One of the most highly anticipated sessions at any Worldwide ERC® Global Workforce Symposium is the opening general session, and the fall 2011 symposium did not disappoint. During the keynote address, “Transforming the Future: How Extraordinary Leaders and Companies Embrace Constant Change and Reinvention”; the New York Times bestselling author Jason Jennings discussed the research from his forthcoming book, The Reinventors, which reveals the secrets of the leaders at five companies who have mastered the art of reinvention. Jennings is the author of the previous bestselling books: It’s Not the Big That Eat the Small – It’s the Fast That Eat the Slow; Less Is More; Think BIG-Act Small; and, Hit the Ground Running. USA TODAY has named Jennings one of the three most in demand business speakers in the world.

During the presentation, Mr. Jennings named five companies who he considers to be among the best at remaining relevant. While these companies come from disparate industries; they all share a common focus on consistent growth, increased consumer value, and a continuous focus on reinvention. How do they do it? By concentrating on six simple secrets:

Secret #1 is they are committed to double digit growth to attract, grow and retain the right people. Consistent double digit revenue growth will improve the fortune of families who will take pride in better serving their customers. Their suppliers value the return in working with successful companies and will be better partners. They keep the attention of investors and Board members who are more supportive of the risk they undertake and they are more engaged in communities and work to make them better places.

Secret #2 is they let go. Let go of yesterday’s breadwinners, ego, the same-old-same-old and sometimes conventional wisdom. In letting go they are better able to deal with change and stay more focused than their rivals. As a result, innovation, reinvention and growth happen.

Secret #3 is reinventors make lots of small bets. Jennings cited some of the reinventions Starbucks has made recently, including new store designs, new products, and dramatic growth in China.

Secret #4 is that successful reinventors make certain that everyone knows the growth strategy. They realize that “secret strategies” just don’t work. This is important as a recent Gallup study of 3,000,000 workers in 100,000 workplaces found that 73% of workers have no emotional connection to their job or work.

Secret #5 is that successful reinventors get everyone to think like an owner. Thinking and acting like the owner means that all employees have to know how their job creates measurable value for the company.

Secret #6 is that successful reinventors are good stewards. They help everyone in the company reach capacity. They share information, are accessible, keep their hands dirty, stand for something, get rid of superficial distinctions, make everything better, are coaches and mentors, are selfless and are called to serve.

RELO Direct® understands that the challenges outlined by Mr. Jennings are universal in these uncertain economic times. In our respective organizations, we each must tackle a myriad of issues – from how to become better leaders, to growing as an organization, and attracting and retaining talent. For our part, RELO Direct® continues to look for new ways to provide value to our clients and deliver exceptional customer service. Because we believe that good ideas aren’t the exclusive province of the executive suite, we challenge our entire team – from senior management to administrative support to constantly seek ways to reinvent ourselves and our organization. It is only by having the courage to try something completely different that each of us has the opportunity to grow and thrive.

Posted by:  Judy Pogue

The recently enacted Financial Reform Act, also referred to as the Dodd-Frank Wall Street Reform and Consumer Protection Act, is making its presence known in the mortgage, real estate, and relocation industries. Recently, Michelle Rasschaert, Marketing Director for Wells Fargo Home Mortgage, addressed this new legislation with relocation and real estate professionals from Leading Real Estate Companies of the World^® and RELO Direct^®. The impact of the legislation is being felt by all stakeholders in real estate and relocation transactions. All participants in this discussion were in agreement to some of the key observations relative to market impact since going live with this legislation.  A summary of Ms. Rasschaert's presentation can be found here.

Nearly 300 provisions within the Financial Reform Act impact the mortgage industry and home purchase process. Home buyers transferred by their employers no longer receive preferential status as being “low risk” and are processed as part of the general population relative to documentation requirements. Benefits previously offered to corporate transferees such as 24 hour loan commitments; spousal income consideration at the new location; expedited closings for “rush” mortgages; and low documentation requirements are now no longer available.

The result is that transferees, like the general population, are finding it more difficult to qualify for a mortgage; and that once qualified, loans take longer to close and costs are higher due to more complex application processing. However, most mortgage applicants are more accepting of current market conditions including:

• Recognition of home value deprecation and less resistance to professional appraisals and broker opinions of value. This is resulting in more reasonable list prices and marketing strategies
• Fewer home buyers are “buying high” and taking out the maximum loan possible
• Appreciation and understanding because homes purchased in the new location will be also be priced lower; the transferee may be able to buy “more house for the money” than would have previously been available

In general, mortgage rates are competitive among mortgage providers. Therefore, with the governmental strategy of commoditizing the mortgage industry, what makes a difference for consumers is the institution’s service track record. For transferees -- where time is such a valuable commodity -- this focus on service is elevated in importance. Institutions who provide frequent touch points during the application process, professional and experienced staff; support through a more complex application process; and timely closings are better positioned for success within the corporate relocation arena.

Clearly, in the respective industries of workforce mobility, real estate, and mortgage, the difference maker is service. This may be an unintended consequence of the government’s actions to protect consumers; but the net result is that those who will thrive in this new environment are those who have built their reputations upon service excellence. As the recent testimonial below demonstrates, RELO Direct^® understands these challenges and strives to continually exceed expectations.

“I wanted to say thank you for the help during my relocation the last few months. I don't mean that to sound as a generic thank you either, you really were great. This was a very rough move for us, our 3rd in about 4.5 years and it should be the last. It was our first move selling a house and buying a house in the same move and it was stressful. I think at one point I had about 120 sheets of documents to go through and submit for the properties. You always helped when I needed it, and you were always there and patient when I had questions. For that, I say thank you. You helped make my move easy whenever you could. I don't want to go through a corporate relo again anytime soon, but if I did, I would hope I would be lucky enough to work with you again.”

These are challenging times, but great companies realize that service excellence makes the difference for consumers, transferees, and corporations.

Posted by:  Roger Atchinson

The cover story of Mobility magazine’s March issue examines how employee mobility fits into an organization’s talent management puzzle. This, in our opinion, is very good news. An informed transferee is an empowered transferee, and giving an employee the tools to make educated decisions about both career and financial issues results in greater move acceptance and employee satisfaction. RELO Direct® has long advocated that employee mobility is an important component of an organization’s workforce strategy. In fact, RELO Direct® recommended this strategy in 2008, as part of our innovative RELOAssess program. We first proposed this strategy in response to what RELO Direct® saw as an overall softening of the real estate market and the growing reluctance to relocate by employees, fearing for their financial security.

However, the second component of our program has not gained as much media attention. This is ironic, as we believe that it actually has greater potential to align talent management and relocation, while saving time and cost in recruiting and relocation.

Conventional wisdom holds that a Guaranteed Buyout program is a “last resort”, to be offered only after the transferee has completed a mandatory marketing period. But these are not conventional times, and a reexamination of commonly held assumptions is in order. RELOAssess turns this model on its head, by offering a Guaranteed Buyout upfront, at the outset of the transferee’s relocation. For some, this is viewed as breakthrough thinking and a real paradigm shift. Properly positioned in policy and executed as a talent management tool, not just a last resort real estate disposition tool, an immediate implementation of a Guaranteed Buyout actually offers the potential for cost savings, realized through fewer exceptions to policy for temporary living, return trips, duplicate housing, etc. Hiring the right candidates who have been assessed as capable of being relocated upfront, will also save countless hours in recruiting and lower recruiting cost.

To be sure, this component of our program has begun to be adopted by corporations looking to balance employee mobility, talent management and cost concerns, and we predict that many more will do so in the near future. You can download our entire RELOAssess white paper to learn more here.

Posted by:  Bob Portale

Employee relocation can be challenging, even under the best of circumstances. When it comes to managing the logistics of a group move though, those challenges are compounded. Proper planning is crucial to the overall success of a group move. But planning goes beyond establishing dates and time frames. It starts with determining what your goals are for the move and identifying the partner who can best help you to attain them.

 In the case of RELO Direct^® client Electrolux, the goal was to have all affected employees accept the group move opportunity. This goal became the basis for their program, and every component of the relocation policy was specifically designed to ensure success. Key consideration was given to the team established for managing the move, establishing clear roles and responsibilities, and engaging all stakeholders in the process.

 Specifics about RELO Direct’s group move plan for Electrolux can be found in our White Paper “Workforce Mobilization Designed to Retain Valued Assets,” which can be downloaded here. In the end, together Electrolux and RELO Direct^® achieved an employee acceptance rate of nearly 90%, securing the success of their “One Electrolux” initiative.

Posted by:  Bob Portale

The Financial reported on an interesting survey concerning the growing trend of tax compliance issues for expatriates and business travelers. This issue is garnering significant attention by taxing authorities, and corporations would be wise to take notice. It has also become a hot topic discussed at relocation trade associations, such as The New England Relocation Association, and was recently covered at the Relocation Taxes – 23rd Annual Conference held in San Francisco.

The general consensus is that we will continue to see increased regulatory pressures and audits by countries looking to capture income from expatriates. Additionally, within the US states are becoming more diligent about capturing the tax on income earned by employees working in their state – even on a temporary basis. This is a huge corporate tax compliance issue and can be a big financial problem for the employee. The first step ensure the proper reporting of expatriates income is to identify the party responsible for tracking movement of all employees – who may be working in different countries or states and then to develop a mechanism to track where expats are working, for how long, and what corporate entity is benefiting from the work.

The next step is to make sure that your suppliers are in sync with your company’s global relocation and business travel policies relative to tax compliance. As within our organization, suppliers are taking steps to raise the level of understanding with clients, but it important for internal stakeholders within the corporation to do the same.

Posted by:  Bob Portale

In today’s economic climate, many corporate relocation professionals find that relocation responsibilities are only a small part of their overall job description. As a result, many don’t have either the time or resources to attend national and global relocation conferences offered throughout the world.

However, to stay up-to-date on relocation hot topics you don’t have to travel far…many networking opportunities can be found right in your backyard through local and regional Worldwide ERC® groups. The benefits to you of attending local meetings are great. Local groups typically discuss a wide range of topics – from social networking to global policy trends. Topics at meetings I recently attended included current tax and legal issues affecting relocation, relocation policy trends, immigration, managing home sale programs, and inspections – a wide variety, to be sure.

Additionally, one of the greatest things about these groups is the willingness of individuals from across organizations to share their experiences and challenges with others. And because the groups are smaller, you have a greater opportunity to get to know your peers and find local resources who can help you identify emerging industry trends. RELO Direct® representatives are in regular attendance at many of these meetings and can provide you with benchmarking data to help ensure your relocation policies are pertinent in today’s environment.

If you are interested in hearing new solutions, industry trends and best practices, visit Worldwide ERC’s website to find the regional group nearest you.

Posted by:  Judy Pogue

In a new report released by The Society for Human Resource Management (SHRM) many respondents noted that their organizations are no longer providing rental assistance to their transferring employees. This could very well be a strategic initiative to reduce relocation expenses and eliminate programs offered to renters. With that said, within RELO Direct’s corporate client base, rental assistance has risen to a new high as a result of the challenging real estate market. More transferees are being offered extended rental assistance as they market their current home or they decide to rent until they can determine the stability and affordability of the destination housing market. The bottom line is many transferees that are initiated into a homesale type of program are also being offered rental benefits in order to meet their changing needs.

Another policy trend occurring with rental and temporary assistance is the inclusion of caps or lump sums into the program and allowing more of a flex approach to services that are provided. In these situations, the transferee and relocation company consultant jointly determine how to best use the available allowances. Consequently, it is possible that while SHRM notes a decrease in rental and temporary housing, these benefits are still actually being provided as part of the cap or lump sum program and are not identified as specific policy line items.

Based on the current climate and employees reluctance to move, it is critical to partner with a flexible and nimble relocation management company that can work with the corporation to design and implement relocation policies intended to meet specific employee situations, while managing to the bottom line. Although there are challenges today involving employee relocation, those challenges can be addressed by having a relocation partner who is engaged in today’s mobility issues and has the ability to be innovative in responding to both client and transferee needs.

Posted by:  Bob Portale

With a struggling economy and the effect it has had on businesses across every industry, it is no surprise that some organizations have experienced less than exemplary service from those companies that provide them with solutions for their employees. This has been prevalent in the relocation industry as many providers have been tasked with doing more with less. It is a challenge many relocation service providers face. How do they ensure the satisfaction of clients and their transferring employees with a staff that is, in most cases, smaller than ever? Are some clients not offered the same level of attention as others? Are they less proactive while they attempt to maintain relationships with more challenging clients? Do they realize that some clients are looking to make changes?

Companies that are working with third party relocation companies need to receive the service they deserve, regardless of the number of employees they move on an annual basis. With that said, each client will have different expectations in terms of how often they need to be contacted, what types of reports they would like to receive, how they would like you to deal with difficult transferee situations…and the list could go on.

The bottom line is these clients will look at other industries when judging the service experience they are provided. How are they treated when they go to the store, on vacation, to a restaurant, to an amusement park? If the service provided by their relocation partner doesn’t meet or exceed the service they are accustomed to receiving from others, then you have failed.

No longer can we expect clients to compare our service to other relocation companies, we need to create the ultimate service experience to ensure our clients’ continued satisfaction. There is a wonderful book titled, “Inside the Magic Kingdom” by Tom Connellan, which details the Disney experience and their endless attention to detail that ensures that everyone leaves the parks feeling like they did, in fact, just visit the most wonderful place on Earth! They want visitors to tell everyone about their awesome experience and think about their next trip back to the park. In the same vane, we must challenge our teams to exceed customers’ expectations. It will allow you to forge stronger client relationships to foster a long and healthy business relationship with every one of your clients.

To companies looking for a new relocation service provider, I will guarantee that every relocation company you speak with will tell you they have excellent customer satisfaction scores. I would challenge you to ask a potential partner, what percentage of the time do they exceed customer expectations? What do they do to proactively survey transferees to ensure their satisfaction from the very beginning of their relocation? Most importantly, how do they handle situations when clients and/or transferees are not happy with the service they receive? In the end, relocation is a service industry and you must find a partner committed to exceeding your expectations and offering you and your employees the very best service experience anywhere!   

Posted by:  Tom Loncar

Pam O’Connor, the president/CEO of Leading Real Estate Companies of the World^®, addressed a group of relocation professionals recently at a conference in Chicago, discussing “The Housing Market & Mobility”.

She mentioned how the run up of real estate activity between 2000 and 2006 resulted in unsustainable appreciation contributing to the decline in real estate values that began in 2008. Since then, we have seen an increase in listing inventory, declining home values, and a glut of foreclosures.

Today affordability is up and housing represents 20% of the GDP. The housing stimulus has helped by attracting two million first time buyers. Some upcoming issues Pam discussed include: the impact of the expiration of the tax credit, a possible upcoming increase in interest rates, the shadow REO inventory, unemployment challenges and unprecedented deficits.

Pam stated that first quarter 2010 home sales were up 13% over a year ago, and pending sales are up 17% over a year ago. The pace of monthly delinquency is up 21% over last year.

Opportunities exist right now, driven by long-term investment value, increased affordability, positive demographics and reasonable interest rates.

How does this impact corporate relocation activity? Naturally, activity has declined, as some transferees are reluctant to move due to housing issues. Recently more renters have entered the market place. Many policy changes have been implemented as a direct result of the real estate market. The most prevalent policy changes relate to real estate and include: adjusting the list price of a home to be within 105% of the BMAs/appraised value, adding or enhancing home sale bonuses, extending temporary living, selecting qualified real estate agents, allowing for loss on sale provisions, increasing loss on sale amounts, and duplicating housing allowances.

Pam concluded with the fact that this challenging market has made us better operators and will result in healthier, more consumer focused businesses in the future. Relocation providers need to pay attention to what’s occurring and keep their corporate contacts advised, as relocation does not operate in a vacuum.

As usual, Pam added quite a bit of insight regarding the present and future challenges we all face in addressing global mobility.

Posted by: Judy Pogue

Are discussions underway, or being considered, for your company's relocation policies and programs?  If so, you may find the white paper, titled the State of the Relocation Industry and Introducing a Paradigm Shift for The Effective Alignment of Relocation and Talent Management Programs, of interest.

Here, you will find:

1. The history of relocation programs and the relevance of history to making informed policy decisions today
2. Why Talent Management and Relocation programs are closely related, but far apart in practice, and why many relocation polices today are not supportive of business strategies with talent management
3. What companies are doing and have been doing in down markets for decades with the challenging question of "Are we helping or hurting the situation?"
4. With the current industry situation defined, a creative solution is presented as a "paradigm shift" to current thinking, offering a new model in relocation policy and practice. This proactive and expedited relocation model addresses ongoing issues with program costs, transferee reluctance to relocate, productivity and talent management strategies.

We hope you find the paper of interest. We are available to answer any questions you may have about utilizing this concept for your company.  Contact us for more details.