REGIONAL RELOCATION GROUPS / TOP 7 TRENDS IN MOBILITY / MARKET: MANCHESTER, NH / DESTINATION: BAHRAIN
Magazine of Worldwide ERC® June 2019
THE FUTURE OF
HOW IT INTERSECTS WITH THE FUTURE OF WORK
WHEN THE TALENT MAKES THE PICK THE CHANGING FACE OF RECRUITING AND TALENT MANAGEMENT
MEDICAL ISSUES FACING INTERNATIONAL ASSIGNEES
WHAT NOT TO DO IN A HOMESALE PROGRAM
Are you ready for the workforce of the future? scan to request a Alternative workers are growing in number. Has solution your mobility program evolved to serve the different types of employees you’ll need to succeed?
Aires offers customized solutions to help you rethink the traditional one-size-fi ts-all approach.
®2019 American International Relocation Solutions, LLC Contents FEATURES
PG 46 WHEN THE TALENT MAKES THE PICK PG 54 MEDICAL ISSUES FACING By Diane McIntire INTERNATIONAL ASSIGNEES What makes job seekers choose one By Mollie Ivancic and Tom Paton, GMS company over another? A look at the Proactive steps to ensure healthy, changing face of recruiting and talent productive employees and families management. while on assignment.
PG 52 MOBILITY MATTERS PG 60 REGIONAL RELOCATION GROUPS By Jon Ferguson Worldwide ERC®–recognized How offices have changed since the organizations and their leadership teams. heyday of the cube farm. PG 68 DESTINATION PROFILE: BAHRAIN By M. Diane McCormick Quality of life and affordability in the Persian Gulf.
COVER STORY PG 40 HOW THE FUTURE OF WORK AND TRAVEL INTERSECT By Michael W. McCormick Increased mobility and business travel are investments aimed at growing companies’ bottom lines and the overall global economy.
2 Mobility | June 2019
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Worldwide ERC® Karen Cygal PG 8 PERCEPTIONS Vice President, Product Development Leveraging Talent
Chris Wilson, SGMS-T Vice President, Research & Education PG 30 GOVERNMENT AFFAIRS What Not to Do in a Homesale Program Kristin White Communications Consultant PG 35 MARKET SUMMARY EDITORIAL/DESIGN/MEDIA SALES Manchester, New Hampshire The YGS Group Amy Norcross, Managing Editor Steve Kennedy, Senior Editor Beth Hughes, Copy Editor Charity Fox, Account Manager DEPARTMENTS Melissa Wiedemann, Photo Editor PG 6 CALENDAR OF EVENTS Serena L. Spiezio, Creative Director Megan Meckley Hacker, Art Director PG 10 TIPS & TRENDS Jack Davidson, EVP Promoting a Culture of Well-Being in Your Zack Buchanan, National Sales Manager Workplace [email protected] +1 717 430 2291 By Gerrit Brouwer Heather Macaluso, Account Executive [email protected] PG 13 AROUND THE WORLDWIDE ERC® +1 717 430 2224 In Case You Missed It (ICYMI) PRINTING Worldwide ERC® Front Page The YGS Group York, PA Executive Spotlight Collective Wisdom YP40 ABOUT WORLDWIDE ERC® Worldwide ERC® is the workforce mobility association for professionals who oversee, manage, or support U.S. PG 38 THE NUMBERS domestic and international employee transfers. The SIRVA 2018 Mobility Report organization was founded in 1964 to help members overcome the challenges of workforce mobility. PG 79 ADVERTISERS’ INDEX OUR PURPOSE We empower mobile people through meaningful connections, unbiased information, inspired ideas, and solutions. PG 80 INDUSTRY INSIGHTS Top 7 Mobility Trends By Lisa Johnson
worldwideerc.org | Mobility 5 MOBILITY Vol. 40 No. 6 • June 2019
EXECUTIVE COMMITTEE Chairman of the Board Calendar of Events SCRP, SGMS-T Sue Carey, Baird & Warner, Chicago, Illinois, USA
JUNE 2019 Chair-Elect U.S. Immigration Climate: Changes in Immigration Edward Hannibal, GMS Adjudications and Enforcement Deloitte Tax LLP, Chicago, Illinois, USA 11 June Vice Chair – Finance Master Series, sponsored by Berry Appleman & Leiden LLP Robert Brezosky Boston The Walt Disney Company, Burbank, California, USA worldwideerc.org/events Vice Chair – Talent Community Andrew P. Walker, GMS-T U.S. Immigration Climate: Changes in Immigration EY, New York, New York, USA Adjudications and Enforcement President and Chief Executive Officer 13 June Peggy Smith, SCRP, SGMS-T Master Series, sponsored by Berry Appleman & Leiden LLP Worldwide ERC®, Arlington, Virginia, USA New York BOARD OF DIRECTORS worldwideerc.org/events Merritt Q. Anderson San Francisco, California, USA
Erik Eccles SEPTEMBER 2019 Urbandoor, San Francisco, California, USA Tokyo Summit 2019 Kerwin Guillermo 5 September Hewlett Packard Enterprise, Singapore Tokyo Heather Henry worldwideerc.org/events-conferences Netflix Inc., Los Gatos, California, USA Gustavo Higuera, CRP, GMS-T OCTOBER 2019 Weichert Workforce Mobility Inc., Miami, Florida, USA Global Workforce Symposium 2019 Sigrid Nauwelaerts 16–18 October Johnson & Johnson, Beerse, Belgium Boston Shelby Wolpa worldwideerc.org/events-conferences InVision, Austin, Texas, USA EX-OFFICIO DIRECTORS Chairman, Foundation for Workforce Mobility MAY 2020 Robert L. Giese, SCRP, GMS Americas Mobility Conference 2020 Sterling Lexicon, Jacksonville, Florida, USA 12–15 May PAST CHAIRMAN Houston Robert J. Horsley worldwideerc.org/events-conferences Fragomen Worldwide, Santa Clara, California, USA
OCTOBER 2020 Mobility (ISSN 0195-8194) is published monthly by Global Workforce Symposium 2020 Worldwide ERC®, 4401 Wilson Boulevard, Suite 510, Arlington, VA 22203-4195, +1 703 842 3400. Mobility 28–30 October examines key issues affecting the global mobility workforce Washington, D.C. for the benefit of employers and firms or individuals worldwideerc.org/events-conferences providing specific services to relocated employees and their families. The opinions expressed in Mobility are those of the authors and do not necessarily reflect the opinions MAY 2021 of Worldwide ERC®. Mobility is printed in the United States of America. Periodical postage paid at Arlington, VA, and Americas Mobility Conference 2021 additional mailing offices. Worldwide ERC® members 24–26 May receive one annual subscription with their membership San Francisco dues. Subscriptions are available to both members and worldwideerc.org/events-conferences nonmembers at $48 each per year. Copyright ©2019 by Worldwide ERC®. All rights reserved. Neither all nor part of the contents published herein may be reproduced in any READ ALL ABOUT IT! form without written permission from Worldwide ERC®. About what? That’s our question for you! Send your suggestions for topics you’d like to read about in Mobility to [email protected].
POSTMASTER: Send address changes to Mobility, Worldwide ERC®, 4401 Wilson Boulevard, Suite 510, Arlington, VA 22203-4195.
6 Mobility | June 2019 2019 U.S. NEWS – BEST LAWYERS® “LAW FIRM OF THE YEAR” IN IMMIGRATION LAW IN AMERICA
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Copyright © 2019 Berry Appleman & Leiden LLP PERCEPTIONS
Leveraging Talent
ake 50 percent of the working population that’s filling traditional jobs. Add a healthy portion of contingent workers, both long- and short-term, depending on the initiatives you need to address. Measure out percentages of automation and artificial intelligence, a huge component of lifelong learning, season with company culture, and mix well. Congratulations! You’re creating tomorrow’s workforce. And when I say “tomorrow,” that’s a little misleading—because leveraging all the possi- Tbilities and opportunities to build the future workforce is already underway. We know that using traditional workforce practices exclusively won’t cut it anymore. There are tumbling population replacement rates: Today, almost 50 percent of the world’s population lives in countries that are below the average global replacement rate of 2.1 children per woman. We have rising numbers of contingent workers choosing entrepreneurial and flexible career paths, expected to outpace traditional employment in the near future. Automation is both replacing jobs and creating new ones, and the World Economic Forum says that after 75 million jobs are displaced by 2022, those created will add up to nearly 60 million net new jobs … jobs that will need specialized skills, so upskilling and training are imperative. (In Upwork’s latest Skills Index, 70 per- cent of the fastest-growing skills are new to the index!) Deloitte’s 2018 “Global Human Capital Trends” report is already charting movement as companies adjust to advanced technologies: 53 percent of the 11,000 HR and business lead- ers who responded said they were redesigning jobs around automation. Companies that are already revolutionizing ways to bring together tradi- tional employees, learning, technology, and access to contemporary talent assets such as on-demand and remote workers will be best positioned for com- petitiveness and growth. The story of a new workforce is writing itself—and we are part of the narrative.
Cheers,
PEGGY SMITH, SCRP, SGMS-T President and Chief Executive Officer Worldwide ERC®
8 Mobility | June 2019 BECAUSE THERE’S MORE TO RELOCATION THAN GETTING FROM POINT A TO POINT B
THERE’S SO MUCH RIDING ON RELOCATION WHEN AN EMPLOYEE MOVES
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Promoting a Culture of Well-Being in Your Workplace
EXCERPTS FROM AN ARTICLE t’s hard to read about the future of work without coming across “data,” BY GERRIT BROUWER, “AI,” “robotics,” and other tech terms. But what about the workers? CO-FOUNDER OF KEYPATH B.V. Employee experience and well-being—both mental and physical—are SHARED WITH PERMISSION. increasingly important parts of the conversation. Below are five tips for contributing to employee experience and well-being at your workplace.
Send your article ideas, letters, and feedback to 1. LEAD BY EXAMPLE. [email protected]. Demonstrate positive behavior and inspire others to adopt healthier habits by engaging in regular physical exercise routines and encouraging others to do so as well. WalkingI meetings or an after-hours planking session or “boot camp” can generate the same team-building connectivity and fun as a happy hour, with much healthier benefits. 2. STIMULATE YOUR INTERNAL “INFLUENCERS.” Every team has some employees who freely share content on Instagram or other sites that many want to see and follow. Consider harnessing the strength of those influencers to help spread the word about your well-being initiatives and generate new ideas. Give them a podium, and they might just be great coaches or brand ambassadors. 3. REWARD PEOPLE FOR BEING VULNERABLE. Sharing problems is never easy. But you can work to change the stigma by rewarding employees who are helping colleagues. Finding ways to appreciate a person’s vulnera- bility may be a long shot, but promoting mental and physical well-being naturally cre- ates a more open and transparent culture. Connecting generations can make a difference, too—some colleagues may have been through similar hardships and can offer help. 4. EFFECTIVELY COMMUNICATE YOUR WELL-BEING PROGRAMS. Many companies, especially large multinationals, have a multitude of well-being pro- grams, from a health club subscription to a free massage. Prioritize well-being in your communications by including an overview of what’s available on your career pages, within the new hire integration process, or on your intranet. Tapping into your influenc- ers as focal points for everything related to well-being also goes a long way. 5. BE EXCLUSIVE AND INCLUSIVE. A strong commitment to well-being can help your organization gain an exclusive competitive employer advantage. At the same time, well-being is for everyone, and companies should make sure their efforts are as inclusive as possible. If you are creating a support group, make sure every employee gets the message that they are being heard and taken care of by your company. By including everybody, your employees will be closer to achieving that one common goal: contributing to your business in the long run to let your workplace—and your workers—truly thrive.
10 Mobility | June 2019
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On worldwideerc.org, we’ve been reporting on what looks to be a tight race in India’s general election, with final results expected WHAT’S HAPPENING ON SOCIAL? to be announced in late May. At press time, the election was a FOLLOW US! @WORLDWIDEERC contest between two main front-runners: current Prime Minister Narendra Modi of the Bharatiya Janata Party and Rahul Gandhi Twitter – Have you bookmarked the page that of the Congress Party. The sheer size of India’s population and can serve as your one-stop shop for our economy makes the results of this election important to the ongoing analysis of all things #Brexit? Take a look at mobility industry. If India’s unemployment rate continues to worldwideerc.org/impact-of-brexit-on-mobility, where rise, it’s possible that the government may take steps to decrease we’ve organized the evolving storylines and the immigration and focus on getting jobs to local workers. In addi- potential impact on mobility by channel. tion, there is a strong relationship between connectivity and eco- nomic advancement—but more than 900 million people in India Facebook – We shared updates from the U.S. are not yet fully connected to the internet, making the market a Internal Revenue Service (IRS), including its huge focus for the technology sector. We’ll continue to report on adjusted foreign housing amounts for 2019 for a long the outcome and the aftermath this month—stay tuned! list of global locations, and expansions to its previously In other global news, we shared some highlights of and the link announced relief for taxpayers who unintentionally to a report released by the U.K.’s Institute for Fiscal Studies, indicat- underpay. ing that higher earners are being subjected to continuing unwar- ranted tax increases due to the lack of inflation adjustments for a LinkedIn – Canada announced additional number of income thresholds. As expatriate employees working scrutiny of its residential real estate transactions, in the U.K. are likely to be prominent among those affected by that and we gave you the lowdown via our social channels lack of inflation adjustment, their U.K. tax and the tax adjustment and website. The real estate initiative, which is one of burden on their employers are also likely increasing. several the finance minister announced to reduce tax We continue to keep you informed about the impact of the U.S. evasion, is expected to produce an additional CA$68 Tax Cuts and Jobs Act, which—among other changes—suspended million in revenue over five years. And speaking of the deduction and exclusion for moving expenses occurring taxes, we also kept you in the know about a report between 2018 and 2025. In particular, we’re keeping a careful watch from the Transactional Records Access Clearinghouse on whether and how individual states are adopting the changes as at Syracuse University that found that in 2018, U.S. IRS they work on conforming to the federal law. In Massachusetts, an audits of major corporations fell below 50 percent for April technical information release suggests that the state will not the first time since 2010. If that trend continues, it’s adopt the federal changes, enabling Worldwide ERC® members likely you can expect fewer audits of such mobility with transferees there to continue to exclude reimbursements and issues as the taxability to transferees of costs incurred payments for moving expenses from their Massachusetts income, in homesale programs. reducing necessary state tax gross-ups.
worldwideerc.org | Mobility 13 Backed by the strength of Citi’s global presence and resources International Personal Bank U.S. empowers individual clients around the world to work towards reaching their financial objectives.
Through our Citi Global Executive Banking Preferred and Citi Global Executive Banking account packages, your employees can gain access to banking1 and investment2 products and services, allowing them to manage their U.S.-based finances at home and abroad. As a global corporation, consider the benefits of: • STREAMLINING INTERNATIONAL COMPENSATION Help reduce transaction fees & administrative costs by crediting compensation and expense reimbursements to a U.S.-based bank account • A DEDICATED CORPORATE RELATIONSHIP MANAGER Work closely with your Global Mobility department to roll-out a successful program • FINANCIAL SOLUTIONS DESIGNED FOR INTERNATIONAL EMPLOYEES Explore Citi, Offer a suite of financial products and services to complement your international employees’ benefits packages Empower Your Serving distinguished corporate clients for over 30 years, International Personal Bank U.S. is a banking industry leader, uniquely positioned to serve multinational corporations through Global Employees. Executive Banking account packages.
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International Personal Bank U.S. (IPB U.S.), is a business of Citigroup Inc. (“Citigroup”) which provides its clients access to a The products and services mentioned in this document are not offered to individuals resident in the European Union, European broad array of products and services available through Citigroup, its bank and non-bank affiliates worldwide (collectively, “Citi”). Economic Area, Switzerland, Guernsey and Jersey. Your eligibility for a particular product and service is subject to a final Through IPB U.S. prospects and clients have access to the Citi Global Executive Preferred Account Package and Citi Global determination by us. This document is not, and should not be construed as, an offer, invitation or solicitation to buy or sell any of Executive Account Package. the products and services mentioned herein to such individuals. Global Executive Banking is a service of Citibank, N.A., providing banking and borrowing products and services. Transactions may be executed outside of your country and without any participation from any Citigroup or Citibank subsidiary, 1 Banking products and services are provided by Citibank, N.A., Member FDIC. branch or affiliate in your country. Some products may not be registered with the Financial Regulatory authority of your country, nor may they be governed or protected by the laws and regulations of your country. Products and services offered by Citigroup and its affiliates are subject to the applicable local laws and regulations of the jurisdiction where they are booked and offered. INVESTMENT AND INSURANCE PRODUCTS: NOT FDIC INSURED • NOT A BANK DEPOSIT Not all accounts, products, and services as well as pricing are available in all jurisdictions or to all customers. Your country of • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A BANK GUARANTEE • MAY LOSE VALUE citizenship, domicile, or residence may have laws, rules, and regulations that govern or affect your application for and use of our accounts, products and services, including laws and regulations that govern or affect your application for and use of our 2 Investment products and services are made available through either: accounts, products and services, including laws and regulations regarding taxes, exchange and/or capital controls. Citi Personal Investments International, (CPII) a business of Citigroup Inc., which offers securities through Citigroup Global Not all investments are suitable for all investors. Not all products and services are provided by all affiliates, or are available at all Markets Inc. (CGMI), member SIPC, an investment advisor and broker-dealer registered with the Securities and Exchange locations. Commission. Insurance is offered through Citigroup Life Agency LLC (CLA). In California, CLA does business as Citigroup Life This advertisement is provided for informational purposes only. It is not an offer to buy or sell any of the securities, insurance Insurance Agency, LLC (license number 0G56746). products, investments or other products name. Or Citi International Financial Services, LLC (CIFS), member FINRA and SIPC, a broker-dealer registered with the Securities and Exchange Commission that offers brokerage products and services to non-US residents/citizens or non-US entities. CGMI and CIFS investment accounts are carried by Pershing LLC, member FINRA, NYSE and © 2019 Citigroup Inc. SIPC. CGMI, CLA, CIFS and Citibank, N.A. are affiliated companies under the common control of Citigroup. Citi, Citi and Arc Design and other marks used herein are service marks of Citigroup Inc. or its affiliates, used and registered throughout the world. All rights reserved. MOB-GEB-COR-AD-0419-E Backed by the strength of Citi’s global presence and resources International Personal Bank U.S. empowers individual clients around the world to work towards reaching their financial objectives.
Through our Citi Global Executive Banking Preferred and Citi Global Executive Banking account packages, your employees can gain access to banking1 and investment2 products and services, allowing them to manage their U.S.-based finances at home and abroad. As a global corporation, consider the benefits of: • STREAMLINING INTERNATIONAL COMPENSATION Help reduce transaction fees & administrative costs by crediting compensation and expense reimbursements to a U.S.-based bank account • A DEDICATED CORPORATE RELATIONSHIP MANAGER Work closely with your Global Mobility department to roll-out a successful program • FINANCIAL SOLUTIONS DESIGNED FOR INTERNATIONAL EMPLOYEES Explore Citi, Offer a suite of financial products and services to complement your international employees’ benefits packages Empower Your Serving distinguished corporate clients for over 30 years, International Personal Bank U.S. is a banking industry leader, uniquely positioned to serve multinational corporations through Global Employees. Executive Banking account packages.
Provide your international Learn More Contact Us employees with the financial tools needed globalexecutivebanking.citi.com [email protected] to take on the challenges of global assignments.
International Personal Bank U.S. (IPB U.S.), is a business of Citigroup Inc. (“Citigroup”) which provides its clients access to a The products and services mentioned in this document are not offered to individuals resident in the European Union, European broad array of products and services available through Citigroup, its bank and non-bank affiliates worldwide (collectively, “Citi”). Economic Area, Switzerland, Guernsey and Jersey. Your eligibility for a particular product and service is subject to a final Through IPB U.S. prospects and clients have access to the Citi Global Executive Preferred Account Package and Citi Global determination by us. This document is not, and should not be construed as, an offer, invitation or solicitation to buy or sell any of Executive Account Package. the products and services mentioned herein to such individuals. Global Executive Banking is a service of Citibank, N.A., providing banking and borrowing products and services. Transactions may be executed outside of your country and without any participation from any Citigroup or Citibank subsidiary, 1 Banking products and services are provided by Citibank, N.A., Member FDIC. branch or affiliate in your country. Some products may not be registered with the Financial Regulatory authority of your country, nor may they be governed or protected by the laws and regulations of your country. Products and services offered by Citigroup and its affiliates are subject to the applicable local laws and regulations of the jurisdiction where they are booked and offered. INVESTMENT AND INSURANCE PRODUCTS: NOT FDIC INSURED • NOT A BANK DEPOSIT Not all accounts, products, and services as well as pricing are available in all jurisdictions or to all customers. Your country of • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A BANK GUARANTEE • MAY LOSE VALUE citizenship, domicile, or residence may have laws, rules, and regulations that govern or affect your application for and use of our accounts, products and services, including laws and regulations that govern or affect your application for and use of our 2 Investment products and services are made available through either: accounts, products and services, including laws and regulations regarding taxes, exchange and/or capital controls. Citi Personal Investments International, (CPII) a business of Citigroup Inc., which offers securities through Citigroup Global Not all investments are suitable for all investors. Not all products and services are provided by all affiliates, or are available at all Markets Inc. (CGMI), member SIPC, an investment advisor and broker-dealer registered with the Securities and Exchange locations. Commission. Insurance is offered through Citigroup Life Agency LLC (CLA). In California, CLA does business as Citigroup Life This advertisement is provided for informational purposes only. It is not an offer to buy or sell any of the securities, insurance Insurance Agency, LLC (license number 0G56746). products, investments or other products name. Or Citi International Financial Services, LLC (CIFS), member FINRA and SIPC, a broker-dealer registered with the Securities and Exchange Commission that offers brokerage products and services to non-US residents/citizens or non-US entities. CGMI and CIFS investment accounts are carried by Pershing LLC, member FINRA, NYSE and © 2019 Citigroup Inc. SIPC. CGMI, CLA, CIFS and Citibank, N.A. are affiliated companies under the common control of Citigroup. Citi, Citi and Arc Design and other marks used herein are service marks of Citigroup Inc. or its affiliates, used and registered throughout the world. All rights reserved. MOB-GEB-COR-AD-0419-E AROUND THE WORLDWIDE ERC ®
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Suddath’s first building in a 1931 photo, upper right, and vintage moving vans SUDDATH CELEBRATES CENTENNIAL A century ago, Carl Suddath had little more than a Award for its patented Estimator platform, which dream when he bought a failed moving company shortens the turnaround time for quotations and to start up his own business. Armed with a couple contracts while improving the quality and accuracy of small trucks, two mules, and a cart, Suddath saw of estimates. opportunity in a 7,000-square-foot warehouse. Today, “We’ve made it to 100 years old by staying true The Suddath Companies celebrates its 100th anniver- to our core values while also evolving to meet the sary as a $600 million company that moves more than demands of a changing marketplace,” says Mike 70,000 households annually, including managing the Brannigan, president and CEO of The Suddath moves of about 30,000 U.S. service members. It also Companies. “For generations, we’ve committed to provides mobility, relocation, and logistics services in innovation, to investing in our people, and to meeting more than 150 countries across the globe and is North customer needs with quality service—from acquiring America’s largest commercial mover. successful smaller operations around the world to The Suddath Companies has been honored for developing award-winning technologies that improve its use of technology to streamline and improve its everything from warehouse management to corporate various industry sectors such as logistics, mobility, office moves or personal relocations.” and corporate moves, including specialty environ- Carl Suddath’s lone 7,000-square-foot facility in ments such as medical, high-tech, or food-grade 1919 has grown to 3 million square feet of warehouse facilities. In the last year, Suddath earned the space throughout the U.S. and Europe, and the com- CIO 100 Award for its Tracker program, which it pany moves people, products, and businesses through developed in-house to keep precise track of even its 30 locations and more than 2,200 employees world- the smallest items, allowing clients to know exactly wide. The company recently announced the launch of where their inventory is and alerting them when a new brand, Sterling Lexicon, built on its acquisitions their items have been delivered and set up; and of two mobility industry leaders in the U.S. and U.K.: received a Digital Edge 50 International Technology Sterling Mobility and Lexicon Relocation.
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“My grandfather’s drive and determination gave sales professionals at Weichert. I am so proud of this rise to a company that is now connecting people and team and our accomplishments. We have built strong businesses across the world,” says Steve Suddath, relationships with other member companies based on chairman of the Suddath board of directors. “Our our ability to consistently produce results.” company’s success is built on our customers’ trust in our capabilities. I’m proud of our great work over BAL ADVANCES ROBOTIC PROCESS AUTOMATION the last 100 years and excited to see the impressive Berry Appleman & Leiden LLP (BAL) has selected innovations we achieve in the future.” robotic process automation (RPA) platform UiPath to continue its development of intelligent automa- WEICHERT WINS AWARD AT GLOBAL REAL tion. Last year BAL established its Automation & AI ESTATE EVENT Development Center, which accelerates automation within the business processes that underlie immi- gration and global mobility. As the firm continues to evolve its use of automation, BAL will apply UiPath’s RPA solution across departments to perform certain repetitive manual tasks and allow BAL personnel more time to invest in the customer experience. BAL selected UiPath as its RPA vendor for the company’s capabilities in the area of human-bot inter- action—a criterion that BAL was particularly focused on to ensure easy onboarding and management of the From left: Joe Horning, chairman of the board for LeadingRE, and Weichert Relocation Department’s Natalie Hill, CRP, Vice President Betsy Roche, and Mike Cummings solution among its employee base. BAL also collab- orates with UiPath partner Accelirate, which plays a Weichert, Realtors, was the winner of a Member critical role in the procurement and training process, Achievement Award presented by the Leading Real offering BAL guidance from experienced RPA prac- Estate Companies of the World® (LeadingRE), a selec- titioners. With the help of Accelirate, BAL identified tive global community of more than 565 independent several internal processes to automate with RPA, real estate firms. The awards were presented during such as new employee onboarding, managing client the LeadingRE Annual Conference in Las Vegas, requests, and streamlining time-intensive adminis- attended by nearly 3,000 real estate professionals trative and clerical tasks. The firm is also deploying from 24 countries. UiPath in conjunction with its Cobalt global immi- “Our Achievement Award winners have earned dis- gration management platform, which includes BAL’s tinction among the best real estate firms in the world,” mobile immigration app. says LeadingRE President and CEO Paul Boomsma. “With UiPath, we are delivering cognitive capa- “Recognizing them and celebrating their many accom- bilities that go well beyond basic RPA areas, such as plishments was a highlight of our recent conference.” swivel chair web automation, document processing, A nominee in several categories, Weichert was and form assembly,” says Vince DiMascio, chief infor- recognized as the top company in the LeadingRE mation officer of BAL. network in 2018 for outgoing closed referrals “BAL is just the type of innovative organization resulting from the most client introductions made we are eager to support, and we’re thrilled they’ve to other affiliates throughout the network. This adopted our technology to further that innovation,” marked the 20th consecutive year that Weichert has says Coenraad van der Poel, head of the Americas at achieved that accomplishment. UiPath. “Our platform is meant to help companies “We are thrilled to have once again achieved the focus on what they do best—bringing supreme prod- most outgoing referrals for the entire LeadingRE ucts to market and delighting customers—and BAL is network,” says Betsy Roche, vice president of already doing just that. As the company continues to relocation for Weichert. “This achievement speaks digitize its business, we expect their results with our volumes about the hard work and dedication of the solution will only get better.”
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ATLAS WORLD GROUP INTERNATIONAL IS we celebrate how much Altair Global has accom- FIDI-ACCREDITED plished over the past years, we also want to ensure Atlas World Group International (AWGI), a subsidi- that our company’s guiding principles and values ary of Atlas World Group Inc., has received certifica- reflect not only the company that we are today, but tion from FIDI Global Alliance as a FIDI Accredited the company that we will become tomorrow and in International Mover (FAIM). the years to come.” FIDI, made up of 600 affiliates in more than 100 In the past year, Altair Global has announced countries, is the largest global alliance of professional expansions in EMEA, the relocation of the head- international moving and relocation companies. The quarters office to a new 65,000-square-foot location FIDI-FAIM certification program ensures companies in Frisco, Texas, and the XM initiative, all aimed at work to a worldwide common standard for managing transforming the company’s ability to provide a suc- and performing international moving services in a cessful experience globally. uniform, quality-minded, and effective way. “As we begin our fourth decade in business, we “We are proud to receive this certification and knew it was an opportune time to take a look at our expand our international network with FIDI’s rep- mission, vision, and value statements,” says Chad utable affiliates,” says Jim Gaw, president and COO Sterling, CRP, GMS, chief executive officer at Altair of AWGI. “We will utilize the many resources they Global. “We’re a very different company than we were provide to maintain the highest standards possible even five years ago—we’re working in different places when helping customers go to new places.” in the world, we’re performing different services, and AWGI will undergo periodic assessments every we’re certainly doing it in a very different way.” three years to retain FAIM status. As a new member of the FIDI Global Alliance, AWGI will utilize the BUDD VAN LINES ACQUIRES MERCHANTS organization’s training resources with its team to MOVING & STORAGE expand learning opportunities and continue to focus Budd Van Lines has acquired Wisconsin-based on heightened consistency of service. Merchants Moving & Storage. The partnership will “Earning this accreditation was a team effort, and increase the companies’ shared national footprint it will play a major role in shaping our service and of service centers, surveyors, move counselors, and assisting our valued customers going forward,” says drivers. The combined fleet of pack-and-haul driver Ashley Saunders, international operations and quality teams will offer greater capacity during the crunch of manager at AWGI. the peak summer season. Budd Van Lines, based in Somerset, New Jersey, ALTAIR GLOBAL CELEBRATES 30TH ANNIVERSARY and Merchants Moving & Storage each will continue Early this year, Altair Global reached the milestone to utilize the Team Pack & Team Haul service model, of 30 years of providing mobility services across the which dictates that one driver team handles each globe. Starting in 1989 under the company name move from start to finish. AmeriCorp Inc. as one small office in Texas, Altair “One key synergy we perceived was the tremendous Global has experienced significant transformation in similarity between Budd and Merchants,” says David three decades, including expansions to 10 locations W. Budd Sr., CEO of Budd Van Lines. “Both are family- across America, Europe, and Asia-Pacific, and revo- owned, employee-focused, independent van lines lutionizing the way it conducts business through an active in our communities. I’m confident this merger is Experience Management (XM) platform. going to be a great fit for the customers of both compa- Altair’s more than 600 team members celebrated nies, as well as for everyone else involved.” the company’s achievements in each region around Jennifer Eastman, president of Merchants, will the world, while also showcasing the business’s new remain a key member of the team to assist with mission, vision, and value statements. the integration of employees and management of “It’s incredible to see how far Altair Global has clients. To symbolize the merger, elements of the come since its beginning in 1989,” says Kathryn Merchants logo have been incorporated directly into Cassidy, president and chief operating officer. “While Budd’s logo. M
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Executive Spotlight
ROB GIESE APPOINTED VP OF INNOVATION locations in the Washington, D.C., Maryland, and AND CHANGE Virginia (DMV) area, which include Dulles and Rob Giese, SCRP, GMS, has joined Sterling Lexicon to Stafford, Virginia, and Forestville, Maryland. Seal’s lead a newly formed team as vice president of innova- leadership will extend to all local dispatch, warehous- Rob Giese tion and change. “The creation of this new team, led ing, and service teams across those branches. by Rob, reflects our commitment toward innovation in Seal previously served as vice president of oper- technology and throughout our business,” says Michael ations and earlier as vice president of Hilldrup’s Brannigan, chief executive officer. international division. He first worked for Hilldrup Giese brings 30 years of experience in global mobil- on a moving team over the course of four summers ity, along with an extensive background in technology while attending Indiana University. After graduating for the industry. In addition to leading the innovation in 2003, he joined Hilldrup’s local operations team, team, he will focus on client implementation and serving as a dispatcher, planner, and ultimately local global process improvement using lean strategies. operations manager. Len O’Neill, chief information officer, says, “We are “Throughout all of his leadership roles that he Onie Girton very fortunate to have Rob lead this critical function. He has earned at Hilldrup, John has demonstrated the brings a wealth of experience in developing and deploy- highest levels of dedication, commitment, and excel- ing leading-edge mobility solutions. We look forward to lence that our employees and customers expect from having Rob work together with our business teams to Hilldrup,” says McDaniel. drive market-leading, technology-enabled services that will take customer experience to the next level.” ARPIN GROUP ANNOUNCES PROMOTIONS Arpin Group has promoted Allison Dickson, CRP, HILLDRUP PROMOTES GIRTON, SEAL TO SVP Kevin Amatucci, Richard Travisono, Roxana Andrews, Hilldrup has named Onie Girton, CRP, GMS, senior vice and Steven Rivera.
John Seal president of sales and client services and promoted John “Allison, Kevin, Richard, Roxana, and Steven have Seal to senior vice president of operations–DMV for the all been successful in their careers at Arpin and are company’s corporate headquarters. always willing to take on additional responsibili- Since joining the Hilldrup team as an intern 22 ties,” says David Arpin, president and CEO of Arpin years ago, Girton has filled roles including customer Group. “With their expansive knowledge of the service coordinator, customer service manager, industry and Arpin’s operational processes, we look branch vice president and general manager, and most forward to seeing them excel in their new roles.” recently, vice president of client services and market- Dickson has been promoted to vice president, ing. Girton will be responsible for leading and grow- domestic pricing and account services. She has more ing Hilldrup’s corporate sales division in addition to than 30 years of experience in the moving and storage Allison Dickson her current role overseeing client services, relocation, industry and will be responsible for developing the and marketing for all 10 branches. company’s domestic rates and pricing tariffs to opti- “Onie has been an invaluable member of the mize profitability and market competitiveness. Hilldrup team for more than two decades,” says Amatucci has been promoted to vice president, Charles W. McDaniel, Hilldrup’s president and domestic corporate accounts and customer care. He CEO. “Her experience and strategic support have joined Arpin Van Lines in 2013 and has more than 29 been a tremendous asset to helping achieve our years of experience in household goods relocation. He business goals, and we look forward to seeing how will oversee the day-to-day operations of the domes- she will help to grow Hilldrup’s sales division.” tic corporate accounts customer care department and In his new position, Seal will be responsible for serve as the primary customer care liaison between Kevin Amatucci the oversight and strategic leadership of all Hilldrup Arpin Van Lines and client representatives.
22 Mobility | June 2019 Meet the proud owners of TRC Global Mobility.
TRC Global Mobility: An Employee-Owned Company trcglobalmobility.com AROUND THE WORLDWIDE ERC ®
Richard Travisono Roxana Andrews Steven Rivera Mark Schueler Carlo Iannandrea Misty Taylor
Travisono brings his knowledge of the complex Iannandrea has more than 30 years of experi- safety issues affecting the moving industry to his ence in the home and environmental relocation new role as director of driver services. Travisono, industry. He previously held a similar position who joined Arpin Van Lines in 2010, will continue with US Inspect. to serve as the company’s director of safety. Prior to “We are extremely excited to have Carlo joining joining Arpin, he served as a Rhode Island Capitol the Globespec family,” says Myron Sonkin, CEO. Police officer for 15 years. “We have worked with and known each other for Andrews has been promoted to director of cus- over 25 years, and we are thrilled that he will have tomer care. She joined Arpin Van Lines in 1996 as a the opportunity to bring his expertise and knowl- move coordinator and has been named employee of edge to our company.” the month multiple times. She will be responsible for directing the customer care department and its NEI HIRES TAYLOR AS VP FOR SOUTHEAST U.S. employees as well as overseeing the relocation pro- NEI Global Relocation has appointed Misty Taylor, cess on corporate accounts. CRP, as vice president of client development for Rivera has been promoted to director of opera- the southeast quarter of the U.S., including North tions. He joined Arpin Van Lines in 2008 and will and South Carolina, Georgia, Florida, Tennessee, now be responsible for overseeing the day-to-day Arkansas, Alabama, Mississippi, and Louisiana. operations of dispatch and planning. “We are thrilled to have someone of Misty’s caliber join our organization,” says Al Blumenberg, BRISTOL ADDS NEW VP OF GLOBAL BUSINESS SCRP, NEI senior vice president, global client DEVELOPMENT development and service partner relations. “She is Bristol Global Mobility has added Mark Schueler as very familiar with the entire region, has a strong vice president, global business development, based out background in relocation, and shares the partner- of the company’s Toronto office. He comes to Bristol ship skills that NEI values in our employees.” with more than 21 years of employee mobility expe- Taylor’s relocation experience spans more than 20 rience. Operating throughout the Canadian market, years, first working with transferees as a real estate Schueler has achieved consistent success in building agent, experiencing five corporate transfers as an trust-based relationships, as well as creating support accompanying spouse, and leading a team of more solutions for current and prospective corporate clients. than 40 real estate agents as a relocation director “We are excited to have Mark join the Bristol team managing corporate properties and transferee real and look forward to his vital contributions as we estate transactions. continue to expand our Canadian scale and scope,” As a relocation director, she worked extensively says Bristol’s president, Joe Cardini, CRP. with relocation management companies, including NEI, and coordinated all agent referrals. Taylor was IANNANDREA JOINS GLOBESPEC AS VP recognized as a consistent multimillion-dollar pro- Globespec has added Carlo Iannandrea as vice pres- ducer among the top five Realtors® nationally with ident for enterprise and client development, a newly her agency. She has also served as a pharmaceutical created position in which he will oversee multiple representative, contributing to the successful launch aspects of existing operations along with being respon- of three major products and consistently improving sible for developing new opportunities and new clients. market share with each product.
24 Mobility | June 2019 Lance Allen Curt Smith Jackie Donnelly Paul LaTerra Kader Sakkaria Dean McClearn
ALLEN JOINS AIRES AS GENERAL MANAGER OF broad experience on the affinity team and look WEST COAST REGION forward to his contributions.” Lance Allen, GMS, has joined Aires as general manager Jackie Donnelly, new vice president assistant of the West Coast Region. Allen brings more than 30 controller, is a Cartus veteran from 1994 to 1997. years of mobility industry experience and leadership She was most recently vice president of finance at to Aires, having worked extensively in the U.S., Asia, Hubbell Inc. for 16 years. “It is a wonderful oppor- Africa, and the Middle East. He has worked for reloca- tunity for Cartus to welcome back such a talented tion management, destination services, and household employee who has vast experience in finance for goods shipping companies, specializing in strategic global brands,” says Paula Wiltshire, corporate company development in key markets, client relation- controller. “Jackie will be responsible for general ship building, and team development. ledger accounting, international tax, audits, and “His years of experience will be a great asset to our payroll for the Americas and EMEA regions.” company as we continue to expand and develop our Paul LaTerra, CRP, who held sales management West Coast presence,” says Jeff Wangler, company pres- positions at Cartus for more than a decade, returns ident. “Lance brings the perfect mix of abilities to Aires, as director of strategic business after eight years with from building strategic alliances with clients, to devel- other companies, including SIRVA and BGRS. oping successful operations and management teams, to New to Cartus are Kader Sakkaria, vice pres- successful business development and growth.” ident of applications development, and Dean Most recently Allen was based in Hong Kong, McClearn, vice president of sales, Americas. serving as managing director for North Asia for a “Kader brings so much experience to the table that leading mobility firm. “Being a service provider I anticipate he will make a major impact in Cartus’ and partner with Aires, I have admired the orga- IT department very quickly,” says Rizwan Akhtar, nization for decades, and now I have the opportu- senior vice president and chief information officer. nity to be part of their team,” says Allen. “The company is focused on digital transforma- tion, and Kader is just the person to bridge the IT CARTUS WELCOMES RETURNING LEADERS department with all the business units that will be AND NEW TALENT involved with our tech developments.” Cartus Corporation recently hired five new senior McClearn has significant sales experience with a leaders, three of whom are returning to the company focus on digital media and was most recently vice from other industry organizations. president of sales at Harpoon, a division of MNI Curt Smith, CRP, who has been hired as group Targeted Media Inc. “We are very excited to welcome vice president, affinity services, started at Cartus Dean to the Cartus global accounts team,” says Rob in 1996 and previously was vice president of client Moore, senior vice president of global sales. “He is a services. He returns to Cartus after 18 months business leader and has a proven record of recruiting with Crown World Mobility. Smith will report to and inspiring successful sales teams that consistently Scott Becker, global innovation and product officer. exceed benchmarks and goals.” M “Curt is a highly talented business leader charged with accelerating our growth in what is already a very hearty business line for Cartus,” says Becker. “I am excited to have a leader with his talent and
worldwideerc.org | Mobility 25 AROUND THE WORLDWIDE ERC ®
Collective Wisdom
C-SUITE AND GROSS-UP GLOBAL POLICY Is gross-up a problematic pay practice We are developing a global policy for international transfers. for C-suite executive relocations? How While we have the most activity inbound to the U.S., we want does your company handle gross-ups a consistent policy that can be used for international transfers during these moves? globally. It’s been a bit difficult lining up what provisions should be included. I’d appreciate your thoughts on what provisions other companies have set as “standard” for their global international transfer policy. Do other companies have a core-flex policy for international transfers?
REAL ESTATE DISRUPTERS HYPO TAX There was a session at a Worldwide ERC® meeting last How does your company calculate hypo tax, year about real estate “disrupters,” including iBuyers. and who does the calculation? Has anyone addressed this issue in their policy? Are you allowing employees to accept offers from these “buyers”?
TALENT AND MOBILITY HOME-LEAVE TRIPS What does your company do to For international assignments, what benefits are included in increase mobility among talented annual home-leave trips? Do you have a flight allowance per individuals? Do you have a mobility family member, or does it follow the company travel policy? Do metric or benchmarking to measure you allow business class over a certain flight duration? that?
MINERAL RIGHTS Do you allow properties into your homesale program if the prior owner of the employee’s house has mineral rights to the property? If yes, SPOUSE’S VEHICLE do you exclude this property from the GBO Can you tell me whether your company provides program and provide direct reimbursement? support with a spouse obtaining a second vehicle (lease, purchase, cost offset)? At our company, only the international assignee would be eligible for a vehicle.
BENCHMARKING FOR VAN LINES Read the answers or add your own comments Where can I find industry standards for to these questions, or post a new one of your van lines for such things as full value own in the Worldwide ERC® Community’s protection, discount rates, guarantee Corporate Benchmarking Forum. delivery, etc. for benchmarking?
Corporate and government agency members can log in at worldwideerc.org/community.
26 Mobility | June 2019 #GMS2019 REVISION Mobility through the looking glass
Latest thinking and insights on: + Emerging talent trends in 2019. + Evolving role of Global Mobility profession. + How the ever-changing way we work is shaping Global Mobility. + The future of Global Mobility. To help you in the continuing development of your Global Mobility programmes. Search ‘The Global Mobility Survey 2019’.
Contact: John Rason Group Head of Consulting Santa Fe Relocation [email protected]
Global Mobility Survey 2019 Latest thinking and insights on: + Emerging talent trends in 2019. + Evolving role of the Global Mobility profession. + Why is Global Mobility a risky business? To help you in the continuing development of your Global Mobility programs. Search: “Global Mobility Survey 2019” to download your free copy www.santaferelo.com
We make it easy Contact us: [email protected] or call +1 203 731 0945 Tokyo 5 September TOKYO SUMMIT 2019
Transforming Talent in Tokyo INNOVATIVE A rapidly aging and shrinking population is prompting Japanese business and political leaders POLICY DESIGN to seek new and innovative ways to fill talent gaps. With a designated-skills visa designed to bring in some 500,000 new workers by 2025, its workforce is radically and rapidly transforming.
Be part of the conversations and explore the contributions that mobility teams can make as businesses attract new global talent, build skills and create innovative policies to foster growth.
Come together with your colleagues and peers in Tokyo for roundtable discussions designed to take on the challenges, embrace the opportunities and drive transformative results.
EXPERT Register to join us today – corporate HR attendees are invited to enjoy a complimentary ROUNDTABLES booking.
Learn more at worldwideerc.org/events
Raise your company’s profile as a sponsor or exhibitor at the first Tokyo Summit. To explore opportunities, contact: EXTENDED NETWORKING Whye-Ko Tan, GMS Alexandra Holtzman, GMS-T [email protected] [email protected] +65 6828 1528 +1 703-842-3421
TokyoSummit0619.indd 1 5/14/19 4:19 PM AROUND THE WORLDWIDE ERC ®
Tokyo 5 September TOKYO SUMMIT 2019 Young Professionals
How do you live in the moment while planning for the future?
We all are looking for the discover new interests or connections that bring me secret to a good life. joy. By challenging myself to more fully engage in the Pythagoras said, “The great present, I experience personal growth. From there, science to live happily is to future opportunities can blossom. live in the present.” Confucius A second way I’ve found to achieve balance is to Transforming Talent in Tokyo had a different idea when he focus on what really matters. Like many, I lead a very said, “A man who does not busy life. There have been times when I’ve reached INNOVATIVE plan long ahead will find the point of burnout because I was being pulled in A rapidly aging and shrinking population is prompting Japanese business and political leaders trouble at his door.” Today, we too many different directions. Eventually, I realized POLICY DESIGN to seek new and innovative ways to fill talent gaps. With a designated-skills visa designed to live in a society that values that not every task should be treated equally. So, I bring in some 500,000 new workers by 2025, its workforce is radically and rapidly transforming. instant gratification. Yet, planning ahead is necessary made a list of every task I was responsible for, both to successfully transition through life’s many stages. professionally and personally. Then, with a reflec- Be part of the conversations and explore the contributions that mobility teams can make as Most people gravitate toward one philosophy or the tive mind, I crossed through the items that were not businesses attract new global talent, build skills and create innovative policies to foster growth. other, but I have discovered some tricks to mastering important to me. What remained on the list are the both for achieving that elusive “life balance.” things I have chosen to pursue. Everything else, I let Come together with your colleagues and peers in Tokyo for roundtable discussions designed to The first way to achieve balance is to eliminate go. Through this exercise, I gained a clearer under- take on the challenges, embrace the opportunities and drive transformative results. unnecessary distractions and unplug, if only for a short standing of what I deem self-success. I also have more time. Sometimes, I mistake living in the moment for time to set and achieve my goals. EXPERT answering every text or email right away, or spending Both Pythagoras and Confucius eloquently expressed Register to join us today – corporate HR attendees are invited to enjoy a complimentary time on social media observing how others spend their their ideas of how to live happily, but I leave you with ROUNDTABLES booking. time. While these activities are not “bad,” they distract my own: To live in the present with intent and purpose me from my own thoughts and aspirations. is to successfully pave the way for a fulfilling and Learn more at worldwideerc.org/events When I catch myself losing focus, I redirect my successful future. M energy into pursuing my goals. I might research a Miranda Mayahi, CRP topic that interests me, work on a home project, or Old Republic Relocation Services spend time talking with family and friends. These Raise your company’s profile as a sponsor or exhibitor at the first Tokyo Summit. activities expand my knowledge base, advance my If you’re a professional under 40 who would like to be featured critical thinking and listening skills, and strengthen on this page in a future issue, please contact Heidi Hume, To explore opportunities, contact: my relationships with others. They also allow me to GMS-T, at [email protected] or +1 703 842 3419. EXTENDED NETWORKING Whye-Ko Tan, GMS Alexandra Holtzman, GMS-T [email protected] [email protected] +65 6828 1528 +1 703-842-3421 worldwideerc.org | Mobility 29
TokyoSummit0619.indd 1 5/14/19 4:19 PM WORLDWIDE ERC ® GOVERNMENT AFFAIRS 2019
What Not to Do in a Homesale Program By Peter Scott
Since the issuance of Rev. Rul. 2005-74 by the U.S. the home until shortly before closing of the outside Internal Revenue Service in 2005, scrutiny of relocation sale. However, if the employer routinely engages in homesale programs has declined, but the programs practices that force sales close together, the program have by no means disappeared from the IRS radar. will be challenged. Experience with application of the ruling has confirmed The employer waits to finalize its purchase contract with and in some cases reemphasized Worldwide ERC® sug- the employee until all contingencies have been satisfied on gestions as to the most common areas of disagreement the outside contract (for example, financing) and closing is that generally will lead to IRS objections. certain. The IRS will say this is evidence the employer There are a number of common defects or pro- never really assumed ownership risk. Prior to issu- cedural errors that occur in homesale programs. ance of Rev. Rul. 2005-74, companies often waited to Some of the following, if present in a company’s sign a contract with the employee until after they had program, probably will prove fatal and cause the signed a contract with the outside buyer, the buyer costs to be taxable to employees. Others will cause had completed his or her inspections, and the inspec- serious questions from the IRS and may also lead tion results had been negotiated between employee to a conclusion that costs are taxable, particularly and buyer. Since the ruling, it has become clear that when combined with other defects. The mistakes this practice will result in the IRS concluding that are grouped by category. the program falls into unfavorable “Situation 3” in Rev. Rul. 2005-74, and it should not be done. A worse PROCEDURES problem, although seldom seen, is making the pur- The employee signs a contract with an outside buyer. chase from the employee contingent on the closing of Unless the buyer, employee, and real estate broker the outside sale. agree in writing to rescind the contract and start over, The employer makes the employee pay part of the closing this is a taxable assigned sale. The same result may costs of the outside sale. For example, the employer occur if the employee accepts a down payment. says it will pay only up to 5 percent of the value of The employer inflates appraisals, ignores them, or the house, with the employee responsible for the otherwise finds a way to pay the employee more than an excess. The IRS will say this is clear evidence that the amount supportable as “fair market value.” The excess is real sale was between the employee and the outside a “directed offer,” taxable to the employee as wages. buyer, with the company paying 5 percent of the The employer routinely orchestrates its home purchase costs. The costs paid by the company will be taxable transactions so that it closes with the employee at or near to the employee as wages. the time it closes with the outside buyer. The IRS will The employer withholds an amount from the employee’s say the first sale is a sham that should not be rec- equity for repairs. When repairs demanded by the ognized because the company assumed ownership outside buyer are less than the amount withheld, the risk only momentarily, if at all. Note that sales close employer refunds the balance to the employee. The together are generally satisfactorily explainable if IRS will view this as evidence that the real seller is they result simply from the employee not vacating the employee.
30 Mobility | June 2019
WORLDWIDE ERC ® GOVERNMENT AFFAIRS 2019
The employer sells an employee house for more than The employer’s home purchase contract with the employee it paid the employee for it and passes on the excess to the does not clearly spell out that the company is assuming lia- employee. This “profit pass-back” will convince the bility for satisfying the employee’s mortgage and will hold the IRS that the company never really owned the house, employee harmless from any such liability. since it did not keep the benefit (profit) from its own purported sale. DEFINITIONS, NOMENCLATURE, LANGUAGE Employer policy, procedures, correspondence, etc. con- DOCUMENTATION stantly refer to the employer as “assisting” the employee The employee fails to include an exclusion clause in to sell the house and do not consistently refer to the the listing agreement with the real estate broker. When employer as the “purchaser” or as the “owner.” This the employee sells to the employer, the broker has terminology suggests that the employer does not earned a commission, taxable to the employee when really consider itself to be buying and selling the the employer pays it. house. Similarly, company policy or other docu- The employer does not enter into its own listing agree- ments refer to the employee “assigning” a sale to the ment with the real estate broker prior to selling the house to company. No document should ever use this term. the outside buyer. When the employer pays a real estate Other terms that should never be employed include commission, the broker will have earned the com- “equity buyout,” “your” sale (when referring to the mission under the original listing agreement with the employee), and “on your behalf” (again, referring to employee, and the payment of it by the employer will the employee). be taxable as wages. As noted, not all of these defects will invariably The employer has the employee execute documents such result in a failed homesale program, but some will, as assignments of proceeds and general powers of attorney. and others will do so when combined. Generally Generally, these documents are not needed to close relo- speaking, all should be avoided by companies seek- cation homesales, and the IRS views them as inconsistent ing to be sure they are operating a homesale program with the company’s position that it is the owner and free that will withstand IRS scrutiny. M to dispose of the house as it sees fit. If powers of attorney are used, they should be carefully crafted to limit their Peter Scott is Worldwide ERC® tax counsel and principal use only to correcting errors in the sale from employee to of Peter K. Scott Associates. He can be reached at +1 910 employer or relocation management company. 579 5332 or [email protected].
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32 Mobility | June 2019 RREUNITINGEUNITING TTHEHE OONESNES YYOUOU LLOVEOVE!!
Our mission, our focus, every minute with every move!
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Early registration deadline: 12 July 2019 First-time Corporate HR practitioners can attend on a complimentary registration.
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GWSFullPage0619.indd 1 5/14/19 4:17 PM MARKET SUMMARY
Manchester, New Hampshire By Jocelyn F. Lavoie, CRP
ew Hampshire continues to have top connections available via the Manchester-Boston national rankings when it comes to Regional Airport, recently named the “best midsize health, education, low crime, and quality airport in the country” by TravelPulse, an interna- of life. The Granite State—so named tional travel trade website. becauseN of the numerous granite quarries throughout Named the “No. 1 small city in the East” in 1998 by the state—offers year-round beauty and recreation Money magazine and frequently cited for its favor- through a vast network of lakes, ocean beaches, and able small business climate, Greater Manchester is mountains, including Mount Washington, the highest the largest metropolitan area in New Hampshire and peak in the Northeast at 6,288 feet. one of the fastest-growing in New England. It is also New Hampshire takes enormous pride in its tradi- home to a number of higher education institutions. tion—mandated by state law—of holding the first-in- Manchester is the business and financial center of the-nation primary of each presidential election season. northern New England and is home to manufacturing As soon as the midterms are over, New Hampshire plants, communications companies, health care facil- becomes the favorite state of ambitious politicians as ities, and financial services firms. In the footsteps of they dip their toes in the water of a presidential run. Dean Kamen’s DEKA Research & Development Corp. The vibrant and modern city of Manchester, (creator of the Segway personal transporter), numer- located in Hillsborough County in the southern ous high-profile and emerging high-tech companies, part of the state, enjoys a prime location within an such as Oracle, Dyn, Texas Instruments, Geneia hour’s reach of Boston, the Atlantic seacoast, and (specializing in medical analytics), and ARMI (the the scenic White Mountains and the Lakes Region. Advanced Regenerative Manufacturing Institute), Hillsborough County is easily accessible, thanks to have chosen to establish headquarters, or at least a the confluence of major highways and the global meaningful presence, in the revitalized and thriving
worldwideerc.org | Mobility 35 MARKET SUMMARY
MARKET AT A GLANCE STATISTICAL SNAPSHOT* ECONOMIC CLIMATE VERY GOOD TODAY 1 YEAR AGO CHANGE REO ACTIVITY VERY LOW UNEMPLOYMENT 2.1% 2.5% –16% SUPPLY LOW MONTHS OF SUPPLY 1.1 1.1 0 ANNUAL SALES VOLUME $1.386 BIL $1.308 BIL +6% DEMAND HIGH MEDIAN SALE PRICE $300,000 $282,476 +6.2% MARKET DIRECTION STEADY AVERAGE DOM 43 48 –10.4% MARKET MOOD CAUTIOUS *Hillsborough County; real estate source, NHAR, New England Real Estate Network; employment statistics, OPTIMISM New Hampshire Employment Security Economic and Labor Market Information Bureau
Manchester Millyard District. In late 2018, interna- underutilized labor pool, and permissive state tional defense, aerospace, and security giant BAE and local regulations—began to replace the textile Systems, already a major employer in Hillsborough industries. Soon electronics manufacturing, machine County, announced its expansion into Manchester, building, metalworking, and plastic manufacturing which is expected to bring more than 800 new jobs to companies peppered the landscape. the area. By 2003, the Manchester metro area was selected as The strong high-tech growth in the Millyard District one of America’s “Best Places to Live and Work,” and has created a demand for more housing, restaurants, in 2011 Manchester was voted the “second-happiest upscale shopping, and other amenities attractive to a city in the U.S.” by Men’s Health. young, educated, and upwardly mobile workforce. Diverse housing opportunities exist throughout LOOKING AHEAD Hillsborough County. New Hampshire’s second-larg- The industrial era has passed, but Hillsborough est city, Nashua, lies to the south, and the affluent sub- County remains a hotbed of growth and opportunity. urb of Bedford just southwest. Manchester and Nashua Manchester has reemerged as a premier city in New saw a 150 percent increase in multifamily permits over England in which to lay down roots, raise a family, the last year (compared with the national increase and build a business. of just 3 percent). This is additional evidence of the The vibrancy of the revitalized Millyard District demand for upscale, as well as affordable, rental units will continue to attract business and retail expan- in city centers. A more traditional suburban lifestyle sion, and housing demands will continue to rise to is enjoyed in many nearby towns and communities. support the growing population base. The increasing Bedford, for example, boasts a highly regarded public popularity of downtown living will see buildings school system, ranked among the best in the Northeast. originally built as tenement housing for mill workers in the 19th century being converted into stylish, LOOKING BACK eclectic residential condominiums. The past 100 years have seen a major shift in the The advantages offered by Greater Manchester’s engines that drive the Manchester-area economy. In geography, cultural offerings, housing choices, the late 1800s and early 1900s, Canadian immigrants relative diversity, educational opportunities, and came to cities such as Manchester to work in the tex- access to all-season outdoor recreation, with a tip of tile mills. The rapid growth of the mills demanded a the hat to political junkies, make the area a magnet large influx of workers, and with them came doctors, for growth and opportunity for individuals, families, lawyers, and other service and support professionals. and businesses. M In the 1920s, many Manchester mills began to experience a significant decline due to competition Jocelyn F. Lavoie, CRP, is director of client services and from the South and overseas. As this decline contin- relocation at Better Homes and Gardens Real Estate The ued over several decades, the mid-1970s brought new Masiello Group and a member of the Relocation Directors hope and opportunity. New industries—attracted Council (RDC). She can be reached at +1 603 459 1768 or by Manchester’s low land costs, low taxation rates, [email protected].
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The ADP Logo and ADP are registered trademarks of ADP, LLC. A more human resource is a service mark of ADP, LLC. Copyright © 2019 ADP, LLC. ALL RIGHTS RESERVED. THE NUMBERS SIRVA 2018 MOBILITY REPORT
The “SIRVA 2018 Mobility Report, Talent Mobility for Business Growth—Aligning Practices to Drive Organizational Impact,” explores the continuing demand for mobility programs to play a more strategic, value-add role within organizations. SIRVA’s 2018 report provides data and insights on mobility program administration and components of policy support delivery based on 245 respondents representing 235 unique organizations.
MOBILITY POPULATION SIZE MOBILITY DEPLOYMENT DRIVER Global, excludes frequent business travelers To fill a specific resource gap in the host/ destination location 57% Under 50 28% Leadership or talent development program/initiative 28% 50–under 100 12% To gain cultural awareness and experience 100–under 500 26% (including corporate culture) 12%
500–under 1,000 14% Self-select (volunteer) 16%
1,000–under 5,000 14%
Over 5,000 6% Excerpted from the “SIRVA 2018 Mobility Report.” Reprinted with permission. Complete survey available at landing.sirva. com/2018-Mobility-Report-Email_Landing-Page.html.
38 Mobility | June 2019 ANTICIPATED POPULATION INCREASES AND DECREASES BY MOVE TYPE IN THE NEXT 1–3 YEARS INCREASE DECREASE
International long-term top/ senior employees 26% 10% International long-term mid-/ 29% 12% TOP ORGANIZATIONAL lower-tier employees PRIORITIES
International short-term 41% 5% Organizational growth 53%
Extended business traveler 44% 3% Cost management 19%
International permanent Talent development 13% relocation–“plus” package 30% 8% International permanent relocation–standard package 34% 5% ALIGNMENT OF SUPPORT Domestic one-way 30% 7% TO MOVE TYPE
Temporary domestic assignment 20% 6% Organizations that do not adjust the ratio of mobility professionals 56% to relocating employee based on move type IMPORTANCE OF MOBILITY
Organizations rating deploying talent as “extremely important” or “very important” to the overall success 80% TOP MOBILITY CHALLENGES of the organization
Participants rating career/work experience outside of Cost management 61% an employee’s home location as a key requirement for 49% career advancement Process efficiency 46%
Speed to deploy 33% MOBILITY POLICY AND LUMP-SUM DELIVERY APPROACH Excerpted from the “SIRVA 2018 Organizations that include a lump-sum component Mobility Report.” Reprinted in one or more available policy types (domestic 64% with permission. Complete and global) survey available at landing. sirva.com/2018-Mobility- Organizations that offer a “lump-sum-only” package 37% Report-Email_Landing- Organizations that calculate the value of the lump Page.html. sum based on defined policy provisions (e.g., final move expenses based on home/host location and 29% family size)
LUMP SUM MOST COMMONLY INTENDED TO COVER:
Temporary housing 41% Travel to/from host location 40% Household goods shipment 39% House-hunting trip 33%
HOW THE FUTURE OF &
INTERSECT
Increased mobility he future of work and the future of business and business travel are travel are intrinsically intertwined. Over the T last decade, the nature of our global econ- investments aimed at omy has shifted dramatically. As we climbed out growing companies’ of the Great Recession of 2008–2009, for the U.S., international outbound travel was a major driver of bottom lines as well the recovery. Businesses needed new opportunities as the overall global for growth, and they turned to newer and emerging markets to find it. As a result, global travel is on a economy seemingly unstoppable growth trajectory.
By Michael W. McCormick THE BIG PICTURE By 2022, the Global Business Travel Association (GBTA) projects, global business travel spending will top $1.7 trillion, with 18 out of the top 20 business travel markets set to outpace their growth average over the last five years. After surpassing the U.S. in recent years as the world’s largest business travel market, the Chinese business travel market is poised to be the fifth-fastest-growing in the world over the next five years, picking up an additional $129 billion in annual business travel spend by 2022 as China continues to distance itself from the rest of the world. We are seeing an overall shift in the world’s the U.S. and found that it constituted 15 percent of fastest-growth markets for business travel. India all business travel spending, reaching $45.4 billion. and Indonesia are poised to be the fastest-growing In total, 66 million trips were taken last year for proj- markets over the next five years, showing enormous ect-based purposes, and demand for project-based potential. The next-fastest-growing major business business travel will continue to rise, with top proj- travel markets will come from Scandinavia, as both ect-intense sectors forecast to grow faster than the Sweden and Norway are projected to grow signifi- broader economy in the coming years. cantly faster than average. The regional share of As this shift continues, mobility will increasingly global business travel continues to shift slightly, as be seen as a reward or incentive in the eyes of many the Asia-Pacific region will gain 2 percent of market employees. GBTA research has demonstrated the share by 2022, while North America is expected to considerable impact business travel can have on lose 1 percent. employee satisfaction and retention. In the U.S., more Breaking the world’s major business travel markets than three-quarters (79 percent) of business travelers into segments, we see another impending shift. In the say their business travel experience impacts their “Market Opportunity” chart shown on the next page, overall job satisfaction—and this is even more true the “stalwarts” make up roughly half of the global among millennials (88 percent). The numbers are business travel spending market today and comprise similar in Europe (83 percent) and Latin America (71 many of the world’s major economies. percent) as well. India, China, and Indonesia, once considered Business travel not only influences how employ- emerging markets, now form their own segment and ees feel about their current company, but it also continue to grow at an extremely rapid pace. This can influence whether they take a job in the first segment will pick up ground on the stalwarts over place. The vast majority of travelers across the the next five years, gaining $164 billion in annual globe indicate that a company’s travel policy is an spend by 2022. GBTA projects this segment to be the important factor when considering a potential new largest in the world by 2035. employer. This is not just about employee satisfac- tion, either—95 percent of Latin American business RISKS AND OPPORTUNITIES travelers, 84 percent of U.S. business travelers, and For business travel, the potential for trade wars 83 percent of European business travelers say the is the biggest global risk that GBTA is watching. quality of their business travel experience impacts Drastic increases in tariffs and associated retalia- their business results. tory measures could have detrimental impacts on the global economy and the global business travel COMBINING BUSINESS AND PLEASURE market. An analysis of the mathematical correlation The emphasis on traveler experience is one we between the two shows nearly 60 percent of the have seen grow in recent years as the economy has variability in global business travel spend can be steadily increased. This is a trend that is likely here explained by global trade volumes. Intuitively, this to stay, given the impact it can have on recruitment, makes sense, as the movement of goods and services retention, and business results, as shown by the necessitates people, namely business travelers, to stats noted above. While the blending of business support global commerce. and leisure travel—commonly referred to as “blei- Trends in immigration are having a major impact sure” travel—really is not a new concept, it is one on the outlook for mobility in today’s world. We are that we have seen get more attention in recent years seeing many countries adopt a more protectionist as the focus on traveler-centricity has grown. More view, while some others become more open in an than two-thirds of travelers indicate the option to attempt to make it easier to attract new talent to the extend a business trip for leisure time is important workforce in their country. to them, and millennials are taking bleisure trips at At the same time, we are seeing a shift in how rates much higher than their Gen X or baby-boomer we work, with the emergence of the gig economy counterparts did. Some of this likely has to do with and a focus on project-based work. Last year, GBTA how connected we all are in today’s always-on assessed the project-based business travel market in world. Employees are used to checking in at all
42 Mobility | June 2019 STALWARTS MID-SIZE 2017—BTS: $678 B MATU RE 2022—Est. BTS: $826 B 2017—$72 B 2022—$93 B