CapRelo Blog

Exclusive Webinar - Managing Relocation Costs: Tips and Tricks of the Trade

Posted by Amy Mergler on Thu, Oct 20, 2016

Managing Relocation Costs Webinar


Assignments are critical to your success in the global marketplace. You must get the right talent, in the right place, at the right time. But how can you do that without breaking the bank?

Please join our lively discussion on Wednesday, October 26th at 2:00 pm with relocation experts who are on the front lines of the industry as they share tips and tricks to help you manage costs while still executing a successful relocation program in our WERC Learning Zone Webinar: Managing Relocation Costs: Tips and Tricks of the Trade.

In this webinar, you’ll learn:

  • Why regular policy reviews are critical
  • Pros and cons of two top policies
  • 8 alternate assignment types
  • 11 great cost-saving ideas
  • Hidden costs that could derail your program

Webinar presenters:

Angela Tan, CRP, GMS-T
Director, Client Development
CapRelo

Laura Wilkins, CRP, GMS
Global Assignment Manager
CapRelo

 

CapRelo presents this free, exclusive webinar through the WERC Learning Zone so you can learn more about creating a successful global relocation policy. This webinar is good for one CRP and/or GMS credit.

Register today for our October 26th Learning Zone Webinar: Managing Relocation Costs: Tips and Tricks of the Trade

Topics: caprelo webinars, WorldwideERC, Relocation Services, global mobility, global relocation

Exclusive Webinar - Real Estate Roundtable: Expert Advice on Relocation's Biggest Challenges

Posted by Amy Mergler on Wed, Oct 07, 2015


Up-to-date real estate policies are critical to the success of your relocation program. Nothing can disrupt your talent management goals faster than a transferee distracted by a house that won't sell. And, nothing can increase your program costs faster than managing policy exceptions for unexpected issues.

Please join our lively roundtable on Tuesday, October 27th at 2:00 pm as we bring together a lender, appraiser, closing attorney and home inspector to discuss the hottest challenges in the U.S. real estate market in our WERC Learning Zone Webinar: Real Estate Roundtable: Expert Advice on Relocation's Biggest Challenges.

In this webinar, you’ll learn:

  • Legal issues that can impact closings
  • Inspection concerns that can cause a home sale delay
  • Appraisal matters that your transferees need to consider when buying or selling
  • Mortgage industry changes that can affect a successful relocation

Presenters for the webinar include:

Brian Shea, GMS
Vice President, Sales and Business Development
CapRelo

Tom Dempsey, SCRP, GMS
Director, Relocation and Business Development
Quicken Loans

Jay Hershman, Esq., CRP
Partner
Baillie & Hershman, Associated Title & Closing Co., P.C.

Frank Wisniewski
Director, Account Management
Fidelity Residential Solutions

Michael S. Cook, MAI, SRA
President
Michael S. Cook & Associates, Inc.

CapRelo presents this free, exclusive webinar through the WERC Learning Zone so you can learn more about creating a successful international relocation policy. This webinar is good for one CRP credit.

Register today for our October 27th Learning Zone Webinar: Real Estate Roundtable: Expert Advice on Relocation's Biggest Challenges.

Topics: caprelo webinars, Relocation Services, international relocation services, Real Estate

What You May Not Know About Lump-Sum Employee Relocation Packages

Posted by Amy Mergler on Wed, Sep 16, 2015

productivity.jpgThere's a lot to think about if your company is considering changing to a lump-sum employee relocation package rather than reimbursing moving expenses for relocating employees. Here are a few factors you may not have considered.

Employee satisfaction may be lower when employees are left to manage their own funds, as with a lump-sum relocation package. Employees hoping to save money (and pocket the difference) when they receive a lump-sum relocation package to pay for their moving expenses may end up unhappy with the service they receive if they shop by price for relocation service providers. This could result in a slower return to productivity as well as a lower employee retention rate following the move.

Learn more about lump-sum relocation packages by downloading our free guide.

Employees who are busy organizing and managing their move will not be fully focused on their job. Moving can be a stressful time. When employees are left to fend for themselves when selling their home, lining up household goods movers, and even finding a new place to live, their minds are not on their job. This could result in lost productivity.

A lump-sum employee relocation package may not save your company money in the long run. Letting employees manage their own move can result in relocation delays if a house won't sell, and can lead to lost productivity. While lump-sum packages save your company money in administrative costs and time, they may not represent the significant cost savings you believe, especially if employee relocation packages that reimburse expenses lead to all-around greater employee satisfaction and low-stress relocations.

We're not specifically advocating one type of program over another, but it's a good idea to evaluate your situation – or call on a relocation management company to help – if you are thinking of changing your employee relocation policy.

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Topics: employee retention, Home Selling and Purchase Assistance, Relocation Services, relocating employees, relocation management company, executive relocation package, lump sum package

Managing Relocation Suppliers

Posted by Jim Retzer on Tue, May 20, 2014

Supply chain management is critical in the relocation industry. Just one issue in the supplier network can disrupt one or even several employee relocations.

As a result, many corporations and government agencies utilize the services of a relocation management company to manage suppliers. This takes the challenging task of researching, qualifying and managing suppliers off of your shoulders. Whether you manage your own supply chain or use a relocation management company, following are some of the suppliers you need to select to provide complete relocation services to your employees.

Find out more about managing your relocation supplier network in our free article.

Considerations when Choosing Suppliers and Vendors

  • Moving Household Goods (HHG) – As one of the main concerns for transferees, a company needs a good record of moving goods on time and in good condition.
  • Managing the Move – This involves handling the often-tricky scheduling and assistance with physically moving the transferee and his or her family, thus enabling the employee to get back to the job at hand and minimizing disruptions in productivity.
  • Global Relocation Services - A relocation firm should be experienced in assisting transferees in adapting to new cultures, customs.
  • Real Estate and Mortgage Brokers – More often than not, the employee has a house that must be sold and needs help selecting and financing a home in the new location. The ability to provide real estate and temporary housing assistance both domestically and internationally is crucial for a relocation company.
  • Destination and Settling-in Services – From getting utilities connected, helping the transferee navigate health care and school options as well as assistance in becoming acclimated to his or her new location, settling-in services play a large role in returning the employee back to full productivity sooner.
  • Cultural and Language Training – Learning the new area’s language, laws and customs will boost your employee’s confidence and comfort with the new assignment.
  • Immigration Services – Expert knowledge is required for navigating the regulations governing visas, customs, and other immigration provisions for the destinations in question.
  • Travel Services – Experienced travel professionals can help remove the guesswork and frustration of making travel arrangements for the transferee and his or her family.

For those companies who still offer fixed lump-sum payouts for expenses, it is important to note that employees who have been given the names and contact information of qualified, trustworthy suppliers will have a reduction in moving-related stress, and an easier transition, resulting in better productivity.

Precautions

The quality of goods and services can vary widely among suppliers, especially among national franchises and international providers. Some may live up to their reputation but others may not. A qualified reputable third-party relocation company can help avoid potential relocation problems by verifying suppliers for financial stability, safety and insurance coverage and performing facility site visits, ensuring an optimum transfer experience for the employee and company alike.

How to Manage Your Relocation Supplier Network

Topics: Supply Chain Management, relocation management services, Relocation Services

[Video] Writing Effective Employee Relocation Letters: 3 Tips

Posted by Brian D'Orazio on Tue, Feb 04, 2014

Are you looking for ways to write an effective employee relocation letter? What three simple tips should you know?

Please enjoy our video, "3 Tips for Writing Effective Employee Relocation Letters - CapRelo."

Topics: employee retention, Relocation Services, employee transfer, writing relocation offer letter, talent management

Relocation Packages Designed to Attract the Right Executive

Posted by Mickey Williams on Tue, Jul 31, 2012

business-womanRelocation packages come in a variety of shapes and sizes to meet various corporate goals and budgets.  In recent years, as a result of difficult economic times, many organizations were forced to scale back the size of their relocation programs.  However, as the economy rebounds, it’s important for companies to re-examine their program, especially when trying to recruit for executive-level positions. 

Find out the 5 critical features of an executive relocation package in our free eBook.

Current Relocation Concerns

The current job market and continued real estate crisis has generated concern amongst corporations and professionals alike.  Corporations need to tighten the belt on their budgets while still working to offer packages that entice quality executives, and professionals are reluctant to relocate and make job changes for fear of the unknown. 

Before an executive will consider relocating for a job change, he or she will carefully consider questions such as:

  • Will I qualify for a mortgage?
  • Can my family and I establish a home there?
  • Are there rentals that meet my needs?
  • Can I sell my current house in this real estate market?
  • Does the school system meet my expectations?

Employers must creatively deal with these concerns in cost-effective manners.  This can be accomplished by developing a progressive domestic relocation policy that includes real estate assistance, the movement of household goods, and tax treatment.

Three Benefits Critical in Your Executive Relocation Package

Companies need to give their employees and/or potential recruits the tools to answer their critical questions and minimize the mystery and the stress of the unknown.  This can be accomplished by including critical benefits in the executive relocation package. 

Real Estate Assistance 
The challenge of selling a home is one of the top reasons employees don’t want to relocate.  The real estate crash placed homeowners in awkward and untenable positions, and many find themselves underwater (mortgage balance higher than market value of homes).   Companies offering relocation packages can fall short of executive’s needs should homeowners risk losing thousands of dollars because of a forced sale for relocation.  

A relocation package should include employer incentives such as loss-on-sale features, quick sale bonuses, buyer incentive assistance, and/or other creative housing-related benefits.  Transferring employees find these benefits critical to relocation options and choices.

Movement of Household Goods
Whether a relocation package includes a lump-sum payment or full reimbursement of costs for moving belongings and family, this benefit should be a relocation package component.  Some companies make relocating a DIY project, others offer the services of a van line, while others rely on a third party move management program to save work and stress on the employer and transferring employee.

With the real estate market flooded with short sales and foreclosures that require more time to close than the standard home sale, companies may want to consider extending standard storage times.  It may also be beneficial and valuable to a transferring executive or recruit to offer a trusted and proven professional mover to manage their large and unique moves.

Tax Treatment
Moving costs money, and employees need their relocation-related out-of-pocket expenses reimbursed in a timely and accurate manner.   If expenses are not properly coded or tracked, they could spin out of control.  That burden, along with end-of-year tax reporting related to relocation expenses, can cause unnecessary stress. 

A relocation package needs to include management of all invoicing, payments, tax filing, and tax gross-up benefits to make the process easy and hassle free.

At a minimum, HR professionals should consider including these three critical benefits in a relocation package.  Employers will decide if any additional benefits, e.g. retention bonuses, are featured in a relocation package.  If relocation policy design is an intimidating task, consider utilizing the expert services of a relocation management company like CapRelo.  Relocation policies that are designed and measured to meet strategic objectives are essential to a company’s success.

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Topics: relocation benefits, Home Selling and Purchase Assistance, Relocation Services, executive relocation package

Relocation Paperwork You Can Expect To See and What It Means

Posted by Tamara Bianchi on Tue, Jul 03, 2012

Relocation services are there to simplify the process of transferring employees from one location to another. Ultimately, it’s the goal of the relocation management company to pave the quickest, least disruptive path between Point A to Point B so that the transferee can experience as seamless a move as possible, with minimal stress and worry.

Learn more about developing relocation policies in our free guide. 

Below are some examples of paperwork (required and informational) that employees in the process of transferring should expect to receive during a corporate relocation.

Relocation Benefits and Policy Acknowledgement Forms

A critical document for any relocated employee to keep, the relocation benefits form spells out all of the agreed-to benefits of the relocation package being exercised. Policy acknowledgement forms are to be signed by employees prior to their relocation, and are the legal agreements between employee and employer that explicitly spells out the rights of each.

Expenses Breakdown

The corporation that a person works for will likely have a relocation benefits package that covers necessary expenses associated with relocation. This coverage goes well beyond the simple cost of hiring a moving company and paying for airfare, and can also extend to paying for temporary housing while a transferee looks for something permanent, in addition to the hiring of real estate services to help market that person’s home and guide it to a quick sale.

Understanding the breakdown of expenses covered and what the tax ramifications are if reimbursed is key to helping a corporate employee determine whether or not their relocation will be an economic hardship or an opportunity they'd be foolish to pass up.

Destination Demographics

Relocation services companies not only handle all of the details of arranging a move for a corporate employee, but they even go so far as to eliminate the need for that individual to do any research. Typically, the relocation management company will pull together a comprehensive report on the destination city for the employee to review. This can include everything from detailed information on local schools to family friendly neighborhoods, to a synopsis of the area’s history and a list of nearby areas of interest. This not only helps the relocating employee and their family learn about the place they’ll soon be calling home, but it can also work as an effective tool for persuading reticent employees to take relocation opportunities they might otherwise turn down without a second thought.

Relocation management companies are in the business of eliminating the bumps in the road that could potentially derail a corporate relocation – and a major part of that is the elimination of paperwork through streamlined processes that handle the “heavy lifting” portion of moving. Without the services of a relocation management company, the prospect of employees having to pull off their own cross-country relocations would be so daunting that few would agree to it at all. The end result could cripple the growth for companies interested in expansion – not to mention making the recruitment of talent a near impossibility.

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Topics: relocation management services, Relocation Services, relocation management company

Relocation and Family Considerations

Posted by George Herriage on Tue, Jun 05, 2012

Relocating for a career opportunity can be stressful and that stress only increases when family considerations are involved. However, many companies attempt to mitigate that stress by offering their employees relocation packages. That can reduce the worries the employee and his or her family has to face, because most of the specifics of the move will be handled by a relocation company.

To some extent, the relocation policies of a business will be dictated by what is offered by the relocation company with which that business works. The goal is to find the best relocation company to meet the needs of the employer and the employees. In order to do that, an employer must carefully consider what his or her employees will require when relocating and how much money he or she wants to pay for those services.

Employers should consider:

  • What kind of housing the employee will be moving to
  • How often employees will be relocated
  • The distance of the average employee relocation
  • The budget for relocation
  • What products different relocation services offer
  • What kind of relationship can developed with the relocation service, from a long-term standpoint

Some employers are very open to talking with their current employees about what those employees need and want if they were asked to relocate. Armed with this information, the employer can make a better choice of relocation service options. However, this does not address how future new hire employees may feel about the offered relocation package.

Additionally, some businesses have a "take it or leave it" approach to the relocation packages they offer to their employees. In those situations , discussing what the company might want to offer is not something that employees could expect.
Download The Low-Stress  Relocation Guide
Regardless of how a business chooses to handle its relocation relationship with its employees, the business can work with the relocation service it has selected in order to provide the highest level of service to the employees who will be asked to relocate. Whether those employees must move to the next town or across the world, having an employer who is willing to provide them with a relocation package will ease their worries and fears about taking themselves and their family to an unfamiliar place.

Topics: relocation packages, Home Selling and Purchase Assistance, Family Relocation, Relocation Services

Do-It-Yourself Relocation Management Can Cost Your Company More

Posted by George Herriage on Mon, Feb 20, 2012

Does your HR staff handle relocation management on its own? Have you ever considered hiring an outside firm to:

  • Line up the best vendors for providing employee relocation services
  • Act as a liaison between your company and those vendors, in the event of any customer service or communication issues
  • Organize the finer details of relocation management
  • Set benchmark relocation policies and standards
  • Provide guidance with complicated financial issues like tax gross-up
  • Ensure all employee reimbursement goes through in a timely manner
  • Make sure all necessary paperwork is in place
  • Help your company refine the process after each relocation to ensure a low-stress relocation for each employee?

If you think hiring an outside firm for relocation management is expensive, think about the costs associated with doing it yourself. Aside from tapping the resources of your HR staff, in-house relocation management can cost your company money if you:

  • Fail to find service providers that offer the best value for your money
  • Have to renegotiate relocation policies with each employee, because you don't have standards in place
  • Make errors calculating tax gross-up
  • Don't retain employees after a costly move

In the long run, hiring a relocation management company:

  • Saves your company time
  • Saves your company money
  • Increases retention rates for relocated employees
  • Makes employee relocation less disruptive to your workflow
CapRelo has a phased relocation process designed to increase employee retention rates, help employees return to full productivity faster after a move, and keep relocation costs down by managing the budget carefully. Real-time, online relocation management software gives your HR staff and other key personnel instant, 24-hour access to data related to a relocation, so you can spot problems quickly and compensate for surprise costs.

Topics: Home Selling and Purchase Assistance, relocation process, Relocation Services

How to Beat the Stress of Relocation in the Current Housing Market

Posted by Barbara Miller on Wed, Oct 05, 2011

If the stress of buying, selling, packing up and moving into someplace new has your workforce quivering in their boots about relocation, work with an executive relocation company that has a proven track record of delivering a stress-free, hands-off experience.

These days, there’s enough worry about the real estate market without having to overburden your employees with the stress of relocation. For many of your employees, the notion of uprooting their lives to follow a greater job opportunity halfway across the country is simply not an option – or least not one they’ll enter into eagerly, considering all of the work they’ll need to put in to find a real estate company capable of selling their home in a down market. To be able to place your best people in positions they’re perfectly suited for, hire an executive relocation company to help expedite matters.

Executive relocation companies don’t just arrange for a moving van to show up on the day your employee is scheduled to uproot to a new city. The involvement on the part of the executive relocation company actually begins much earlier than that, considering the needs of the individual employee and their family, and plotting a unique strategy to handle all challenges quickly and with minimal complications. This includes:

• Matching your employee up with a real estate agency that can sell their property quickly.
• Putting your employee in contact with a realtor capable of finding them a new place to live.
• Offering your employee valuable resources to help them determine in what area to settle down.
• Facilitating arrangements between your employee and the moving company.

Download Our Free Article on Incorporating  Property Management
If the stress of buying, selling, packing up and moving into someplace new has your workforce quivering in their boots about relocation, work with an executive relocation company that has a proven track record of delivering a stress-free, hands-off experience. You won’t regret it, and your employees will thank you for it.

Topics: relocation management services, Relocation Services

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