Choosing a RMC: Why Bigger Isn’t Always Better

Moving is never easy.

There. It’s out in the open – a truth that your employees will certainly recognize. While there are many factors you cannot control in the process of transitioning your company’s most precious resources – its people – from one place to another, the relocation provider you select is, and the decision is of critical importance. Your relocation management company must be an extension of your culture and share in your commitment to your employees. After all, the relocation company will be delivering your company’s policy, essentially becoming the “face” of your brand.

rmc relocation, WHR Group

It might seem as though choosing one of the high-powered major national firms would be your best bet but think again. Experts say smaller relocation companies – sometimes called “boutique” or “right-sized” firms – can provide better service, adapt more easily to your company’s corporate culture, and deliver a better value for the price over their larger competitors.

Service With a Personal Touch

Whether your employees are moving across town or across the globe, it’s certainly going to be difficult for them to keep their heads in the game business-wise with dozens of details in flux – especially when there’s a family involved in the move. Thanks to their lithe structure and employees empowered by fewer layers of approvals, these smaller relocation companies are uniquely capable of providing the type of responsive service that will help allay those moving jitters, and in turn, enable your team members to maximize their productive time.

“With smaller companies, the consultants typically handle smaller caseloads than do larger relocation firms,” says Brenda Sunoo of Workforce magazine. “They’re likely to deliver on their promises for consistent, customized, flexible, and personalized services. With the more complicated relocation cases, the staff at smaller companies will be accessible and quick to solve unexpected problems.”

A second point many leading experts mention regarding service is that with a “right-sized” firm, your employees are more likely to have their needs met by a single point of contact, generally backed up by a second team member, at all times. Most employees in the midst of a move find it troubling to have to keep up with the details from so many different inputs. Having a single point of contact is much easier on the nerves, returns your employee to productive time, and leaves him/her with a more positive experience of the relocation as a whole.

A Better Cultural Fit

Customization is another point of differentiation. While colossal multinational relocation companies may well have all the bells, whistles, and tools you’re looking for to serve your employees, will they pick up on important nuances of your business that may require altering those tools in order to help them best serve you?

If the answer to that question is no, this can mean exponentially different degrees of frustration for your employees, and your in-house team could be dealing with processes that should take minutes but can turn into hours. Smaller, “right-sized” providers have the ability to absorb important details about your company culture and fine-tune their services, working hand-in-hand with your team to effectively become your partner in relocating your employees. Many times, individual counselors bond with the employees they’re working with and form real relationships that go well beyond the job.

A Difference at the Bottom Line, Too

While these personal touches are the all-encompassing hallmarks that will matter to your employees, you’ll generally also see a bonus when it comes to the bill: Smaller relocation companies characteristically work on a streamlined operational framework, which in turn means cost savings. Plus, you’ll find that these companies’ suppliers operate in a similar manner, meaning competitive quotes and decreased costs when it comes time to pay the bill.

Additionally, you can be confident the vendors your relocation company chooses are chosen strictly on their merits – not because your relocation company also holds a stake in the van line, the storage company, or another provider within the supply chain.

So, there you have it: When it comes to corporate relocation companies, very good things come in small packages. Much like the concierge at a fine hotel, this job is truly about service, and that “servant’s heart” is at the foundation of success. Coupled with the kind of flexibility in customization that only an agile, right-sized team can offer, it’s the “it” factor that makes them truly the force to reckon with in the relocation landscape.

Go In-Depth Into the Importance of Culture When Selecting a Relocation Management Company

5 Simple Ways to Cut Relocation Costs

It’s no secret that employee relocations are expensive. While we’ve spent the last 24 years finding ways to save our clients tens of millions of dollars on their relocation programs, there are other things you can be doing right now to save on your relocations.

Here are 5 simple ways to cut relocation costs right now.

 

Review, Review, Review

When was the last time you really took a hard look at your relocation program? If you’re thinking it’s been more than a year, it may be time to complete a review. Ask your current relocation provider for recommendations if they aren’t already providing them proactively.

Plus, when’s the last time you benchmarked your program against your peers? To stay competitive in the war for talent you need to know how your policy stacks up against others in your industry.

Have you considered introducing caps?

If it’s policy to offer benefits like a home sale bonus or a loss on sale allowance for your employees, consider placing a cap on these items if you aren’t already doing so. Caps will help reduce allowances in excess and simplify the benefit across all employees.

Two words…Exception Management

Your current relocation provider should be analyzing your company’s exception requests, and if not, it’s time to ask. At WHR Group, our Client Services Managers track and report on exceptions on an ongoing basis. We review commonalities and offer solutions based on our findings. You should ask: Are the exceptions being requested “wants” or are they “needs”? These are all things that need to be addressed when handling exceptions for your transferees.

Add a little competition

Ask yourself, does your relocation provider use certain vendors all the time? Conversely, does your relocation company have a vested interest in using those specific vendors? If so, is your provider being transparent with you about these revenue sources? At WHR Group, we’ve found that by being independent we can use vendors that offer the best service at the most competitive price. That’s why we introduced our Move Management Platform, or MMP™, so our clients can save even more without compromising the white glove service standard WHR Group is known for.

Make sure you’re receiving all available tax benefits

There has been a lot of tax changes this year. While moving expenses are no longer tax exempt, there are still areas within the relocation industry where you can still receive certain tax benefits, especially if you are offering a home sale program. Offering a direct reimbursement of home sale expenses may sound like the easiest option, but with no tax benefit, it may not be the best option for you or your employee. You may be better off using the Guaranteed Buyout or Buyer Value Options. And, as long as these programs adhere to IRS requirements, your company can still benefit from certain tax savings.

 

Interested in learning about the other ways WHR Group is helping our clients save money? Contact us today at contactus@whrg.com or 800-523-3318.

Learn More about Exception Management and How Being Flexible Can Help Ease the Transition of Your Employees

Preparing Your Expat For Assignment

Relocating for work has its trials in even the easiest of transfers, but moving to a new country typically comes with significant challenges. Aside from the logistics associated with a big move, there are numerous other factors you should consider when preparing your expat for assignment.

As you prepare your expat for assignment abroad, you can help to ease the transition by putting things in motion well in advance. Regardless if the assignment is short-term, permanent, or rotational, you can help them understand what they’ll be facing and set them up with programs for success in their new host country.

Is your employee ready to move abroad?

Before you designate any assignments to specific employees, you should have defined selection criteria for who is chosen. When making this determination, it helps to do an assessment by asking yourself a few questions:

  • Is the employee prepared to move to a new country? Is the family ready?
  • Do the employee and his or her family have a full understanding of challenges they’ll face? Are they equipped to handle them?
  • Is the employee culturally astute? Do they possess a global mindset?
  • Do you have a formal diagnostic tool for an employee and family to take prior to selection?

One study suggests 40 percent of expats find being away from family and friends to be a challenge, with 20 percent saying it’s difficult to make new friends. Thirty-two percent of children had difficulty being away from loved ones, with 28 percent saying they had trouble making friends.

You want to be sure your employees don’t fall into these statistics. You can ensure this by providing the right coaching, training, and education.

Providing coaching, training, and education

Employers can equip employees and their families with the knowledge and tools they’ll need to relocate to another country. Preparations you can organize and provide for your employees include:

  • Business coaching – Even though they’ll be working for the same company, consider the cultural differences that span international borders. Business practices, social norms, and etiquette will differ from country to country. Give your employees the tools needed to learn the ropes in their new location.
  • Cultural training – The more employees and their families learn about their host country and its people, the better prepared they’ll be to interact within their community when they arrive.
  • Language classes – It’s important to consider employees may not be familiar with the primary language spoken in their host country and, even if they are, are likely to be a bit rusty. Help them and their families by enrolling them in language classes.

Providing your employees with these skills and knowledge will greatly raise their probability of success as they assimilate into their new environment. Relocation management companies can help you to set these up.

Consider the work culture and prepare them

Be sure each employee has sufficient time to meet their new team prior to moving. You can set up an online call or video conference to allow everyone to meet and get better acquainted. This will help reduce any discomfort or awkward interaction after the relocation is complete.

Remember, once employees accomplished their relocations and are settled in, the preparation doesn’t stop there. To help them succeed in their new roles, it’s helpful to provide ongoing training and support. And, once the assignment is complete, you should also consider repatriation assistance.

 

In our 24 years at WHR Group, we put our customers’ needs first and have been proactive in facilitating a seamless relocation. Preparation is one of the best benefits you can offer. We understand the importance of helping employees to know what to expect. It will help reduce any anxiety and/or apprehension, along with increasing their comfort level, guiding them to success.

Our company has global partnerships with industry experts across the globe, enabling us to provide cultural and language training services to help expats and their families prepare for relocation abroad. For more information on how WHR Group can assist your employees with their international move and new assignment, give us a call at 800-523-3318 or email contactus@whrg.com.

Explore the Top Expat Assignment Typed for Your Mobility Program

3 Benefits to Offer Your International Assignees

A strong cultural and language training program is one of the most important benefits you can offer employees who are moving abroad. International relocation is stressful on the employee as well as their family, which is why it is so easy for an employee to struggle in a new country, especially if they don’t understand the culture, customs, business culture, and language. This can lead to seclusion, depression, and ultimately, a failed transfer.
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Offering cultural and language assistance will allow your employee to assimilate into the new culture as quickly as possible, providing them with the tools they will need to not only succeed in their new role but thrive in their new environment as well.

International assignments are challenging for all involved: the employee, the spouse, their children, and your company. You can make the transition easier for all by offering these 3 benefits:

1. Cultural Training

Culture shock often occurs when your employees and their families are dropped into a new situation without any knowledge of their new environment. Cultural training isn’t just about learning the host country’s environment and culture, it is also about helping your employee understand their new business culture. Even though your employee may be just transferring offices, the business practices can vary greatly between different countries.

It is also important for you to find and share outside activities that will assist your employees in meeting new people, allowing them to learn the new culture and language in a more social setting. The more they immerse themselves into the culture, the happier they will be in their new position and new lifestyle.

Help and encourage your employees to learn about their new country’s history, common business and social practices, and the local customs. This ensures they truly feel at home in their new location.

2. Language Training

Language training is a benefit that is often overlooked when transferring an employee internationally. Because English is the standard business language, it is just assumed that English is the only language they will need. While this may be true in the sense that they will be able to communicate the essentials at their new office, you also have to consider how they will be able to interact outside of work. Things that were once simple, like going to the grocery store or hosting a dinner party, become daunting.

Language skills are essential to not only help your employees advance in their new positions, but also fully assimilate into their new country. Language training can begin the moment the employee accepts their new position with the use of online tools and/or in person language training sessions, and can continue even after they make the transfer.

3. Spousal and Family Assistance

Spousal and family assistance is another way of ensuring your employees experience success in their new location. The most common reason for failed transfers is family related issues. Often times, the family is forgotten about when it comes to the benefits offered. Spouses and partners leave behind careers and extended family; children leave the schools and friends they’ve come to rely on.

Offering assistance to the families of relocating employees makes the transfer more successful. The employee’s spouse may need help finding a new job or even finding the best stores to shop at. They, too, may need to find social groups to help them engage in their new environment and assistance in learning the new language. Schools are another major consideration when relocating families abroad. Children will need to learn the new culture and language as well, all while acclimating to their new school system.

Spousal and family assistance should include both cultural and language training and should begin as soon as your employee accepts their new role.

Download our Sample International Relocation Letter Today!

Use this sample International Relocation Letter to help move your employees to any location, across the globe. This template includes everything you need to get started!

How WHR Group Can Help

WHR has global partnerships with industry experts all over the world, allowing us to deliver cultural and language training services to relocating employees and their families. These experts have been evaluated to design flexible training programs based on a professional assessment of the individual’s and family’s needs, including online and/or face-to-face training preferences. We also track and report on training completion, which is provided to ensure the effectiveness of the program for everyone involved.

Contact WHR Group today for more information on our global mobility services and how to implement your culture and language training program: 800-523-3318 or contactus@whrg.com.

Tax Assistance and Your Global Mobility Tax Program

Find the updated version of this article here!

In December 2017, the U.S. government passed legislation that directly impacts taxpayers. Under the new law, known as the Tax Cuts and Jobs Act, taxpayers will be unable to claim certain deductions, including job-related moving expenses.

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Job-related moving expenses now taxable

In accordance with the new legislation, taxpayers must treat any direct payment or reimbursement of moving expenses received from their employer for job-related moving expenses as taxable income. Previously, employees only needed to pass the time and distance test (criteria 50-miles, 39-weeks, and 1 year) to be qualified to deduct moving expenses related to household goods moves, storage, and final moving expenses. Alternatively, an employee paying their own moving expenses could deduct those moving expenses, even if they didn’t itemize.

Under the Tax Cuts and Jobs Act, all moving expenditures will be taxed accordingly, at least until 2025. However, active-duty military members may still deduct moving expenses.

For employers like you, this can have a significant impact because it could be a deterrent to attracting new talent, or current employees may be less inclined to take a promotion that involves moving. One possible solution you can consider is to offer tax assistance.

What is tax assistance?

Tax assistance, often called gross-up assistance, is an approach where an employer “grosses up” an employee’s taxable relocation benefits. This is done to alleviate some tax burden on a portion of the employee’s income. However, there are some benefits and drawbacks with this approach, and it’s important to consider the impact.

Pros and cons of tax assistance

When considering whether to implement tax gross-up, you should carefully examine the advantages and disadvantages.

Pros of offering tax assistance

  • Helps your relocation program remain competitive.
  • Enables you to attract and retain top talent.
  • Alleviates some tax burdens placed on employees.

Drawbacks associated with tax assistance

  • Increasing an employee’s taxable income can change their tax bracket, which may increase the employee’s tax rate and phase out certain tax credits.
  • Increases company relocation expenses.

If your company decides to take the tax assistance approach, it is essential your employees are educated on what gross-up is and how it impacts their taxable income. Relocation management companies can help by explaining how tax assistance works to your staff. RMCs can also manage everything, including ensuring tax assistance is correctly calculated and implemented.

At WHR Global, we are committed to helping our clients hire top talent as well as helping their employees feel comfortable in their new location. We can help your company modify its relocation plans to adjust to the new tax law. We’ll also help you find the best solutions to help alleviate the potential tax burdens associated with moving and relocation for your employees.

For more information on how WHR Global can assist and explain how to incorporate tax assistance, give us a call at +1-800-523-3318 or email sales@whrg.com.

Are Current Immigration Trends Affecting Your Employee Relocation Program?

Current U.S. immigration policy isn’t making things easy for American businesses and their employees, especially when businesses need to bring in talent from all over the world. Uncertainty continues as current immigration trends change and the process works its way through the legal system causing many companies to lose precious time and money in their recruitment efforts.
employee relocation, relocating employees best practices

From coast to coast, U.S. businesses feel the impact of these restrictions. Back in April, when President Trump stressed the need to “Buy American and Hire American,” an executive order was signed in an effort to put H-1B programs under new scrutiny. Companies that seek people with specialized knowledge and training, typically those in engineering, science, and information technology, can temporarily hire foreign workers though the H-1B programs. With this executive order, U.S. Citizen and Immigration Services was told to more rigorously review every H-1B applicant, resulting in hiring and productivity delays from longer processing times.

Then, in October, USCIS changed a policy that had previously allowed anyone eligible for H-1B to get an extension without major reapplication requirements. Implementing a higher level of scrutiny on extension requests was, the service said, “consistent with policies that protect the interests of U.S. workers.”

Some politicians believe reform will increase employment of U.S. citizens. But others are not so sure.

“What a mistake when we are trying to fuel the innovation economy around the United States,” noted Carl Guardino, CEO of the Silicon Valley Leadership Group. Statistics show there aren’t enough qualified American workers to fill openings because not enough American students major in these fields.

The head of an immigration law department representing companies and academic institutions told The Boston Globe that entry-level computer science jobs, “might sound like positions that would be easy to fill with American labor,” but they are often highly specialized.

This change in policy hits Silicon Valley particularly hard because numerous engineers vie for H-1B visas. In 2016, the major technology companies combined applied for more than 30,000 of the 85,000 H-1B visas awarded.

It is not just the tech industry facing difficulties in securing and relocating employees. Experts in oil and gas say recruiting new and younger talent may become more difficult “at a time when oil and gas companies need it most.” Health care facilities, many of them located in medically underserved areas, feel a pinch in their personnel as foreign-born physicians question whether their visas will be renewed. The nation’s nursing shortage grows more dire if foreign-born nurses are not allowed to renew.

The uncertainty of what will happen next continues, especially because the travel ban decisions of lower courts are still in limbo. Because immigration laws constantly change, companies need to be aware of all that is happening and make sure they and their employees abide by regulations. Companies also need to be realistic with timeframes for when employees can start positions in the U.S. It may take months to get the necessary visas due to the additional roadblocks many people now face.

The challenges of employee relocation into the U.S. are extensive, which is why many companies outsource to a relocation management company. Offering immigration benefits allows your employees some peace of mind while going through this very difficult and stressful time.

RMCs keep up to date with everything that occurs in the courts, including what changes go into effect and when. They ensure companies and employees remain compliant and, when necessary, help relocate staff in as little time as possible allowing your business to focus on core personnel decisions.

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.