In the past, companies had the upper hand in the hiring process. Today, however, employees hold the power and organizations must find ways to keep up with the quickly changing times. Companies have to reinvent the talent acquisition wheel to locate potential employees in today’s changing world and workforce. For many, conducting surveys is one of the best ways to predict the obstacles on the road ahead; talent acquisition is no exception.

To remain competitive, companies will have to consider becoming more open-minded about candidates, pay more money to attract employees, or offer more benefits. Relocation package benefits in particular are creating a lot of buzz. A recent poll conducted by Robert Half found that 62% of workers surveyed would consider moving for a position. In a sperate poll, it was found that 34% of companies surveyed increased their relocation-package offerings; this is more than one-third of companies. Responses were collected from more than 2,800 U.S. workers, from ages 18 and up. The senior executive director of Robert Half, Paul McDonald, stated that “In today’s competitive hiring environment, many employers are finding it challenging to locate skilled professionals in their immediate area. As a result, organizations are open to considering candidates in other cities and offering attractive relocation packages to secure that talent.”

When asking respondents why they would consider relocation, most answers stem back to better pay and improved perks (44%). Other factors include family or personal reasons (17%), and the cost of living and career advancement (16% each). McDonald stated that “Besides receiving corporate incentives to move, there are a number of professional and personal reasons workers opt for a change of scenery, including higher salary, better perks, more affordable cost of living or advanced job title.” Demographically, it was found that professionals ages 18-34 (76%) are more likely to relocate, compared to those ages 35-54 (62%) and 55 and older (40%).

The employee-controlled job market isn’t dying down anytime soon. Researchers and surveyors predict this trend to continue in 2019. According to a study done by ManpowerGroup North America, U.S. employers plan to grow their workforce over 20% every quarter in 2019, increasing the number of open positions. Offering relocation gives employers an opportunity to get ahead of the hiring curve.

Moving during the warm and sunny peak season may be the most popular choice. However, there are many benefits to relocating during the non-peak months. As the busy season slows down, the demand for moving and relocation needs drops, making a direct impact on pricing and scheduling. Timelines are easier to create and follow, and suppliers are competitive with pricing by lowering their rates. This is extremely apparent in household goods shipping (HHG).

The Struggle for Drivers

For the past 15 years, the number of drivers in America has continuously decreased for multiple reasons. One example being that the average age of the American truck driver is 55 years old and that age continues to increase. The minimum age to hire a new truck driver is 21, making it challenging to replace retired drivers. Also, while 47% of all U.S. workers are female, only 6% of drivers are women. While efforts are being made to correct the shortage of drivers in industries across the board, not much has been done to correct the issue in the moving and relocation world.

Receiving More Attention from Movers

Locating qualified household good drivers remains a grapple in itself; adding the busy peak season to the mix creates another issue, making it next to impossible to implement a smooth relocation. If the transferring employee doesn’t schedule a pickup and delivery of household goods at least 6 weeks in advance, the chances of using the desired vendor and timeline are slim. This typically creates frustration for the transferring employee, due to a lack of a concrete schedule and delayed timeline.

While it’s still strongly suggested to coordinate early with your mover in every situation, there tends to be more flexibility during the non-peak season. Relocations during this time period permit the transferring employee to create a schedule and have their choice of vendor. Drivers and movers also have more time to dedicate to one move, paying more attention to how HHG items are packaged and transported. When this happens, the overall relocation process is smoother and more enjoyable for the relocating employee.

The Decrease in Fees and Rates

The increased demand for drivers throughout the entire shipping industry leads to increased moving fees. Oftentimes, cost plays a large part in the selection of van lines for household goods shipping. During peak-season, HHG movers are very busy and it is reflected in their fees. With such high demand, drivers and coordinators can charge at a much higher rate. To mitigate this increase, WHR developed MMP™, which allows van lines to bid for each move at or below a negotiated single-factor rate. Coupled with satisfaction and claims statistics, WHR chooses the best van line for the individual move.

As late September starts, rates and fees begin to drop, and moving companies can lower their rates by at least 30%. This is a time that van lines can be competitive in pricing to make sure they receive shipments. Not only can a transferring employee be more in charge of their schedule, but they have one less stressor to worry about!

While there are pros and cons to relocating in all seasons, one must remember that not every situation is the same. Household goods shipping can be a stressful process, and it is important for both the employer and the relocation management company (RMC) to be empathetic to their needs.

How Supply and Demand Influences Moving Costs

With roughly 70% of moves taking place between Memorial Day and Labor Day, relocation suppliers such as inspectors, appraisers, and household goods movers are in extremely high demand. By applying basic supply and demand principles, we know that this also means high cost and low supply.

As the busy season slows down, demand quickly drops. Between children returning to school and increased inclement weather, it is seemingly an undesirable time to move. With an abundance of suppliers available, individuals benefit from decreased fees and increased scheduling flexibility.

A Speedy Relocation

Due to the high demand of vendors in summer, expedited relocations are extremely difficult to conduct. Timelines are stretched in order to fit everything from inspections, appraisals, and household goods (the pack, load, delivery, and unpack). Oftentimes, appointments are primarily based on supplier availability instead of when is best for the relocating individual.

On the other hand, scheduling a relocation during the slower, winter months can make for a less stressful move. Due to low demand and high supply, relocating individuals enjoy flexible timelines and easier appointment setting.

Family Needs

Relocating with children can be stressful at any time of the year. While many families worry that relocating during the school year (non-peak season) may have a negative impact on their children, it’s also suggested that moving during the school year could be beneficial for some. At the beginning of the school year, returning students are excited to see their friends, and it can be easy for a new student to feel lost and left out. But if a family moves during the school year, the children are placed in school right away and are immediately part of the action. This can make it easier for kids to meet new friends at their new school. This also helps to eliminate any nerves that may have built up over the summer while waiting for school to start.

While there are pros and cons to relocating in all seasons, one must remember that not every situation is the same. A relocating employee should consider all factors and find the best for themselves and their family, and it is important to be empathetic to their needs.

Effective on January 1, 2019, the International Revenue Service (IRS) issued new, optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. The rate for medical and moving purposes is based on the variable costs, while the standard mileage rate for business use is based off an annual study of the fixed variable costs of operating a vehicle.

The Facts and Figures

The business mileage rate is now 58 cents per mile driven for business use, a 3.5-cent increase from 2018.

It is 20-cents per mile driven for medical or moving purposes, a 2-cent increase from 2018.

No change in the rate for miles driven for service charitable organizations (remains at 14-cents).

The Notice made by the IRS also reminds of the changes made by the Tax Cuts and Job Act (TCJA). Taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses, and the only members that can claim a deduction for moving expenses include members of the Armed Forces on active duty moving under orders to a permanent change of station.

Who is Impacted and How

Organizations with business travelers who are incurring unreimbursed travel costs, such as automobile use, will need to determine whether to supplement tax assistance to take account of those costs that are no longer deductible. Persons who are self-employed can still claim a tax deduction for their mileage as a business expense; they can do this by adding up their business miles for the year, then multiplying that by the standard mileage rate. The IRS does require that self-employed people utilize a mileage-tracking app or use a mileage log if they deduct their business miles. Taxpayers cannot use the standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System or after claiming a Section 179 deduction for that vehicle, and the standard rate cannot be used for more than four vehicles in operation simultaneously.

In relation to mobility, companies will need to adjust their reimbursement policies and decide whether to use the standard rate or not. In alignment, unreimbursed travelers will no longer be able to deduct automobile expenses, and companies may want to re-examine their current reimbursement policies.

You can read the full announcement from the IRS within Announcement IR-2018-251.

2018 was a year full of change and growth for WHR Group. We welcomed more employees to the WHR family, completed our 2018 Mobility + Culture benchmark study, and developed and implemented numerous technology innovations. We were also able to cover a slew of topics within our blog. Subjects ranged from the housing market in Canada to the importance of creating the perfect playlist for making a stressful relocation more enjoyable. As we look back on 2018, we’re highlighting a few of our most popular blogs.

Blog #1: The Best Types of Expat Assignments for your Mobility Program

This blog outlines a selection of the pros and cons of long-term and short-term expatriate assignments. Selecting the right type of expat assignment for your mobility program can be a hard decision, but it is critical to do so to ensure company productivity and employee satisfaction. The specifics of each assignment vary greatly depending on industry and location, and each company defines time periods differently. Every company needs to determine what is optimal for their workforce and the business need requiring these assignments.

Blog #2: But We’ve Always Done it This Way

Change is hard for a lot of people, especially in an organization setting where change affects large groups of people at a time. However, as explained in the article, it is important to welcome change and new opportunities in order to grow, to stay competitive, and to remain relevant in the business world. In the relocation industry, change usually comes in the form of innovative technology advancements. This blog discusses efficiencies (or lack thereof) among household good carriers and the advancements that have been made by WHR to correct related issues.

Blog #3: Survey Fatigue: It’s Real and It’s Here

With almost every consumer-based or customer-support experience, there is a survey. It can be hard not to wonder what the point of these surveys is and what (if anything) is being done with the results. At WHR Group, we utilize a strategic, dual survey approach. The first survey is sent shortly after the relocation has begun and the second is sent immediately after the relocation has concluded. Questions are asked to gather valuable data and measure service, vendors, and overall satisfaction. This short read outlines the importance that WHR places on the results of surveys and how we utilize them to proactively overcome any issues in the relocation process.

As we wave goodbye to 2018, we welcome an exciting new year full of goals and opportunities. We look forward to continuing our ten-year 100% client retention rate and for new clients and supplier partners to join the WHR Group network.