CapRelo Blog

Calculating Tax Gross Up

Posted by Nicole Overholt on Fri, Jan 13, 2017

tax-calculator.jpgIt's said that death and taxes are the only certainties in life. I'll leave the answer to that question to the great philosophers. However, one thing is an absolute certainty: taxes are a fact of life.

This is particularly true in the employer, employee relationship. The government requires that the employer withhold taxes from the employee's paycheck. Some would call this wise on the government's part, others wouldn't be so kind. In the corporate world, practically everything is taxed, including aspects of relocation packages provided to employees.  Most relocation expenses associated with a move, whether it is a reimbursement made to a transferee or a payment made to a vendor on the transferee’s behalf, is required to be reported as taxable income to the employee and is subject to IRS supplemental withholding regulations.

Find out more about relocation and taxes in our free guide.

Can you imagine the look on your employee's face when you gently explain that the generous relocation benefits provided will increase his or her tax burden? It is a guarantee, the once happy employee's mood will change quickly and not for the better.  Well, fortunately for these employees, a portion of the tax liability of the relocation package can be covered by tax assistance (gross up) paid by the employer. Unfortunately, grossing up can add 55% or more to taxable relocation costs. If you consider the obvious benefit to the employees’ long-term happiness, it is money well spent.

Basically a tax gross up occurs when the employer adds to the taxable relocation amount to assist with the tax liability of the addition of taxable relocation costs to an employee's income. For example, if the relocation costs include $5,000.00 taxable dollars, the employer may pay a total of $7,500.00 so that the employee gets the full benefit of the $5,000.00, as the estimated taxes of $2,500.00 are paid by the employer. 

If you are in planning a relocation move, getting your hands on IRS Publication 521, "Moving Expenses" and Publication 523, "Selling Your Home," available at www.irs.gov would be a good place to start to fully understand IRS regulations regarding relocation expenses.

3 main ways to calculate a tax gross up

1. Flat Method 

The flat method is a flat percentage calculated on the taxable expenses and then added to the income.  For example, an employer will gross up at a rate of 25% for taxable expenses.  If the transferee is paid $1,000, the gross up would be 25% of this, or $250, and therefore the transferee would receive a benefit of $1,250 total.  Note that the gross up is also considered taxable income and may create an additional tax liability to the transferee.

It’s important to note that this method likely doesn't cover the employee's tax liability since the gross up is taxable income. Additionally, this method is not compliant with supplemental withholding regulations.

2. Supplemental/Inverse Method 

This method is often used because not only are relocation expenses considered income, but the gross up is considered income too.  Therefore employers will pay the gross up on the gross up.  To determine the amount, add up all the tax rates (fed, state, OASDI, SS) and then divide the taxable expense by the sum of the tax rates. Take this number and subtract the taxable expense. 

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This methodology covers gross up on the gross up, but may not accurately reflect the tax bracket of the employee.

3. Marginal/Inverse Method

This method is typically handled by a CPA or full-service relocation companies and also incorporates the tax on tax calculation. The difference is this methodology takes into account employee income and IRS Form 1040 tax filing status. In most cases policy dictates that only company-earned income will be considered and other forms of income, such as spousal income or investment income, won't be taken into account.

These three methods represent the nitty gritty of grossing up taxable relocation expenses to assist with the employee's relocation tax liability. While one can do the calculations, it is always wiser to seek the help of an experienced relocation experts.

Free All-Inclusive Guide  Relocation and U.S Taxes

Although this written communication may address tax issues, it is not a covered opinion as described in Circular 230.  Therefore, to ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments), unless expressly stated otherwise, was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matter(s) addressed herein.

Topics: talent retention, tax impact of relocation, calculating tax gross up, talent management

The Hidden Cost of Losing Key Talent During a Group Move

Posted by Rick Bruce on Thu, May 05, 2016

Office_Relocation-thumb_.jpgThere are many corporate relocation costs to consider before a group move. Typically, easily quantifiable, up-front corporate relocation expenses are foremost in the minds of management and HR staff. Rarely is the cost of losing key talent considered. 

Find out everything you need to know for an effective, low-stress relocation in our Low-Stress Relocation Guide.

Here are just a few of the added corporate relocation expenses you may face if your key talent refuses to make the group move:

  • Potential loss of intellectual property and human assets

  • Cost of key talent going to a competitor if a non-compete clause was not signed

  • Bad public relations if high-profile company leaders leave

  • Loss of company morale during and following the move when a company already in a state of flux loses well-respected personnel

Tangible Corporate Relocation Costs of Losing Key Executives

In addition to severance pay that has the potential to equal up to a year's salary for a top executive, there are other tangible costs associated with losing company leaders. These costs won't be considered part of your corporate relocation expenses because they'll be incurred after the company has settled into the new location. But if you are unable to keep the desired staff on board, you will find that these hidden expenses will add up. Even worse, these hidden costs are not tax deductible like some corporate relocation expenses.

  • The costs of hiring and training new employees, which can equal up to five times the amount of an executive's salary

  • Loss of productivity during ramp-up time with new employees

  • Potential corporate relocation expenses if you need to look outside your new region for talent

If your company is planning a group move, wouldn't you rather have your top performers make the move with you? 

The Low-Stress  Relocation Guide

Topics: talent retention, Home Selling and Purchase Assistance, Corporate Relocation Costs, corporate relocation program, talent management

Relocation is a Key Factor in Making Millennial Employees Happy

Posted by Amy Mergler on Thu, Dec 17, 2015

Millennials' Rising Expectations

staff-resized-600.jpgMillennial workers, defined as those born after 1980, are graduating from college and ready to take on the world – literally. According to a Pew Research study, millennials are expected to comprise 37 percent of the workforce in the U.S., which will grow as Boomers retire. Because they have grown up with digital media, the world of the millennials is wider than that of their parents. Consequently, they have developed a global mindset that is reflected in their choice of career paths as well as the need for balance in work and personal life.

Learn more about developing relocation policies in our free guide.

Unlike their grandparents or even parents, most millennials see career travel as a given, seldom staying in one job for more than two or three years, especially if few opportunities exist for relocation and career growth. On the other hand, millennials also value personal growth, balance and meaningful work in addition to career advancement. To successfully manage workers of this generation requires an understanding of what millennials need and want.

Millennials Often Delay Marriage While Establishing Careers

Millennials are more likely than their parents or older siblings to delay marriage and family to establish themselves in a career first, one which preferably includes travel and all of its career-supporting, culturally enriching benefits. Lack of family and other external "baggage" often gives them the freedom to pick and choose plum assignments without worries about spousal employment, quality school availability or other concerns and restrictions often experienced by employees with families. Once millennials do marry and settle down, however, they insist on a work environment that allows a balance of work and family.

Until recently, relocation was usually considered an "earned right" reserved for higher-ranking executives. Millennials believe that organizations intent on keeping their loyalty should offer them the chance to experience other locations and cultures as part of their employment experience.

What Do Millennials Want at Work?

A characteristic of millennials is authenticity in their work as well as personal lives, reports a Bentley University study, with most refusing to compromise values. This includes a willingness to leave companies whose work demands restrict their ability to live an authentic life aligned with their values, including a healthier balance of work and leisure than that experienced by their parents. Pew Research Center studies confirm that many millennials preferred fulfilling careers, where they are valued and enjoy what they do, to high salaries. (Benefits, however, did rank highest in millennials' corporate "wish lists.")

Far from rejecting the corporate world, over 72 percent of millennials surveyed in the Bentley study would enjoy working with a large company; 48 percent of responders also reported that they want to be loyal and would prefer to work for no more than two companies over the course of their careers. The good news is that companies offering great benefits, including travel as well as flexibility, balance and purposeful work should find it easier to keep their millennial workers productive and happy.

Talent Management: Engagement Article

 

 

Topics: talent retention, employee engagement, talent management, millennials

How to Attract Competitive Talent in the Technology Industry

Posted by Jim Retzer on Tue, Jun 16, 2015

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The shortage of talent in the tech industry is the topic of many articles and debates. According to Laurianne McLaughlin in her article titled “The IT Talent Shortage Debate,” a survey by InformationWeek showed that 73 percent of companies with fewer than 1,000 employees and 88 percent of organizations with more than 1,000 employees agreed there’s a talent crunch.

That’s why in recent years, governments around the globe have started investing more in stimuli for STEM education. But even with more graduates set to enter the tech industry, employers are still in fierce competition for the best candidates.

Learn more about increasing employee engagement in our free article.

What High Tech Talent Wants

The Kelly Services report “What Talent Wants – High Tech” provides some important insights into worker preferences in the high tech field. Here are some key findings:

  • Tech talents want clear career paths with their employers. By clarifying up front what tools and opportunities the company provides to support career advancement, an employer can make a position more attractive from the first moment of engagement with the candidate.
  • Professional development is important. Tech talent value training so much that many pay for it out of pocket. However, those who have the opportunity to discuss career development with their employers and make use of available resources—including, as John Hagel writing for Deloitte University Press points out, training opportunities and stretch assignments—are more satisfied than workers in other industries. Clearly, offering career development opportunities contributes significantly to attracting talent.
  • Tech talent values a cutting-edge work environment. Not surprisingly, tech talents want exposure to the latest and most revolutionary technology in the workplace. Employers who can offer this are in high demand.
  • A flexible and collaborative work environment is preferable. More than half of all tech talent value flexible work arrangements with opportunities for flex work and telecommuting. In addition, 62 percent want a highly collaborative workplace in which they have the opportunity to work with knowledgeable colleagues.
  • Tech talent wants competitive compensation. Salary, benefits and other remuneration are of the utmost importance to 86 percent of tech workers. Though the tech industry typically provides relatively high salaries, some companies are offering extremely high compensation in an attempt to retain top talent for longer. Daniel Terdiman describes in his CNET article “Silicon Valley talent wars: Engineers, come get your $250K salary” how Weeby.co decided to offer unusually high salaries and equity to top talent to prevent them from leaving for larger, more established competitors. And as a part of compensation, employers are advised to consider competitive and comprehensive relocation assistance that supports top tech talent when they need to move for their jobs. This shows talent that they’re valued and as a result promotes engagement and retention… plus, a successful move can greatly enhance employee satisfaction and productivity.

In addition to these points, tech talents expect perks. As Laura Lorek points out in her SiliconHills article “Perks Help to Attract and Retain High Tech Talent,” whether it’s catered lunches, a relaxation room, extensive benefits packages, gym memberships or pet-friendly workplaces, tech talent are attracted to employers that offer more than a conventional workplace.

The tech industry will be competing for top talent for the foreseeable future. But with recruitment and retention strategies that are geared to what tech talent wants, employers can greatly enhance their chances of attracting and retaining high quality tech workers.

 

Talent Management: Engagement Article

 

Topics: attracting new hires, talent management, tech industry

How to Attract and Retain Female Executives In the High Tech Industry

Posted by Shirien Elamawy on Tue, Jun 09, 2015

leader-resized-600.jpgAround the globe, employers are becoming aware that the low participation rate of women in the high tech industry has a negative impact on business. According to Sharon Florentine in her CIO article, “6 Ways to Attract and Retain Female IT Talent,” research shows that actively recruiting, retaining and advancing more women is good for a company’s bottom line. And when women are in leadership positions, turnover is reduced, the overall performance of the organization is enhanced and a strong leadership pipeline is established.

Learn key ways to increase employee retention in our free article.

Also, since the high tech industry is overwhelmingly male-dominated, companies are missing out on a significant pool of quality talent. Especially in a labor market where employers are concerned about a talent gap in professions such as engineering, companies can’t realistically afford to not foster female talent. However, statistics indicate a lack of success when it comes to retaining women: a Harvard Business Review report led by Sylvia Ann Hewlett shows that 41 percent of highly qualified STEM workers are female, yet more than 50 percent of them leave the field in their mid to late thirties.

What Employers Can Do

According to the Kelly Services article, “Attracting and Retaining Women in the High Tech Industry,” some of the reasons women leave the IT industry include a lack of female colleagues and role models, as well as distinctly inferior treatment such as lower salaries and fewer advancement opportunities when compared to their male peers. It’s only logical, therefore, that addressing these issues would make for more attractive work environments for women. Employers should consider taking the following measures:

  • Diversity training aimed at promoting understanding, tolerance and equal treatment between male and female workers. This training should include both management and employees and be geared to eliminating gender bias.

  • Offering equal salaries. According to David Louie in the ABC7News article, “Silicon Valley Job Growth Exposes Increasing Gender Gap,” men in tech earn up to 61 percent more than their female counterparts. Obviously, offering women equal remuneration will form an important incentive.

  • Offering clear career paths for women. Employers should clarify how women can advance within the company from the start of the recruitment process.

  • Providing paid maternity leave, as well as flexible work arrangements. Many women leave the high tech industry due to a lack of support for motherhood. Creating work environments where they can fulfill both their roles as mothers and as professionals will likely help retain them beyond their mid to late thirties.

  • Actively encourage female role models. Inviting senior female employees to speak to and mentor younger ones provides clear role models who prove women can succeed in the high tech field. At the same time, recruiting female students in the same manner can encourage more women to study STEM subjects and enter the field of high tech.

  • Provide relocation support geared specifically toward women. Women who need to relocate for their jobs may require tailored support to help them and their families acclimate to the new environment. From cultural training for a female employee relocating to a more traditional society to support in locating schools and childcare, relocation companies can provide superior relocation experiences that help employers retain their top female talent.

Attracting and retaining women in the high tech industry is an ongoing endeavor. But by understanding what women want and where companies fall short, employers can effectively adapt their talent management strategies to foster and support top female talent.

  Talent Management: Engagement Article

 

Topics: talent retention, attracting new hires, talent management

What You Need to Know About Relocating Millennials

Posted by Shirien Elamawy on Tue, May 12, 2015

Millenials Moving

Millennials—those born between 1980 and 2000—are far more interested in relocating for their careers than Generation X and Baby Boomer workers. In fact, Mary Lorenz, in her The Hiring Site article “Five Things You Might Not Know About Millennial Candidates,” cites a CareerBuilder and Inavero survey that showed that 83 percent of Millennials are willing to relocate for the right job that provides them with a higher salary or better advancement opportunities. Moreover, other sources show that 40 percent are even willing to move to a different country or continent!

Learn about developing relocation policies to attract top talent with our free guide. 

In addition to this willingness to relocate, it’s important to note that Millennials in general switch jobs more often than their predecessors. Jeanne Meister writes in her Forbes article titled “Job Hopping Is the ‘New Normal’ for Millennials: Three Ways to Prevent a Human Resource Nightmare” that while the average duration of a professional engagement is 4.4 years, 91 percent of Millennials expect to move on to another position in less than 3 years.

When you combine these statistics, it becomes clear that Millennials are a highly mobile segment of the workforce. And with this generation rapidly becoming the largest group of workers, it’s clear that employers will increasingly encounter situations in which they need to relocate Millennial employees.

A Global Mindset and a Desire for Independence

It’s essential to understand that Millennials are far more independent than older generations. Social media has allowed them to develop a global mindset, enabling them to stay in touch with family and friends, no matter where they are in the world.

Additionally, having grown up in an era where information and services are readily available on the Internet, they’re accustomed to solving problems on their own. And this attitude generally applies to corporate relocation, too. Many Millennials believe they can coordinate their local, national or even international moves themselves. Yet however capable they are in many areas, it doesn’t mean they’re prepared to handle such an impactful life change without assistance. The employer, in the meantime, needs to ensure a good relocation experience in order to keep the employee happy, engaged and productive.

Striking the Right Balance

As Julie Cook Ramirez points out in her Human Resource Executive Online article titled “Generation Why Not,” employers need to strike the right balance between overseeing the move and allowing the transferee the flexibility to handle certain aspects him or herself. And this is where the role of a corporate relocation company like CapRelo is pivotal.

The relocation company needs to offer the necessary support and coaching in a manner that appeals to Millennials. Keep the following points in mind:

  • Be open to including the transferee in the decision making process.
  • Schedule an informational meeting up front in which expectations can be stated.
  • Utilizing technology, provide one central hub from which the transferee can instantly navigate to the specific aspects of the relocation process in his or her own time.

Investing in Relationships

Successful relocations enhance retention, helping companies keep top talent within their ranks. Additionally, Millennials will advance into senior decision-making positions, and the relationships they build now will likely be the ones they rely on later. So though adapting the relocation process to cater to Millennials will likely require some capital and effort, the investment promises to pay off both in the short and long-term.

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Topics: employee retention, relocating employees, employee relocation concerns, talent management, millennials

Five Ways to Improve Employee Engagement

Posted by Shirien Elamawy on Tue, Apr 14, 2015

employeedisengagementinfographic

Employee engagement is a key driver of business success. According to a report by Harvard Business Review titled “The Impact of Employee Engagement on Performance,” a workforce that’s highly engaged with its employer improves productivity, maximizes human capital and reduces turnover, thereby positively impacting a company’s bottom line. A disengaged workforce, however, can contribute to low productivity and increased attrition. In fact, according to Gallup’s 2013 report “State of the American Workplace,” disengagement costs U.S. companies between $450 and $550 billion each year.

Learn more about how to increase employee engagement with our free article.

So it’s no surprise that organizations around the globe are looking for methods to enhance how engaged their people are. Here are five ways to improve employee engagement:

  1. Clearly communicate corporate goals and achievements. Companies whose leadership provides information and insights into business objectives, company policies, and corporate achievements are more likely to engage their employees that those that don’t. In the Entrepreneur article “Richard Branson on Increasing Employee Engagement,” Branson states that at Virgin, management informs workers about what the company’s doing and why by means of internal newsletters.

  2. Provide transparency as to how employees’ performance contributes to overall business goals. Employees want to feel valued, and a large part of this is tied in with how much their individual efforts and performance contribute to company-wide goals. By recognizing high performers and encouraging employees to understand their role in the bigger picture, companies can make them feel more engaged.

  3. Listen to employee feedback to determine satisfaction levels. Harvard Business Review advises getting employee feedback by means of employee satisfaction surveys that are carefully designed to yield information about what is and isn’t working in the company. It’s optimal if the surveys can provide specific, actionable data that can guide company policy.In short, they should enable management to work with employees to pinpoint obstacles to engagement and come up with ways to overcome those obstacles.

  4. Employ good managers. The role of frontline managers is key in employee engagement. Managers who know how to develop their teams, encourage them to excel and help them advance their careers are far more likely to establish a connection with employees than those who don’t. This means that frontline managers also need the support of their companies’ leadership in order to help their people become effective.

  5. Empower employees. Employees who feel supported, who have the tools to do their jobs and who are offered training and development opportunities, are far more likely to feel engaged than those who don’t. By offering employees ways to grow within their jobs and with the company, employers demonstrate their trust in their people, as well as how much they want them to succeed.

Enhancing employee engagement is an ongoing process. It requires unbiased information about employee satisfaction and dissatisfaction, as well as the ability to analyze that information and adapt or create company policies accordingly. But when you consider that employee engagement is one of the greatest drivers of business success, spending the time and effort on improving engagement strategies is well worth it.

 

Download our Free White Paper: Ways to Increase Employee Engagement

Topics: employee engagement, talent management

Why CEOs are Worried About Talent Management

Posted by Shirien Elamawy on Tue, Apr 07, 2015

talentmanagementinfographic.jpg

In a recent Harvard Business Review article titled “The 3 Things CEOs Worry About the Most,”talent management issues were cited as the number one concern for 16 out of 24 CEOs. It’s no secret that many organizations are struggling to attract and retain the talent they need to grow their operations.

With the labor landscape changing due to an evolving workforce that consists of an increasingly large number of non-traditional workers such as independent contractors and other contingent talent, employers have to determine where to source their talent to best meet their company’s objectives. At the same time, the manner in which work is performed is changing, with automation and technology having a significant impact on the types of skills needed in the workplace.

Learn more about increasing employee engagement with our free article. 

So what are some of the talent management issues CEOs are concerned about?

  • The skills gap. Finding qualified workers remains a problem for companies. According to research by Manpower, in 2014, 40 percent of employers reported difficulties in filling open positions and 56 percent of companies agreed that a lack of talent had a medium to high impact on their business functioning. The skills gap has a number of reasons:
    • A large number of experienced Baby Boomer workers are set to leave the workforce, taking their knowledge and expertise with them.
    • Entry-level and mid-career workers don’t yet have the skills necessary to fill more senior positions.
    • The rate at which technology is evolving makes it difficult for employees to keep up; even educational institutes are having a hard time ensuring the skills they teach don’t become obsolete within a few years.
    • Geographic disparities in education and occupational experience make it difficult to find qualified workers in certain regions.
  • Cultural fit. Companies that are poised to grow quickly oftentimes prioritize skill sets over cultural fit. Though this is a logical choice, when employees fill outward facing positions, cultural fit can be as important as possessing the right qualifications. At the same time, an employee who isn’t a good cultural fit can face more challenges functioning in a company and ultimately leave, costing the company thousands of dollars to search for a replacement.
  • Career advancement. Some CEOs are concerned about whether their high-potential employees are being adequately supported in their professional development. Companies need clear career paths and sufficient support for those employees who are aspirational and possess the ability to advance beyond their current positions.
  • Global mobility. With an increasingly global marketplace, more and more companies have a footprint in other countries. Creating a mobile workforce with top talent who are willing to relocate for the right opportunity is a challenge for many CEOs. The good news is, organizations that use a corporate relocation company like CapRelo can significantly enhance the success rate of their global assignees by providing them with the assistance and support they need to navigate international moves. With help for everything from packing household goods and relocating pets to locating schools and language classes, talent are far more likely to have a positive overseas experience. And that increases the chances they’ll act as ambassadors for their companies’ global policies by speaking out in favor of international assignments.
  • Talent pipelines. Companies with an established talent pipeline are concerned with ensuring those pipelines can provide a continuous flow of talent for the long term.

Considering these factors, it’s understandable that CEOs are concerned about talent. Yet the most important thing to understand is that in an evolving labor landscape, talent strategies need to be flexible. By remaining flexible, employers will be better equipped to incorporate any changes or developments that could further impact their talent management strategies.

 

Download our Free White Paper: Ways to Increase Employee Engagement

 

Topics: employee engagement, talent management

The Difficulty of Engaging and Retaining Employees Globally

Posted by Jim Retzer on Tue, Mar 31, 2015

23percentofworkersplantoleaveinfographiccopy

A 2015 financial article titled “Global organizations face looming crisis in engagement and retention of employees, according to Deloitte survey” states that 87 percent of business and HR leaders agree a lack of employee engagement is their primary concern.

What’s more, while the percentage of leaders who stated engagement was very important doubled from 26 to 50 percent from last year, an overwhelming 60 percent said they didn’t have specific processes to measure and enhance employee engagement.

Learn more about key ways to increase employee engagement in our free article.

These numbers are disturbing, especially when you consider that employees are most companies’ primary resource. A lack of engagement signals a lack of motivation and retention, resulting in reduced productivity, costly turnover and the inability to successfully and continuously expand business operations. ­

Moreover, according to Achieve Global’s report “Worldwide Trends in Employee Retention – How to keep your best employees in any market,” talent mobility is on the rise. In the United States alone, 23 percent of workers plan to leave their current jobs within the next 12 months. This level of attrition is concerning, especially since replacing employees is a lengthy, costly process.

And though many companies are streamlining their recruitment processes in order to minimize recruitment and return to productivity time, these types of measures can’t be effective without addressing the lack of employee engagement.

Obviously, for companies looking to enhance engagement and retention, it’s key to understand employees’ motivations for remaining satisfied with their jobs and their companies.

And this is where some interesting facts become clear. According to Towers Watson’s research, the factors that influence engagement include leadership’s sincere interest in employees’ wellbeing, a healthy work-life balance, flexible work arrangements and reasonable workloads. In other words, employees who feel supported by their companies’ leaders and whose jobs allow them a reasonable work-life balance are far more likely to be engaged than those who don’t.

Other factors that influence retention include a good understanding of a company’s goals and how a job contributes to those goals; a company’s public image; and empowerment (i.e. that management actively seeks out employees’ opinions in decisions that affect them).

When it comes to attracting, engaging and retaining top talent, employers around the world are advised to adapt their talent management strategies to better meet their employees’ expectations. Without taking this all-important step, employees are far more likely to look elsewhere when their job experience isn’t as good as expected.

Adjusting talent management strategies can involve a number of steps, including providing more transparency about the company, creating more flexible work arrangements and facilitating a more collaborative work environment.

Another aspect of enhancing engagement involves providing the best relocation experience possible for relocating employees. When talent feels supported by their companies during the demanding and often stressful time surrounding a relocation, they’re more likely to settle into their new positions smoothly. And that in turn greatly enhances the chances of them being engaged for the long term.

Of course, enhancing engagement and retention isn’t a process that happens overnight. By continuously staying abreast of talent trends and assessing why employees leave their companies, employers can gain the insights necessary to adapt their strategies to better engage and retain top talent.

Talent Management: Engagement Article

 

Topics: employee retention, talent retention, employee engagement, talent management

Employees Are Willing to Relocate for a Dream Job

Posted by Shirien Elamawy on Tue, Mar 17, 2015

This way to your dream job

Why employees want to relocate

According to a study by the job website Monster, three-quarters of international workers, including about 48 percent of American respondents, were agreeable to being transferred if the “job of their dreams” was involved. While 23 percent wouldn’t accept a transfer for any reason, 32 percent of respondents would even be willing to move halfway around the world.

Find out more about developing relocation policies with our free guide. 

A breakdown of respondents from another study showed that 77 percent of workers who transferred during the previous year were pleased with the move, reporting benefits that include making a fresh start (30 percent), new experiences unavailable elsewhere (29 percent,) and higher earnings (27 percent).

Millennials making changes

Younger workers (dubbed "Millennials”) who are beginning their careers are more adventurous, flexible, and open to living and working in new locales and often see it as a necessary requirement for career promotions and development.

Millennials tend to be renters; therefore the relocation packages are less expensive than that of traditional expats.

Savvy organizations know that it’s important to get the ‘new hires’ off to a good start if a transfer is in the immediate offering, as this will color their experience with that company. As a result, many companies hiring younger workers are turning to offering less traditional, more flexible benefits packages for the newly hired transferees.

I win, you win

The flexible concept is working well for other transferees higher on the job ladder, as are tiered plans that offer fair relocation packages to employees at all levels. Twelve percent of companies surveyed in a 2013 employee mobility study, offer plans with basic or core benefits, covering final move costs, temporary housing, and house-hunting, with additional benefits – such as guaranteed home purchases or miscellaneous expenses – offered cafeteria-style as the transferee desires.

While the US economy is gradually improving, job markets in many areas are still extremely competitive, making the idea of looking elsewhere for work more attractive than ever. As a result, 44 percent of American workers indicated a willingness to relocate if the right job opportunity came along, according to a Career Builder study. In fact, 20 percent of workers who were laid off during the previous 12 months found new employment after relocating to a new state or city, according to the study.

On the flip side, there are also many employers who are willing to bring needed talent to their location, with 32 percent willing to pay relocation costs. Another 19 percent were willing to offer a smaller salary during the first year for a relocation signing bonus.

And the winner is...

The most popular city cited by potential transferees is London, followed by New York City, according to a recent survey by the Boston Consulting Group and The Network, a recruiting group participating in the study. Both cities offer a large foreign-born population (about 3 million each), and are both flourishing business centers.

Overall, though, the USA is still considered by workers worldwide, including those from developed economies, to be the most desirable country to relocate for work.

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Topics: employee retention, relocating employees, employee transfer, talent management

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