Shipping household goods is one of the biggest expenses when it comes to relocation. The costs of packing, storing, shipping and unloading furniture and other household items can be high, especially if workers are being relocated across the country or internationally. In addition, lost items and long shipping periods can be frustrating to workers who are trying to adjust to their new surroundings. As a solution and potentially more cost-effective option, some companies may want to explore the options of offering furnished properties or allowing transferees to rent furniture in the destination location rather than shipping the workers’ existing furnishings.

This option can be affordable for companies and ensure that workers arrive to a home that is already established and functional. Corporations should consider these factors and consult with their relocation company to make sure it is the best course of action:

1. How long is the assignment?
Transferees who are being sent on short-term assignments – six months to a year – might prefer to live in furnished corporate  housing , rather than being forced to pack up all their belongings. This is particularly true for homeowners on short-term assignments who will be returning to their previous residence. For long-term assignments of several years, however, shipping workers’ belongings will most likely be a necessity.

2. How far is the new location?
In the case of global relocation assignments, companies might discuss with transferees whether they prefer to store their existing furniture and live in a furnished home or not. While common wisdom might suggest shipping the full contents of a home is the best idea, some workers may want a fresh start and limited shipping hassles. If this is the case, arriving to a foreign country to a furnished home may take some of the stress of moving off workers.

3. Are transferees relocating with families?
Renting furniture can be a convenient option for transferees depending on the length and type of their assignment; however, it may not be ideal if they have families. Some parents think their children will feel more at home and assimilate more quickly if they can bring their own furniture that carries memories from their previous residence.

4. What is the typical profile of the company’s transferees?
Examining the level of employee the company typically relocates can also provide insight into whether or not rental furniture or furnished housing could be a viable option.  If in the case of a company that relocates mainly college graduate new hires, this may be an ideal scenario as they most likely will not have amassed much furniture or household items.  However, if the transferee profile is a higher, senior-level executive, a fuller and more robust relocation package is a must.

Consulting with your relocation management firm on whether these options might make sense for your relocation program is always recommended.

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The impending fiscal cliff and global economy may be having an impact on corporations’ hiring trends, but it does not appear to have curbed spending regarding existing employee benefits. In fact, more companies are getting the most out of their current employees by sending them on domestic and global assignments – and absorbing the relocation costs of doing so. Those companies that are hiring are also following this trend by offering to foot the bill for relocation services to entice more talented and skilled job applicants.

A previous study conducted by Atlas Van Lines revealed that relocation volumes and budgets increased in 2012, with 67 percent of relocation managers saying they expect business to continue picking up. Another 26 percent of respondents said they planned to relocate more workers in 2012, compared to 2011. Roughly 86 percent of companies surveyed also said they will pay for relocation services for workers who agree to take on an assignment.

“For more than four decades, our relocation research has shed light on corporate America and the economy’s effect on relocation,” said Jack Griffin, president and COO of Atlas World Group. “The majority of companies answering the 2012 survey expect volumes and budgets to remain static, with most remaining respondents expecting increases.”

Providing relocation assistance to workers, applicants

Companies that offer relocation assistance may find that they attract more highly-skilled applicants or face less reticence from existing workers when taking on new assignments. A recent article in the Virginian-Pilot highlighted the story of Serita Young, who will soon graduate with a degree in Electrical and Computer Engineering. In her quest to weed out the number of companies recruiting her, she noted that she is only considering corporations that will pay her relocation expenses.

In a more competitive job market where talented and educated job applicants are in great demand, these relocation stipulations may become more common, the news source reports. Eric Kean, principal of The Lee Group, told the news source that relocation expenses can total $7,000 to $20,000, depending on the size of the home, distance and other factors. He noted that in previous years, companies wouldn’t even consider these costs. These days, however, many are offering to reimburse employees for at least half, while others are willing to pay the full costs. Therefore, companies that do not offer comprehensive relocation benefits should consider doing so in order to further their employee retention and acquisition goals. These benefits may help corporations thrive under new economic circumstances.

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Workers who are challenged and feel they have opportunities for advancement are more likely to remain with their current employer, according to the results of a new study.

Consulting firm Deloitte recently released the results of its Talent 2020 survey, which revealed that 80 percent of employees plan to remain with their current employer this year, compared to 35 percent who gave the same response in 2011. The most common reasons for the spike in loyalty and retention rests in workers' opportunities for promotions, higher levels of engagement, meaningful work assignments and overall satisfaction.

The results carry large implications for companies and may also tie into their corporate relocation management strategies, as job satisfaction and relocation options and opportunities remain a central aspect in workers' decisions to seek out new positions. Companies should strive to continue offering chances for workers to develop professionally and utilize their knowledge and skill sets in new markets and projects.

Deloitte noted that this is especially crucial for corporations seeking to retain their top talent with critical skills, namely because companies often get roped into a false sense of security when it comes to retaining key employees. The study reveals that although retention is currently high amid stubborn unemployment rates, 31 percent of respondents reported dissatisfaction with their jobs, a sobering fact for many companies.

"Instead of addressing broad concerns over high turnover rates, employers now face a more targeted challenge," said Bill Pelster, principal and U.S. Talent Services co-leader of Deloitte Consulting LLP. "Companies must adjust their talent management initiatives to focus on retaining employees with the critical skills required to advance their business in today's turbulent marketplace, as they pose the biggest flight risk."

Increasing job satisfaction and retention

There are several time-tested strategies multinational companies can adopt to improve employee engagement and loyalty. Although money is always a factor in workers' employment decisions, 42 percent of respondents who are seeking a new position say their company does not allow them to maximize their skills and abilities. To avoid this scenario, companies should vigorously strive to place employees in areas where they are consistently challenged and encouraged to develop their particular skill sets.

Further, 27 percent of workers who plan to leave their post cited lack of career progress as the reason, while another 22 percent report wanting to take advantage of new opportunities in the market. Companies with an evolving relocation management strategy should factor in these responses when making decisions about domestic and global relocation. Offering these opportunities to key employees may solidify their loyalty. The survey reveals that 42 percent of employees consider job advancements and promotions a key retention incentive. 

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Business consultants say that companies are having a more difficult time with corporate relocation programs in the past, as a number of issues are complicating the process for some transferees.

A number of personal and professional factors played into this trend, according to a report from the executive search firm Heidrick & Struggles International. Many potential transferees may be less likely to move because of the instability of the job market and a lack of desire to leave their existing professional network.

On a more personal level, many are more hesitant to uproot family. Because of that factor, addressing family considerations in advance are even more critical for a successful transfer. Spousal satisfaction was noted as the biggest relocation challenge in many situations.

The firm added that the relocation packages being offered by some companies are less attractive as they once were. To overcome these issues, the opportunities provided by a transfer need to have enhanced near- and long-term benefits beyond merely added compensation. To ensure a company’s policies are competitive, working with a global relocation company is a wise decision.

Atlanta leads U.S. in talent attraction

Heidrick & Struggles added that areas in the South, Southeast and Mountain West are the most attractive destinations to recruit talent to, with Atlanta leading the way.

The capital of Georgia received 70 percent of the survey's vote. It earned points for a high quality of life, good infrastructure and affordability. Following Atlanta was Chicago due to its diversity, inexpensive living costs, solid transportation system and cultural aspects. Denver followed in third place, as it had high marks from those who enjoy outdoor activities. Dallas was also considered to be an impressive destination, as it is affordable and several Fortune 500 companies operate in the city.

"These are significant metropolitan areas that balance urban life and a high quality of life," said Rusty O'Kelley, managing partner of leadership consulting for the Americas at Heidrick & Struggles. "They are real business centers with a meaningful business and demographic diversity which is making them very attractive to top talent."

Areas including Detroit and the Gulf Coast were not highly rated by those surveyed, as there are many relocation hurdles for these areas. This negative connotation was partially due to their slow growth. Traditionally popular destinations such as New York City or San Francisco also had somewhat negative results due to high living costs.

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Corporate relocation postings can be expensive, with a recent poll from Towers Watson and Worldwide ERC^® finding that two-thirds of multinational companies spend two to three times an employee's annual salary for an international assignment. However, some companies have encouraged various cost-cutting measures that make the process more attractive. One of these methods is furniture rental, and the method has become very popular in recent years.

Re:locate Magazine noted that more large companies have migrated to this method because it saves both parties a significant amount of money. Not only is it inexpensive at the initial rental point, but it also may be tax deductible.

In addition, companies save on shipping costs, as the furniture is rented when the transferee arrives at their new post.

Roger Hollis, managing director of Roomservice by CORT, told the magazine that his company has seen 10 to 20 percent cost savings for furniture rentals compared to shipping.

Furniture rental companies may also provide additional savings for longer placements. This could aid companies further in deciding whether they would be better served renting furniture instead of shipping it.

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Transferees who are moving through a domestic relocation program and have expenses that are not covered by their employer may be eligible for tax deductions, making the transfer much less expensive in the long run.

The Internal Revenue Service explains that many moving expenses can be deducted, but it is important to note that items like meals will not be able to have the same treatment. For moving expenses to be deductible, the new employment location must be 50 miles farther away from your former home than your previous place of work was. Those who are entering into their first employment situation need to have a new job 50 miles or more from their previous home.  Additionally, transferees must have official full-time status for 39 weeks of the first year at the new location. Those who do not meet this requirement must have a specific reason that is acceptable to the IRS, including disability, separation and death.

The expense of packing and shipping belongings, including household goods, car or family pet, can be deducted. In addition, any costs for moving appliances or connecting utilities can be deducted from your taxes. Storage expenses for a foreign move are also deductible. Even expenses for items shipped later can be deducted based on how much it would have cost to move them from the former home.

The IRS calculates all moving deductions using Form 3903, which then feeds into an employee's normal 1040 tax form.

It is important for companies and transferees to keep in mind that any deducted expenses are invalid if the company reimburses the transferee or directly pays the expense on behalf of the transferee.

The company’s relocation policy will explain the expenses covered through the relocation program. In some cases, expenses are specifically not covered by the company due to the tax advantage its deductibility provides. An end-of-year accounting of reimbursed relocation expenses is helpful tool in determining expenses that can be tax deductible.

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Many companies evaluating their corporate relocation programs may find that convincing more experienced employees to transfer is more difficult, since they are already settled and have established families. However, younger employees may not only be more easily convinced to relocate, but they could be interested in global move opportunities from the outset.

Many people of "Generation X" are not particularly receptive of mobility for many reasons, reports Human Resource Executive Online. One of the main reasons is many have not been excited about moving away from family members and familiar surroundings.

However, those in "Generation Y" are not as stubborn when it comes to the idea of moving around the country, or beyond. Nearly nine in 10 of this generation are open to a move to another part of the country, while two in five would like to participate in a global relocation, the news source said, citing a study of employees.

"They are a generation who wants to move for more money or for the next opportunity that's going to increase their capabilities," says HR executive Nina Ramsey. "Whether it's to a large city or a small town, if it's going to meet their next career-development goal, that's what's going to drive them to move."

Another factor that has affected moving sentiment for younger people is the poor job market and significant unemployment levels in the U.S. As more people leave college and look for opportunities, they may find that their current geographical area does not have many job openings, but other regions may have greater demand for their particular skill set. Having an opportunity in an area they aren't familiar with may be more attractive, as it could open them up to new and exciting situations.

Technology has also made the idea of relocating for young transferees much less stressful, as they have grown up with social media and other technologies that make it easier for people to keep in contact while far away. Since this generation is so comfortable keeping in contact with others through technology, they may be more apt to consider a move, and be more motivated for their new opportunity.

It is important for companies who want to relocate younger employees to provide the full scope of the relocation and new opportunity upfront, HREO explained. While younger transferees may require a heightened amount of guidance dealing with a new job and city, these transferees will be less expensive to relocate, as they have fewer attachments.

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Corporate relocation can be a difficult process when a transferee’s family is involved. However, those with children who have special needs can face additional challenges. Companies with employees in this situation should urge them to identify any concerns with their relocation management company early in the process.

If a transferee’s health insurance benefits are changing, it is important that those changes are reviewed to ensure all previously covered relevant treatments fall under new policies. If not, companies may choose to adjust the employee’s relocation benefits to cover those additional items.

Transferees should also ensure they have copies of all of their child’s medical and school information. This includes medical records and test results as well as school transcripts and most recent Individualized Education Plan. If the IEP is not current, transferees should ask that it be updated so the next school district will have the best information on which to develop a new plan in keeping with local policies and educational standards.

It is also important for parents to personally speak with the educational institutions beforehand to make sure that they are aware of what their child’s issues and needs are. This can include visiting the school and meeting with those who run the special education programs. Familiarity may help the transferee feel better that their child is in good hands. Transferees can also ask their child’s current instructors to write a letter to the new teachers.

In the time leading up to the transfer, employees should ensure they have an adequate supply of medications on-hand, since it may take time to arrange appointments with specialists in a new location. Asking for local referrals prior to the transfer can help speed up the process.

Transferees will need to develop relationships with medical personnel in the new area. Finding a new pediatric doctor, in addition to other specialized physicians, can help make the transition easier. Locating qualified individuals as quickly as possible will provide a level of comfort to relocating parents.

Finally, seeking out support groups or other parents of families in similar situations can help the transferee and their family settle down. Having others to connect with in the new location can make the transition much easier on a personal level.

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When relocating employees to another city or country, ensuring that the home office maintains cohesive contact with those employees is critical to good business outcomes. However, there are many obstacles to clear in order to ensure that workflow remains consistent and is performed properly and effectively without communication hiccups.

Regardless of the employee’s new location, access to the latest technology is key. Smartphones are great options for providing reachability and texting which eliminates cluttering up an employee’s inbox with excessive e-mails.

Online phone and video conferencing services save time and improve collaboration across the globe. Real-time conversations with co-workers can markedly increase efficiency. Software provided by relocation management companies facilitates online access to vital records to help ensure remote employees have the information they need to complete the task regardless of their location.

Doing business across global time zones can be challenging if the company’s offices are located in multiple parts of the world. Companies should create a strategy early on so that work can be handled effectively.  If an office is only a time zone or two away, scheduling meetings isn’t too difficult. However, if a company is located multiple time zones away, or is on the other side of the world, it is necessary to set up a protocol to create business practices and transfer of information. One solution: work in shifts to guarantee that work is being accomplished. Or rotate video conferencing meetings so one office is not always working late in order to be included in all staff company meetings. Compromise will have to occur to compensate for communicating beyond structured office hours.

While there are company challenges to having a workforce of mobile, global employees it doesn't have to have a negative impact on business. Continually looking for ways to improve how employees communicate will help everyone contribute to creating seamless business continuity.

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Many people need to bring their families along when relocating with their company, which introduces many new concerns. But once a family is in their new location, it is important for them to take measures that ensure their children are making the transition properly.

While a new school and neighborhood may already be set up through the employee’s corporate relocation management company, there are many other steps that the family can take to help their children adjust. If the move is during the summer and school is out, it could be a good idea to sign the child up for camp. This can get children exposed to peers in the local area and help them to feel like they are a part of the community.

There are many other ways that a family can help their children when it comes to a new place. When moving into the new home, it is essential to make an effort to meet the neighbors. Finding out if there are other children with similar ages on the street can help immediately. If a family is interested, hosting a party after they arrive could be a positive icebreaker, as they will not only get to meet other families in the area, but the children can be introduced to their peers.

Social organizations in the area that regularly host events can be a good way to help children interact with others and become more comfortable with their surroundings. In addition, joining sports teams can help the child not only make new friends, but they can also create a bond with other young people. But it’s also important to gauge the child’s interests. Do they enjoy being a part of a team? Would they instead be interested in dance classes? Finding a child’s preferred hobby may go a long way in making them feel like they belong in a certain area.

While the relocation company may provide language training if a person moves to another country, it is important to note that the employee may want to give their child a head-start on learning the language. This could benefit them, especially when dealing with other children their age before they enter school.

Whatever a family decides to do in these situations, having the foresight and tools to make their children successful in their new location is critical. If a family takes the proper measures, they could be well on their way to an easy transition.

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