale agreement is executed
Appraisal is completed
The buyer obtains financing commitment if applicable
Final in-person walk-through (if not waived)
Closing

HOME BUYER VIRTUAL EXPERIENCE

Like the home sale process, home purchases have traditionally been a very personal, in-person process. 2020 brought about rapid change as the real estate experience quickly adapted to provide a safe, virtual experience for prospective home buyers.

Consultation, Online Views

Virtual consultations using popular meeting platforms such as Zoom or Google Hangouts
Document signatures captured electronically using Dotloop real estate transaction management solution or other e-signature programs
Online searching for homes
Virtual experience tours of homes, either 3D virtual tour online, or a live interactive virtual tour (open house or private showing)
Live virtual buyer events
Video mail (v-mail) provide video directly to interested buyers

Offer, Contract, Deposit

Electronic offer submittal (once seller receives an acceptable offer, that specific buyer can see the property in person within 24 hours; following the viewing, the seller will execute the offer)
Contract to purchase the home is executed electronically
DepositLink or other financial service is used to electronically transfer the deposit

Inspections, Appraisal, Financing, Closing

Inspections are ordered and conducted (if not waived)
Appraisal is completed
The buyer obtains financing commitment if applicable
Final in-person walk-through (if not waived)
Closing

VIRTUAL HOUSEHOLD GOODS MOVES SERVICES

While the movement of personal property will always require a physical presence by moving crews, the household goods industry developed effective tools and processes to limit in-person interaction to protect both the transportation employee and the transferee’s family from unnecessary exposure:

Online, video, and virtual estimating surveys to document contents of homes
Online and electronic communications to arrange services and payments
Packing, moving, delivery, and setup services without requiring transferee to be present

VIRTUAL DESTINATION SERVICES

Virtual destination services are a great option for transferees and their family members. These include community tours and orientation, departure services and support, and area consultations. All of these services provide transferees with 1-on-1 consultation and support to ensure their comfort and peace of mind with the destination.

The services provide benefits such as:

Providing direct support when needed
Keeping assignments on track for success
Recruiting and retaining key employees
Assisting and supporting family members
Developing and growing relationships

For common services such as searching for schools, finding homes, and getting to know the new location, there are several new convenient formats that have risen in use:

Real-Time Video – Live video calls let transferees review specific areas, discuss their interests, and share their preferences. The local destination contact provides direct communication on specific points and can answer questions that may arise.
Webinar Presentations – Transferees access a 1-on-1 presentation through popular web-based platforms.
Pre-Recorded Video – A personalized video is recorded and shared with transferees. They are then free to review the recording at a time that is convenient to their schedule.

VIRTUAL LANGUAGE AND CULTURE TRAINING

A virtual trainer for language and culture allows candidates to access training anytime, anywhere. This access gives candidates the flexibility they need. Whether traveling or in a remote location, the virtual trainer lets candidates learn at their own pace.

Language Modules

Intuitive, straightforward interface
Self-paced lessons
Focus on conversation proficiency
Cultural insights and nuances that impact vocabulary and grammar
Mobile apps for quick brush-ups

Cultural Modules

One-on-one personal training via webcam
Coaches explain how to see cultural differences to promote synergy
Practical and actionable guidance to operate in business settings
Learning to leverage skill sets found in other cultures
Communicates values including mutual respect and understanding

VIRTUAL TUTORING FOR CHILDREN

Dedicated learning platforms deliver virtual instructor-led lessons in a fully professional, secure, and GDPR-compliant format. Features include:

Easy to use interface
Browser-based with no necessary downloads
Class reminders and notifications
Multiple-language support
Audio and video-based lessons
Online document sharing and lesson materials
Reporting for attendance, learning analytics, and more

The lesson content and methodology are adapted to the children’s needs. Books and materials are either virtual or delivered to the children through mail delivery services.

What's Trending in Workforce Mobility for 2021?

This article is an excerpt from our 2021 Workforce Mobility Forecast. Download a complete copy today, or watch a recording of our latest Thought Leadership Series webinar on the trends that are shaping the industry.

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GMS Is Here to Help

GMS is ready to help you with any relocation needs you may have. If you have questions or are ready to get started, please reach out to us online or call 1-800-617-1904 for US or 011-480-922-0700 for international. Our certified team is here to help.

Tags relocation best practices, relocation programs, virtual relocation