Tag: relocation trends

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The Importance of Data Privacy in the Global Mobility Industry

two employees looking at computer for data privacy
Two technology professionals work diligently in a bright office setting, one focusing on a laptop while the other engages with a large monitor, coding together.

Why Relocation Management Companies Have to Take Data Privacy and Security Seriously

In today’s digital age, maintaining data privacy is essential as it goes beyond protecting identities to safeguarding personal information that can significantly impact individuals’ lives. Consumers seek convenience and speed, particularly in global travel, yet these benefits often come with a trade-off of privacy and ethical data handling. Companies offering features like biometric logins and tailored marketing campaigns face unique challenges that require thorough evaluation. Unfortunately, risk assessments are often overlooked when responding to customer requests quickly.

As technology advances, the need for data privacy and security in the global mobility industry becomes more pressing. Relocation management companies, in particular, must prioritize protecting personal information to maintain trust with their clients. With the increasing use of biometric data and personalized services, the risks of data breaches and misuse are higher than ever.

Businesses in the global mobility industry must conduct thorough risk assessments and implement robust security measures to safeguard sensitive data. Ignoring these risks in favor of meeting client demands quickly can lead to severe consequences, including legal liabilities and reputational damage.

By taking data privacy and security seriously, relocation management companies can protect clients’ information and build a reputation as trustworthy partners in the global mobility industry. Prioritizing data privacy is a legal requirement and a strategic decision that can set businesses apart in a competitive market.

Key Elements of Data Protection

The first steps in creating an effective data management system involve sorting and organizing data. This includes identifying the types of data needed, understanding how data is used internally, evaluating how data is shared externally, and determining where data should be stored, a process known as data mapping. Companies must also navigate through regulations by identifying data protection requirements, often requiring the expertise of a data protection officer or legal advisor.

Incorporating privacy into a company’s design strategy requires careful integration into systems and processes and a deep understanding of data collection and privacy laws. Effective data management includes clear privacy policies, limited data collection for specific purposes, secure data handling, timely data deletion, and quick responses to data access and deletion requests.

Ongoing training and supervision are necessary for proper data management. Organizations should offer training sessions, anonymous reporting options, surveys, audits, and incentive programs to educate employees and supply chain partners about data privacy and security. Data privacy constantly changes and requires continuous enhancements and monitoring to comply with relevant laws and regulations.

The global mobility sector is evolving in its approach to handling sensitive data, focusing on privacy-oriented strategies and robust data protection measures. By adhering to regulations and implementing these practices, organizations can enhance trust with transferees and clients and improve the reliability and quality of their services throughout the relocation process.

Your Data Is Safe with GMS

Global Mobility Solutions (GMS) is one of the few international relocation companies with SOC 2 certification. At GMS, we take data privacy and security seriously. Our SOC 2 certification demonstrates our commitment to protecting your sensitive information throughout the relocation process. We understand the importance of maintaining the confidentiality and integrity of your data, and we have implemented stringent measures to ensure that your information is safe with us. By choosing GMS for your relocation management program, you can trust that your data is in good hands. Contact us today to learn more about our data protection practices and how we can help you with your relocation needs.

Why Relocation Management Companies Have to Take Data Privacy and Security Seriously

In today’s digital age, maintaining data privacy is essential as it goes beyond protecting identities to safeguarding personal information that can significantly impact individuals’ lives. Consumers seek convenience and speed, particularly in global travel, yet these benefits often come with a trade-off of privacy and ethical data handling. Companies offering features like biometric logins and tailored marketing campaigns face unique challenges that require thorough evaluation. Unfortunately, risk assessments are often overlooked when responding to customer requests quickly.

As technology advances, the need for data privacy and security in the global mobility industry becomes more pressing. Relocation management companies, in particular, must prioritize protecting personal information to maintain trust with their clients. With the increasing use of biometric data and personalized services, the risks of data breaches and misuse are higher than ever.

Businesses in the global mobility industry must conduct thorough risk assessments and implement robust security measures to safeguard sensitive data. Ignoring these risks in favor of meeting client demands quickly can lead to severe consequences, including legal liabilities and reputational damage.

By taking data privacy and security seriously, relocation management companies can protect clients’ information and build a reputation as trustworthy partners in the global mobility industry. Prioritizing data privacy is a legal requirement and a strategic decision that can set businesses apart in a competitive market.

Key Elements of Data Protection

The first steps in creating an effective data management system involve sorting and organizing data. This includes identifying the types of data needed, understanding how data is used internally, evaluating how data is shared externally, and determining where data should be stored, a process known as data mapping. Companies must also navigate through regulations by identifying data protection requirements, often requiring the expertise of a data protection officer or legal advisor.

Incorporating privacy into a company’s design strategy requires careful integration into systems and processes and a deep understanding of data collection and privacy laws. Effective data management includes clear privacy policies, limited data collection for specific purposes, secure data handling, timely data deletion, and quick responses to data access and deletion requests.

Ongoing training and supervision are necessary for proper data management. Organizations should offer training sessions, anonymous reporting options, surveys, audits, and incentive programs to educate employees and supply chain partners about data privacy and security. Data privacy constantly changes and requires continuous enhancements and monitoring to comply with relevant laws and regulations.

The global mobility sector is evolving in its approach to handling sensitive data, focusing on privacy-oriented strategies and robust data protection measures. By adhering to regulations and implementing these practices, organizations can enhance trust with transferees and clients and improve the reliability and quality of their services throughout the relocation process.

Your Data Is Safe with GMS

Global Mobility Solutions (GMS) is one of the few international relocation companies with SOC 2 certification. At GMS, we take data privacy and security seriously. Our SOC 2 certification demonstrates our commitment to protecting your sensitive information throughout the relocation process. We understand the importance of maintaining the confidentiality and integrity of your data, and we have implemented stringent measures to ensure that your information is safe with us. By choosing GMS for your relocation management program, you can trust that your data is in good hands. Contact us today to learn more about our data protection practices and how we can help you with your relocation needs.

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Choosing a Relocation Company Corporate Relocation Corporate relocation tips Relocation Best Practices Relocation Challenges Relocation Management

Sustainability in the Relocation Industry

Close-up of children holding a planet at the beach
Close-up of children holding a planet at the beach

Relocation Management Companies should be aware of sustainability

Most companies’ interest in corporate environmental sustainability is on the rise. Everyone is looking to reduce carbon footprints without disrupting their business practices. A World Economic Forum report showed a 16 percent increase over the last five years in global public concern for nature. 

Having a grasp of sustainability in the context of the global mobility and relocation sector enables organizations to implement beneficial transformations that benefit both their staff and the environment. 

At Global Mobility Solutions (GMS), we are all looking for ways to protect the environment and reduce costs for our clients and their employees. When looking at ways to improve your global mobility program’s sustainability and how to reduce your carbon footprint, here are some things to consider.

Partner with a Professional Organizer

Partner with a “Discard and Donate” company that offers a professional organizer to assist your employees in preparing for their move.  This saves the client money by reducing the shipment size, and the program cost will always be less than the savings on the move.  Consider updating your relocation policy to cover some of these program costs to help encourage your employees to purge before moving. This can help reduce wasted materials and ensure that unwanted household goods go to good use instead of the trash. 

Also, Introduce a weight cap on your household goods moves.  This cap can vary by tier or by homeowner vs. renter. This will encourage your employees to consider discarding unwanted items before shipping them on your dime.

Partner with Move for Hunger

GMS is a proud partner of Move for Hunger. Move for Hunger offers your employees the option to donate their non-perishable food to a local food bank at the origin location. Items such as canned veggies, fruits, stews, soups, beans, tuna, pasta, sauce, baby food, flour, cereal, oatmeal, juice, rice, peanut butter, and jelly can be donated.  

Since its inception in 2009, over 10 million pounds of food have been donated through Move for Hunger and its partners to help feed the food insecure in the US and Canada. We suggest adding policy language to encourage transferees to contribute to this cause.

Offer Employees Furniture Rental Allowance

For international relocation assignments, GMS urges clients to consider extending a furniture rental allowance instead of shipping household goods.  Many relocation management companies partner with furniture rentals for temporary furnishings, another cost-effective way to reduce the carbon footprint.

Make Sure Your Vendors Are Green

GMS has a strict vetting process for working with household goods movers and corporate housing providers. We don’t just work with anyone. During our interviewing process, we ask vendors about their sustainability protocols and what they do to go green. Suppliers who use green clean methods help cut down on wasted resources.

Add Virtual Tools to the Relocation Process

First off, partner with real estate agencies that offer virtual tours and virtual closings for properties to minimize the need for in-person meetings and reduce the environmental impact of transportation. 

Contract with household goods providers who are experienced in using virtual surveys. GMS aims to streamline the relocation process while minimizing its environmental impact. Virtual surveys allow for accurate estimations of shipments without the need for physical visits, reducing unnecessary travel and fuel consumption. Additionally, GMS encourages suppliers who utilize recycled packing materials, further contributing to waste reduction and sustainability efforts.

Virtual services encompass a wide range of offerings within GMS, including assistance for spouses and careers, language and cultural training, and, whenever feasible, support for housing, banking, and registration in the destination country. These services can be provided in different ways, such as through video calls, virtual tours of potential homes, and online platforms for cross-cultural training, with the help of local consultants. 

Minimizing the need for in-person visits has a positive impact on the environment, as fuel consumption is reduced. Additionally, the assignee benefits from increased support from the local consultant, as less time is spent on transportation.

Ensure You’re Working with Real Estate Agents Who Practice Going Green

Real Estate agents can also help the relocation process be more environmentally friendly.  Most agents work from home and are completely paperless. Because they spend a lot of time in their cars, many offer to carpool with clients for a more sustainable transportation option.  

When showing properties, agents encourage using energy-efficient light bulbs and turning off lights before leaving any property. By promoting properties with energy-efficient appliances, solar panels, and sustainable building materials, agents can help reduce the carbon footprint of the real estate industry.

When selling a home and the potential cost of utilities is on a client’s mind, agents often suggest they use native plants in landscaping, which require less water and maintenance than exotic species. Desert landscaping is also recommended in dry areas. This not only helps conserve water but also supports local biodiversity.

Many Realtors have obtained a NAR Green Designation. The course focuses on People, Property, Planet, and Prosperity. By completing this course, real estate experts are equipped to provide guidance and access to resources that can assist homeowners in enhancing the efficiency of their residences. This support ranges from affordable solutions and do-it-yourself initiatives undertaking extensive renovations or constructing new homes.

By implementing these practices, our preferred real estate agents can significantly impact the environment and contribute to a greener future. Together, we can create a more sustainable real estate industry that benefits our clients and the planet.

GMS Leads the Relocation Industry in Sustainability

At GMS, we understand the importance of responsible business practices and strive to impact the environment positively. By partnering with like-minded household goods and corporate housing providers, we can collectively work towards a more sustainable future while providing exceptional service to our clients.

In conclusion, GMS prioritizes sustainability and responsible business practices and offers flexible relocation policies to accommodate the diverse needs of our clients. Relocation Policies empower transferees with small shipments to arrange their self-move quickly and flexibly, ensuring a hassle-free experience. Partner with GMS today and let us handle your relocation services needs while working towards a more sustainable future together.

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Corporate Relocation Corporate relocation tips Global Mobility Global Relocation Global Relocation Trends

Supply Chains Looking to Normalize

delivery man lifting cardboard boxes from the back of his truck
Photo of a delivery man lifting cardboard boxes from the back of his truck.

Many supply chains are finally looking to normalize two years after the pandemic

Two years back, the world observed the pandemic gradually obstructing one of the most used pathways of worldwide commerce: container ships filled to capacity and stationed near the Southern California shoreline.

The bottleneck started with five ships on October 15, 2020, but more than 40 ships joined the queue in February as Americans hurried to stock up ahead of the COVID lockdowns. The queue dropped to nine ships in June 2021, but more than 60 ships joined the line this time last year, and it peaked at 109 ships in January. There are many signs that supply chain pressure is decreasing.

Supply chain management has been turbulent over the last two years. However, the outlook for 2023 is improving. The Logistics Managers’ Index reports that by September, a return to regular operations is forecasted by the following year.

While there have been substantial improvements in international transportation capacity, industry experts caution that the recovery’s speed may take some optimism from people but that things are going in the right direction. In the United States, for example, raw materials and components may still need to be secured by some companies.

Ocean Freight Shipments See a Decrease in Demand

Consumers are significantly reducing their ocean shipping activity. Machinery, housing, industrial and apparel items are all affected by the decrease in demand. The surplus of goods and lack of knowledge about consumer needs contribute to the decline in ocean freight shipments, further heightened by the early stockpiling of items this summer.

Oxford Economics reported U.S. supply strain peaked in February but has been better since September. Spending less by consumers in developed economies is beneficial, as it reduces supply chain pressures. Industry experts anticipate further improvement in supply chains in late 2022 and 2023.

It won’t be all roses and sunshine in 2023; with the continued risk of labor unrest at rail and port sites, predicted delays at European harbors, and unexpected timing issues, some hold-ups will occur throughout the year. Changes caused by Mother Nature’s fury are likely to result in more canceled sailings.

Ocean carriers are utilizing tactical “blank sailings” to align their ship’s space with orders, aiming to minimize costs and stop future cost declines. This is akin to airlines canceling under-booked flights. Data from Drewry shows carriers removing entire service loops to better match their capacity with demand.

Normalized Supply Chain Will Help the Relocation Industry, Stay in the Know

Reduced container ship traffic will result in household items arriving on time and with fewer delays. A sustained drop in ocean freight requests could also lead to more reasonable customer pricing.

Though hope remains, businesses shouldn’t count on returning to pre-COVID times soon. The shipping sector is still anticipating a consumer expenditure surge that will bring shipments and voyages back to 2019 amounts.

To keep up with all relocation industry news, check out our Knowledge Base, where we post weekly blogs and press releases. You can also review some of our Case Studies or watch one of our past Webinars.

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

HR’s Role in Managing Employee Relocation

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A photo of playful parents holding sons's hands in new house. Happy and playful family are with cardboard boxes. They are in casuals.

Here is an overview of everything you need to know about getting an employee from point A to point B

Any company’s human resource department has countless staff relationship tasks, from approving vacation days to helping employees during their relocation process. The HR team is the company’s glue, holding together all the company’s processes and the backend paperwork regarding every employee. 

In most cases, the HR team is responsible for working with relocation services providers to work with the company to assist moving employees who accept a relocation assignment. HR teams will usually be in charge of getting quotes from relocation management companies (RMC), then working with the chosen RMC to set up the global mobility benefits that employees can utilize. If not taken care of properly, a lousy relocation process can hinder the hiring or retaining of skilled employees. A competitive and comprehensive relocation package is necessary to encourage employees to accept domestic and international relocation assignments.

HR’s role in employee relocations is significant; they must ensure a smooth transition by providing support. Global relocations are critical to every company’s success and should be taken seriously.

Setting Goals for Relocation Services

The HR team needs to come up with more innovative ideas when it comes to global mobility and employee relocation. In multinational companies, specific programs and procedures are in place to ensure employee hassle-free relocation. 

Any relocation plan that addresses and minimizes stress on employees and HR professionals must be appealing to transferring employees at any level on the organization chart. The employee must be able to relocate and be familiar with the process, often resolving questions regarding relocation and relocation issues.

Key Elements of Relocation Policies

There is no doubt that relocating employees can be a hectic process for all involved. But none more so than the employee and their family. That is why the HR team must cover as many benefits as possible so that the employee has the best chance of a smooth transition. It is a big ask for an employee to move states, or even countries, to work for a new company, which is why they should be taken care of. Here are some standard relocation services that should be covered in even the most standard packages:

  • Fair compensation adjustments are made if the living cost of the new location is higher than the transferee’s base.
  • Working with expert relocation coaches to assist relocating employees to guarantee low-stress, effective location change.
  • Paid trips to look for a house, multiple if possible, allow the employee and spouse to see homes that would work and get to know new neighborhoods that would be acceptable.
  • Moving and travel expenses are reimbursed to ensure that the shipping of the employee’s household goods is appropriately performed and minimizes the family’s costs to relocate to the new location.
  • Short-term housing options so the employee and their family can adjust to their new destination for a short period before buying a new home.

It’s HR’s Job to Introduce and Education New Employees about Relocation

As stated before, the HR manager and their team have countless tasks and processes to keep employees up to date on. But walking through the relocation policies with a new-hired employee is a vital task that should be considered. There should be a set company process setup for onboarding a relocating employee.

It is crucial to go over how, when, and where the relocation process occurs. Also, be honest and upfront with the employee on what they can expect during the move. Lastly, if working with an RMC that provides relocation coaches or one-on-one contact with a global mobility specialist, a company HR representative should introduce the employee to that assigned coach. On top of that, the company’s HR team should also act as a backup, best they can, if the relocation coach is unavailable for more than a few business days.

Need Help Updating or Creating Relocation Services?

Global Mobility Solutions (GMS) knows first-hand how busy HR teams can be. We want to help you and your team update or create your company’s relocation policies. Since 1987, GMS has been hiring the top relocation experts in the industry to ensure we can provide award-winning relocation services to our clients. 

Let us help you remove all the stress and concerns of relocating employees. We will listen to all of your needs and, from there, help you construct comprehensive relocation packages that employees will have a hard time turning down. But it is not only our goal to assist your employees’ move, but to keep relocation policies cost-efficient for your company. 

Our initiative technology helps employees, HR reps, and relocation coaches track the relocation process from start to finish. We have a cloud-based system that helps track everything from payments and recipients to household goods shipping. 

If your HR team is ready to discuss how to set up an excellent relocation process for both employees and the company, then set up a free consultation with one of our relocation experts, who will get you on the right track.

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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.

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Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Global Relocation Tips Global Relocation Trends

2022 Gas Prices Impact Relocation Costs and Estimates

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Large semi truck hauling freight on the open highway in the western USA under an evening sky.

Learn how higher fuel prices impact the shipment of household goods

There is no question that the recent rise in fuel prices has had an impact across the board on many industries. From pain at the fuel pump to increases in prices at the local grocery stores, people are spending more on a weekly basis. The talent mobility industry hasn’t been immune to the effects of increased fuel prices. However, the industry is making strides in developing more accurate estimates that account for higher gas prices. In the relocation industry, these costs are typically passed down from vendors to relocation management companies (RMCs) which, in turn, results in increased direct costs for companies relocating their employees.

In a typical relocation or assignment, anticipated relocation costs are calculated via a needs-based estimate. Meaning each relocation assignment is unique and could cost a different amount, depending on the employee’s needs. But just how much does the price of gas affect how much it is to move an employee? Which aspect of the relocation process is hit the hardest when fuel is expensive? Here is a breakdown has to why relocation costs go up when fuel prices increase:

Shipment of Household Goods

The largest impact of high fuel prices on relocation naturally resides within the process to ship household goods (HHG) from point A to point B. The packing and transporting of furniture and other belongings is a critical component of any relocation program. Companies that offer relocation benefits often will make sure to include covering, or at least reimbursing, an employee’s need to have their household goods shipped to their new destination. Industry-leading RMCs will obtain multiple bids from moving vendors to help ensure the best possible cost. In most cases, the RMC will have established partnerships with numerous vendors who are vetted and reliable, but they could reach out to a newer vendor for a better deal if need be. These bids from transportation companies are largely estimated on how many pounds of household goods need to be moved and how many miles away the destination is. These are two of the more obvious figures that are directly connected to gas prices and the total cost of the move.

What is the Impact of Fuel Surcharges on the Shipment of Household Goods?

With fuel prices quickly on the rise, take this opportunity to learn how fuel surcharges are calculated for domestic relocation HHG shipping. On the first Monday (or Tuesday) of every month, the van lines each go to the US Department of Energy’s (DOE) database to access the average cost of diesel for the entire United States. The average price has a corresponding number on a chart that most HHG vendors use, which will indicate what percentage to use for the fuel surcharge. 

For example: If diesel is at an average of $4.84 per gallon, then the common surcharge would be 16%. The new fuel surcharge will be applied to any shipments loading after the 15th of that month. 

HHG estimates are completed using the current fuel surcharge. The difference between the fuel surcharge when the estimate is completed and the load day fuel surcharge will result, sometimes ending in an increased amount, depending on market conditions. Relocation experts have seen this happen before when fuel surcharges spiked in 2009 and impacted moving expenses. 

It is worth mentioning that fuel surcharges are always non-binding, even on talent mobility policies that may hold some type of guarantee not to exceed cost estimates. This type of HHG estimate is commonly used by RMCs as part of an overarching, comprehensive cost estimate that is used to help companies gain a clearer picture of the total projected cost of relocation.

Do Companies Need to Update Relocation Policies?

Many companies look into what are called “Capped Relocation Policies.” Meaning, there is a pre-approved, maximum budget the company is willing to pay up to for moving the new employee. Working with an RMC helps companies to stay within that cap for each employee who is transferred. This policy design method is effective in helping to contain runaway costs and can provide a measure of consistency with your total mobility program spend.

However, in today’s environment, some capped policies are quickly eaten up by increased fuel surcharges. This is making it difficult for companies to stay within the approved budget while relocating. In some cases, the budgeted amount isn’t enough to fully execute the move and is leaving the employee to make up the difference. If a company finds this to be occurring frequently, a review of your policy caps might be in order.

This is another great advantage of working with an experienced RMC to ensure that your company is not overpaying for relocation costs while offering competitive relocation benefits within your industry.

GMS Is Here with Explanations on Relocation Costs

We know that the relocation process and the costs associated with it can be confusing. That’s why Global Mobility Solutions (GMS) offers free consultations to anyone who has questions about talent mobility. Our relocation experts will walk you through a common outline of relocation packages and their structure during this online or in-person consultation. From there, you make the decision if you would like us to help you either create or rewrite your relocation policies. When a company offers relocation policies to job candidates, they open their hiring field to a wider range of top candidates for any given position. Let GMS assist you in all of your relocation needs, contact us to start getting all of your questions answered. 

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Relocation Best Practices Relocation Management Relocation Programs

Tax Gross-Up for Miscellaneous Allowances

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Shot of an attractive young businesswoman going through paperwork while sitting with her laptop

The Best Way to Handle Taxes on Relocation Benefits

Offering relocation benefits to new or promoted employees is a great way to open up your talent pool. When a company is willing to help an employee move for a job, it means they can field applications from candidates from all over the country or even the world. This helps assure that they’re getting the right person in the right seat. 

However, with relocation, questions may arise in regards to tax rules and regulations that impact relocation. Taxes are confusing enough with simple W-2 entries. Moving to a new state can make it seem like there are added rules to be aware of. The best solution for this is to work with a relocation management company (RMC) that has the right processes and tax specialists in place to help sort out the confusion around tax rules. Each employee may receive different relocation benefits, based on what the company is willing to offer which adds different factors to consider when looking at the tax impacts of moving. 

Within a relocation policy, companies often elect to provide a Miscellaneous Expense Allowance (MEA) benefit option to their new-hired employees. For menu-driven relocation packages, MEA could be in the form of any small additional allowance. Other relocation programs leverage an MEA to help to cover unexpected relocation-related costs or relocation services that might be needed – but are not covered under the employee’s specific policy. There are many different variations of the MEA that companies can set up for employees, but how do taxes and tax gross-ups come into play?

First Off, What Is Tax Gross-Up?

In relocation terms, tax gross-up is a relocation benefit, whereby the employer adds additional financial compensation to an employee’s payroll records in order to offset state, federal, OASDI, and/or Medicare taxes. These taxes are on the majority of reimbursements on moving expenses or payments to relocation vendors on the employee’s behalf because these expenses are seen as taxable income in the eyes of the government. 

It is important to remember that tax gross-up is a talent mobility benefit provided in an employee’s relocation package, and there are multiple ways to calculate it. The hiring company can add relocation benefits as needed to up their offer and give more of an appeal to the relocation policy for the employee. It should be noted that payroll withholding is a requirement so companies need to remit payroll for taxable relocation expenses. The calculated amount of tax gross-up is used to cover a majority of the allotted payroll taxes.

Should Miscellaneous Allowances Get Gross-Up?

There are two common approaches used depending upon the relocation package offered. The first, expressing the amount in gross dollars and withholding taxes. The second, expressing the amount in net dollars and providing gross-up. In most cases, many RMCs would recommend working through the second approach.

Setting an MEA in a relocation policy using the net amount approach with an RMC can help assure there will be as few issues as possible during the relocation process. This allows the company to control costs by determining an appropriate MEA amount when factoring in gross-up. The net approach helps simplify the employee’s moving experience by providing them the actual amount received in their account so they know what is available to help relocate themselves and their families. Providing the MEA as a gross amount with taxes being withheld will result in the employee receiving a lower amount than what is listed in their relocation policy.

A Walk Through of How It Works

Consider the following “gross‐to‐net” example utilizing a Federal Supplemental tax rate of 22% State tax rate of 5% and the full FICA rate of 7.65% (Total withholding 34.65%):

Let’s say the hiring company’s relocation policy offers a gross MEA of $5,000. At first, the employee might think they can use the entirety of that on relocation costs. However, they must remember that the gross MEA of $5,000 is going to have taxes withheld. 

In other words, the $5,000 gross MEA you might provide to a relocating employee won’t actually give them $5,000 worth of assistance once the above taxes are considered. The actual dollar amount the transferee will receive to spend is $3,267.50 after taxes. 

To make it easier for the new-hire employee, if the MEA is listed as a net amount of $3,267.50 they will know exactly how much they have to spend. After factoring in the gross-up using the above tax rates the cost to the company is still $5,000. By changing the approach of listing the net MEA amount vs. the gross MEA amount the employee knows their budget while the company stays within spending targets.

Another important factor to consider is that the taxes employees are subject to vary depending on the state they are moving to. If providing the MEA as a gross amount, someone relocating to California may receive a lower amount than someone moving to Texas because the employee moving to California is subject to higher taxes. Providing the MEA as a net amount in the relocation policy ensures all relocators receive the same dollar amount in their account. This can be a great hiring incentive when trying to fill a seat.

GMS Can Help with Tax Gross-Up on Relocation Benefits

Global Mobility Solutions (GMS) is a full-service relocation management company that offers assistance with any talent mobility needs. Our certified team specializes in tax gross-ups and other financial services related to the relocation process. If the tax implications of your program are confusing or you need assistance in setting up the appropriate Miscellaneous Expense Allowances within your policies, let us know! We will listen to your concerns, answer your questions, and help you review your current policies to ensure they are competitive and in alignment with industry best practices. Reach out to us today to start getting all of your questions answered.

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Domestic Relocation Domestic Relocation Trends Labor Force Relocation Best Practices Relocation Challenges Relocation Management

What Is a Zoom Town?

Mature businessman working at home using lap top and smart phone
Mature businessman working at home using lap top and smart phone

Learn More About Communities Growing Thanks to Remote Workers

Zoom Town is a new term used for spots around the country that are seeing increases in the populations of people who work remotely on a permanent basis. It’s a play on words from the old term “boomtown” which was used to describe towns and cities in the United States that saw huge population increases due to oil discovery. The term also stems from numerous companies using the popular Zoom meeting app, implying that people who work from home “zoom” into work instead of commuting.

This trend of Zoom Towns has grown as more and more companies are providing employees the ability to work from home full-time or even part-time. Now that employees no longer have to show their face in an office space regularly, it gives them the freedom to choose to live wherever suits their lifestyle and budget.

Cost of Living and Housing Market Shifts Helped Form Zoom Towns

Many would say that working remotely was becoming more common even before the Covid-19 pandemic forced businesses to ask employees to work from home for health and safety reasons. Now that remote positions are becoming the new normal across all industries, people are finding it harder to justify moving to, and remaining in, some of the larger or more expensive cities in the country.

It was reported in a survey given out to employees who were in-office before the pandemic that 91% of employees hope to become full-time remote workers at their current position moving forward. This shift to working online has had an impact on the cities that people want to live in. Smaller towns and cities now seem to be favored by remote workers as the cost of living and real estate prices are more appealing than the major cities that used to be some of the best job hubs in the country.

Top Growing Zoom Towns for Remote Workers

While the below list of growing Zoom Towns may not have an obvious connection, there is a series of running themes between them. If workers do not have to commute into an office five times per week, and they have the option to live with great scenery and weather, who wouldn’t? An additional theme running through this list of towns is that these destinations are all outside of major cities. As stated before, remote workers are looking to escape big city life for smaller cities and towns with more affordable housing, lower cost of living, better traffic, and an improved sense of “livability”. 

Here are some of the fastest-growing Zoom Towns in the US (in no particular order): 

  1. Gilbert, Arizona
  2. Frisco, Texas
  3. League City Texas
  4. Bellevue, Washington
  5. Olathe, Kansas 
  6. Henderson, Nevada 
  7. Roseville, California 
  8. Sandy Springs, Georgia 
  9. Centennial, Colorado 
  10. Cary, North Carolina

Relocating to a Zoom Town

It should go without saying that while most companies who hire for remote positions will allow employees to work from anywhere, there might be a chance that employees are asked to make an appearance in the office quarterly or annually. Maintaining well-optioned travel policies and remote work policies will go a long way in ensuring your remote jobs are successful for your workers and effective for your organization.

As remote work has exploded in popularity, we have found that many companies do not offer remote workers with relocation benefits. Commonly due to the fact that the decision on where to live for a remote worker boils down to personal choice. However, there are numerous government relocation incentive programs to help reduce the financial burden on remote workers who are looking for a change in scenery. 

It is important to note that in the modern war for talent, for companies to attract and retain the best talent it takes great recruiting benefits. Since 1987, GMS has specialized in helping businesses build successful workforce relocation programs, develop competitive relocation policies, and assist in the design of remote worker programs. Do you have questions regarding relocation, remote workers, or any facet of corporate mobility? Speak with one of our relocation experts today.

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Global Mobility Global Relocation Global Relocation Trends Relocation Programs

Tokyo-based Employees Urged to Use Relocation Incentives

Busy Tokyo streets
Entertainment night life district at Kabukicho in Shinjuku Tokyo.

Japanese government is offering workers perks to relocate to less-populated areas

Tokyo, always known for being one of the most populated cities in the world, is starting to get just a little too crowded. The dynamic lifestyle of this great city is what brings many people to it in the first place. Many relocate to Tokyo for school but then remain for job opportunities. With so many people living in Japan’s capital now, it is estimated that 30% of the country’s entire population is concentrated in the greater Tokyo metropolitan area. This resulted after 25 years of year-over-year hikes in the population numbers. The number of inbound migrants in 2020 was about 38,000, a significant decrease from about 87,000 in 2019 (down about 56%), but still of significant volume.

This centralization of the Japanese population in Tokyo has been identified as a significant national risk. The potential (and realized) damages to the country and the economy that can be caused by disasters such as infectious diseases and earthquakes occurring in such a densely populated area have highlighted the need for a change in thinking. The mitigation of the impact of such disasters occurring in Tokyo can be helped by working towards the building of a decentralized society.

Additional benefits of this new direction can create a positive impact on the people that live in Japan. While there is much to do in Tokyo, like all major cities, there are a few drawbacks. The crowds in this big city atmosphere can make life harder, especially in a pandemic setting like most of the world as seen in the past two years. Additionally, the cost of living is not cheap. Living in the greater Tokyo area can be extremely expensive compared to more rural countryside areas of Japan. In fact, Tokyo is consistently ranked as one of the most expensive cities in the world.

So, what is Japan doing to promote citizens to consider moving to more rural and less crowded parts of the country? The government is offering relocation incentives to those who are able to work remotely from their new home. This big urge to relocate people to less crowded areas can be financially beneficial for those willing to do so.

Financial Support Relocation Incentives

Hoping to revitalize the rural parts of Japan, the government is offering individuals grants of up to 1 million yen (about $9,000 USD) to move out of Tokyo, while working remotely of course. Remote work is an important aspect of this program, removing the need to commute in and out of Tokyo for work. It has been reported that the government is committed to shelling out more than $10 billion yen in grants for this program. 

On top of the grants, local governments are also offering programs to attract new residents to their cities and towns. Many municipalities are providing ongoing support to help new residents find employment. Some of these programs are even geared toward helping entrepreneurs establish a new business in a local storefront. There are also some relocation programs that are helping movers either purchase or rent a home in their new area.

Experience Relocation Support Through GMS

Japan is one of many countries right now offering government relocation incentives. Contact GMS today with any questions regarding your relocation program, policies, or needs. Our qualified team has been helping people relocate all over the world since 1987. We will listen to your needs, examine your relocation program, and provide expert feedback on how to develop a competitive program based on industry best practices.

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Properly managing a visa and immigration program involves meticulous coordination, precise communication, and worldwide interaction with government agencies, corporate personnel, and relocating employees.

At GMS, we provide you with peace of mind in knowing your mobility program is fully compliant and being managed by the best in the industry.

Request a no-pressure, courtesy consultation from a GMS Mobility Pro. We’ll be in touch within 1 business day.

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Corporate Relocation Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Global Mobility Global Relocation Global Relocation Tips Global Relocation Trends Relocation Best Practices

Pre-Decision and Best Practices for Global Mobility

Singapore business district skyline panorama over Marina Bay

Pre-decision Best Practices: Why do many companies have a 50% rate for assignment rejection? It is primarily because the potential transferees do not have a clear understanding of the destination location and the support available for their families.

The top 3 reasons cited for rejecting relocation assignments are housing/mortgage concerns, trailing spouse/partner employment concerns, and overall family concerns. Pre-Decision Best Practices

Assignment rejection and failure can be very costly to a company. Firms spend an average of half a year’s salary in recruiting and training when onboarding a new employee. For high-level executives, the expense can be six to nine months of their salaries. However, according to the ERC, it can be as high as three-times an annual salary for international executives. If assignments are rejected, or fail after a move – which adds much more to the financial loss – companies must go through the expense of onboarding and training new staff.

 

How can companies ensure that they get the right people in the right place at the right time and for the right price?

The answer is to use pre-decision programs. Global Mobility Solutions (GMS) is the pre-decision pioneer and we continue to develop new, innovative features for pre-decision programs.

Although the number is growing, currently only 22 percent of companies around the world are utilizing pre-decision programs. However, when working with an RMC, nearly 60 percent choose to incorporate pre-decision into their mobility management solutions.

Employees decline relocation assignments due to housing, family, and spousal/partner employment concerns. Many firms had a 50% rate for assignment rejection. 32% housing/mortgage, 55% spouse/partner employment, 69% family issues. By using pre-decision, companies increase assignment acceptance, reduce failed relocations, save money, and project a progressive and employee-friendly image.

Going back to the reasons cited for assignment rejection, let’s see how the in-depth questioning and available services of pre-decision can address each of those concerns.

 

Housing

Candidates are interviewed to learn about community and lifestyle preferences. Candidates are presented with destination spotlights that highlight the cost of living and attractions of the assignment location. Area tours are arranged. Candidates are pre-approved by participating mortgage lenders. Candidates are provided with home selling and home buying assistance.

Spouse/Partner Employment

The pre-decision interview includes an employee’s spouse or partner. Pre-decision best practices programs offer a career assessment to develop an action plan that will help the spouse or partner adjust to the new location. This can include resume services, aggressive job searching, and more.

Family

Through the pre-decision interview process, the specific needs of the family are determined. To help candidates better understand the new location before moving, they are presented with school reports and detailed community information. Community tours are arranged so that transferees and their families can see schools, hospitals, and centers of culture and entertainment prior to moving.

 

The talent acquisition program manager of a large healthcare company said, “By using pre-decision to initiate relocations prior to the face-to-face interview, we know that transferees have arrived more quickly, have settled better, and stayed longer.”

Benefits of utilizing pre-decision programs include reduced time to acceptance, reduced overall costs to the company, an increased acceptance rate, and an increase in successful assignments.

Because of how it engages relocation candidates and their families, increases assignment acceptance and success, and saves companies time and money, pre-decision best practices should be utilized when it comes to mobility management.

Learn more about how pre-decision programs can benefit both you and your transferees.

 

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About

Contact Us

About Us

GMS Client Login

Privacy Policy

Other Services

Our Technology

Global Relocation

Group Moves

U.S. & Canadian Relocation

Address

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

1.800.617.1904
Available 24/7/365

About

Contact Us

About Us

GMS Client Login

Privacy Policy

Address

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

1.800.617.1904
Available 24/7/365

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