How Relocation Can Solve the Current Global Talent Shortage

by WHR Global | Dec 26, 2017 | News

If your company has been experiencing a talent shortage, it’s not alone. Technology and increased mobility have combined to shift worker populations across borders, leaving whole industries barren of employees and facing empty candidate pools. The situation, however, has opened the door to national and international recruitment strategies that are proving to be very successful. Establishing a relocation plan for your new employees reduces the stress that they experience during their move to your community.

A Dearth of Workers

Around the world, managers are reporting a global talent shortage, with 40 percent of respondents to a 2016 survey saying they haven’t seen a challenge this great since 2007. The survey polled over 42,000 employers in Europe, the Middle East, Asia and the Americas about who they are looking for and the skills they need.

Almost half (46 percent) of Asian companies were experiencing hiring difficulties, compared to 36 percent in Europe and the Middle East, and 42 percent in the Americas.
Skilled trade positions remained in highest demand, a trend that has continued over the past five years. Traditionally poor opinions about the value of the skilled trade industries remain persistent across the globe, which causes many young people to steer away from those career opportunities. However, the interconnected global economy has generated strong building and manufacturing industries in many countries, many of which struggle to fill their open positions in time to complete their current and future contracts.
The second most sought-after worker is the information technology and technical employee. Demand for these highly trained staffers is highest in Asia, and IT jobs are the 10th hardest to fill in the U.S.
Engineers, drivers, accountants, managers and operations professionals are all highly sought after in every corner of the world.

Worker Shortage Requires Innovative Recruiting Strategies

The worker shortage has compelled many companies to re-evaluate their hiring strategies, especially if those had traditionally relied on hyperlocal or in-house hiring practices. When there are no “local” candidates, however, corporations must then determine how to canvass a larger, potentially global region for appropriate employee opportunities. Those that include and advertise an attractive relocation incentive in their employment ads can attract a wider, deeper pool of candidates.

For many companies, that new hiring strategy requires intense analysis of what the role is expected to produce and how to best match that need with potential candidates:

Does it require comparable experience over foundational education or the opposite?
Must the skill base match exactly with the expected position? Or can comparative skill be used to enhance or improve on previous expectations?
What are the short-, mid- and long-term goals for the position? Are there advancement opportunities? Will there be additional training expected or offered? How does this specific position factor into the company’s succession planning or future growth activities?

Experts assert that matching the company’s culture with a comparably cultured employee is the best strategy to pursue, to achieve the closest fit with the lowest likelihood of failure. If the worker shares a similar occupationally relevant mindset with the enterprise, then the education and skills background can modify to fit the work.

Finally, when the recruitment team identifies eligible candidates who will have to relocate to take the position, those companies that provide attractive relocation incentives are more likely to secure the hire. WHR Group research roots out the best relocation practices and standards that exist anywhere, not just across the globe but within separate industries, too. With this information, your company will know that its relocation packages are as enticing as any other company in your sector, so you don’t lose top talent because of an insufficient offer of relocation support. In this job-seeker economy, no company can afford to cut corners on this critically important incentive.

At WHR Group, we specialize in helping our clients find the right candidate and helping that employee feel at home in their new location. As more workers relocate to fill the needs of the growing global economy, the last thing they should worry about is how they are going to get their stuff from the old home to the new one. How can we help you find and relocate your next worker?

For more information on how WHR Group can take your relocation program to the next level, call us at 800-523-3318 or email contactus@whrg.com.

Recruiting Top Talent with Shifting Demographics

by WHR Global | Dec 12, 2017 | News

Research shows workforce demographics are changing. The pools of possible employees and what they are seeking in the workplace will greatly influence businesses moving forward. As candidates become more diverse and educated, organizations must adapt their practices. Being aware of these shifts helps you attain and retain top talent, which is especially important when investing time and resources such as relocation.

Women & Diversity

Gender equality in the workplace has gathered much attention over the last few years and companies are making efforts to narrow the gap. While progress is occurring, studies show women continue to be “underrepresented at every level in corporate America, despite earning more college degrees than men for 30 years.”

Diversity in the workplace is vital for companies and hiring women is good for business. For example, a study by the International Finance Corporation shows women in the workplace make for a better work environment because women have a “greater willingness to communicate and receive feedback.” They also help strengthen team dynamics and improve productivity and innovation.

Overall, employees are impacted in a positive way when a diversity plan is in place. An author who specializes in human resource issues stresses, “Business reputations flourish when companies demonstrate their commitment to diversity through aggressive outreach and recruiting efforts.” Additionally, she states that workplace diversity is important because it greatly impacts a company’s reach to markets in foreign countries. Thus, businesses seeking to bring in and retain top talent should be aware of how important a diverse population impacts business performance and ultimately their bottom line.

Millennials

According to findings by the Pew Research Center, millennials (people born between 1980 and 1997) are the largest living generation (an estimated 79.8 million as of 2016). For years, employers have come to understand that millennials in the workforce are different from their predecessors and so are the things they value. For example, some benefits are more important than a large salary.

This generation craves flexibility. Studies show 22 percent of millennials say they would be willing to work more hours if their options were flexible. Overall, 84 percent of millennials report their companies are making these concessions, including adapting to rapidly changing technology to allow for mobile working.

Millennials have been stereotyped as a job-hopping generation, but trends are changing. After a globally turbulent year socially and politically, younger employees who just last year thought about leaving jobs now appreciate job security. As these hires desire the feeling of being a part of the family when they enter a new job, improved onboarding practices help with engagement and commitment.

Short-Term Assignments

Short-term, temporary assignments have always been part of the U.S. employee experience, but they are now on the rise for international relocations. Surveys indicate the flexibility many employees seek is driving changes in relocation services.

Relocation efforts for millennials are a bit different than in the past. More than a quarter of Baby Boomer employees had stay-at-home spouses. Nearly 80 percent of millennial families are dual-income and spouses work full-time in their own careers. Thus, they want to be sure relocation is the right move for every person in the family.

To keep top talent, this requirement must factor into the equation in addition to long-standing goals companies have always had to be cost effective and make sure the right people are in the right place organizationally. Today, companies need to deliver a positive experience for those who relocate because it brings better employee engagement and productivity.

As research by Gallup News reveals, if millennials are not “engaged in those jobs, companies’ profitability, productivity and innovation will suffer. And if they are not thriving in their well-being, they will struggle in life, affecting how they perform as citizens, consumers and employees.”

As demographics shift and changes become necessary, the challenges of relocating an employee can be extensive. This is why many companies outsource to a relocation management company (RMC). RMCs keep apprised of numerous trends and how they affect the efforts of human resource departments. Additionally, RMC’s help relocate employees, creating the positive experience you desire while optimizing company resources to best align with your business goals.

Choosing the Right Home Sale Benefit: BVO vs Direct Reimbursement

by WHR Global | Nov 7, 2017 | News

The Guaranteed Buyout (GBO) home sale program is typically the highest-level home sale benefit a company will offer its relocating employees, as it guarantees a home sale for employees based on appraisal value. However, the risk associated with this type of home sale, considering the employee’s home is then taken into inventory to be resold, may not be the best option for your relocation program. There are two additional home sale options that present less risk for your company—the Buyer Value Option (BVO) and Direct Reimbursement (DR).

So, what’s the difference between DR and BVO?

The BVO program is similar to a GBO in that you will be purchasing the home from your employee. However, with the BVO program, you will only purchase the employee’s home if they secure an outside buyer first. The great thing about the BVO program is that your company and employee will experience the same tax benefits that you would receive with the GBO. This means the home sale cost can be considered a business expense for your company as opposed to taxable income for the employee. This can occur because it is a three-part transaction, which includes your employee securing the buyer, the company purchasing the home from the employee for the agreed sales price, and then your company will sell the home to the outside buyer. Your employee won’t have to pay for any home sale costs or attend closing.

With a DR program, your employees will be responsible for selling their homes on their own. They will need to secure the buyer, as well as pay closing costs and commission fees up-front. You may then reimburse the employee all or part of these costs depending on your relocation policy. The IRS considers this type of reimbursement as taxable income, so, in order to cover that additional cost for your employee, you will need to gross-up the reimbursement.

Pros

Cons

Direct Reimbursement

> No risk of bringing homes into company inventory

> No tax benefits for your company

> Additional cost of gross-up

> Employee responsible for all costs up-front (closing costs, commission fees, inspections, etc.)

> Employee must attend closing

> Longer relocation process

Buyer Value Option

> Tax benefits for your company

> Employee not required to attend closing

> Broker Market Analysis completed by two qualified Real Estate Agents

> Home sale could fall through, resulting in home going into inventory

How do you choose which home sale benefit to offer your relocating employees?

It’s really all about what is going to work best for your employees, your company, and your bottom dollar. While it may seem easier and less costly to have your employees sell their homes on their own and reimburse them later, this isn’t necessarily the case. You could be spending an exponential amount more using DR because of tax and gross-up

A concern many companies have with the BVO program is they may still have to take homes into inventory. So, why then would you want to offer a BVO when there is still that possibility? While there is a chance a home could go into inventory if a sale falls through, it is minimal. The BVO process typically includes two qualified agents completing Broker Market Analysis reports, a comprehensive marketing strategy created by your relocation counselors, and a full review of all offers with your employees to make sure the offer is bona fide. Your employee’s relocation counselor will then follow the offer through to closing to ensure everything goes smoothly.

When a corporation reimburses an employee for relocation expenses, the IRS treats that reimbursement as ordinary income, taxing it at the rate dictated by the employee’s tax bracket.

	Direct Reimbursement	Buyer Value Option
Home Sale Price	$300,000	$300,000
Real Estate Commission (6%)	$18,000	$18,000
Closing Costs (2%)	$6,000	$6,000
TOTAL COST TO SELL HOME	$24,000	$24,000
Gross-Up Tax Assistance (40%)	$9,600	$0
TOTAL COST FOR CLIENT	$33,600	$24,000

CLIENT SAVINGS	$0	$9,600

The average home costs $300,000, which means if you are offering just 10 employees a home sale benefit, you could be saving roughly $96,000 annually by using a relocation management company and offering a BVO program.

The Pros and Cons of Going Out to Bid for a Relocation Supplier

by WHR Global | Oct 24, 2017 | News

Read the updated version of this article here.

So, you have made the decision to outsource your employee relocations to a Relocation Management Company, or RMC. If only that was where the work ended!

Now, you must choose the one RMC that best fits your workplace culture, employee needs, company budget, and any other criteria that you require in a supplier. With so many RMCs to choose from, the question becomes how do you find the right one?

The Procurement Process

When selecting a relocation supplier, it really comes down to two options: Going out to bid (competitive procurement), or selecting a supplier on your own (non-competitive procurement).

Procurement Option 1

Going out to bid, also known as competitive procurement or open tendering, occurs when you send out a bid request, typically in the form of a request for proposals (RFP). RMCs can choose to respond to your request and submit a proposal explaining their company, capabilities, and pricing. Once you receive the proposals, you will compare each against your most important evaluation criteria. This process can include multiple rounds of meetings or bidding.

Procurement Option 2

If you’ve already decided which RMC you want to pursue based on your research and previous communications, then you don’t need to open your search to other suppliers. This non-competitive procurement process, also known as sole sourcing, occurs when you choose an RMC without a bidding process. However, in some instances, a company will choose two or three RMCs to reach out to, resulting in a smaller, more intimate bidding process.

Each procurement process has its own pros and cons, so it’s essential that you choose the path that best suits your company’s and relocating employees’ needs.

Advantages of Going Out to Bid

It encourages competition: Typically, when you go out to bid, you will have a greater pool of RMCs to choose from, and those responding are likely to offer you their best pricing right away. Another consideration is you may learn about other benefits or service offerings that you didn’t think to ask for initially.

Advocates transparency: The idea behind the bidding process is each RMC will essentially lay all their cards on the table: They show you their pricing, services, and value-adds, and you choose a supplier based on those responses. This results in a fair selection process while offering you a clear vision of what is most important to your company.

Easily compare different RMCs: Having RMCs follow a certain format, and each answering the same questions, allows you to easily compare answers and rule out any RMCs that don’t meet your immediate requirements.

Fully vet your options: Creating an RFP lets you choose what you want to learn about the responding suppliers. This helps you fully understand what each RMC has to offer and allows you to ultimately choose the company that best fits your needs.

Disadvantages of Going Out to Bid

It can be time-consuming: The bidding process can take anywhere from 2 – 6 months, or even longer, depending on your internal decision-making process. It also involves several intricate steps from RFP development to initial bids and follow-up questions to final presentations and on-site visits to help you make your decision.

Associated costs: It will undoubtedly cost more to go through the RFP process than to simply choose an RMC to work with. The cost of developing the RFP, screening suppliers, reviewing responses, and follow-ups can take a toll on your company’s time and budget. Typically, a company’s relocation program accounts for 90-95% of the relocation “spend”, with only 5-10% being paid out to the RMC.

Eliminating the wrong suppliers: There are many viable RMCs that simply don’t participate in competitive bidding opportunities. The reasons vary from high associated costs to having a different pricing structure that does not compare easily in an “apples to apples” review process. You could be missing out on an RMC that would be your ideal fit.

Promises of unattainable pricing: For some RMCs, winning new business is more important than upholding your needs throughout a long-term partnership. These RMCs will solely bid for your business to undermine competitors, even if their proposed pricing is unattainable for their own bottom line. This can cause a headache during the implementation process, or result in a requested fee increase in the first or second year.

Choosing Non-competitive Procurement

If going out to bid doesn’t sound like the best option for your company, the other option is the non-competitive procurement process.

You can select a supplier you know will best service your relocation requirements based on your research and prior communications. This process really works best if you know one or two RMCs that already fit your needs and company culture.

This option also works best if you are working within a small window of time. You won’t have to review multiple in-depth proposals—just the pricing proposals from the RMCs of your choosing.

Next Steps

So, ask yourself, what is in the best interest for your company? Do you have the time to fully vet RMCs through a competitive procurement process, or do you need an RMC now? Do you have a couple RMCs already in mind, or do you need more information on other options out there?

Selecting an RMC is an important business decision for your company. You want to find an RMC that best meets your company’s needs, whether that be high-quality support for your relocating employees, lowest cost, the most advanced technology, or a combination of all three.

How to Have a Successful Implementation

by WHR Global | Oct 10, 2017 | News

Choosing to outsource your employee relocation program is a considerable but necessary task to remain competitive in your search for top talent. For employers that have already selected a relocation supplier, the most important step in your relationship now begins: Implementation.

Implementation consists of developing or sharing your existing relocation policies with your supplier, customizing the supplier’s technology to match these policies, process-mapping workflows, determining invoicing and expense requirements, and everything else that gets your relocation program up and running.

For any relocation supplier, the fundamental role and purpose of a formal implementation process is to ensure the guidelines and controls are in place to provide your employees consistent and top-quality relocation services while meeting your performance standards.

Implementing a New Relocation Management Company

In a typical implementation for relocation services, the supplier collects all necessary information on your current relocation process to understand the following:

A process map of the current state of your relocation program
The need for policy creation and benchmarking against your competitors
Exceptions that might occur when your policies don’t always match employee needs
Identification of expenses paid and the delivery method
Integrating payroll system(s) and confirming tax gross-ups provided to your employees
Confirmation of any third-party contracts, partnerships, processes, and spend for companies such as real estate brokerages, van lines, and international service providers working directly with your employees

Implementation Plan

A good rule of thumb to implement relocation services is to break the process into more manageable phases. At WHR Group, we break the implementation process into six different phases for our new clients:

Start-Up: Schedule an on-site meeting, complete all contracts, and prepare a formal implementation guide based on your policy and contract terms.
Transition: Finalize implementation schedule with start/finish dates, and establish the process for relocations already in progress with a corresponding schedule.
First Steps: Draft process flows for all services, and identify deliverables for any preferred third-parties.
Payroll: Outline the invoice, payroll, and expense process with all deliverables.
Technology: Ensure relocation supplier’s IT staff will update company technology with your policy specifics plus financial requirements.
Training: Supplier to conduct internal training on your policy and procedures, schedule training with your relocation/admin team on using supplier’s technology, schedule an internal meeting to review process on exceptions to your policy, and ensure a fundamental understanding of your culture and needs with each supplier staff member on your account.

Relocations in Progress

If you already have a relocation supplier but are transitioning your program to a new supplier, make sure this new supplier has a plan in place for employees already in the midst of their relocations.

This transition plan might look similar to WHR Group’s, which ensures the least disruptive process as possible for all relocating employees:

Homeowners: These relocations should remain with the current supplier through the home sale process.
Non-homeowners or Renters: These relocations should remain with the current supplier, unless they are on hold and can be easily transitioned to the new supplier.
Expense Process: If possible, these files should be completed with the current supplier through cut-off at year-end (or your fiscal year) to avoid confusion with two different teams calculating tax and providing reports.
Transportation: For household goods moves in progress, the employee will most likely complete this phase with the current supplier. For moves that have not yet started, transportation services can be transitioned to the new supplier based on status and timing of other relocation services for each employee.

Typical Implementation Timeline

Depending on the size of your relocation program, the typical implementation process is 4 weeks. This encompasses the full process, from the first on-site meeting to “go live”.

This timeline is, of course, dependent upon many factors—specifically the availability and access to your key shareholders. The relocation supplier should coordinate your timeline to include specific meetings with the appropriate people for their input into all relocation processes. These meetings can vary dependent upon the scope, complexity, and size of your relocation program, but the impact to your schedule should be nominal if planned appropriately by your relocation supplier.

The full implementation plan with your relocation supplier might look like this:

Implemenation Plan for Success

Week 1

Key Personnel
Client Stakeholders • Client Services Manager • Director of Operations • Accounting

Key Tasks
-Initial Meeting with Day-to-Day Personnel
-Review Implementation Timeline
-Discuss Client Culture, Policy, and Exceptions
-Discuss Invoicing, AP, AR, Payroll, and Exceptions
-Discuss Policy, Process Flow, Survey Recommendations, and Reporting Needs

Week 2

Key Personnel
Client Stakeholders • Client Services Manager • Director of Operations • Accounting • IT

Key Tasks
-Identify Files in Process for Transistion
-IT Discussions/Integration Needs
-Follow-Up Discussion: AP, AR, Payroll-Process Approvals

Week 3

Key Personnel
Client Stakeholders • Client Services Manager • Director of Operations • IT

Key Tasks
-System Training (Client Team)
-Portals and Apps Approved

Week 4

Key Personnel
Client Stakeholders • Client Services Manager • Director of Operations • IT

Key Tasks
-System Training Completed
-Review File Transition
-Reports Approved and Final Systems Test
-Go Live!

The implementation timeline can be adjusted based on your company’s needs. In special circumstances—such as an underperforming existing supplier—WHR Group has implemented new clients in 1 – 2 weeks.

Implementation Fees

Relocation suppliers should not typically charge fees related to implementing your program or setting up technology.

The supplier’s goal is to limit takeover expenses. However, based on services transitioned and your employees’ progress in their relocations, a service fee may be applicable. Make sure to review these with your new supplier early in the implementation process, as full-service fees might not be applicable.

8 Things to Look for in a Relocation Supplier

by WHR Global | Sep 12, 2017 | News

There are many reasons you could be looking for a relocation supplier right now. Maybe your company has outgrown managing its relocations in-house. Maybe your procurement department is driving a need to go out to bid. Or maybe you’re just unhappy with your existing relocation supplier.

While relocating employees to new job opportunities can be stressful, selecting a relocation management company to ease the process doesn’t have to be.

Relocation management companies, or RMCs, ease the stress of moving employees on your own. RMCs organize employees’ departures, help them find new homes, move their belongings, and assist with settling into their new communities.

If this is what you’re looking for, how do you know which RMC is the best choice for your company and employees?

Before You Choose a Relocation Supplier

Before you even begin looking for a supplier, you and your company’s other decision-makers need to define what you’re looking for most in an RMC.

Make a list of your top wants and needs, and stick with this list throughout your selection process.

Start by considering your own company: Is cost your company’s most important motivator? Is service satisfaction? Is it both, or something else entirely—like the RMC’s management structure or years of experience?

Also take into consideration your company’s size and anticipated number of relocations per year. RMCs range in size from thousands of employees across multiple continents or companies located in one office to streamline delivery and communications. Do you want to be a small fish in a big pond, or do you need to be a big fish in a smaller pond? Really get to the heart of what your company values most in a supplier.

Note: Contrary to what you hear, all RMCs are not the same. While they might offer similar services and guarantees, it’s in their delivery where you find their differences. This is where you will want to keep your “list of wants” handy, so you find the RMC that best fits your needs.

Want some help getting started? Here are 8 things to look for when selecting an RMC.

8 Things to Look for When Selecting a Relocation Supplier

1. Partner Mindset

First and foremost, you’ll want to make sure the supplier you choose is more of a partner. Long-term partnerships with an RMC will yield better and more consistent service plus significant cost savings. (WHR Group’s longest client has saved over $22 million throughout our partnership.) The RMC you choose should uphold a commitment to long-term partnerships with incentives such as ongoing policy consulting and proactive recommendations for your relocation program.

2. Flexibility and Responsiveness to Change

The key to any well-oiled process is flexibility and responsiveness to change. If your business opens a new location, is the RMC experienced in managing group moves? If your management structure or culture changes, is your RMC flexible enough to incorporate these changes into your existing relocation policies?

Don’t forget about incorporating your business into the RMC’s technology and reporting tools. Can they make the data customizations you need—and quickly—to keep you productive in your role?

3. Comprehensive Support

How does the RMC define relocation “success”? Look for commitments to helping you succeed in your role and easing the relocation process for your employees, too.

How does the RMC set you and your employees up for success?

4. Above-and-Beyond Customer Service

What experience does the RMC have with not just maintaining but improving satisfaction of employees’ moves? How can they truly guarantee your company stress-free relocations?

Ask about their service delivery structure, how they motivate their own employees to deliver top-notch relocation experiences, and how they keep customer service as a core offering—not a commodity.

5. Marrying Service with Cost Savings

Working with an RMC that offers stellar customer service doesn’t mean you have to pay extra. In fact, working with a service-first company often leads to less exception requests in your policies, less fires to put out, and more money saved in the long run.

You’ll want to be aware of two things:

How does the RMC structure its fees? Far too many RMCs have hidden program costs that will never be discussed with you. Collection of fees from downstream providers, mark-ups, and non-compliance fees are just a few of these hidden costs, so be sure to ask about fees and transparency with your RMC.
Collect proof: Ask what innovative tools or processes the company has implemented to increase cost savings for clients.

6. Supply Chain Management

What is the RMC’s own supplier management process? RMCs manage their own network of suppliers, like brokers, appraisers, movers, and international service providers. What is the RMC’s selection and qualification process for consistency across all touchpoints in employees’ experiences?

Are RMCs affiliated with their suppliers in any way, limiting the options your employees have to work with? There should be a clear mechanism in place to choose the best supplier for each employee and every service.

7. Network Coverage

Network coverage is also key. Really, no one RMC can be located in all areas your employees are moving in and out of. That’s why it’s important to work with an experienced supplier with a vast network and the capability to streamline services across their offices, or better yet one point of administration for ultimate control in service delivery.

Ask how many brokers and appraisers in particular the RMC can work with. This is especially important to know for the more rural locations your company may have.

8. Company Management Structure

A final factor to consider is the RMC’s own management style, how they operate, and how they treat their employees. Make sure the RMC has a solid training and education program in place.

Are their employees real estate licensed to assist with homeowners? Has the company been voted a Top Workplace or similar? After all, happy relocation counselors mean happy employees on your end.

For more information on how WHR Group can take your relocation program to the next level, please call 800-523-3318 or email contactus@whrg.com.

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