CapRelo Blog

January 2018 Mobility Survey

Posted by Amy Mergler on Wed, Jan 31, 2018

Thinking about changing your relocation program or just curious about what other organizations are doing? Each month, we'll feature a short survey and share our findings of the previous month's survey. 

Below are the results for October's survey and this month's survey questions.

December Survey Results

1. Does your company process mobility-related tax matters in-house or do you out-source?

In-House: 67%
Out-Source: 34%
Don't Know: 0%

2. What is your top challenge associated with mobility-related tax matters? (Choose all that apply)

Calculating/handling tax gross-up: 67% 
Keeping current on changes to tax laws: 100%
Payroll taxes and withholding: 34%
Tax reporting/forms: 67%
Other (please specify): 0%

3. If your company provides tax gross-up as a benefit to your transferees, which method do you use for calculating gross-up?

Flat Method: 0%
Supplemental/Inverse Method: 34%
Marginal/Inverse Method: 0%
Unknown: 67%
Do Not Offer Tax Gross-Up: 0%

 

This month's survey addresses executive talent mobility programs.  

 

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Topics: relocation packages, employee relocation

December Mobility Survey

Posted by Amy Mergler on Tue, Dec 26, 2017

Thinking about changing your relocation program or just curious about what other organizations are doing? Each month, we'll feature a short survey and share our findings of the previous month's survey. 

Below are the results for October's survey and this month's survey questions.

October Survey Results

1. Does your company measure employee engagement for your relocated employees?

Yes: 0%
No: 34%
Don't Know: 67%

2. How does your company measure engagement? (Choose all that apply)

Employee Engagement Surveys: 0% 
Observation of Day-to-Day Employee-Management Interactions: 0%
One-on-One Employee Meetings: 67%
Stay/Exit Interviews: 34%
Employee Net Promoter Score: 0%
Unsure: 34%
Other (please specify): 0%

3. Which of the following have you implemented in your talent mobility program to address employee engagement? (Choose all that apply)

Developed mobility policies that are employee friendly while staying within corporate budgets: 34%
Developing mobility solutions that align with your company's culture and workforce as part of your regular benefits program: 34%
Engaged actively with employees' family members to offer support and assistance: 34%
Worked out tax issues before relocations take place: 67%
Unsure: 0%
Other (please specify): 0%

 

This month's survey addresses mobility and taxes.  

 

Create your own user feedback survey

Topics: relocation taxes, calculating tax gross up, relocation packages, employee relocation

October Relocation Survey

Posted by Amy Mergler on Wed, Nov 01, 2017

Thinking about changing your relocation program or just curious about what other organizations are doing? Each month, we'll feature a short survey and share our findings of the previous month's survey. 

Below are the results for last month's survey and this month's survey questions.

September Survey Results

1. Does your company have a core-flex talent mobility policy?

Yes: 42.9%
No: 57.1%
Don't Know: 0%

2. What motivated your company to use a core-flex policy? (Choose all that apply)

Cost Savings: 66.7% 
Customizable: 66.7%
Recruitment Tool: 33.3%
Exception Reduction: 0%
Unsure: 33.3%
Other (please specify): 0%

3. What challenges did your company face when developing your core-flex program? (Choose all that apply)

Determining precisely which benefits to offer: 66.7%
Balancing core and flexible benefits: 66.7%
Establishing reporting and metrics procedures: 0%
Ensuring consistency of policy application: 0%
Establishing streamlined processes to facilitate the implementation of the policy: 0%
Unsure: 66.7%
Other (please specify): 0%

 

This month's survey addresses employee engagement.  

 

Create your survey with SurveyMonkey

Topics: relocation packages, employee relocation, employee engagement

September Relocation Survey

Posted by Amy Mergler on Tue, Sep 26, 2017

Thinking about changing your relocation program or just curious about what other organizations are doing? Each month, we'll feature a short survey and share our findings of the previous month's survey. 

Below are the results for last month's survey and this month's survey questions.

August Survey Results

1. Does your company address employee retention after relocation in your mobility program?

Yes: 40%
No: 40%
Don't Know: 20%

2. Which relocation concerns affect employee retention in your company? (Choose all that apply)

How relocation impacts employees' families: 80% 
Tax/financial impact of relocation: 0%
Real estate concerns: 40%
Anxiety and acclimatization concerns associated with moving: 40%
Unsure: 20%
Other (please specify): 0%

3. Which of the following does your company's mobility program address to improve employee retention? (Choose all that apply)

Tracking retention rates following employee transfers: 20%
Fully interviewing, evaluating and screening employees prior to a potential transfer: 20%
Providing relocation assistance with real estate considerations: 60%
Providing tax assistance: 40%
Offering adequate spousal/partner support: 20%
Following up with employees regarding their relocation experience: 40%
Unsure: 20%
Other (please specify): 0%

 

This month's survey addresses Core-Flex Policies.  

Create your survey with SurveyMonkey

Topics: relocation packages, core-flex policies, employee relocation

Real Estate Tiers in Your Global Mobility Program

Posted by Amy Mergler on Fri, Sep 08, 2017

New HomeYour relocation tiers can be as detailed and nuanced as you need them to be. Some companies find it useful to establish specific real estate tiers as part of their packages. Real estate tiers feature different options that may incentivize employees to sell their homes more quickly or give them a guarantee that they won't be stuck paying an old mortgage long after they've moved to their new location

Guaranteed Buyout Program

Sample real estate tiers may include executive level home sale assistance and a Guaranteed Buyout (GBO) program. Executive level home sale assistance is typically reserved for high-level executives. It involves providing a buyout offer after a home has been on the market for a certain length of time. This gives your high-level executives the assurance that they can confidently purchase a new home without the constant worry of whether their old home will ever sell.

To offer a buyout option, your company needs to be prepared to be responsible for the costs associated with carrying a home in inventory until resold. This isn't the optimal situation, but it could be well worth it if it helps increase the productivity of a strategic employee.

Buyer Value Option Program

For mid-level employees, you may consider offering a Buyer Value Option (BVO) program, which offers similar advantages to a GBO once an outside buyer has been identified. This option often focuses on providing employees with sufficient marketing support they need to sell their homes. A BVO minimizes the risk of inventory costs and provides a high level of employee satisfaction.

Home Sale Bonus Incentive

A final aspect of real estate tiers for homeowners is the home sale bonus incentive, which can also be added to relocation packages at any level. This involves providing an additional bonus for employees when they sell their homes within a certain period of time. These bonuses – also known as quick sale bonuses – provide employees with motivation to sell their homes more quickly and make it more cost-effective to invest in repairs and improvements and services like home staging.

Quick sale bonuses benefit employees because they deliver greater incentives to sell their homes faster and relocate without having their attention, focus and efforts pulled away by their old pieces of property. They're also more likely to bring in good prices on homes that are still occupied and that have spent less time on the market.

There are benefits for employers who encourage relocating employees to sell their homes quickly, too. The sooner your employee sells, the shorter the overall relocation process will be, which can save your company major costs on the relocation package. You'll also benefit from having your employees return to full productivity as soon as possible.

Renters

Not all relocating employees will be homeowners and may opt to rent in the new location as well. Additionally, current homeowners may not want to purchase a home in the new location, so it's important to include provisions in your real estate tiers for renters, as well as homeowners. These could include:

  • Lease cancellation penalty reimbursement
  • Connecting the employee with a rental specialist in the destination location
  • Rental finding trip, including transportation costs, lodging, meals and rental car
  • Temporary living assistance
  • Area touring fees or finder's fees, if required.

Save Time & Money Using Tiered Relocation Packages

Topics: Real Estate, Tiered relocation packages, relocation packages

August Relocation Survey

Posted by Amy Mergler on Tue, Aug 22, 2017

Thinking about changing your relocation program or just curious about what other organizations are doing? Each month, we'll feature a short survey and share our findings along with the next survey the following month. Below are the results for last month's survey and this month's survey questions.

July Survey Results

1. Does your company relocate employees globally?

Yes: 100%
No: 0%
Don't Know: 0%

2. Does your Global Mobility program include any of the following services? (Choose all that apply)

Area Orientation: 80% 
Home-Finding Assistance: 80%
Foreign Language Training: 100%
Cross-Cultural Instruction: 80%
Spousal/Partner Support: 40%
Financial Consultation/Support: 40%
Unsure: 0%
N/A: 0%
Other (please specify): 0%

3. Has your company undertaken any of the following measures to help control global mobility costs? (Choose all that apply)

Regulate cost of living allowances: 40%
Reevaluate host country housing allowance: 80%
Avoid zero-cost housing: 20%
Lower house-hunting trip reimbursements: 20%
Reassess costs of language training, coss-cultural training, home finding and familiarization trips: 40%
Regular review of your Global Mobility program: 60%
Unsure: 0%
Other (please specify): 20% (formal exception management process)

 

This month's survey addresses Employee Retention after Relocation.  

Topics: relocation packages, employee relocation, employee retention

July Relocation Survey

Posted by Amy Mergler on Tue, Jul 25, 2017

Thinking about changing your relocation program or just curious about what other organizations are doing? Each month, we'll feature a short survey and share our findings along with the next survey the following month. Below are the results for last month's survey and this month's survey questions.

June Survey Results

1. Do you offer destination services to address issues associated with relocating your employees' families?

Yes: 50%
No: 37.5%
Don't Know: 12.5%

2. Which destination services do you offer? (Choose all that apply)

Research on Schools: 57.14% 
Spousal/Partner Support: 14.29%
Social Assistance: 28.57%
Research on Places of Worship: 28.57%
Unsure: 0%
N/A: 42.86%
Other (please specify): 28.57% (Orientation, Home Search, Locating Banking)

3. Which of the following are included in your mobility program? (Choose all that apply)

Home-Selling Assistance: 62.5%
Home Purchase or Rental Assistance: 50%
Household Goods Packing and Moving: 75%
House-Hunting Trips: 62.5%
Temporary Living Allowances: 62.5%
Unsure: 12.5%
Other (please specify): 12.5% (Currently provide a lump sum)

 

This month's survey addresses Global Mobility.  

Topics: relocation packages, global mobility, employee relocation, international relocation expenses

June Relocation Survey

Posted by Amy Mergler on Thu, Jun 22, 2017

Thinking about changing your relocation program or just curious about what other organizations are doing? Each month, we'll feature a short survey and share our findings along with the next survey the following month. Below are the results for last month's survey and this month's survey questions.

May Survey Results

1. Does your company use tiered relocation packages?

Yes: 43%
No: 57%

2. How does your company define relocation package tiers? (Choose all that apply)

Seniority: 29%
Salary: 14%
Job Title: 29%
All Three: 14%
Unsure: 0%
N/A: 43%
Other: 14% 

3. What motivated your company to develop tiered relocation packages? (Choose all that apply)

Ease of Administration: 0%
Faster Relocation Process: 14%
Easier Budgeting Strategies: 57%
Unsure: 0%
N/A: 43%
Other (please specify): 0%

 

This month's survey addresses Relocating Employees with Families.  

Topics: relocation packages, global mobility, Family Relocation

May Relocation Survey

Posted by Amy Mergler on Fri, May 19, 2017

Thinking about changing your relocation program or just curious about what other organizations are doing? Each month, we'll feature a short survey and share our findings along with the next survey the following month. Below are the results for last month's survey and this month's survey questions.

April Survey Results

1. Does your company use rotational assignments?

Yes: 40%
No: 60%

2. For what purposes does your company use rotational assignments? (Choose all that apply)

Talent Development: 40%
Project Work: 0%
Unsure: 0%
N/A: 60%
Other: 0% 

3. What motivated your company to use rotational assignments? (Choose all that apply)

To help recruit and retain talent: 40%
Leadership development: 40%
To enhance your company's employer brand: 40%
To increase your company's competitive positioning: 40%
Unsure: 0%
N/A: 60%
Other (please specify): 0%

 

This month's survey addresses Tiered Relocation Packages.  

Topics: Tiered relocation packages, relocation packages, global mobility

What Does a Relocation Package Include?

Posted by Amy Mergler on Thu, Feb 09, 2017

home-relocation-1.pngDue to changes in the economic climate, many companies looked to cut costs by offering full relocation benefits packages primarily to higher-level employees, with newer hires and those on the lower rungs of the corporate ladder often left to manage the details (including many unreimbursed expenses) for themselves. In some organizations, employees were reimbursed only after the move for any but the most basic moving expenses. However, smart companies looking to recruit and retain top talent, are realizing the advantages of offering relocation expense coverage for even newer hires.

Learn more about developing relocation policies in our free guide. 

Many organizations either designate an in-house relocation manager to help oversee the move from beginning to end or, increasingly, turn this complex job over to a professional relocation management company.

What can today’s transferee expect in a relocation package? Much will vary based on position within the company, the industry and the location. However, in most standard relocation packages, a transferee can usually expect his or her company to offer some, or all, of the following provisions:

  • House hunting expense reimbursement for a new residence, which may also include childcare costs enabling parents to focus on the business of finding a residence without the distraction of little ones. Most companies pay for at least one or two house hunting trips in the new location.
  • Real estate and rental expenses for selling an existing residence are also covered by most employers as a basic benefit. These expenses usually include agent sales commissions and related fees, closing costs, transfer taxes and fees and other moving-related expenses. For renters who may need to break a lease, the company will reimburse for any penalties incurred.
  • Moving household goods between the old and new location, including packing, transporting, insuring and setting up furnishings and other goods in the destination location.
  • Storage expenses for household furnishings until a new residence is ready for move-in, usually for 30 to 90 days, depending on the policy and individual circumstances.
  • Transportation to the new location, whether airfare or reimbursement of mileage if the trip can be made by auto. For longer hauls when a transferee must travel by air or train, companies will often reimburse the costs of moving a personal auto to the new destination.
  • Temporary living expenses, such as interim rental housing for 30 to 90 days (depending on policy and individual circumstances), upon arrival to enable the transferee to meet critical starting deadlines.
  • Miscellaneous expenses associated with the relocation. These could include unexpected out-of-pocket expenses, costs of meals en route to the final destination as well as well as during house hunting, spouse employment assistance, new driver’s license and other fees charged by the new state or country, as well as for childcare, eldercare and other dependent care costs.

While it’s still true that the higher the level of an employee’s status within an organization, the more comprehensive and inclusive will be the relocation package, more savvy companies are offering to underwrite relocation costs even for newer employees as a means of attracting and keeping their top talent. Each company has its own benefit structure and policies vary, so potential transferees need to understand from the outset what is and isn't included (but could be negotiable) to secure the best deal on relocation packages.

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Topics: relocation packages, standard relocation package, job relocation, employee relocation

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