Steve Townsend Rejoins TRC Global Solutions with a Focus on Consultative Relocation Program Development
MILWAUKEE, Wis. – July 21, 2015 – TRC Global Solutions (TRC), a leading global talent mobility company, announced that Steve Townsend, CRP, GMS has rejoined the company as Vice President, Global Business Development. Townsend is based in Texas and will focus on new corporate partnerships in the Western U.S.
Townsend brings more than 25 years of relocation experience to TRC. As Vice President, Client Services for a major third-party relocation company, he directed domestic and international service delivery teams. (more…)
We have never done business outside of the US but are now considering sending several employees to Ireland to help set up our new operations there. These will likely be short-term and long-term assignments. But we also plan to hire people locally. What do we need to do first, second, third, etc. to accomplish our goal? How soon can we get these employees on the ground and working?
Dear Global Mobility Professional,
This sounds like a great growth opportunity for your company!
There are many factors to take into consideration when expanding outside of your headquarters country. (more…)
You’ve just accepted a great new job, and although it entails a relocation, you know the position and the new location suit you perfectly.
Even though you know this is the right move, it won’t come without some stress. You need to find a new place to call home, learn how to navigate a different town, master your job, build a support network, and if you have a family, find schools for your kids and perhaps a job for your spouse or partner. (more…)
We are considering closing down one of our offices in Brazil, and moving some key resources to another office. We do not have an intra-Brazil relocation policy. Can we use our US domestic policy to move these individuals?
Dear Global Mobility Professional,
Great question! The short answer is no, you should never use your US domestic relocation policy to relocate employees or new hires from city to city, within other countries outside of the US. (more…)
Excerpted from Mobility May 2015
Professional athletes are a not-so-obvious audience for relocation services. Interestingly, enough, the players themselves are often responsible for their own relocation arrangements and expenses.
Chris Dingman, President of The Dingman Group, the leading sports relocation company, said: “According to the Collective Bargaining Agreements, across all 5 major sports, if it’s a trade then the team that receives the player is responsible for relocation expenses. Outside of a trade, like free agency, it’s almost always the responsibility of the athlete to pay relocation costs.” (more…)
I’ve worked with domestic transferees for quite a while but I’m brand new to global relocation. Do you have any dos and don’ts you can share for a global mobility newbie?
Dear Global Mobility Professional,
Congratulations on your new responsibilities! You’ll find that global mobility has some similarities to domestic relocation, but even more differences. Here are ten dos and don’ts for you, in no particular order:
Family considerations, including the spouse/partner’s career, have traditionally been the number one reason for reluctance to relocate. According to Worldwide ERC®, real estate concerns eclipsed family and career considerations during the Great Recession (imagine having to sell an “upside down” house and give up a spouse/partner’s job during a recession), but as the real estate market recovers, personal issues are again rising to the forefront.
Dual-career families have become the norm. Ozzie and Harriet are gone: according to the U.S. Census bureau, men are the sole breadwinners in only one out of four married couples. So even with a great offer on the table, most families are reluctant to embark on a relocation unless the spouse can either continue his or her job in the new location or find a new one. International assignments bring special challenges as many countries limit or outlaw spouse employment. (more…)
We are trying to determine an effective currency exchange (FX) rate for our upcoming expat assignment. Specifically, we were wondering what FX rate we should use when setting and updating COLA and other assignment allowances? Should we use the rate from the day the assignment starts? Or rather a 3 month/6 month/12 month average?
Dear Global Mobility Manager,
I can understand your company’s and your assignee’s nervousness around exchange rates lately, especially given the recent burst of global currency volatility. Based on what I have seen, the most common practice is for companies to set somewhat frequent update periods (quarterly is best but semi-annually is ok too) and use the most up-to-date rate available on that day.
I have asked one of my industry colleagues who is a subject matter expert in this area to provide a more meaningful explanation of why it is best to use the most current rate possible when determining the FX exchange rates for international assignments. Jordan Blue is a Senior Associate at Mercer and has this to say:
For FX rates we typically recommend that you use the most current rate possible. At first thought, it would make a lot of sense to use an average, right? But when we consider which approach would get closest to truly equalizing the salary the average doesn’t work out so well. Essentially, using an average means you include a lot of data points that simply aren’t relevant to our purpose.
If you think about it, our purpose is to set the COLA for the next quarter or 6 months based on what we believe the FX rate will be. In other words we want to try and predict the FX rate moving forward. If I want to know what the FX rate will be tomorrow my best reference point is today’s FX rate. Using an average would likely put me way off (consider the graph below). The average FX over the past year would be somewhere around 1.25 but the FX rate tomorrow is likely to be somewhere around 1.35 which is a big shift. Even if we used a 3 month average we would still be around 1.3 which is again, pretty far from where we want to be. So while using an average seems like a great idea, it actually means the assignee won’t be equalized due to the difference in the FX rate we use to calculate the COLA and the FX rate they actually experience when they transfer money.
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In today’s lean business environment, most companies no longer have the luxury of a dedicated relocation department, staffed with experienced professionals who can devote their full attention to the process.
More likely, if the function is managed in-house, it’s just one of many responsibilities juggled by busy HR professionals. Complicating matters further, relocation has gotten more specialized and complex over the years.
For domestic relocation, in-house professionals must keep abreast of current best practices and tax/legal regulations, control costs, source and manage suppliers and sometimes even manage inventory. Global moves are even more challenging. Companies must identify, qualify and manage global partners, worry about immigration and tax matters and source and coordinate a whole array of support services.
Family Tips for Relocating Employees
Moving is disruptive for adults, but an employee relocation can be even more unsettling for children. Preparing a child for a new home begins weeks before moving day, and today we offer suggestions for making the transition as seamless as possible.