Companies that provide global relocation assistance for their employees can expect the usual concerns from their employees, including selecting a mover, providing help with selling a home, support in the new location, and so on. With a global relocation, however, there are additional concerns like visas, international taxes, housing allowances and replicating previous living standards as closely as possible.
Typical Global Mobility Services
In addition to the few listed above, other typical services during a global relocation include:
- Assistance with managing relocation expenses
- Household goods moving
- Destination and arrival support services
- Spousal support and counseling
- Cross-cultural training and language classes
- Locating quality schools for accompanying children
- Ongoing support while becoming oriented to day-to-day life in the new location
- Security for employees and their families
- Personal transportation, including car purchasing, leases or company drivers
Strategies to Control Global Mobility Expenses
All these services are important, but they also increase the complexity and cost of global relocations. Here are several strategies you can employ to help control your global mobility expenses.
- Establish a fair ceiling for housing and related costs for employees, making sure to account for the area’s monetary and real estate market fluctuations.
- Consider the length of the assignment. The longer the employee will stay in the new location, the more the compensation rates should be in line with those of the host country. However, it is important to keep in mind that compensation should not fall significantly below what was previously earned; no employee wants to lose money as a result of a transfer.
- Get quotes from several relocation management companies, if you decide to use one. Determine what services are available and check customer ratings to assist your decision making.
- Carefully estimate the cash and other out-of-pocket expenses and resources needed for a transfer. Underestimating is one of the most common mistakes made – be sure to prepare a list of actual and anticipated expenses in advance.
A comprehensive global mobility policy will keep many factors within your control, but other factors affecting cost – the value of overseas real estate or global monetary fluctuations, for example – are not. If you allow for surprises when planning your budget, you will be better prepared to get your employees off to a good start in their new locations.