Tag: United States Demographic Trends

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Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Home Purchase United States Economy

2020 Best States for Homeowners

Three bison grazing in front of the Teton Range in Grand Teton National Park, Wyoming, a state that is #1 on the 2020 Best States for Homeowners ranking

What are the 2020 best states for homeowners? While the world may be in the midst of the COVID-19 pandemic, the housing market has been performing at a blistering pace. According to Lawrence Yun, Chief Economist and Senior Vice President, Research at the National Association of Realtors®, the housing market is booming due to record low interest rates, and to current homeowners looking for larger homes with the shift to remote work. Yun also believes this trend will lead to a secondary level of demand into the next year.

Pursuing the American Dream of Homeownership

Homeownership is a consistent goal in the pursuit of the American dream. It is often cited as the number one way that people can build wealth. The United States Census Bureau reports that the median net worth of homeowners is 80 times larger than the net worth of renters. Beyond building wealth, there are several economic reasons why people want to own a home, and several personal reasons.

Economic Reasons for Homeownership

  • Tax benefits let homeowners deduct mortgage interest, property taxes, and some home buying costs
  • Homes appreciate in value over time
  • Mortgage payments help homeowners build equity in a home
  • Equity in a home is a form of savings
  • Fixed-rate mortgage payments do not increase over the years

Personal Reasons for Homeownership

  • Freedom to make changes and upgrades
  • Stability helps reinforce neighborhood relationships
  • Desire for more space
  • Further distance from neighbors
  • Ability to pursue hobbies and interests more easily
  • Avoid dealing with security, pet, and utility deposits

The 2020 Best States for Homeowners

Home buyers will want to know the 2020 best states for homeowners so they can plan accordingly. SmartAsset recently published their sixth annual study on the 2020 best states for homeowners. The financial technology company analyzed several factors that home buyers may consider as they seek to purchase a new home. These factors include ten metrics that cover prices per square foot, costs for insurance, property taxes, closing costs, and other factors.

2020 Best States for Homeowners

  1. Wyoming
  2. Idaho
  3. Indiana
  4. Utah
  5. New Hampshire
  6. Massachusetts
  7. Maine
  8. Arizona
  9. Wisconsin
  10. Washington

Importantly, the study notes that homes appreciated in the five western states by over 5% on an annual basis the past year. Also, the three states in the Northeast rank high for low insurance costs and low burglary rates.

2020 Worst States for Homeowners

  1. Connecticut
  2. Illinois
  3. Texas
  4. Maryland (tie)
  5. Kansas (tie)
  6. California
  7. Louisiana
  8. New Jersey
  9. Delaware
  10. New Mexico

Of the 2020 worst states, metrics such as insurance, home appreciation, and effective property tax rate are comparatively less favorable than similar metrics in the 2020 best states for homeowners.

What Does This Mean?

Home buyers with the flexibility to locate in other markets should be aware of the 2020 best states for homeowners. As housing market demand continues to rise, buyers should work with knowledgeable and experienced real estate agents. Employers with new hires and transferees who are looking to purchase a home one of the 2020 best states for homeowners should work with a Relocation Management Company (RMC). RMCs that have knowledge and experience with relocations are ideal sources for information relating to local housing market requirements. They will also understand the reasons why employers should encourage transferees to buy instead of rent.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to provide solutions for their new hires and transferees who are looking to buy or sell a home. Our network of top agents market homes following industry best practices. As a result, they will help home buyers and sellers understand how to find and purchase homes in the 2020 best states for homeowners.

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.

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

Contact our experts online to learn more about the 2020 best states for homeowners, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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Talent Management Talent Mobility United States Economy

Working from Home with Kids: Helpful Tips and Ideas

Millennial generation father working from home with small children while in quarantine isolation during the Covid-19 health crisis. Little boy is two, little girl is four. Father has tattoos and a beard. Horizontal indoors waist up shot with copy space.

Many parents entering the school year may now be working from home with kids. Several school districts throughout the nation are using online classes during the COVID-19 pandemic. The ease of logging in to a classroom and listening to a teacher may sound appealing. However, for some parents there are new challenges to address that they did not have while working in an office or facility. Beyond managing their own time, now they must manage time for the kids. Also, many homes may not have been set up to create an ideal at-home learning environment.

GMS Experts Share Their Tips and Ideas for Working from Home with Kids

Similar to many of our clients and network partners, GMS has several employees who are parents and are currently working from home with kids. Many of these employees have had to learn how to manage the “new normal” of supervising their kids all day while also managing a full workload. We asked them if they would be willing to share their experiences. In this way, several of their best practice tips and ideas might help our clients, network partners, and their employees who are also working from home with kids.

GMS Experts: Working from Home with Kids

Ryan Burger, Proposal Manager

Sam Hoey, Senior Vice President, Business Development

Wesley Hurst, Director, Financial Services

Danielle Sanzobrino, Senior Vice President, Account Management

1. What is your current situation?

Listening in to Provide Guidance if Needed

working from home with kids

Ryan: We’ve got 2 girls in Kindergarten and 4th grade who have been learning in a virtual environment since the 2020 Spring Break began. Fortunately, both my wife and I are able to work remotely from our home offices on both floors of our house. We have the kids separated in their own working areas, one on each floor. As a result, this allows us to keep an ear out while they work with their classes on Microsoft Teams in the event of a technical issue, or if one of our girls needs some “redirection” to focus on the task at hand.

Zooming Along

Sam: We have two middle school girls who are on zoom calls most of the day. They have desks set up in their rooms with all the supplies they need. The downside to this though is that it can be very dangerous since I have caught both of them napping this week during a morning class.

Wesley: We have 4 kids (12, 9, 6, and 4). Currently they are doing distance learning where they have zoom chats with their teachers and classmates. Our youngest is at home with us working on Pre-K workbooks while the other kids are meeting with their teachers. Some kids are handling the added stress of distance learning better than others, but we all do the best we can.

Danielle: We have three children. Two in Middle School and one in High School. All three have online schooling three days a week, and in person schooling twice a week. The children log into a different zoom meeting for each class.

2. How you are juggling work time with supervision and/or teaching the kids’ time?

Ryan: To help keep the girls in the groove, we’ve come up with a pretty nifty schedule for them, with plenty of “brain breaks” throughout the day. These include times for them to step away from the computer, play in the back yard with our dogs, read a new book, FaceTime their friends, and maybe even unload the dishwasher every now and then (I’m still waiting for that to happen on its own). We’ve found that by segmenting their day in to dedicated times for learning and for having fun, they’re able to finish their “school day” on time.

Lunch with the Kids

working from home with kids

Throughout the day, my wife and I pop out of our respective offices every hour or so, or between meetings, to check in with them and make sure they’re staying on target and on schedule. Rather than working through lunch, as I’m apt to do, I’ve been stopping to eat lunch with the kids daily, which gives me to opportunity to spend some time with them in the middle of the day, talk about what they’re working on, and help them to plan out their afternoon. Connecting with the girls over lunchtime makes working from home with kids a fun experience.

To-do Lists

Sam: This can be challenging. I check in with both girls in the morning, at lunchtime, and then in the evening to help review their emails and To-do’s together. This helps us ensure that they are meeting deadlines and prepared for any upcoming tests.

Wesley: My spouse owns a business doing professional wedding photography, unfortunately with COVID-19 her business has slowed dramatically as weddings were canceled/moved. She has stepped into an additional role as teacher with this change. I wish we had a nickel for each time the kids have heard “Stay quiet dad is on a call!”…we might have enough to retire.

If Necessary, Contact the Teacher

working from home with kids

Danielle: I check in with the children at lunch and after school to ensure they understand their assignments and responsibilities. Any time there is a question that we can’t assist with the kids e-mail their teacher and cc me on the communication. We are lucky that our children are old enough that they don’t require constant supervision during the day.

3. What have you purchased or modified to help working from home with kids be as good as possible?

Ryan: A useful set of gadgets we’ve purchased that have helped in keeping the girls on task has been a handful of Amazon Echo Dots (which I lovingly call “wiretaps”). Small and unobtrusive, we’re able to set timers and reminders throughout the day for the kids. When my wife and I are both on conference calls, our Echoes can remind the kids to log in to their next meeting, or notify them that it’s time to take a brain break.

Tutoring Options

Sam: I have one daughter who has ADHD and has trouble focusing and another who has high anxiety about her advanced classes – two extreme different cases. I called the girls’ middle school and asked if there were any teachers who were interested in a tutoring gig. One of the teachers happily accepted the job and comes to our house a few days a week. Honestly, she’s the best therapy around since she is able to calm the situation, provide the advice from a teacher’s perspective and help with the math skills that my husband and I have forgotten how to do. I constantly tell her that she’s better than a fine glass of wine!

Retail Strategy Pays Dividends for Working from Home with Kids

working from home with kids

Wesley: We watched IKEA’s online stock like a hawk and when kid’s desks went on sale we ran to the store and bought one for each of them (under $50 for each!). Having their own little workspace has helped them get in the mood for school. Having over the ear headphones so they can tune out some of the ambient noise and focus on their lessons has also been very helpful.

Danielle: We are fortunate that each child already had a dedicated work space. We have placed limits on their I-Phone access during the school day. The only apps left on are school-related.

4. Can you provide any recommendations based on your experience that might help others in your situation?

Ryan: Set up a dedicated area for your children to do their work, preferably away from a family living area or where they spend the majority of their free time. We wanted our kids to have the ability to finish their school day and “walk out” of their physical learning area. Being able to close a real office door and walk into a space dedicated for family time has been an extremely successful element in my personal work/life balance so far in 2020. Allowing our kids to have a similar set up allows them to check out mentally for the day and go back to “just being kids.”

There’s Always Tomorrow!

Sun shining in the sky

Sam: When feeling overwhelmed, reach out to teachers, counselors and other parents for support. Everyone is in the same boat working from home with kids, and have all had frustrating days that don’t go very well. Take deep breaths and remember that tomorrow is a new day.

We are all in this Together

Wesley: I think remembering that this is hard for everyone is important. It can feel isolating when we are all struggling with our individual challenges. I think we need to extend grace to our teachers who are struggling as much or more than we are. I also think we need to give ourselves some grace too as we are all trying to deal with an unprecedented challenge.

Danielle: Plan each home school day as if your child was actually going to school. Have your children get fully dressed, make their beds, and pack a lunch.

5. Do you have any specific tips for managing the work hours versus school hours intersection?

Ryan: My advice is to set up a routine and stick to it. It may not look or feel glamourous, but a schedule is one of the few things you have complete control over during the madness of 2020. By generating a predictable, repeatable routine, you’re able to settle in and relax because you know exactly what you’re going to be doing next.

Woman with dark hair wearing a yellow sweater looking at computer working from home
Sam Hoey’s dog, Macy, dressed as a UPS delivery driver for Halloween

Walk the Dog for a Quick Break

Sam: When stress levels are high, I send the girls on a bike ride or outside to walk the dog. Taking a quick break and getting some fresh air and exercise works wonders. Also, a quick run to the Starbucks or Dunkin Donuts drive thru is another winner!

Alexa to the Rescue

Wesley: We have an Amazon Alexa upstairs and downstairs. The kids have learned to get in the habit of setting timers for themselves. For example, we might tell them for the next 45 minutes they need to focus and get their homework done. Helping them schedule dedicated time to specific tasks has been instrumental in all of us keeping our sanity.

Healthy and Nutritious Snack Options

Green, Yellow, and Red Apples

Danielle: We write out afterschool chores and snack options on a white board at the beginning of each week to help manage their down time. We do not ask the kids to start homework until their father gets home from work, typically between 5:30-6:00. That way they have some down time before evening activities begin.

What Should Employers do to Help Employees Working from Home with Kids?

Employers should encourage employees who are parents working from home with kids to develop optimal solutions to issues such as time management and productivity. Talent Management programs should take into account how remote workplaces might affect employee performance. Helpful resources should also be made available for employees.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients navigate issues that impact employees working at remote locations. As a result, our team can help your company share tips for parents who are working from home with kids. Remote work environments should be conducive to the employee’s health, welfare, and productivity.

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

Contact our experts online to discuss how your company can share tips for parents who are working from home with kids, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends United States Economy

Population Estimates Show Continuing Growth for Southern United States

Corporate relocation in the southern states

Through the end of 2019, the United States Census Bureau population estimates show continuing growth for many southern states. This growth is mainly reflective of domestic migration, with a secondary factor of natural increase (higher number of births over deaths). Overall, the southern region of the nation saw both the largest numeric growth and percentage growth from 2018 to 2019.

The impact of the COVID-19 pandemic may result in some variations for 2020 and beyond. However, the same factors that are driving current population estimates are most likely to continue affecting future growth. This has broad implications for corporate growth initiatives and talent acquisition.

Population Estimates Show Southern Region Growing, Other Regions Declining

The Southern region of the U.S. is growing faster than the nation as a whole. Overall, the southern region accounts for over 65% of the nation’s population growth from 2018-2019.

Region Total Growth Percentage Growth
United States 1,552,022 0.5%
South 1,011,015 0.8%

By comparison, the Northeast Region saw population decline over the same period by 63,817, or -0.1%. The Northeast did experience a population gain of 97,152 due to natural increase over this time period, as well as an increase in net international migration of 134,145. However, net domestic migration out of the Northeast in the amount of 294,331 led to the overall population decline. The loss of nearly 300,000 residents from the Northeast is significant, and may be due to a variety of factors.

Cities and Suburbs

Many states in the Northeast feature comparatively small cities and towns. For example, the state of Connecticut’s largest city is Bridgeport, with a population of about 144,399. Georgia’s largest city is Atlanta, with a population of about 506,811. Regions losing population often face other difficulties such as a declining tax base and diminishing economic prosperity.

Adding suburbs to the city’s population estimates may shed further light. Greater Bridgeport has an estimated population of 305,000, while the entire Bridgeport-Stamford-Norwalk-Danbury metropolitan statistical area has a population of about 948,000 residents. Atlanta, on the other hand, has an urban population of 4.5 million residents. Also, the Atlanta metropolitan area has over 5.6 million residents. The largest city and metropolitan region in Connecticut does not compare favorably to the economic growth, size, and vitality of the largest city and metropolitan region in Georgia.

What do Population Estimates Show for the Southern Region?

Of the top 5 states in total numeric growth in population estimates from 2018-2019, four are in the South, and one is in the Southwest:

Rank State Numeric Growth % Growth
1 Texas 367,215 1.3%
2 Florida 233,420 1.1%
3 Arizona 120,693 1.7%
4 North Carolina 106,469 1.0%
5 Georgia 106,292 1.0%

Clearly the South continues its long period of population growth, while other regions of the U.S. lag. This pattern will result in many changes, from political representation to the ability to fund major infrastructure projects.

Why do People Continue Moving to the Southern Region of the U.S.?

There are several reasons why people decide to move to a new location. In terms of general population trends in the U.S., a few factors often top the list:

1. Jobs

Not surprisingly, all five of the top ranking states for growth in population estimates also rank in the top 20% of states for job growth from 2018-2019.

2. Cost of Living

Each of the top ranking states have cost of living that is lower than half of the other states in the nation. Georgia in particular ranks as the 9th least expensive state for cost of living.

3. Weather

People looking for beautiful weather will find it at each of the top ranking states. Factors that determine a state’s ranking for weather include comfortable temperatures, dry weather, and at least 60% annual sunshine.

What Do Population Estimates Mean for Employers?

Employers should review their future growth plans to determine if certain locations may be more amenable for expansion and talent acquisition. Many states have been investing significantly in education, a key component for state prosperity. The U.S. Census Bureau reports that spending per pupil increased for the sixth consecutive year nationwide. Taking into account variations in cost of living, spending per pupil appears to be somewhat comparable among many states and regions.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients develop hiring and recruiting programs that attract highly skilled job seekers to meet corporate growth objectives. As a result, our team can help your company understand the importance of population estimates for states as they relate to talent acquisition and your company’s ability to attract new hires and transferees.

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

Contact our experts online to learn more about population estimates as they relate to corporate growth and talent acquisition, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Corporate Relocation Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends United States Economy

Texas Relocation: The Lone Star State Continues to Draw Companies

Welcome to Texas state road sign at the state border

Many companies have a Texas relocation as part of their corporate objectives. Trends show the state of Texas as a top destination for company facilities and corporate headquarters looking to relocate. These trends span quite a length of time. Companies leaving California have chosen to move to Texas more than any other state for each of the past 12 years.

Every state has many benefits for the companies that choose to relocate there. Some US cities and states offer a number of incentives for people to move as well. Southern California in particular is known for great amenities such as excellent weather, expansive and beautiful beaches, and the growth of dynamic industries. What is it about the Lone Star State that makes a Texas relocation so attractive for companies?

Benefits of a Texas Relocation

Companies looking at future trends and the possibility of relocation often consider several factors in their decision. Company location may determine future growth and business viability. For example, technology companies might need to consider a location with access to a highly educated workforce, capital markets, and critical infrastructure such as fiber optic technology for broadband internet service. Other companies may consider tax issues, or ways to increase corporate synergies following an acquisition.

What are the Factors That Make a Texas Relocation a Good Business Decision?

When it comes to a Texas relocation, companies consistently cite a few factors as critical to their decision. While taxes often make the news, other factors also have a significant impact on these decisions. Besides taxes, companies note housing affordability and livability for employees, utility costs, labor costs, and business regulations.

Texas Taxes

Texas has no state income tax. It also has no corporate income tax. These two taxes often are significantly burdensome in other states. For example, the corporate tax rate in California is 8.84%. However, Texas does has a form of gross receipts tax on businesses, the Corporate Franchise Tax. This tax rate is 0.75% of margin for most businesses, and a lower rate of 0.375% for businesses in the retail and wholesale industries.

Lone Star Livability

Livability is a somewhat subjective term. What makes one place more livable than another place? Examining a few key indicators can help shape a good perspective on livability. Wage differences should be considered with the cost of living in a location. State policies on health insurance may skew numbers—especially if the health insurance is not comparable to what is available in other markets.

One of the most important factors in any consideration of livability is the cost of housing. Overall, Texas continues to be one of the most affordable states for housing. Other states face a significant percentage of residents who want to move, often due to housing costs. Some states have already seen thousands of residents depart due to affordability and livability issues.

Lower Utility Costs Energize Texas Relocation

Electricity rates in Texas tend to be significantly lower than the national average. This holds true for residential, commercial, and industrial electricity rates. Natural gas rates are also lower than the national average in Texas. Texas also produces the most crude oil and natural gas in the nation.

Labor Costs in Texas

A large part of labor costs are the taxes employers pay. While salary and wages make up the majority of direct costs, payroll-related taxes can be considerable. Most of these taxes in Texas have comparatively low minimums. As a result, employers pay less overall in payroll-related taxes in Texas than they would in other states. Also, the vast majority of Texas counties have wages that are lower than the national average.

Business Regulations Drive Texas Relocation

Texas consistently ranks in the number one position for its business-friendly climate. The Small Business and Entrepreneurship Council reports that Texas leads all states when it comes to both its policy and tax environments.

Top 10 States on the Policy Index 2019Top 10 States on the Tax Index 2019
1. Texas1. Texas
2. Nevada2. South Dakota
3. Florida3. Nevada
4. South Dakota4. Wyoming
5. Wyoming5. Florida
6. Indiana6. Washington
7. Utah7. Ohio
8. Alabama8. Colorado
9. Arizona9. Alaska
10. Washington10. Alabama

Source: Small Business and Entrepreneurship Council.

What Does a Texas Relocation Mean for Employers?

Companies may consider relocating their headquarters or other facilities for a number of reasons. Most companies consider factors such as regulations, taxes, and livability as they examine a possible Texas relocation. As a result, Texas consistently rises to the top of the list due to several factors. These include lower tax rates, low energy costs, lower costs of labor, favorable cost of living, and business-friendly policy and tax environments.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop plans and processes to ensure a successful and efficient corporate relocation. As a result, our team can help your company with its planning and research for a possible Texas relocation.

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to learn whether a Texas relocation would be a good move for your company, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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Employee Development Job Market Job Seekers Labor Force Talent Management United States Economy

Inclusive Employment: Necessary for Talent Acquisition and Future Corporate Growth

Handicap businessman discussing while sitting with colleague in creative office

Employers in the US should review their talent acquisition programs to ensure they focus on inclusive employment. With the signing of the United States-Mexico-Canada Agreement (USMCA), the US economy is poised for higher growth and an expansion of jobs.

Tight Labor Market Issues Make Case for Inclusive Employment

Currently, the US economy appears to be close to full employment. However, there are millions of working age adults who are not participating in the workforce. Over 90 million Americans are of working age but not working. While some of these adults are in retirement, large numbers may not be working due to other factors, such as:

  • Enrollment in school
  • Participating in job training programs
  • Providing home care for children or relatives
  • Unable to work due to disability or illness

According to Pew Research, additional factors influencing participation in the labor market include:

  • Lower numbers of teens participating in the workforce
  • Higher numbers of workers age 55 and older working and looking for jobs
  • Significant numbers of Americans are self-employed

US Economic Performance Requires Inclusive Employment

US economic performance is healthy with a forecast for continuing steady growth. Recent forecasts may not have taken into account the signing of the USMCA. This trade agreement may add significantly to the US economy’s future growth over the next several years. The United States International Trade Commission report, “U.S.-Mexico-Canada Trade Agreement: Likely Impact on the U.S. Economy and on Specific Industry Sectors” indicates the following:

  • S. real Gross Domestic Product (GDP) will rise by $62.2 billion (0.35 %)
  • S. employment will rise by 176,000 jobs (0.12 %)
  • Positive impact on U.S. trade with USMCA partners and rest of the world
  • Increases in wages, exports, employment, and output
  • Several industry sectors including manufacturing and services will benefit

What is Inclusive Employment?

Inclusive employment is often thought of with respect to individuals with disabilities. However, as noted by Johnny C. Taylor, Jr., SHRM-SCP, President and CEO of SHRM, the Society for Human Resource Management, an expansive definition of inclusion would cover many other individuals who may not have actual physical disabilities. A company that takes an expansive view of its workforce may dramatically increase the size of its prospective talent pool.

Individuals with Disabilities

The Professional Fellows Program on Inclusive Disability Employment notes that Inclusive Employment “…refers to individuals with disabilities working alongside their peers without disabilities in the competitive labor market (with access to the same benefits and career opportunities).”

  • Inclusive employment for individuals with disabilities provides many benefits for them:
  • Placement in a high-quality employment environment that may allow career advancement
  • Opportunity to become financially independent
  • Societal inclusion from an early age leads to acceptance and respect
  • Expands their range of skills, friendships, and interactions with others to help promote independence

A joint study by the Illinois Department of Commerce and Economic Opportunity and DePaul University identifies several benefits of workers with disabilities, including:

  • Participants with disabilities from the retail and hospitality sectors stayed on the job longer
  • Across all sectors, participants with disabilities had fewer scheduled absences
  • Retail participants with disabilities had fewer days of unscheduled absences

The U.S. Department of Education’s Office of Special Education and Rehabilitative Services has developed several resources to assist employers in developing inclusive employment practices. A new video on recruiting, training and employing individuals with disabilities highlights the success of CVS Health and their inclusive employment initiative.

Veterans

According to HRTechnologist, “When it comes to fostering diversity & inclusion (D&I) in the workplace, campaigns for hiring veterans are an absolute must-have.” Veterans often have many skills that are highly valuable to companies. As a result, an inclusive onboarding process for veterans and transitioning service members is a valuable resource for talent acquisition programs. Additionally, many veterans may also have service-connected disabilities. Many of these individuals share the same traits as able-bodied veterans, including:

  • Job-ready skills
  • Tested leadership abilities
  • Mission-focused work ethic

The U.S. Department of Labor promotes the hiring of veterans and inclusive employment initiatives with their Veterans’ Employment & Training Service (VETS) program. VETS helps veterans and service members that are leaving active duty in several ways:

  • Providing assistance to employers to find qualified transitioning service members and veterans
  • Employer Toolkit designed to assist and educate employers in their recruitment and hiring initiatives
  • HIRE Vets Medallion Program recognizes employers
  • Providing employment policy and compliance information for veterans and service members
  • Resources for Registered Apprenticeship programs to ensure those eligible can receive GI Bill benefits

Formerly Incarcerated Individuals

Individuals transitioning from incarceration to communities face challenges in finding employment. According to Prison Policy Initiative, the unemployment rate for formerly incarcerated people is nearly five times higher than the unemployment rate for the general United States population.

However, research also shows that companies with inclusive employment that promotes hiring of these individuals may benefit in several ways:

  • Military enlistees with criminal records were promoted more quickly and to higher ranks than other enlistees
  • Call center employees with criminal records had longer tenure and were less likely to quit
  • “Ban the box” laws prevent employers from asking about criminal histories on initial job application forms and require they make hiring decisions based on merit and the relevance of prior convictions to particular jobs results in hired applicants with criminal records who exhibit a lower turnover rate than those with no records

Research shows that companies can make a significant amount of money through an employee’s longer tenure. Turnover among staff costs companies a significant amount of money, time, and resources. Ultimately, employers should choose the candidate that is best for the job whether they have a criminal record or not.

Employers and Managers Support Inclusive Employment of Formerly Incarcerated Individuals

A survey conducted by the Society for Human Resource Management (SHRM) and the Charles Koch Institute (CKI) to better understand how people in the business community viewed hiring those with criminal records found:

  • 74% of managers are willing or open to hiring individuals with a criminal record
  • 84% of HR professionals are willing or open to hiring individuals with a criminal record
  • Over 80% of all groups surveyed are willing and open to working with individuals with criminal records
  • Only a small minority were unwilling to make the hire or work alongside these individuals

Companies such as Greyston Bakery in Yonkers, New York, have seen significant success with “Open Hiring®” and focusing on training and apprenticeship programs. The company has employed thousands of formerly incarcerated individuals.

Facility Programs Provide Valuable Skills to Support Inclusive Employment

Many individuals learn valuable job skills during their incarceration. For example, Unicor is the current name of the Federal Prison Industries program that was established by President Franklin D. Roosevelt in 1934. Unicor prepares inmates with job training and practical work skills for their successful reentry to the workforce.

Unicor notes there are several incentives and benefits available to companies that hire former offenders:

What Should Employers do About Inclusive Employment?

Employers should understand the value of inclusive employment. They should also consider examining their current corporate structures and employment situations as they relate to diversity and inclusion. Employers should determine how inclusive employment initiatives in talent acquisition and management may increase their ability to reach corporate objectives.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients develop hiring and recruiting programs to attract highly skilled job seekers through inclusive employment initiatives. As a result, our team can help your company by using industry best practices to design your relocation program. This will increase your company’s ability to attract and retain new employees with a focus on inclusive employment.

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

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

Contact our experts online to learn how inclusive employment can benefit your company’s recruiting, hiring, and relocation program, or give us a call at 800.617.1904 or 480.922.0700 today.

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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 Tips Domestic Relocation Trends Job Seekers Talent Mobility United States Economy

2019 Migration Patterns: Where are People Moving To in the United States?

City of trees Boise Idaho with fall colors

A recent study by United Van Lines of 2019 migration patterns in the United States shows which states people are moving to. According to the study, the top 5 states experiencing the highest rates of inbound migration are:

Top 5 States Growing due to 2019 Migration Patterns

  1. Idaho
  2. Oregon
  3. Arizona
  4. South Carolina
  5. Washington

The state of Idaho moves up from #3 to #1 for 2019 migration patterns as the state with the most inbound moves. The state of Vermont actually experienced a higher percentage of inbound moves than Idaho. However, the study’s focus was limited to states where United Van Lines moved at least 250 families.

Trends Driving 2019 Migration Patterns

Examining a number of local as well as national trends and how these trends impact each state helps explain these patterns. For example, over 45% of United Van Lines’ inbound moves were for baby boomers, ages 55-74. What are the trends driving 2019 migration patterns?

Retirement

Many of Idaho’s inbound movers were aged 55-74. Movers in this age range are from the baby boomer generation, and are moving for retirement reasons. For most retirees, Idaho is seen as a tax-friendly state that does not tax social security income. However, other forms of income are taxable. Balancing this out is the relatively low property taxes in the state. Additionally, Idaho has a “circuit breaker” that lowers property tax bills by up to $1,320 for homeowners who meet specific criteria, including:

  • Seniors age 65 or older
  • Own and occupy their home
  • Health and ability issues
  • 2019 income less than $30,450

State Economic Performance

The forecast for Idaho’s economic performance continues to be positive. A major contributing factor is population growth due to 2019 migration patterns. Also, the state has a strong job market with a diverse employment base. The personal income growth for Idaho is projected at or above 4.5%. As a result, increasing discretionary income leads to higher levels of purchasing power and upward growth in local jobs.

Cost of Living

The cost of living in Idaho is 2.3% lower than the US average, according to Sperling’s Best Places. 2019 migration patterns show that people often move to places with lower costs of living. Residents of Idaho benefit from generally lower costs in several categories including groceries, health, utilities, transportation, and miscellaneous costs.

However, with the increasing population, housing costs are rising in Idaho. The Idaho market is seen as “Very Hot” according to Zillow. Home prices have risen over 10.1% in 2019, and Zillow predicts another rise of 5.8% for 2020.

What Do 2019 Migration Patterns in the United States Mean for Employers?

Employers in the states of Idaho, Oregon, Arizona, South Carolina, and Washington benefit from 2019 migration patterns that draw an increasing number of new residents. Expanding industries produce increasing job opportunities. As a result, communities grow and need services such as real estate, health programs, and insurance. Demand for employees may be particularly strong especially during tight labor markets.

What should Employers do?

Employers in locations that benefit from 2019 migration patterns in the United States should review their company’s growth plans and requirements for jobs across all levels of skill sets. They should also determine how their company’s growth plans will impact the jobs required to meet business plans and goals.

2019 migration patterns in the United States may lead to a growing local population and potential future workforce. Since the nation is experiencing low unemployment, employers should review their talent acquisition and management programs to ensure they remain competitive to attract and retain new hires and transferees. Relocation Management Companies (RMCs) can provide expert assistance to employers to benchmark their relocation policies and add enhancements that attract talent.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees. Our team can help your company determine how to leverage 2019 migration patterns in the United States for talent acquisition and management.

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

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

Contact our experts online to discuss your company’s relocation program needs. Give our experts a call at 800.617.1904 or 480.922.0700 today.

 

We're Here to Help! Request a Courtesy Consultation

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

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Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends United States Economy

What Does the 2020 US Rental Market Look Like?

A scene from Downtown Scottsdale at dusk with a canal and reflections in the foreground. Scottsdale is part of the Phoenix Metropolitan area.

Employers with plans to relocate employees either to US cities or between two different US cities should be sure to understand the 2020 US rental market dynamics. Each rental market is unique, and rents vary depending on a variety of factors. The number of units available for rent, business and economic growth, and even weather and climate patterns can impact rents. A regular review of the state of the 2020 US rental market can uncover opportunities for transferees to consider new assignments as different markets experience changes in rental affordability.

2020 US Rental Market on a National Basis

For the 2020 US rental market, CBRE Research identifies the following top 4 major metropolitan areas for continuing rental market demand:

  • Atlanta, Georgia
  • Austin, Texas
  • Boston, Massachusetts
  • Phoenix, Arizona

Specifically, multifamily rents in suburban locations will rise faster than those in central urban cores due to stronger demand within high-growth areas.

On a national basis, rents over the past year are 1.4 percent higher, less than the current 1.8% overall rate of inflation, and less than the average hourly earnings rate increase of 3.0 % over the past 12 months, according to an analysis prepared by online rental marketplace ApartmentList.com.

2020 US Rental Market Large Cities with Fastest Rising Rents

The fastest rising rents for the 2020 US rental market among large cities is the city of Mesa, Arizona, heading into 2020 after experiencing an increase of 5% over the past year. This rate of growth is more than three times the national rate of rent increases. Why is Mesa experiencing such a fast increase in rents?

According to the Rental Housing Journal, renters looking to move to the Phoenix metropolitan area are most likely to be searching from the city of Los Angeles, California. Residents of Los Angeles appear to be relocating to Arizona rather than commute from more affordable locations in California.

Inland Empire cities such as Moreno Valley, Riverside, and San Bernardino all offer more affordable housing options than Los Angeles. Many of these cities are highly desirable locations to live, work, and raise a family. However, commuting times to work from these cities are often lengthy and filled with delays. Over 53% of Moreno Valley residents experience commuting time over 30 minutes. Comparing Moreno Valley commute times to the US average shows that residents of Moreno Valley consistently face longer commuting times:

Commute Time Comparison Over 30 Minutes: Impacts the 2020 US Rental Market

 Moreno Valley, CaliforniaUS Average
Commuting 30 to 34 minutes17.5%13.7%
Commuting 35 to 39 minutes4.0%2.9%
Commuting 40 to 44 minutes5.0%3.9%
Commuting 45 to 59 minutes9.8%8.1%
Commuting 60 to 89 minutes9.7%6.2%
Commuting more than 90 minutes7.4%2.7%

What Makes Mesa, Arizona a Top Location for the 2020 US Rental Market?

Job Growth

Among large US cities, Mesa is uniquely positioned in the state of Arizona to capitalize on a number of factors. Proximity to Phoenix is key, with Mesa being only 15 miles to the east. Also, the city of Scottsdale, a major job hub and generator, is just 12 miles to the north. In 2019, Scottsdale ranked as the #1 best city to find a job according to CNBC Make It.

Mesa, Phoenix, Scottsdale, and many other cities in the metropolitan area are experiencing tremendous growth in jobs, impacting the 2020 US rental market. As noted by Arizona Governor Doug Ducey, the state of Arizona ranks #2 in the US for year-over-year job growth, according to the US Bureau of Labor Statistics. Sperling’s Best Places reports that Mesa has seen its job market increase by 3.3% over the past year. Additionally, future job growth in Mesa is projected to be 47.1%, much higher than the US average of 33.5%. Growth in jobs is a driving factor for rising rents in the 2020 US rental market.

Cost of Living Impact on 2020 US Rental Market

The cost of living in Mesa is just 4% higher than the average cost of living in the US. The average cost of most consumer items including groceries, health, utilities, and miscellaneous items is at or below the US average, so the 2020 US rental market reflects strong demand. Mesa’s cost of living compares favorably with many other nearby cities such as Chandler, Gilbert, Scottsdale, and Fountain Hills.

Population Growth

As the Phoenix metropolitan area’s jobs and economy continue to grow, more residents are drawn to Mesa. As a result, the 2020 US rental market analysis clearly shows demand for housing places upward pressure on rents.

The city of Mesa as well as private developers are actively pursuing several construction projects that will increase the number of rental units. The city is constructing a building downtown in an effort to attract Arizona State University classes by spring of 2022. According to investors, Mesa is seen as “next” in line for development, since the city has light rail service, and is centrally located to many other Valley destinations.

Following Mesa in the rising rent category for large cities are Henderson, Nevada (suburb of Las Vegas) at 4.3%, and Phoenix, Arizona at 3.9%, due to increasing job growth and continually expanding populations.

2020 US Rental Market Areas with Declining Rents

The largest decline in rents (2% or more) is occurring in these three US cities:

  • Dearborn Heights, Michigan: -5.2%
  • Pascagoula, Mississippi: -2.3%
  • Bismarck, North Dakota: -2.0%

Dearborn Heights, Michigan is a suburb of Detroit. It ranks as #31 in the best places to raise a family in Wayne County, Michigan. The city is experiencing a weak job market and other quality of life issues that negatively impact its rental market.

Pascagoula, Mississippi has been experiencing a decline in population, matching a decline that has been persistent across the state of Mississippi for several years. By comparison, Bismarck, North Dakota, the state’s capital city, is experiencing a stronger and stable housing market that appears to be drawing residents toward single-family homes. As a result, the 2020 US rental market for Bismarck shows a trend away from apartments. Also, jobs are slightly declining in Bismarck so there is little upward pressure on rents.

Conclusion

GMS’ team of domestic relocation experts has helped thousands of our clients understand how to respond to changing rental market dynamics. Our team can help your company determine how to leverage the 2020 US rental market for transferees.

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

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

Contact our experts online to learn more about how the 2020 US rental market might impact your company’s corporate growth initiatives, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

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

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Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Job Market Job Seekers Labor Force United States Economy

Federal Agency Relocation to Move Jobs Outside the Beltway

A new Bill sponsored by two United States Senators will result in federal agency relocation outside of the Washington, D.C. beltway area. The Bill calls for enactment of the “Helping Infrastructure Restore the Economy (HIRE) Act.” One goal of the HIRE Act is to help certain areas of the country build necessary infrastructure. As a result, this will support future economic growth. Another goal of the HIRE Act is to provide access to good jobs for a greater number of Americans throughout the nation. Several states will see an influx of high paying jobs to economically distressed areas.

The HIRE Act will move policymakers directly into communities impacted by their policies. This should help them see how policies their agency creates affect local areas outside of the beltway. There may also be long term savings for the agencies in a number of other areas including labor, maintenance, and energy costs.

Federal Agency Relocation: The Bill and its Sponsors

Bill:

Helping Infrastructure Restore the Economy (HIRE) Act

Requires federal agency relocation for headquarters and permanent duty stations of its employees.

Sponsors:

Senator Josh Hawley, Missouri

Senator Marsha Blackburn, Tennessee

Ten Agencies Subject to the HIRE Act

The HIRE Act identifies ten federal agencies that may be subject to relocation:

The Departments of

  1. Agriculture
  2. Commerce
  3. Education
  4. Energy
  5. Health and Human Services
  6. Housing and Urban Development
  7. Interior
  8. Labor
  9. Transportation
  10. Veterans Affairs

Ten States Stand to Benefit from Federal Agency Relocation

The HIRE Act identifies ten states with significant economic distress over the past decade:

  1. Indiana
  2. Kentucky
  3. Michigan
  4. Missouri
  5. New Mexico
  6. Ohio
  7. Pennsylvania
  8. South Carolina
  9. Tennessee
  10. West Virginia

Of these ten states, eight share borders and are situated in the Midwestern region of the country. South Carolina is located along the Southeastern coast, and New Mexico is located in the Southwest.

Economically Distressed Areas Defined

The HIRE Act defines the criteria that will determine economic distress. These criteria are further segmented into “Priority Criteria” and “Secondary Criteria.”

Priority Criteria include low rates of education, workforce participation, and income. Poverty rates and housing vacancies are also in this criteria.

Secondary Criteria include current infrastructure, ability to expand infrastructure, and the size of the local workforce.

Additional Points for Federal Agency Relocation

Further to the criteria that determines economic distress, the HIRE Act includes a specific limitation:

  • No location may be within 30 miles of a city with over 800,000 residents

The HIRE Act requires the relocation proposal to focus on as small a geographic size as possible. For example, within the state of Indiana, “southern Indiana” would most likely be considered too large a geographic size. However, the town of Lyons in Greene County may qualify.

Federal Agency Relocation Example: Lyons, Indiana

Economically Distressed Area

Lyons has a “Distress Score” of 123.23, the highest such score in Indiana. Lyons is about 87 miles from Indianapolis, IN; 260 miles from Chicago, IL; and 95 miles from Evansville, IN. However, Lyons is only about 50 miles from Terre Haute, IN (60,000 residents). Lyons is also about 50 miles from Bloomington, IN (85,000 residents). As a result, there are two cities of substantial size within less than an hour’s drive for residents of Lyons. Lyons appears to meet the geographic limitation of the HIRE Act.

Workforce and Infrastructure

While Lyons’ population is approximately 700 residents, Greene County has about 32,000 residents. Lyons is also near two major Interstate Highways: I-70 is to the north, and I-69 is to the south. U.S. Highways 150 and 231 are also nearby. The county’s workforce size may suffice for federal agency relocation. Depending on the definition of infrastructure, highways and airports near Lyons may also meet the HIRE Act’s criteria.

Opportunity to Double the Impact of a Federal Agency Relocation

The town of Switz City has a “Distress Score” of 120.97, the second highest such score in the state. Switz City is located only about 4 miles from Lyons. Federal Agency Relocation to Greene County Indiana near or between the towns of Lyons and Switz City initially seems possible. A federal agency setting its headquarters and job location for employees in this area would have a positive economic impact on the two towns in the state of Indiana with the highest Distress Scores. The HIRE Act notes that Health and Human Services would relocate to Indiana. This federal agency relocation could result in the move of thousands of employees to this region.

What Should Employers do?

Employers in the ten states identified as economically distressed by the HIRE Act should expect a rise in demand for workers due to federal agency relocation. Companies should examine their corporate growth initiatives to ensure they can remain competitive as the local labor market changes.

Companies that interact with federal agencies in their current location should review their relocation programs. Employers may need to consider relocation for employees to be near the agency’s new headquarters location.

Industry Benchmarking Studies Help Employers Compare Their Relocation Program

GMS has recently published several Industry Benchmarking Studies to help employers learn whether their company’s relocation program is designed following industry-specific best practices. There are many benefits to a corporate relocation policy benchmarking.

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

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to respond to labor and economic market forces such as federal agency relocation. Our team can help your company by using industry best practices to design your relocation program.

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

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

Contact our experts online to discuss your company’s interest in learning more about federal agency relocation due to the HIRE Act and its impact on local areas and labor markets, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Corporate Relocation Corporate relocation tips Domestic Relocation Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends Household Goods United States Economy

Tri-State Regional Economy May Encourage Relocation Opportunities

The tri-state regional economy encompassing New York, Connecticut, and New Jersey may encourage future relocation opportunities. This area includes large swaths of southeastern New York, as well as parts of the Hudson River Valley. It also includes the western end of Long Island, northern New Jersey, and southwestern Connecticut.

This large and dynamic metropolitan area accounts for nearly 10% of the United States entire Gross Domestic Product (GDP). Within the state of New York, the city of New York serves as the center of activity. As a result, commuting patterns across the area reflect the draw of New York City as an engine of job growth.

Tri-State Regional Economy: Industries

Several industries maintain a major global presence in New York City and throughout the metropolitan region, including:

Annually, the overall tri-state regional economy produces goods and services valued at $1.5 trillion. This is more than most other nations, placing this region within the world’s twenty largest economies.

Tri-State Regional Economy: Housing

The cost of living in New York City is 148% of the US average, making it the most expensive. The largest component of this cost of living is the cost of housing. Demand for housing near employment centers tends to drive up its cost. The tri-state regional economy reflects significant differences in housing costs. These costs often vary widely based on several factors including proximity to New York City, access to transportation networks, variety and availability of the local housing stock, amount of household goods to move, local neighborhood amenities, and overall desirability of the location.

Median Home Values (reported by Zillow/October 2019)

New York City/Manhattan: $1,190,800

Hudson River Valley/Sleepy Hollow: $730,800

Western Long Island/Hempstead: $375,300

Northern New Jersey/Englewood: $381,200

Southwestern Connecticut/Stamford: $284,800

Apartment Rents (reported by RentCafe/October 2019)

New York City/Manhattan: $4,336

Hudson River Valley/Sleepy Hollow: $2,046

Western Long Island/ Hempstead: $1,877

Northern New Jersey/Englewood: $2,322

Southwestern Connecticut/Stamford: $2,459

Industry Growth Leads to Outsize Commuting Patterns

The tri-state regional economy is highly diverse. This diversity benefits the area’s overall growth, as job seekers can easily find opportunities. Commuting patterns reflect the status of New York City as the region’s engine for jobs. The state of New York taxes income that commuters from New Jersey and Connecticut make from jobs they hold in New York. As a result, the New York state government gains significantly more tax revenue.

Nonresidents account for approximately 15% of total income taxes owed to New York, in the amount of $6.2 billion. Of this $6.2 Billion:

  • New Jersey residents account for $3.1 Billion, 50% of the total
  • Connecticut residents account for $1.2 Billion, nearly 20% of the total

Financial Impact on Commuters in the Tri-State Regional Economy

Due to differences in tax rates and other factors, the financial impact on commuters into New York may be difficult to discern. Some states give credit for taxes paid to other jurisdictions. However, the state of New York does not offer any credit for commuters.

New York City generates a large number of high-paying jobs, and wages for many occupations are higher in the city than elsewhere around the tri-state regional economy. Residents in New Jersey and Connecticut who obtain jobs in New York City may initially look at the cost of a train ticket or a few added toll costs as their only additional expense. However, the true costs may include:

Direct Costs

  • Parking costs at transportation system lots
  • Train, subway, or bus ticket costs
  • Car maintenance costs for driving to lots or into the city
  • Toll costs
  • Automobile insurance costs
  • Extra tax liability to New York State government
  • Extra tax liability to New York City government
  • Higher costs for food and drinks purchased in New York City
  • Increased taxes on goods purchased in New York City
  • Higher costs for employee’s share of employer-provided benefits

Indirect Costs

  • Loss of time for family and social obligations due to increased length of commute
  • Increased exposure to occupational stress factors such as crowds and noise
  • Higher tendency to develop stress-related illness

Some estimates of the true costs of commuting indicate a cost of $795 or more for each mile someone lives from their job. Assuming someone’s job is at 14 Penn Plaza, 225 West 24th Street, in New York City, estimates from these locations following the fastest route using Google maps might indicate the following:

New York City/Manhattan: 2.9 miles, $2,305.50

Hudson River Valley/Sleepy Hollow: 28.8 miles, $22,896.00

Western Long Island/Hempstead: 27.3 miles, $21,703.50

Northern New Jersey/Englewood: 14.7 miles, $11,686.50

Southwestern Connecticut/Stamford: 40.5 miles, $32,197.50

Relocation Opportunities in the Tri-State Regional Economy

Relocation Outside the Region

Employers that have large numbers of workers who commute into New York City should determine if the company can benefit from relocation. Advances in technology permit many functions to be easily and seamlessly performed regardless of location. Many firms based in New York City or that have significant operations there have embarked on similar initiatives, hoping to leverage technology while reducing costs. Relocation may include global destinations such as the country of Poland or domestic destinations such as Salt Lake City, Utah.

Relocation Within the Region

Even within the tri-state regional economy, relocation might be local in nature. It may include moving corporate functions from New York City to New Jersey or Connecticut. Alternatively, it may include moving those functions from these states to New York City. For example, Diageo is relocating from Norwalk, Connecticut, to New York City, to help the firm find a stronger base of employees with marketing talent. Wright Investors’ Service is relocating from Greenwich, Connecticut, to Shelton, Connecticut, because many of the firm’s employees live in that area and the move will help the company reduce long in-state commuting patterns. Credibility Capital relocated from New York City to Newark, New Jersey with the aid of a significant state incentive in the amount of $6.5 million.

What Should Employers do About the Tri-State Regional Economy?

Companies in the tri-state regional economy should examine their need to maintain operations in a specific location. For example, some companies have operations that function in a distinct location such as the New York Stock Exchange. There may be opportunities to utilize relocation for operations that support the positions that remain tied to this location. As a result, both the organization and many employees may benefit from reduced direct and indirect costs related to commuting patterns

Companies should also work with a qualified and experienced Relocation Management Company (RMC). RMCs can help companies design a robust talent acquisition program. Also, RMCs can help a company design an industry-leading relocation program that will give them a competitive advantage in the market for highly skilled employees.

Industry Benchmarking Studies Help Employers Compare Their Relocation Program

GMS has recently published several Industry Benchmarking Studies to help employers learn whether their company’s relocation program is designed following industry-specific best practices. There are many benefits to a corporate relocation policy benchmarking. For example, employers can learn how their relocation program compares to those offered by competitors in their specific industry.

Companies that relocate to gain access to a base of talent with knowledge and skills should review their relocation program to ensure that at a minimum it matches what competitors provide. RMCs may provide specific recommendations to help the company’s relocation program excel in talent acquisition based on specific industry practices.

Industry best practice is to schedule a relocation program and policy review every 12 to 18 months to ensure your company maintains its competitive position. This review will also help your company learn about how the relocation industry is evolving to meet increased employee demands. Importantly, it will also include a review of commuting costs and patterns in the tri-state regional economy.

Conclusion

GMS’ team of corporate relocation experts has helped thousands of our clients understand how to leverage relocation in the tri-state regional economy to gain benefits, reduce costs, and attract and retain talent. Our team can help your company by using industry best practices to design your relocation program. This will increase your company’s ability to attract and retain new employees.

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

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

Contact our experts online to discuss your company’s interest in learning more about relocation opportunities in the tri-state regional economy, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Domestic Relocation Domestic Relocation Trends Talent Mobility United States Economy

United States Demographic Trends and Immigration Patterns

A recent report by the Economic Innovation Group describes United States demographic trends. As a result of these trends, several of the country’s cities, counties, and states experience declining population. Declining population negatively impacts economic growth in several ways:

Impacts of Declining Population

  • Housing market demand falls
    • Downward effect on home prices
  • Local government finances decline
    • Higher taxes to maintain current level of government services
    • Reduction in government services
  • Population of working age adults declines
    • Productivity falls
    • Economic opportunities stagnate
    • Reduced business startups

United States Demographic Trends: States and Territory Losing Population

According to the United States Census Bureau, nine states and one territory lost population in 2018. While the nation’s total population grew by 0.6%, the following states and territory experienced significant declines:

  • Puerto Rico: -129,848 -3.91%
  • New York: -48,510 -0.25%
  • Illinois: -45,116 -0.35%
  • West Virginia: -11,216 -0.62%
  • Louisiana: -10,840 -0.23%
  • Hawaii: -3,712 -0.26%
  • Mississippi: -3,133 -0.10%
  • Alaska: -2,348 -0.32%
  • Connecticut: -1,215, -0.03%
  • Wyoming: -1,197 -0.21%

Of particular note, Puerto Rico’s population has been declining over the past decade. However, Hurricane Maria in 2017 accelerated the population decline even during the recovery period.

Counties with Declining Population

The Economic Innovation Group reports that all states have areas with declining population. As a result of uneven population growth as well as migration patterns, the United States demographic trends from 2007 to 2017 resulted in:

  • 50% of states losing working age population
  • 43% of counties in the average state losing population
  • 76% of counties in the average state losing working age population

Possible Solution for United States Demographic Trends

There is a possible solution that might help states and counties experiencing population decline. For example, a visa program that specifically targets immigration to these places with a range of incentives might bring new residents. Highly skilled immigrants currently gravitate to leading tech centers such as San Francisco, Washington D.C., and Boston/Cambridge.

A “Heartland Visa” program as described in the Economic Innovation Group’s report might provide incentives for other areas of the country to benefit from highly skilled immigrants. Canada actively pursues immigration as a solution to temper the effects of an aging population, and to ensure future success from immigrant’s contributions. Ontario province is seeking to attract highly skilled immigrants to smaller cities and towns. A similar program might help alter United States demographic trends so that states and counties losing population could lessen its impact, if not reverse the trends.

What Should Employers do?

Employers in locations experiencing population decline due to United States demographic trends should investigate all of the current United States visa programs. They also might consider advocating for a targeted visa program with incentives that would encourage highly skilled immigrants to migrate to their specific area.

Employers should also review their talent acquisition and management programs to ensure they remain competitive to attract and retain new hires and transferees. Relocation Management Companies (RMCs) can provide expert assistance to employers to benchmark their relocation policies and add enhancements that attract talent.

Conclusion

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

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

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

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s relocation and visa program needs. Since United States demographic trends may result in challenging employment situations, companies should verify their relocation program supports talent acquisition. Give our experts a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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15333 N. Pima Road
Scottsdale AZ, 85260

1.800.617.1904 

Available 24/7/365

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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

Accessibility by WAH

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