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The New Reality in Home Buying

2012-02-14T12:28:40Z

Since 2008, the average U.S. citizen has been a witness to, or even an active participant in, one of the most devastating downturns the U.S. real estate market has ever experienced. However, all of the statistics reported daily in the media may not have an impact until it is time to make a personal or corporate decision to relocate your family.

From a corporate perspective, we are witnessing a resurgence in relocation activity as the economy shows signs of rebounding. Yes, it is still all about jobs and, while the unemployment statistics nationally remain weak, the growth in certain sectors (e.g. U.S. automotive, technology) indicates that positions requiring high tech skill sets are in high demand. This trend is not a U.S.-based phenomenon, as the global economy is experiencing a “war for talent” unlike anything ever seen before. The impact on the need for skilled resources is being realized already in both the domestic and the international relocation marketplace.

Surveys of relocation professionals are forecasting an increase in relocation over the next year. The reality is that the relocation industry has been experiencing an increase in activity for the past year, and to many the outlook is for continued improvement in relocation activity.

To read an up-to-date relocation analysis, including shifts in how the consumer sector approaches the real estate market, the current realities of the home buying dynamic, the continued importance of location and the greater need for professional assistance, view the full article on The Real Estate Professional.

Posted by: Roger Atchinson

Transforming the Future

2011-11-22T09:33:57Z

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

Wells Fargo, Leading Real Estate Companies of the World® and RELO Direct® Discuss the Financial Reform Act

2011-11-16T14:12:39Z

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

Talent Segmentation through Assessment and Selection

2011-11-09T11:19:53Z

Incorporating global mobility assessment and selection tools into an organization’s talent management strategy is a productivity, retention, and cost savings measure that should not be overlooked. A recent session at Worldwide ERC’s Global Symposium, highlighted how talent management can be impacted dramatically by management and cultural differences.

Participants in the session learned from industry experts why assessment and selection tools are important for the ROI of international assignments and more. However, a survey of session participants revealed the use of candidate assessment and selection tools was spotty among corporate attendees. As may be expected, cultural differences will play heavily when considering the approach taken in various global regions. The session presenters provided a framework for managing employee populations, particularly when cultural differences come into play.

RELO Direct® sees many organizations struggling striking a balance between the equally important components of candidate, location, and timing. Furthermore, an understanding of the need to have qualified candidates rather than simply “filling a spot” is critical to assignment success. The cost of sending the wrong candidate on assignment can be substantial for any organization, in terms of both losses of revenue and employee productivity. Additionally, when an assignment fails, the resulting failed business initiatives and the costs of sending the assignee home are also substantial. The careful assessment and selection of the proper candidate up-front are critical steps in any global assignment program to avoiding these costs.

RELO Direct® supports a holistic approach to candidate selection, and carefully evaluating each applicant to assess if it is the right time in their career development for the assignment. Other factors also need to be considered such as their family, situation communication skills, and ability to adapt to a new culture. Keep in mind, the attribute of being a strong leader in one culture may not be an asset in the host culture. By carefully assessing all of these variables, corporations increase the opportunity for an assignment’s success.

Is the evaluation and selection of candidates for global assignments part of your responsibilities? If it is, and you are using instruments to measure adaptability and suitability for international assignments, please visit our comments section to share what tools and programs you are having success with.

Posted by: Mary Dougherty

Comparing Approaches for Short Term Assignments

2011-10-19T12:49:22Z

During Worldwide ERC’s recent fall conference, a session comparing approaches to short-term assignments illustrated the importance of accurately assessing the overall goal of the assignment and realistically projecting the time needed to attain it. Doing so at the front-end can be just as critical of a component as assessing the right candidate, helping eliminate the need to extend assignments and avoid the costs associated with those extensions.

The companies represented on the panel approached short term assignments largely based on the company’s line of business.

One company, a construction and engineering firm, used short term assignments when needed to meet construction contract requirements. This means that assignments are well defined up-front with cost estimates completed for every move. Project profitability is critical, so managing costs is extremely important. The company does not assess candidates from a cultural adaptation, language, or even family support perspective. The only criteria for assignments are a candidate’s skill set. Metrics for the success of the assignment are measured against the successful completion of the project and the profitability of the project.

Representatives from the other companies (a large pharmaceutical firm and a consumer products company) offered the same reasons for assignments (e.g.: developmental, project based, skill sets or leadership development). However, the emphasis on what was required in terms of preparation of candidates, ongoing support, and repatriation services varied. The consumer products company noted that assignees’ families were invited to go on the assignment, whereas the pharmaceutical company allows assignees to take their families, but they were not “invited” to go. Softer services such as language and cultural training were viewed as higher priorities for these firms, compared to the engineering firm. For all three organizations, cost control was a critical component, and one important downside was the impact that extending an assignment has on the overall cost of the assignment.

While each company offers assignments based on their business needs and internal culture, all shared a common view that short term assignments were important to their overall corporate mission, and — if managed effectively— they were considered a successful investment.

Just as these firms are using corporate objectives to set relocation policy and benefits, RELO Direct® recommends that our clients look at the big picture when setting policy objectives and clearly outline the goals and budget implications of a short term assignment. This analysis is critical not only at the corporate level, but also at the divisional/business unit level. It is our opinion that doing so will give business units a better view into the costs of extensions, and assist them in better managing the overall assignment.

Posted by: Roger Atchinson

Solving the Talent Management Puzzle

2011-03-31T14:00:39Z

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

Group Moves - Plan for Success

2011-02-24T22:05:00Z

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

Selecting Global Service Providers - A Balance of Service and Cost

2010-12-15T13:20:51Z

An article in the December issue of Mobility magazine examines the continued trend by corporations to use price as the differentiator when evaluating service providers. In a marketplace where the differences between providers are not always immediately evident, price often becomes a deciding factor. But is it really the biggest difference, and should it be, especially in the global move arena?

Some may believe that the services provided by all relocation management companies are essentially the same, with price being the only differentiator. This viewpoint is often held by those in procurement roles, whose main focus is purchasing and who rarely interact with service providers or transferees once the sales cycle is complete. However, the author rightly outlines that the “services of a successful and knowledgeable service provider can go a long way towards the success or failure of an assignment”.

While on paper two global moves may look the same, the details of each will necessitate vastly different services and handling. Corporations would do well to engage with a service provider who understands the complexities of global assignments, and can skillfully manage each assignee’s move. Partnering with a company who offers services at a lower price, but that does not understand the particular nuances of global assignments can ultimately end up increasing costs to the corporate client more, both in exceptions to policy and in failed assignments.

Ultimately, relocation management companies must clearly differentiate themselves and the advantages they provide while corporate customers must balance their thinking between price and service expertise.

Posted by: Mary Dougherty

Is your company paying its taxes?

2010-10-06T16:48:07Z

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

The Value of Regional Relocation Groups

2010-08-31T15:49:27Z

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

Are you confused?

2010-08-10T10:19:15Z

With US Surface Transportation Board’s elimination of the 400 N Tariff in May 2007, we have seen the household goods industry become even more complicated and challenging for corporate clients to understand. Moving companies and relocation management companies have customized the base 400 N Tariff to their specific situation. While we know that the vast majority of moving companies are reputable and their published rates are fair and competitive, there is the persistent belief that rates and tariffs offered are the equivalent of costs incurred. This simply is not the case. Discounts do not equate to dollars. In reality, most corporate clients do not have the internal expertise to audit invoices submitted by their preferred carriers or from the relocation companies’ carriers. Documentation can be missing, reported inaccurately, misinterpreted, billed for services not authorized, etc. The bottom line is it is very difficult to understand how costs are tabulated and if they are accurate. When suppliers say they audit their invoices, this is like the fox guarding the henhouse. RELO Direct® believes that the best practice today, given the complexity of the household industry, is to seek the audit and counseling expertise of an independent audit company. RELO Direct® believes this practice makes sense and we partner with Infinity Management for this service. If you are confused and seeking a new approach to understand your true moving cost, contact RELO Direct® or Infinity Management.

Posted by: Roger Atchinson

When is the right time to move?

2010-08-10T09:27:26Z

As the end of summer vacation nears for my children, I begin to think about the mindset of many transferees with school aged children. We often hear our client contacts tell us, “He/She wants to be in the new location by the time school starts.” This is a common occurrence in the relocation industry and it is why most relocation companies and the suppliers they partner with experience their busiest times during summer months.

I have had conversations with several different people on the subject and it has become evident that there are two schools (no pun intended) of thought. The first, as I mentioned, is to make the move to a new location during the summer and allow children to start the school year fresh in a new school. Obviously this allows them to get acclimated to the school and ease their way into a new environment. One thing some parents may not consider is this, what if you moved in the middle of the summer and your kids really don’t have any friends. They would spend the best part of the year, summer vacation, without the luxury of having those friends to play with. While there are certainly ways to make friends during the summer, it is not always as easy for some children. By the time school rolls around, these children may begin to feel like a bit of an outsider, which could affect their attitude towards their new surroundings making parent’s lives even more stressful. With that said, there are still plenty of children that would prefer to ease into a new situation where the summer move is ideal.

The other perspective on this comes from people that say, “It doesn’t matter when we move, the kids will adapt quicker when they jump into a new school and environment right from the start.” When a move happens suddenly and change is made quickly, there are some kids that would not have time to think about what they are leaving behind because they are immediately involved in school and activities in a whole new place. This could allow some kids to make friends quicker and feel like they belong because they’ll spend a good portion of each day in school in the new location.

I read a recent article about a woman in Florida that had moved a lot as a child as her father, ‘climbed the corporate ladder’. She discusses her thoughts on how she and her siblings coped and the effect relocation had on them. While there will be advantages and disadvantages for children when relocating regardless of when you decide to make a move, it is important to talk to your kids during the decision making process and let them have some input. I’ve heard many transferees mention how impressed they were by how their children are handling a move. The timing of your relocation should be a family decision because in the end, it should be a positive experience for all involved.

Posted by: Tom Loncar

The Golden Rule: Back to Basics with Customer Service

2010-07-09T00:00:00Z

A recent article in Executive Travel magazine on the topic of customer service compelled me to offer my insight into the concepts being discussed. After all, customer service is at the core of what the employee relocation industry is all about.

In the article, author Alessandra Bianchi quotes John Nordstrom: “There is nothing new about customer service.” She goes on to write that service providers must “be human” and “practice the Golden Rule.” But in this era of social media it can be easy to lose sight of this simple truth.

Of course, our industry is about so much more than counseling employees on the benefits of their relocation policy. Ultimately, we are in the business of helping families safeguard the memories they have created in their current home, while helping them secure a new foundation for the memories they’ll create in their new home. We do this by listening to their concerns and setting realistic expectations around the process we are guiding them through. As hurdles are encountered, relocation counselors must be empowered to act. Doing so completes the customer service cycle and validates the importance of the role they play.

Relocation management companies cannot change the challenging circumstances facing transferees in today’s economy. However, we do make all the difference by providing that human touch and treating each relocation as if it were our own – that’s the Golden Rule.

Posted by: Bob Portale

Direct or not, that is the question?

2010-07-09T00:00:00Z

In a recent Mobility magazine article, a publication by the Worldwide Employee Relocation Council, two industry veterans analyzed the agent-direct model in referring homesale and new home purchase referrals in corporate relocation. They outlined how the process would look in comparison to the typical model where all referrals are directed to a broker’s relocation director who, along with a team, is typically responsible for managing corporate relocation referrals from relocation management companies.

There are pros and cons to utilizing each model, but in the case of corporate relocation where service is paramount should corporate clients entrust their business to relocation management companies that are trying to ‘eliminate’ relocation departments whose primary goal is enhancing the service experience of their transferees by referring them to the agent best suited to handle their transaction. An agent’s job should be to concentrate on assisting their clients buy and sell real estate. While there is undoubtedly more responsibility when handling a client being relocated, agents rely on the assistance of their relocation departments to ensure they comply with the requirements of the relocation company that shared the referral.

It could be argued that eliminating the relocation director will allow relocation companies to enhance communication by speaking directly to the agent. In the traditional model where referrals are sent to relocation departments, relocation management companies can still have conversations with agents when necessary. A relocation counselor can call the agent to ask them to explain their findings on a broker market analysis or with questions about their marketing report or when the home is in inventory and a repair is necessary. The agent is an important part of the service experience, but the relocation director is vital to the success of each transaction. That is not to say that there would be cases where going directly to an agent would not have an effect on the transferee’s service experience. But in the end, working with relocation departments whose role in relocation is to enhance the process for transferees, relocation management companies and their clients will allow you to achieve greater success and increase the satisfaction of all involved in the process.

Posted by: Tom Loncar

The rise (or fall) in Rental Assistance

2010-06-29T00:00:00Z

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

Press 1 to Speak to a Live Person

2010-06-15T16:55:35Z

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

Great Insights on “The Housing Market & Mobility”

2010-05-11T14:07:00Z

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

Do you suffer from an SST?

2009-11-11T15:51:00Z

If you are reading this post, it is safe to assume that technology and its many uses are commonplace in your life. However, has the use of SSTs (Self-Service Technologies) eroded the lost art of hand-holding as it relates to customer service? In some practical everyday instances, such as electronic banking and on-line shopping, the impact of little or no human interaction is probably nominal.

Yet when you look at the impact relocation has on the employee and his/her family, the merits of hand-holding are indisputable. In fact, when surveyed, the most common factor sited by our clients when asked what factors weigh most heavily in their evaluation of employee relocation service providers, it was clear that customer service reigns supreme. And while a certain degree of business can be transacted electronically, nothing can substitute real-time conversation.

Nevertheless, it is important to embrace change and utilize the technologies that exist today. If you asked me a year ago, I would not even have been able to describe exactly what a “tweet” is, but now it is now part of today’s lexicon. This type of communication has its place, but as stewards of the past it is vital that we not lose what makes us great. I encourage everyone in our organization to “pick up the phone” and connect with our clients and their relocating families…not because we have to, but because we know that each relocation is unique and requires the helping hand of someone that cares.

Posted By: Bob Portale

Survey Reveals Companies Facing Changes in Homesale Programs

2009-02-23T13:56:00Z

RELO Direct® hosts and co-sponsors the Global Mobility Roundtable of Southeastern Michigan. Since 2001, this Roundtable has served as a leading educational and networking opportunity for HR professionals who are responsible for managing domestic and international relocation programs. With about 60 corporate participants, the organization meets quarterly to discuss relocation trends, challenges and issues in the management of relocation programs.

Recently, at the request of one automotive company where current business conditions are prompting an immediate review of the domestic policy, a request was sent to automotive companies in the Roundtable to learn what current practices are in place and what changes are being considered to current policies. The economy was the driver for the survey and managing home sale disposition programs was the primary focus.

Key findings of the survey:

13 companies participated including two original equipment manufacturers and 11 Tier I automotive suppliers. 100% of respondents have either just completed, are in the process of reviewing or will review their policies in 2009. 70% of respondents have Buyer Value Option programs, which is consistent with ERC’s national data 54% have a Guaranteed Buyout Program (meaning some offer two homesale options concurrently) 62% cover loss on sale protection using either a formula with a cap or a flat dollar amount up to $100,000. With current market conditions, three respondents are considering changing the current program 84% mandate listing agent selection to network brokers Home sale incentives are offered by 46% ranging from 1% to 4% of the home sale value Current conditions are requiring changes to temporary housing (54%) and extending marketing time (54%) List price parameters are used by 46% with 103% to 105% being the most frequent requirement Penalties for not being compliant with using an approved broker network or list price parameters was not asked

In summary, the survey offers guidance on how companies are managing homesale programs. However, the survey was informal and did not address all policy components. Roundtable participants were encouraged to use the data for informational purposes and to contact their Roundtable peers directly regarding program specifics and metrics used to evaluate the success of programs, Clearly, all companies are being challenged with current real state conditions, and the fact all companies are reviewing their policies and exceptions to policies are driving many to make policy revisions, the scope of today’s challenges are unprecedented. As would be expected, the automotive industry is seeing a slow down in relocation volume. While the pace may be slower and reluctance to relocate is higher, the need to manage talent and get the right person in the right place is as important – if not more important – as ever.

Approvals for relocation in this survey exist at the executive level in most of the companies surveyed, but relocation is continuing nonetheless. Old methods are slow to change with manufacturing companies as it relates to relocation, and this survey reveals that relocation professionals are challenged more than ever with influencing “C” level executives with introducing proactive and new solutions to better align relocation and talent management.

Posted By: Roger Atchinson

Are You Ready For Year-end Payroll For Your International Assignees?

2009-02-03T19:52:00Z

Dianne Amos, RELO Direct® VP of Global Services, recently asked Steve Daas of Global Tax Network about both the employer and assignee “hot issues” relating to year-end payroll for international assignees.

At year-end, what are the "hot issues" for the employer relating to long-term international assignee payroll?
Throughout the year, most companies gather the compensation for each of their long-term international assignees on a monthly or quarterly basis. Now is the time to do a final review of the host country payroll information to make sure that:

All prior discrepancies have been resolved All the host country compensation payments have been collected The host country tax payments are correct, with no duplication with prior year's reporting State wages are shown properly (for assignees who will break state residency during their international assignment, there may be no state wages shown on the W2, even though they still have state unemployment taxes paid in during their assignment)

What are the long-term international assignee's "hot buttons" relating to year-end payroll?
International assignees often have questions regarding the compensation reported on their W2s. The following actions can be taken by a program administrator to anticipate and eliminate the problems before they occur:

Send a short email at the end of January reminding the international assignees that all their assignment allowances and benefits-in-kind are reportable W2 income. Send the W2 and a copy of the compensation summary to the assignee. On the compensation summary, itemize as advances all taxes paid on behalf of the assignee. Such advances may be host country tax payments, home country tax payments, and estimated tax payments for either the home or host country. (Providing these detailed explanations of all the taxes the company has paid on behalf of the assignee during the year will assist the employee in reviewing the final tax equalization.) On the compensation summary, list all gross-ups paid by the company on relocation expenses. On the compensation summary, detail the Medicare tax paid by the company on behalf of the assignee. Discuss tax equalization or other possible surprises related to withholding from bonuses, stock options, etc. before the assignee receives the final tax equalization for the year. This is particularly important when the tax equalization reflects amounts due from the assignee to the company.

Anticipating the payroll concerns of your international assignees, and proactively dealing with their questions, will help your year-end wrap-up go smoothly.

A Paradigm Shift for the Effective Alignment of Relocation and Talent Management Programs

2008-12-04T21:09:00Z

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:

The history of relocation programs and the relevance of history to making informed policy decisions today 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 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?" 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.

MarketWatch Article Advises: Look Before Making a Relocation Leap

2008-11-02T21:27:00Z

A recent article by The Wall Street Journal's MarketWatch points out things people should consider before accepting a relocation.

RELO Direct's President/CEO Bob Portale is quoted in the article, suggesting that families tour communities before committing to a move. "When you are touring with a real estate agent, make sure that you tour the neighborhood and town," Portale says. "Get a good sense of the community before you settle in. You can narrow down the location, but until you've actually gone to that location and toured those neighborhoods, you do not really have a good understanding."

Read the full article.

Act Now to Ensure Expats Can Vote in Upcoming Election

2008-11-01T20:34:00Z

If you have employees who are U.S. citizens working abroad, advise them now to ensure they can vote in the November 4 election. Many expats, especially first-timers, don't realize there are no provisions for in-person voting or on-site registration at U.S. embassies or consulates in foreign countries. U.S. embassy and consular officials can, however, assist U.S. citizens in completing the Voter Registration/Absentee Ballot Request form or other election materials and provide other absentee voting information. Expats may mail election materials from U.S. embassies and consulates. It is important to remember that all election material must be postmarked according to their state's requirements. For example, if the expat's last state of legal residence was New York he/she must:

Register by October 10 (postmarked at least 25 days before election day) Request ballot by October 28 Return ballot by November 11 (postmarked by November 3)

To help your expats ensure their votes are counted, share these useful tips from the Federal Voting Assistance Program:

Pick the state in which you last lived before moving outside the U.S. Request Voter Registration/Absentee Ballot. Complete the Registration/Absentee Ballot Request form, and send it to your Election Official. Sign and date all election materials as directed. Election Official approves your Registration/Request and mails your ballot. Complete the absentee ballot, and return it to your Election Official. Fulfill your state's witness/notary requirements (if required). Make sure that your Registration/Absentee Ballot Request and voted ballots are postmarked. Use the Back-up Federal Write-In Absentee Ballot if your requested state absentee ballot has not arrived in time to ensure delivery by your state's deadline.

Additional resources on absentee voting procedures:
Frequently Asked Questions/Answers
Federal Voting Assistance Program Toll-Free International Phone Numbers

RDI Expands Headquarters

2008-10-04T21:39:00Z

RDI Expands Headquarters

RELO Direct®, Inc. has expanded its headquarters facility in downtown Chicago to accommodate continuing growth.

"We are fortunate to be located in a prime location that allows us access to a strong relocation labor pool," said RELO Direct® President/CEO Bob Portale, "and our facility is a convenient meeting place for clients and our vendor partners, as well."

The facility is located in the Chicago Title building in the heart of Chicago's Loop.