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Category: Relocation Policy

Pros & Cons of Core-Flex Relocation Programs

| July 26, 2019

Core-flex relocation programsCore-flex relocation programs build in flexibility and minimize costly exceptions, and ultimately this model can increase employee satisfaction and acceptance rates for both international relocations and domestic relocations. In addition, a carefully considered core-flex program can help companies to:

– Gain a recruiting edge

– Tailor relocation benefits more closely to employee or candidate needs

– Make employees feel more valued and invested in the process

– Empower hiring managers, business units, regional locations, etc.

– Eliminate or at least dramatically reduce exceptions

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The Evolution of the Core Flex Model for Employee Relocation Programs

| July 16, 2019

core flex modelThe core-flex model has become one of today’s most talked-about employee relocation programs. As the name suggests, core-flex incorporates a defined, core relocation benefit and a flexible selection of optional benefits to supplement this core. Along with lump sum packages, core-flex programs are an increasingly popular way to add flexibility and align mobility benefits with employee needs.

Two major factors are driving the need for more agile mobility programs: the keen battle for talent in a full-employment labor market and the growing population of millennial transferees. Recruiters and hiring managers who are eager to sign the best talent need every tool at their disposal, including mobility benefits that make relocation more attractive. For their part, millennials are accustomed to an array of choices in almost every aspect of their lives. They value personal control and dislike corporate mandates.

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Increasing Employee Relocation Acceptance during a Complex Group Move

| June 18, 2019

Group of employees discussing relocation acceptancePart 2 of a 3 Part Series on Corporate Relocation Services and Group Move Management

A TRC client acquired three complementary operating companies and decided to consolidate all operations. After considering locations throughout the Northeast, the company settled on a location in Southern New Jersey, just outside of Philadelphia. The company planned to close its facilities in nearby Northern New Jersey.

The consolidation affected more than 250 employees, mostly from the Northern New Jersey location, but also from locations in Virginia and Texas. As always with group move management, the company wanted to minimize disruption and lost productivity while ensuring the highest employee relocation acceptance rate. Read More

EU Elections Highlight Political Polarization Throughout Europe (and how this impacts global mobility)

| June 6, 2019

eu elections global mobilityThe following article was originally published on  May 30, 2019 by Worldwide ERC. View the original article. 

Voters in the 28 European Union (EU) member states went to the polls last week to elect 751 new Members of the European Parliament (MEPs). Results reveal that many traditional political parties struggled in this election and some were outperformed by both far-right populist parties and liberal green parties. The long-time center-left, center-right coalition that has been central to governing the EU for 40 years lost its majority: moving from holding 54% of seats before the vote to only 43% of seats. The newly elected EU Parliament officially takes power in July, but with the substantial number of new MEPs, it is unlikely that the Parliament will be fully up and running until this fall. Once the new Parliament begins to govern, the larger implications of these election results will be clearer. Read More

How to Optimize Your Company’s Pre-Decision Planning Program for Success

| May 20, 2019

Man pressing on digital screen - pre-decision planning programGetting Started: The Initial Needs Assessment

The first phase of an effective pre-decision planning program is an initial needs assessment. The initial needs assessment typically consists of a brief, pre-initiation call or interview to gather key financial and lifestyle details on the employee and his or her family. These details should include information on:

  • The family’s current home and finances
  • The spouse or partner’s current employment situation
  • Expectations and requirements for the spouse or partner’s employment in the new location

Ideally, this interview is conducted by a third-party relocation consultant rather than a representative from the company. Employees might be reticent about sharing personal details with a coworker, and company representatives might not be sure which questions to ask to get a full picture of the transferee’s situation. Read More

Avoiding Unnecessary Employee Turnover & Recruitment Costs when Relocating Employees

| April 23, 2019

Part 1 of a 3 Part Series on Corporate Relocation Services and Group Move Management

Relocating employees after a company acquisition can be a challenging task, especially when asking employees to relocate to a perceived undesirable location. When a longstanding TRC client headquartered in Rapid City, South Dakota decided to acquire one of its competitors based in Denver, Colorado, they knew that employees could be reluctant to relocate. After evaluating its talent needs, the company decided to offer a domestic relocation package to 59 of its newly acquired employees and their families, based in either Colorado or Wyoming, to South Dakota.

Through employee interviews and discussions with acquired management staff, the client confirmed that the employees viewed the move with hesitation and reluctance. So as the offers were being made to key employee talent, it was important that as many accept the move as possible.  To nurture a high acceptance rate, the company needed to be prepared to provide all the necessary information and support that would allow the employees to feel confident in accepting the move. Read More

Globalization vs De-Globalization: A New World of Bridges…Or Walls?

| February 4, 2019

Global mobility challenges Until recently, the world seemed to be moving inexorably closer, with “us” and “them” giving way to a more global sensibility. Recent populist political movements, from Brexit to Trumpism to Italy’s Five Star Movement and France’s National Rally Party, have challenged this narrative, advocating for a return of local sovereignty and the primacy of national interests. The implications are significant for global mobility and companies that depend on a free flow of talent.

In a recent TRC Global Mobility/Worldwide ERC Learning Zone webinar, Dean Foster, Founder, DFA Intercultural Global Solutions and Executive Strategic Consultant, Dwellworks Intercultural, discussed how cultures and companies are adapting and responding to the new post-global world. He noted that culture is the DNA of a nation. Everything else—politics, economics, social and business life—is a consequence of this culture.

Dean discussed some on-the-ground daily mobility challenges in three areas: Read More

Impact of U.S. Elections on Mobility

| November 30, 2018

us election mobilityThe following post was originally published on November 29, 2018 by Worldwide ERC.

Dear colleagues:

The movement of government offers clues to the way business will unfold, as new lawmakers enter and others depart. With the recent elections in the United States, we want to provide you with an understanding of the impact such changes could have on mobility.

On November 6, midterm elections (which occur halfway between presidential elections for open Congressional seats) were held, resulting in Democrats taking control of the U.S. House of Representatives and Republicans expanding their majority in the United States Senate to 53-47. Democrats gained a net of 40 seats in the House. Read More

Repayment Agreements: Today’s Best Practices

| September 25, 2018

Shaking hands on a payment agreementRecent Worldwide ERC® data shows that the average cost for a company to relocate a current homeowner employee within the U.S. is $79,425. International assignments are more complex, and not surprisingly, more expensive, sometimes costing employers $1m or more.

It has always been important for companies to protect this substantial investment, but the continuing talent shortage has added another imperative: your best and brightest employees—the ones you are most likely to relocate or to send on assignment—are prime targets of your competitors. They would be happy to capitalize on your investment in your employees, particularly when it comes to international assignment experience. Read More

U.S. IRS Reiterates Position Limiting Deduction of Pre-Paid 2018 Property Taxes

| July 30, 2018

2018 Property TaxesThe following article was originally published by Pete Scott on https://www.worldwideerc.org.

In a letter to the Attorney General of New Jersey released 29 June 2018, the U.S. Internal Revenue Service (IRS) restated and supported the position it took in December of 2017 that prepayments of 2018 property taxes in 2017 are allowable as 2017 deductions only if the 2018 tax has been assessed.

The latest IRS letter makes clear that it is not backing away from its earlier position. The correct answer will eventually have to be decided by the courts. 

Following enactment of the Tax Cuts and Jobs Act of 2017 (TCJA), which imposed an aggregate deduction limit of $10,000 on state and local income, property, and sales taxes beginning in 2018, many taxpayers sought to prepay 2018 taxes in 2017 hoping to achieve a full deduction on their 2017 returns. The TCJA explicitly forbade such deductions for 2018 income taxes, but was silent as to property taxes. Read More

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