Articles & Whitepapers

The worldwide labor shortage in the manufacturing industry is a growing concern, exacerbated by several global trends and factors that impact industries across different regions.

• United States: The U.S. is experiencing significant shortages in skilled labor for manufacturing, with estimates of up to 2.1 million unfilled jobs by 2030. There is a focus on reskilling workers for advanced manufacturing technologies.
• Europe: Aging populations in countries like Germany and Italy are leading to a shrinking labor force. Countries are focusing on automation and increased immigration to address the shortfall.
• Asia: Japan faces a severe labor shortage due to its declining birth rate and aging population. In contrast, countries like China, India, and Vietnam have large youth populations. However, they face challenges in providing the advanced training and education needed for skilled roles in manufacturing.
• Developing Economies: Africa and parts of Southeast Asia face challenges from underinvestment in education and infrastructure. However, with targeted training and increased investments, they have the potential to meet global manufacturing demands.

The global labor shortage in manufacturing is a complex, multi-faceted issue requiring both immediate solutions (such as increased automation) and long-term strategies (such as education and workforce development). Addressing this shortage is crucial for ensuring the stability of supply chains and continued industrial growth.                                                                                                                                                                                                                                      

Talent Management and HR teams need to adapt and rethink relocation strategies to attract and keep top talent. This means taking a fresh look at today’s benefits and making sure they’re set up to meet tomorrow’s needs.

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Key Takeaways from NEI’s 2024 International All-Benefits Survey | Manufacturing

Notable findings from 21 participating manufacturing companies in NEI Global Relocation’s 2024 International All-Benefits Survey | Manufacturing Edition include:

PROGRAM OVERVIEW

• International policy structures for manufacturing align closely with general industry policies. The most common policy types are permanent transfers, long-term assignments, and short-term assignments. Local-hire policies follow, though they are 47 percentage points less common.
• Partial lump sums are more common in manufacturing industry policies when compared with general industry and are primarily allocated for long-term assignments and permanent transfers. Although uncommon, lump sum only policies in manufacturing are used at similar rates for permanent transfers in the general industry but rarely for short-term or long-term assignments.
• Global health plans are most common in the manufacturing industry where the general industry provides either a home-based or host-based plan approach in managing health coverage.

SUPPORTING THE FAMILY

• Cultural & language training are offered in all policies at a higher rate for manufacturing than in general industry.
• Pet shipment is more commonly offered in the manufacturing industry with the majority offering  pet transportation with a cap to manage overall cost.
• Destination services offered to all long-term assignments & permanent transfers with the most prevalent services provided through a destination service provider for limited services (e.g. specific benefits only or capped days/amount).

COST IMPACT POLICY CHANGES

• Offering a furniture allowance in lieu of a household goods shipment is more commonly offered by the manufacturing industry with a flat amount for all employees being the most prevalent calculation methodology.
• Storage benefits decreased in general industry from 2022  to 2024, and the manufacturing industry has an even lower rate of offering the benefit most likely due to cost containment.  Most common for long-term assignments and permanent transfers was 15–30 days storage.
• Relocation allowance usage is higher in the manufacturing industry with an increase in companies offering the allowance across all policy types. Companies are also shifting more towards offering a flat amount per assignee, instead of offering a percentage of the assignee’s salary.

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Investing in Future Competitiveness Today: The Role of Relocation

As cost containment pressures mount, manufacturing companies stand to benefit from not only seeking out opportunities for cost-savings, but embracing creative policy design, efficient technology, and practical expertise focused on streamlining relocation processes, enhancing employee experience, and maximizing long-term value. NEI Global Relocation is dedicated to aligning fully with each client's priorities, business goals, and talent management strategies.

When choosing a global relocation partner, look for a company committed to maximizing your ROI, providing forward-thinking insights on industry trends, and supporting your mission to attract and seamlessly relocate top talent.

For more information, please contact your NEI representative.

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About NEI Global Relocation

NEI is a certified Women’s Business Enterprise headquartered in the U.S. with in-region offices and teams in Switzerland and Singapore. As a full service, global relocation and assignment management company that partners with clients across the globe to provide consultative guidance and solutions, NEI has over 200 clients including many Fortune 500 and Fortune 1000 corporations and we support client Tier 1 and Tier 2 supplier diversity goals each year. For more information and other articles, see www.neirelo.com.

_{The above article is provided for informational purposes only. Please consult your tax, legal, or accounting advisors before making any decisions or transactions.}

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Why the Trippel Relocation Managers' Survey Matters

Each year, the Trippel Relocation Managers' Survey, conducted by Trippel Survey & Research, LLC©, offers an independent, data-driven evaluation of relocation management companies. This survey draws on first-hand feedback from corporate relocation managers who evaluate performance metrics based on their experiences. It’s a trusted benchmark in our industry, valued for its objectivity and thoroughness, helping companies make informed decisions about their RMC partners.

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NEI’s 2024 Performance at a Glance‍

• ‍Highest Overall Rating: NEI received the highest average rating across all surveyed RMCs.
• #1 Rankings: NEI achieved more #1 rankings than any other relocation management company in critical categories.
• Top 3 in Every Category: NEI is the only RMC to rank third or better in every category this year.
• Top Transferee Satisfaction Score: NEI earned the top average score among all RMCs for transferee satisfaction in the 2024Trippel Nationwide Relocating Employee Survey.

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Why These Categories Matter

The categories in which NEI received #1 rankings are evaluated annually and consistently recognized as core indicators of service quality, client trust, and program success. Here’s a look at why they matter:

• Overall Satisfaction: This broad measure captures clients’ overall contentment with NEI’s services, touching on every part of the relocation experience.
• Willingness to Recommend: Perhaps one of the truest indicators of satisfaction, this rating reflects how likely clients are to voluntarily recommend NEI to their colleagues, underscoring our trustworthiness and the strength of our client relationships.
• Continuation of Services: Reflects clients' likelihood of continuing with NEI in the coming year, a testament to the reliability and consistency of our service over time.
• Integrity: A category that speaks to the heart of our work. This measure reflects NEI’s commitment to honesty, transparency, and upholding strong ethical standards in all client interactions, which are crucial to long-term partnerships.

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How NEI Defines Quality in Relocation

At NEI, quality means being thorough, proactive, and responsive, ensuring that each relocation is uniquely tailored to meet client and employee needs. From the planning stages to ongoing support, we prioritize a smooth, seamless experience that goes beyond the logistics of relocation. Our team strives to deliver a high level of service with consistency, trust, and a focus on making each client feel valued. This commitment is reflected in the survey’s high ratings and the strong client relationships we’ve built year after year.

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Discover the NEI Difference

For businesses looking to elevate their relocation program, NEI’s proven track record and personalized approach offer a standard of reliability that makes a real difference. Contact us to learn more about how we can help you build a relocation program that supports and drives your business forward.

For a detailed look at NEI’s performance and insights from the 2024 Trippel Relocation Managers' Survey, download the full report here.

Omaha, NE October 2024 — NEI Global Relocation, a distinguished full-service relocation management company, proudly announces the recipients of the 2024 Corporate Responsibility Awards. These accolades celebrate companies that have exhibited exemplary commitment to philanthropy, environmental sustainability, and community service, reflecting NEI's dedication to creating positive impacts in the communities where we live and work.

The Corporate Responsibility Awards highlight the extraordinary efforts of companies in three distinct categories: Philanthropic Activity, Environmental Sustainability, and Community Service. This year's esteemed winners are:

Rocket Mortgage

Rocket Mortgage has made its company mission to combat homelessness, prevent displacement, promote wealth through homeownership, and close the digital divide, particularly in Detroit, where veteran homelessness has decreased by 54% since 2018. In 2023 alone, the company enrolled over 150,000 residents in the Affordable Connectivity Program and recycled 172,194 pounds of e-waste. Their efforts have expanded to cities such as Cleveland, Milwaukee, and Atlanta, where they collaborate with diverse partners to address complex housing challenges.

Additionally, their relocation team contributed over 200 volunteer hours last year, supporting initiatives like packing food for the homeless, cleaning neighborhoods, and fundraising for national charities, including the Make-A-Wish Foundation. We are proud to recognize their unwavering dedication to making a positive, lasting impact on communities nationwide.

Budd Van Lines

NEI is thrilled to recognize Budd Van Line’s for their outstanding contributions to environmental sustainability, social equity, and community well-being.

Budd’s success with their Eco-Crate program demonstrates a strong commitment to reducing waste and protecting the planet. Additionally, through their involvement with Women in Trucking, they are advancing diversity and empowering women in the transportation industry. Likewise, their support for initiatives such as Wreaths Across America, Truckers Against Trafficking, the Police Unity Tour, and Move For Hunger set them apart as a model for corporate engagement in social and humanitarian efforts. NEI thanks this partner for their remarkable efforts, which align with our shared mission to create a more equitable and sustainable world.

Alexander’s Mobility Services

Alexander’s Mobility Services has demonstrated a long-standing commitment to community service. Fifteen years ago, they launched their annual Community Event Program as a small addition to their National Sales Meeting agenda, and it has since grown into a cherished tradition. This program not only fosters a sense of community within the company but also educates participants on local challenges faced by the communities hosting their meetings. Each year, employees enthusiastically engage in activities such as building bikes for children, crafting blankets for newborns in neonatal intensive care, cleaning beaches, and supporting charities like Make-A-Wish. We commend Alexander’s Mobility Services for their dedication to making a positive impact through their collective efforts and corporate responsibility initiatives.

ICON Relocation

ICON Relocation has consistently shown an innovative approach to corporate social responsibility. Through their people-centric strategy, they empower employees by involving them in voluntary environmental and wellbeing/engagement committees, ensuring CSR is woven into every facet of their business. This dedication has led to impressive certifications like EcoVadis Gold, ISO 14001, and achieving carbon-neutral status, reflecting their unwavering commitment to sustainability. Beyond their operations, ICON actively collaborates with partners on various sustainability initiatives and supports impactful local projects, such as the Sussex Kelp Recovery Project, beach cleanups, and litter pickups. Additionally, their focus on diversity, equity, and inclusion shines through initiatives like their progressive, staff-led International Women’s Day podcast. We applaud ICON Relocation for their outstanding efforts in driving positive change for NEI and the broader industry through their exemplary corporate responsibility initiatives.

“We are proud to acknowledge and celebrate the extraordinary contributions of our Service Partners who consistently exceed expectations in upholding NEI's commitment to corporate responsibility,” said Randy Wilson, President | CEO of NEI Global Relocation. “Their efforts inspire us to look beyond ourselves and strive for a better, more impactful future.”

Congratulations to the 2024 Corporate Responsibility Award recipients for their outstanding contributions to creating positive change. Their dedication serves as an inspiration for us all.

Omaha, NE October 2024 – NEI Global Relocation, a pioneer in full-service relocation management, is pleased to announce the recipients of the 2024 NEI Innovation Awards: Icon and AltoVita. This year’s award winners have demonstrated exceptional innovation in their respective fields, pushing boundaries and setting new industry standards.

Icon Relocation Ltd.,has made a game-changing leap in relocation technology. By leveraging the power of Artificial Intelligence, Icon offers a tailored, efficient home search experience, simplifying the relocation process for clients and assignees. Their advanced data warehouse consolidates millions of property records, geospatial analyses, and operational insights, providing unmatched personalization and operational efficiency. This long-standing NEI partner’s commitment to enhancing the user experience through cutting-edge technology has set a new industry standard.

AltoVita has made remarkable strides in relocation technology over the past year. AltoVita has introduced several groundbreaking advancements, including an escalation dashboard and eco-stats for improved incident management and environmental impact tracking. Their integration with International SOS and Breezeway ensures enhanced relocating employee safety, while their Group Moves functionality and personalized housing options simplify complex relocations. With the upcoming 2025 release featuring real-time forecasting and benchmarking, this partner is set to further revolutionize temporary housing management. Their innovative contributions have elevated security, efficiency, and client satisfaction.

“Icon Relocation and AltoVita have demonstrated an extraordinary commitment to innovation and excellence in their respective fields,” said Andy Dyer, Director, Procurement and Global Partner Relations at NEI Global Relocation. “Their groundbreaking solutions, from cutting-edge technology to enhanced client services, are not only transforming the relocation industry but also setting new standards for efficiency, security, and customer satisfaction. The forward-thinking initiatives they’ve introduced have the potential to revolutionize how we approach complex relocations, offering significant value to our clients and their transferring employees. We are excited to see how their continued efforts will shape the future of global mobility.”

The NEI Innovation Awards, an esteemed recognition in the field of relocation management, acknowledge the remarkable strides made by service partners in driving progress and offering unparalleled value to clients.

NEI Global Relocation extends its warmest congratulations to Icon and AltoVita for their outstanding contributions and well-deserved recognition as recipients of the 2024 NEI Innovation Awards.

Omaha, NE October 2024 — NEI Global Relocation, a global leader in full-service relocation management, is proud to announce the recipients of this year's Own It! awards. These awards celebrate the exceptional dedication and commitment of service partners who embody NEI's core philosophy of Own It!

The Own It! awards recognize partners who consistently go above and beyond to ensure client satisfaction and demonstrate a proactive approach to every opportunity. NEI's Own It! philosophy emphasizes offering value, instilling confidence, and taking responsibility to inspire a positive and productive relocation experience.

Andy Dyer, Director, Procurement and Global Partner Relations at NEI Global Relocation, expressed his enthusiasm for this year's recipients, stating, "We are excited to honor these outstanding relocation partners who truly embody NEI's 'Own It!' philosophy. Their dedication and commitment to excellence strengthen our partnerships and ensure we continue delivering exceptional service to our clients."

The 2024 Own It! Award recipients are:

Corporate Living

Corporate Living, led by Henry Gager and his team, has consistently embodied the Own It! principles throughout various relocations. When a prospect company required urgent intern housing across five U.S. cities, they swiftly stepped into action. In just one business day, Corporate Living delivered the necessary solutions, demonstrating speed, efficiency, and commitment. This quick response not only earned the client's trust but also secured a successful partnership. Corporate Living’s ability to consistently provide value, take ownership, and act with a positive 'OWN IT' attitude is what sets them apart in the industry.

AltoVita

AltoVita has set a new benchmark in global accommodations. Delivering solutions 53% below budget, they saved NEI clients $1 million while maintaining an exceptional 100% customer satisfaction score. Their expertise in advanced real-time analytics and operational excellence enabled seamless relocations across the USA, EMEA, and APAC, with standout performance in Japan, where they sourced accommodations 20% below budget. With an impressive booking conversion rate and zero cancellations, their unwavering commitment to quality is undeniable.

NYC Navigator

NYC Navigator’s actions exemplify the human impact of global relocation services. When a relocating employee from Brazil faced the possibility of terminating her U.S. assignment due to her husband’s difficulty finding suitable employment, this service partner took immediate action. Despite being work-authorized, the husband struggled to find a position, leaving the family under financial strain while caring for a child with a heart condition. The service partner stepped in, making cold calls to local restaurants, securing job interviews in Portuguese, and providing resources for English lessons. Their relentless effort resulted in the husband finding employment, allowing the family to stay in the U.S., and preventing a costly failed assignment for the client. For their initiative, persistence, and unwavering support, NEI proudly honors NYC Navigator with the 2024 OWN IT award.

Home Sweet Home

Home Sweet Home truly embodies the OWN IT values in every aspect of their work. Faced with a challenging pre-move downsizing and decluttering project, this partner took swift action, transporting donations directly to Volunteers of America after each session. The relocating spouse, though exhausted after a five-hour process, greatly appreciated the unwavering support. This outstanding dedication brought relief to the family and exemplifies the commitment NEI values in all its partners.

Bernstein Realty

Berstein Realty played a key role in clarifying the complexities surrounding the National Association of Realtors and Department of Justice ruling. Their ability to simplify the changes and explain the various implications for Realtors and Relocation Management Companies provided invaluable clarity to NEI's teams, who manage home sales and purchases for clients daily.

Rawson Realty

Rawson Realty played a pivotal role in a major group move from Chicago to Charlotte. A dedicated Rawson Realty rep stood out for her exceptional support, making herself available from the very beginning by participating in early discussions with the client and transferees. Her devotion extended beyond these initial stages as she continued to assist many transferring families, ensuring a smooth transition and helping them acclimate to their new surroundings. We are deeply grateful for her outstanding contributions, and willingness to OWN these moves.

Premia Relocation Mortgage

NEI sought assistance from Premia Relocation Mortgage for a client's group move, and they responded by swiftly developing tailored resources, including two websites featuring a unique client policy-specific MIDA calculator. Premia not only hosted on-site presentations but also provided training for other lender partners, all while adeptly adapting to evolving policies. This strong collaboration is further highlighted by the fact that 62.5% of MIDA-eligible relocating employees in the group move chose Premia as their lender.

Professional Organizing Relocation Consult GmbH

Professional Organizing Relocation Consult GmbH (ProForg) provided their exceptional support of four Malaysian international assignees relocating to the historic city of Wangen im Allgäu, Germany—a lesser-known expat destination with a challenging housing market. Through maximum effort and a dedicated team, this partner met every need by initiating an immediate housing search and organizing a special shuttle service. The property owner also played a crucial role, fostering a homey atmosphere and ensuring the well-being of the assignees. This seamless collaboration resulted in a transition that was not only smooth but truly exceptional.

Ace Worldwide Elite Relocation Services

NEI is grateful to Ace Worldwide Elite Relocation Services for their swift and effective response to a challenging transferee situation. On a Friday evening, a household goods delivery was scheduled for the following day, only for the transferee to discover that their new home was significantly smaller than expected. The experienced husband-and-wife service team quickly identified the issue: the cargo would not fit, and there was no storage included in the relocation package. Acting promptly, the team secured mini-storage, provided accurate cost estimates, and ensured all necessary approvals were in place, all while maintaining the original delivery schedule for a seamless transition.

Ward North American

A relocating employee's spouse faced a life-threatening allergy to common chemicals found in personal hygiene products while managing a cross-country move. Recognizing the urgency of the situation, a Ward North American Customer Service Representative took the lead, coordinating a meticulous plan focused on safety and precision. Over nine days, a carefully chosen van operator and their team successfully packed, loaded, and delivered 36,000 pounds of belongings without incident. Their "OWN IT!" approach—characterized by compassion, resourcefulness, and attentive listening—earned the family’s trust during this critical time.

CORT

CORT Destination Services supported a family relocating from Colombia to Green Bay, Wisconsin, in October. Upon learning that the family had no car seat for their baby, CORT not only purchased one but also delivered it to their hotel, ensuring safe transportation options. During their initial meeting, the team noticed the family was unprepared for the harsh Midwest winter, dressed only in flip-flops and t-shirts. Recognizing that the family was weeks away from their first paycheck, CORT rallied their network to gather donations of warm clothing and toys. For their life-changing, proactive support and unwavering commitment to the NEI OWN IT approach, we are proud to honor CORT Destination Services.

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Omaha, NE October 2024 — NEI Global Relocation, a leading full-service relocation management company, proudly recognizes the exceptional achievements of its Service Partners with the annual Service Exceeding Expectations Awards. These accolades are given to partners who have consistently demonstrated an unwavering commitment to exceeding expectations in service delivery.

The awards are conferred based on a meticulous evaluation of scorecard data gathered from the feedback of NEI account executives and transferees throughout the year. This comprehensive analysis ensures that the recipients are indeed setting the benchmark for exceptional service in their respective categories.

"Our Service Partners are an essential extension of NEI, consistently demonstrating their unwavering commitment to our mission of delivering Service Exceeding Expectations to our valued clients and their relocating families," affirmed Andrew Dyer, Director of Procurement and Global Service Partner Relations.

This year's winners, selected for their outstanding performance and dedication to excellence, include:

• Ward North American

• MiniMoves, Inc.

• Nelson Westerberg

• Rocket Mortgage

• Corporate Living

• Synergy Global Housing

• CWS Corporate Housing

• GlobeSpec

• IPR Consulting

• LARM USA, Inc.

• REA – Partners in Transition

• Aperian Global

• IOR Global Solutions

• @ Properties | Christie’s International Real Estate

Congratulations to each of these distinguished companies for exemplifying NEI’s mission of providing Service Exceeding Expectations. Their commitment to excellence sets a standard that inspires the entire industry.

Omaha, NE October 2024 – NEI Global Relocation is proud to announce the winner of its prestigious 2024 Service Partner of the Year award, recognizing outstanding performance, unwavering support, and remarkable innovation in the field of global mobility services. This year’s recipient, Interconex, Inc. has set itself apart in numerous ways, making it a clear frontrunner among many deserving partners.

NEI has enjoyed a long-standing and valued partnership with this company, which has consistently provided top-notch services that benefit both NEI and its clients. Over the years, this partner has demonstrated a commitment to NEI’s success by delivering reliable support and solutions that exceed expectations. In 2024, they went above and beyond, distinguishing themselves as the first in their service category to introduce an incentive program specifically for NEI, further solidifying their dedication to our success.

One of their most impressive feats this year involved a monumental, data-driven task that required precision, dedication, and a deep understanding of NEI’s needs. Their efforts not only led to outstanding results but also enhanced NEI’s ability to remain cost-competitive and provide well-informed solutions to our clients. The partner’s extraordinary performance empowered NEI to make strategic decisions that have been invaluable in maintaining our market leadership.

Additionally, this year, the partner faced a complex RFP scenario where their initial pricing was not as competitive as other contenders. Rather than retreat, they embraced the challenge with a problem-solving mindset. By presenting an innovative solution with competitive pricing, they helped NEI win the RFP and secure new business—a testament to their ingenuity and collaborative spirit.

Their consistent Can-Do! attitude and solution-oriented approach embody NEI’s mission of Service Exceeding Expectations. Each interaction with this partner reflects a shared vision of excellence and dedication that makes them an essential ally in NEI’s continued growth and success.

“Our service partners play a pivotal role in the success of our operations,” said Andy Dyer, Director of Procurement and Global Service Partner Relations. “Interconex’s outstanding dedication to excellence, responsiveness, and their willingness to consistently go the extra mile make them a valued partner and a truly deserving recipient of the NEI Service Partner of the Year award.”

Interconex's exceptional performance aligns perfectly with NEI's core values, making them an outstanding choice for the 2024 Partner of the Year award. NEI congratulates Interconex on their well-deserved recognition!

2024 International All-Benefits Survey Key Takeaways

NEI Global Relocation (NEI) recently completed our 2024 International All Benefits Survey that covered all components of a typical International relocation program, including policy overview, pre-assignment, relocation, on-assignment, allowances & finances, end of assignment, and tax & compensation areas.

For the survey, 47 international policy components were included, focusing on short- and long-term assignments and permanent transfers with highlights covering several other program types. Of 108  participating companies, the top industries included Technology, Manufacturing, Life Sciences, Consumer Goods & Services, Food & Beverage, and Energy & Utilities.

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Key Takeaways

NEI’s full report contains recent trends in types of international policies and the prevalence of benefits offered. Key takeaways include:

1) Overall Program Overview:

• Intra-country and Intra-Region Americas & LATAM Policies: While our 2024 survey indicates companies are increasing their intra-country and intra-region Americas & LATAM policies, the front-runners for the most common assignment program types by surveyed companies remain clear: 90 percent of companies had a permanent transfer policy; 81 percent a long-term assignment policy; and 73 percent a short-term assignment policy.
• Repayment Agreement Terms: 2024’s survey saw a decrease in the number of companies requiring repayment agreements for permanent moves (88 percent) compared to 2022 (94 percent), while agreement requirements for short-term (59 percent) and long-term assignments (75 percent) remained consistent with 2022.  NEI saw a significant uptick in companies that prorate some or all repayment funds (80 percent, up from 62 percent in 2022) and those using a 24-month required repayment agreement term (83 percent, up from 61 percent in 2022).
• Lump Sum-Only Policies: These are rarely used for international moves by surveyed companies: only 11 percent of companies offered such for permanent moves and less than one percent offered for short- and long-term assignments. This is not surprising as an international relocation, whether temporary assignment or permanent move, can be much more challenging for employees. Providing a lump sum to cover all relocation expenses may seem to offer flexibility, but employee planning and stress can be overwhelming without support from a seasoned professional or Relocation Management Company.

2) Support for Families:

• Pet Transport: Most pet owners consider their pets as part of the family and would be hesitant to move without them, thus it is not surprising to see an increase in 2024 surveyed companies offering pet transport for long-term assignments (39 percent compared to 30 percent in 2022) and permanent transfers (34 percent to 23 percent in 2022). Companies focusing on cost reduction offer a capped pet transportation benefit to keep costs down but provide families peace of mind.
• Spouse / Family Assistance: This year’s survey also reports, over the past few years, a noticeable shift from career assistance to family acclimation services for international assignments. By expanding the benefit, it helps address the whole family’s needs. Long-term assignments offering Spouse / Family Assistance rose from 61 percent in 2022 to 74 percent in 2024 and offering it to permanent transfers rose from 51 percent in 2022 to 55 percent.
• Host Country Transportation: A common benefit that continues in both short-term and long-term assignment policies, assistance provided varies with almost half of surveyed companies offering assistance based on the location or local practice.
• Host Country Housing: Most assignees live in a rented apartment or flat throughout their assignment. Of 2024 surveyed companies, 99 percent of short-term policies and 93 percent of long-term policies provided host country housing eligibility and, for permanent moves, only 20 percent of 2024 respondents provided it (not to be confused with interim temporary living). For all companies, 85 percent have housing paid by the company or their RMC on behalf of employees on short-term assignment and 62 percent on long-term assignment.
• Global Health Insurance Plans: NEI saw a significant shift of companies this year providing a global plan approach for short-term (56 percent) and long-term (65 percent) assignees, a change from our 2022 survey when 71 percent of companies used a home-based approach for short-term assignees and 57 percent for long-term.

3) Cost Impact of Policy Changes:

• Furniture Allowance in Lieu of Shipment: As costs of household good shipments continue to rise, NEI’s seen an increase in companies offering a furniture allowance in lieu of a household good shipment. For short-term assignments, 54 percent of surveyed companies offered one compared to 38 percent in 2022. For permanent assignments, 48 percent offered one in 2024 compared to only 37 percent in 2022. Though some companies may adopt a furniture allowance to support sustainability initiatives, analysis completed by NEI determined that the sustainability variance is minimal and, in some cases negative, due to emissions from manufacturing, shipment of furniture from the plant, and disposal of furniture at assignment end.
• Storage Benefits Decrease: NEI’s seen the storage benefit decrease for all policy types in the last year, most likely due to companies’ cost containment measures. Offering 15-to-30 days of storage is most common for both long-term assignments and permanent transfers.
• Relocation Allowance Usage Increase: This year, NEI’s noted an increase in companies offering the allowance across all policy types. Companies are also shifting more towards offering a flat amount per assignee vs. percentage of employee salary. For allowance eligibility, short-term assignments rose from 45 percent (2022) to 68 percent (2024); long-term assignments increased from 74 percent to 87 percent; and permanent moves rose from 76 percent in 2022 to 87 percent.
• Tax Gross-up Vary by Benefit & Assignment Type: Year-over-year, NEI saw an increase in companies including state insurance, social security, social and local, and city income taxes in the hypo tax. Historically, most companies provide both tax consultation to set upfront expectations and tax prep assistance throughout the assignment. This is consistent with 2024’s survey.

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Driving Unique Solutions for Each Client

We recommend all companies determine which unique solutions will work best for their company and NEI is ready to discuss all relocation-related possibilities with you.

NEI’s Global Mobility Strategies Team would be pleased to assist you in determining if a benefit is the right fit for your program. We believe reviewing program intent and benchmarking against industry peers and best practice can help you build a strong talent acquisition / retention strategy.

Thank you to all companies who participated!  

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About NEI Global Relocation

With headquarters in the U.S. and regional offices in Switzerland and Singapore, NEI is a certified Women's Business Enterprise dedicated to providing full-service global relocation and assignment management solutions. Supporting well over 200 clients, including numerous Fortune 500 and Fortune 1000 companies, NEI is committed to meeting diverse supplier goals and addressing the unique challenges of global talent mobility. For more information on NEI's services and to explore NEI All-Access, visit www.neirelo.com

The above article is provided for informational purposes only. Please consult your tax, legal, immigration or accounting advisors before making any decisions or transactions.

Sharrell Kilgore, CRP, Joins NEI as VP, Global Client Development

14 October 2024 – NEI Global Relocation (NEI) is pleased to announce the appointment of Sharrell Kilgore as Vice President of Global Client Development for our Southern region.

In her role, Sharrell will confer with corporations on their relocation policies, processes and specific needs to demonstrate NEI’s ability to support their global mobility goals with innovative and cost-efficient solutions and advanced technology.

“All of us here at NEI are beyond excited to welcome Sharrell as VP, Global Client Development,” said NEI’s Pam Jacknick, CRP, GMS, Senior Vice President of Global Client Development. “She brings over 20 years’ experience, has incredibly strong communication, presentation, negotiation and leadership skills, and is gifted in establishing and maintaining interpersonal relationships.”

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Related Experience

Sharrell has a positive attitude that is unparalleled in our industry. Her energy and expertise are appreciated by all who know her.

Prior to joining NEI, she had more than two decades’ experience in all functions of new client development, strategic consulting and account management in Mortgage Lending, Real Estate and Relocation. Sharrell is an analytical thinker and creative problem solver who quickly adapts and thrives in new and challenging situations.

Sharrell resides in Texas and is actively involved in multiple regional WERC groups, including serving as President of the North Texas Relocation Professionals and, previously, the Houston Relocation Professionals Board of Directors.

She earned her Certified Relocation Professional (CRP) certification from WERC, has a Bachelor of Business Administration in Marketing from the University of Texas at Tyler and an Associate of Arts in Business Administration from Tyler Junior College.

Welcome to NEI, Sharrell!

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A dockworkers strike at U.S. East and Gulf Coast ports – from Maine to Texas – is expected to severely impact global supply chains and the economy. The strike's disruption could affect billions of dollars in cargo with immediate delays for vessels as well as future delays.

The work stoppage on 1 October 2024 followed a lengthy deadlock in labor talks between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX), a shipping industry group representing terminal operators and ocean carriers.

Thirty-six East and Gulf coast ports shut down including but not limited to Baltimore; Boston; Charleston, South Carolina; Jacksonville, Florida; Miami; Houston; Mobile, Alabama; New Orleans; New York/New Jersey; Norfolk, Virginia; Philadelphia; Savannah, Georgia; Tampa, Florida; and Wilmington, Delaware.

Some experts warn of cascading effects throughout the global economy if the strike lasts. Danish shipping giant Maersk predicted that even a one-week shutdown could take up to six weeks to recover, compounding delays daily.

Regarding the event’s impact on relocation, international shipping and global supply chains are bracing for potential disruption this week and the weeks ahead, but as this situation evolves and we learn more, NEI and our service partners will keep clients advised of specific shipments affected, as well as provide an update on future shipments and how the situation impacts the supply chain.

If you have any questions about this situation, please contact your NEI Client Relations Manager at 800.533.7353 at any time.

This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors before engaging in any transaction.

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Effective risk management is essential in the relocation process, to anticipate and address concerns before they can disrupt operations. From logistical interruptions and regulatory compliance to employee dissatisfaction, there are potential risks with each relocation. Preemptively managing them ensures business continuity and successful transitions for employees.

Risk Management and Corporate Relocation

Risk mitigation involves minimizing the impact of potential challenges by developing strategies to manage or eliminate issues before they arise. Identifying and mitigating risks in global mobility is not as clear-cut as it might seem. Even seasoned relocation professionals can find this daunting. However, by predicting and planning for risks, businesses gain a distinct advantage.

Christine Thomas of 360factors likens the business world to a racecourse, with risks as the potholes along the way. Applying this analogy to global mobility, we can view a company’s relocation program as the roadmap, and the risks as the obstacles that need to be navigated. At NEI, we don’t avoid the potholes—we actively anticipate and develop strategies to mitigate their impact. Our goal is to get our clients’ employees to their destinations smoothly and safely, without unexpected setbacks.

Steps to a Comprehensive Risk Assessment

Conducting a thorough risk assessment is critical and anticipating challenges related to logistics, compliance, and employee satisfaction is only the beginning. For example, NEI’s comprehensive risk assessment includes the following steps:

1. Identify Potential Risks Global mobility programs face unique risks, ranging from logistical and operational challenges to financial and immigration concerns. We carefully assess the risks and identify where they are most likely to occur.
2. Determine Who Might Be Affected Once risks are identified, we evaluate who may be impacted—whether it’s the relocating employees, our corporate clients, service partners or NEI. Understanding the scope of impact helps us prioritize risk mitigation efforts.
3. Analyze and Evaluate Risks After identifying the potential risks, we analyze their severity and probability. While it may not always be possible to remove risks completely, we implement control measures to minimize their occurrence and impact.
4. Record the Results and Implement Solutions Once risks are analyzed, we document the mitigation process. This involves detailing the risks, who they could affect, and the steps we will take to mitigate them.
5. Review and Update Regularly Global mobility is constantly evolving, so it’s essential that risk management plans evolve too. NEI conducts regular reviews to ensure our strategies are up-to-date and adaptable to changes in regulations, technology, and industry trends.

By following these steps, NEI ensures that risk management is proactive, not reactive. We strive to minimize disruptions to business operations, protect company assets, and safeguard the information of our clients and their transferees.

Preemptive Risk Management

At NEI, we approach risk management holistically. Our comprehensive risk mitigation plans cover the relocation process,  business continuity,  disaster recovery, and secure technology to ensure resilience. Key components of our risk management strategy include:

• Risk Management Plan: NEI conducts quarterly multi-departmental risk assessment meetings. During these sessions, we evaluate potential risks and implement tailored action plans with robust mitigation strategies.
• Insurance Coverage: NEI and our service partners carry insurance coverage to mitigate potential risks associated with relocation. This includes comprehensive domestic and global insurance solutions required for service partners working with NEI.
• Cybersecurity Measures: We utilize industry best practices to protect sensitive information. Our cybersecurity protocols include identity management, data protection, network defense, and vulnerability testing, ensuring that both our clients’ and transferees’ data remain secure throughout the relocation process.

Key Risks and Mitigation Strategies

While potential risks exist in corporate relocation, having a structured approach to managing them minimizes their impact. Here are some common risks faced by relocation management companies (RMCs) and how NEI addresses them:

• Logistical and Operational Interruptions: The complexity of coordinating multiple services, managing timelines, and ensuring the smooth transport of goods presents considerable logistical challenges. NEI believes in prevention over resolution. We establish clear processes, set expectations with all parties involved, monitor progress and continuously measure performance. In those rare instances that concerns or complaints arise, they are immediately escalated to our Senior Management team for prompt action.

• Legal and Regulatory Compliance: Compliance with local, national, and international laws is key in global relocation. NEI stays informed on relevant regulations by leveraging multiple resources, including industry groups, government directives, and advice from legal and tax experts. This information resides in a central depository to assist in preventing costly legal delays.

• Employee Impact: A failed relocation or an unsatisfied employee can have significant repercussions, from reduced production to loss of talent. Setting expectations, consistent communications and transparency are the most important elements of a successful relocation or assignment.  Our Employee Pre-Decision Program and Onboarding conversation empowers the relocating employee to discuss their concerns and needs, and the NEI consultant to level-set the employee’s expectations based on their approved services and destination location.  If special needs are unveiled, they can now be discussed with the corporate client at the beginning of the process. This improves recruitment, retention, and employee satisfaction.

Real-World Examples of Risk Mitigation

Risk management in corporate relocation is essential to real-world success. Here are a few examples of how preemptive risk management has helped companies overcome relocation challenges:

• NEI received many “rush” global moves from a client to a country that required a minimum of six (6) months to process visa and immigration applications.  To avoid future frustrations from delayed moves, NEI implemented a training program for talent managers, talent acquisition teams and hiring managers to understand global compliance concerns and move timelines.
• An employee arrived late, after midnight, and was not able to access their temporary living apartment.  After speaking with the NEI consultant, after midnight, a nearby hotel was secured with a late checkout and the employee quickly had a secure place to rest.

Recommendations for Clients and Service Partners

NEI works closely with clients and service partners to ensure that risk management is a collaborative effort.  As you build a Risk Management Program, consider the following:

• Prioritize Communication: Regular, transparent communication between all parties ensures that potential risks are identified early and mitigated quickly.
• Leverage Technology for Risk Monitoring: We use advanced technology to monitor risks in real-time, allowing us to react quickly when issues arise.
• Continuously Evaluate Risk Management Strategies: NEI regularly reviews and updates its risk management practices, adapting to new challenges and ensuring the highest level of service for our clients and their employees.

Conclusion

Managing risks in corporate relocation is about more than addressing problems as they arise. It’s about anticipating challenges, preparing for them, and preemptively implementing solutions. NEI’s approach to risk management is to identify potential risks early, manage them effectively, and continuously adapt our strategies to keep pace with industry changes. This ensures smoother transitions, protects assets and employees, and maintains operational efficiency.

If you’d like to learn more about how NEI can help your program thrive, please reach out to your NEI Client Relations Manager or a member of our Global Client Development Team.

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Singapore, Singapore September 5, 2024 - The Forum for Expatriate Management recently held its APAC Summit at Hotel Fort Canning to celebrate excellence in the Mobility industry, handing out their touted EMMAs (Expatriate Management and Mobility Awards). The evening’s gala dinner and award presentation recognized the standout achievements of industry leaders in the APAC region. Among the honorees, NEI Global Relocation and Alto Vita were recognized with the Best Partnership Award for their exceptional collaboration.

This is the second EMMA partnership award won by NEI Global Relocation and Alto Vita this year. The first FEM EMMA award was presented to NEI and AltoVita in Dallas in May 2024.

Randy Wilson, NEI President / CEO explains, “This accolade underscores the exceptional synergy and innovation that define the partnership between NEI Global Relocation and Alto Vita. The award highlights the strength of our collaboration within the Asia Pacific region to deliver superior relocation services.”

The partnership between NEI Global Relocation and Alto Vita has been pivotal in executing two major group move projects for prominent clients across APAC, specifically to Japan and India. Managing group moves is inherently complex, demanding meticulous planning, sophisticated execution strategies, and effective coordination with local service providers. Despite the challenges of relocating large groups to demanding locations, NEI Global Relocation’s commitment to excellence in international relocation, combined with Alto Vita’s expertise in corporate housing, has ensured clients receive high-quality accommodations while staying within budget.

Receiving the Best Partnership Award reflects NEI Global Relocation and Alto Vita’s shared dedication to overcoming challenges and exceeding industry expectations. These honors not only celebrate our successful collaboration but also reinforce NEI’s ongoing commitment to delivering exceptional customer satisfaction.

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Determining Main Objectives and Prioritizing KPIs in Corporate Relocation

To effectively prioritize KPIs, it's crucial to first identify your organization's main objectives for its relocation program. Most often, these objectives fall into one of three main areas: Cost Efficiency, Employee Satisfaction and Retention, and Operational Excellence.

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‍Cost Efficiency

Identifying Cost Efficiency as a Priority:

• Best for Companies That: Are operating under budget constraints or have a strategic focus on financial health.
• Considerations: Prioritizing cost savings and accurate invoicing helps maintain financial health but could impact the level of personalized service and employee satisfaction.

Indicators:

• Strategic Growth and Expansion: Companies expanding into new markets need to manage costs efficiently to sustain growth.
• Stakeholder Expectations: High emphasis on financial health and transparency from stakeholders.
• Budget Constraints: Need to maximize value and minimize expenses.

Prioritizing KPIs for Cost Efficiency:

• ‍Primary KPIs:‍
  • Cost Savings [RMS-Provided]: Cost savings are identified through financial reports and program benchmarks. This metric identifies opportunities for increased efficiency while maintaining high service quality. Using these insights allows for strategic decision-making that optimizes budgets and improves the financial sustainability of relocation services.
  • Exceptions [Client KPI]: Cost savings are identified and measured through financial reports and program benchmarks. This metric identifies opportunities for increased efficiency while maintaining high service quality. Using these insights allows for strategic decision-making that optimizes budgets and improves the financial sustainability of relocation services.
• ‍Secondary KPIs:‍
  • Invoicing Accuracy [RMS-Provided]: To verify invoice accuracy, it's common to conduct reviews and gather feedback on invoicing processes from your Accounts Payable Department. Accurate invoicing is critical for maintaining financial transparency and trust. By ensuring precision in invoicing, disputes are reduced, fostering positive business relationships and implementing necessary process adjustments to uphold high standards of financial integrity.
• ‍Strategy: Regularly review financial reports and monitor cost-saving measures. If cost savings are on target and invoicing errors are minimal, the program is successful.

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Employee Satisfaction and Retention

Identifying Employee Satisfaction as a Priority:

• Best for Companies That: Rely on retaining key talent and maintaining positive morale at work.
• Considerations: High levels of support and satisfaction require investment in quality service providers and thorough preparation processes. While it may increase some of your program costs, they are quickly recovered in reduced recruitment and onboarding expenses.

Indicators:

• Employee Feedback: Frequent feedback indicating a need for better support and satisfaction.
• High Turnover Rates: Companies experiencing high turnover may need to focus more on employee satisfaction to retain talent.
• Talent Development:  Emphasis on supporting employees' career growth and development through strategic relocations.

Prioritizing KPIs for Employee Satisfaction:

• ‍Primary KPIs:
  • ‍Employee Satisfaction with Account Executive [RMC-Provided]: Employee satisfaction with their assigned consultant is gauged through detailed post-relocation surveys and regular feedback forms. High satisfaction scores indicate effective support and strong employee-consultant relationships, essential for a smooth relocation experience. This metric helps identify best practices to reinforce, while lower scores highlight specific areas for consultant training and development, promoting continuous improvement.
  • ‍Employee Satisfaction with Service Partners [RMC-Provided]: Employee feedback on the performance of third-party service partners, such as household goods movers or real estate agents, is gathered through surveys and forms. This metric indicates the quality and dependability of their services. Positive feedback confirms dependable providers, while negative responses guide renegotiation of contracts or changes in providers, ensuring consistently high service standards.
• ‍Secondary KPIs:
  • Payroll Submission Timeliness [RMC-Provided]: Tracking the timeliness of payroll submissions for allowances or other payments paid by the company, or adding inputted income for items paid outside payroll to be loaded for wages is imperative.  On-time processing with automation ensures timely payments and tax compliance of relocation disbursements. Efficient payroll processes enhance overall client satisfaction and highlight the reliability of relocation services.
  • ‍Expense Processing Time [RMC-Provided]: Employee expense processing time is monitored through processing time records while satisfaction is monitored through employee feedback. This KPI tracks the average time it takes for an employee to be reimbursed after submitting an expense report and required back-up. Efficient and timely processing reduces financial strain on employees and supports a smoother relocation experience. Streamlined expense processing minimizes delays and errors, enhancing overall program efficiency.
• ‍Strategy: Review your relocation management company’s (“RMC”) frequent survey and feedback session results to gauge employee satisfaction. High satisfaction scores with consultants and service partners are indicative of a successful program. Secondary metrics like payroll timeliness should remain within acceptable ranges to avoid negatively affecting the overall satisfaction.

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Operational Excellence

Identifying Operational Excellence as a Priority:

• Best for Companies That: Aim to minimize errors and delays while ensuring compliance with legal and regulatory requirements.
• Considerations: Focus on process efficiency and compliance requires robust systems and a commitment to continuous improvement. While this minimizes risks and ensures smooth operations, it might divert attention from individual employee experiences and personalized support.

Indicators:

• Compliance Requirements: Operating in highly regulated industries or regions with complex legal requirements.
• Operational Challenges: Frequent issues with process inefficiencies, errors, or delays.
• Strategic Growth: Companies expanding rapidly and needing efficient, scalable processes.

Prioritizing KPIs for Operational Excellence:

• ‍Primary KPIs:
  • ‍Service Partner Performance KPIs [RMS-Provided]: Service Partner Performance KPIs measure the effectiveness of all external partners in the relocation process. It includes metrics like responsiveness, invoicing accuracy, and transferee satisfaction. High performance indicates strong collaboration, smooth relocations, and alignment with program goals. Below are a few examples of partner-specific measures of performance:
    • ‍Temporary Living Performance Metrics:
      • 24/7 service manager availability
      • Responding to customer requests within two hours
      • Securing accommodations
      • Clear access instructions at least 48 hours before check-in
    • Household Goods Performance Metrics:
      • delivery timeliness
      • claims average cost
      • claims processing time
    • ‍Tax & Immigration Partner Performance:
      • adherence to international regulations
      • timely processing of tax and immigration documents
      • proactive management of potential issues.
• ‍Secondary KPIs:
  • ‍Process Automation Performance [RMC-Provided]: Where processes have been automated through workflow technology or Artificial Intelligence, it is wise to measure the successful throughput and outcomes of each automation. This KPI can track the efficiency, accuracy, or overall effectiveness of automated processes within the relocation program. High performance in process automation typically results in faster turnaround times, reduced errors, and improved scalability, contributing to overall program efficiency.
  • ‍Website Uptime [RMC-Provided]: Website uptime is monitored through IT systems and uptime reports to ensure consistent accessibility. High uptime ratings result in maintaining operational efficiency and user trust. Investing in a robust IT infrastructure to minimize downtime enhances the reliability and user experience of online resources.‍
• ‍Strategy: To achieve operational excellence, focus first on establishing a strong and collaborative partnership with your RMC.   Prioritize KPIs in key areas like responsiveness, satisfaction and accuracy, as they directly affect employee experience and compliance. Simultaneously, leverage process automation to enhance efficiency. Regular reviews and adjustments based on KPI data will ensure continuous improvement and sustained operational excellence.

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Conclusion

By assessing and understanding your company’s specific needs and strategic goals, you can confidently identify your main objectives for the relocation program. Prioritizing KPIs that align with these objectives ensures a focused, effective, and successful relocation program. Staying true to these prioritized metrics guarantees that primary goals are met while maintaining acceptable standards for secondary metrics, ultimately driving the overall success and sustainability of the organization.

Relocating employees face unexpected challenges

In today’s corporate world, relocating employees face unexpected challenges like cultural adjustments, legal issues, financial considerations, and personal upheavals. Resilience is crucial for both employees and the relocation professionals supporting them. This article explores resilience in corporate relocation, highlighting its significance and providing insights on fostering this trait.

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Understanding Resilience

Resilience is the ability to bounce back from adversity, maintain a positive outlook, and persevere. The idea of resilience is perfectly summarized in the popular quote, “It’s not about how many times you fall, it’s about how many times you get back up.” But how, specifically, does this mindset impact global mobility?

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The Complexity of Corporate Relocation

Corporate relocation involves more than moving belongings; it requires legal compliance, cultural acclimation, and logistical execution. Relocation often includes personal and emotional upheavals, with employees leaving support networks and facing cultural adjustments. For instance, an employee moving from the U.S. to Japan may experience culture shock due to differences in social norms, work culture, and language. Coordinating specialized medical transport for a family member can be burdensome and stressful for all involved. Empathy and understanding are crucial for successful global assignment and a resilient team is essential to adapt to these unique challenges.

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Leadership and Resilience

Leadership and resilience are intertwined, with effective leaders demonstrating and cultivating resilience within their teams. In the relocation industry, leaders must guide teams through stressful situations, ensuring focus and motivation. A Harvard Business Review article notes that resilient leaders maintain purpose, communicate effectively, show empathy, and create supportive environments. In recognizing the emotional aspects of relocation, such as anxiety about moving to a new country, resilient leaders can provide reassurance and support, helping employees navigate challenges and feel valued.

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Building Resilience in Relocation Programs

To foster resilience among transferees, relocation programs must prioritize clear communication and set realistic expectations. An initiation call can lay the groundwork for a smooth process by managing anxieties and preparing transferees for challenges. Continuous support, including practical assistance with utility setups and understanding local regulations, as well as emotional support like checking in on well-being, is crucial. Companies with strong support systems see higher satisfaction and retention rates. For example, a transferee moving from Detroit to Tupelo, Mississippi, not only requires help with logistics and cultural adjustments, but may need assistance finding a school for their children and care for an elderly parent, underscoring the need for comprehensive support to ease transitions and build resilience.

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The Human Side of Relocation

Resilience in relocation goes beyond logistics; it involves addressing the human side of the move. Employees often leave support networks and face significant cultural and personal adjustments. Understanding and empathizing with these challenges is crucial. For instance, a transferee caring for a sick child benefits from the relocation team's compassionate support, easing their burden. The American Psychological Association states that a strong support system is vital for building resilience, emphasizing the importance of empathetic communication. Tailored assistance, such as accommodations for a transferee that has a child with special needs, ensures a smooth and successful transition.

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Conclusion: The Big Idea

At the heart of successful corporate relocation lies resilience—the ability to adapt, recover, and thrive amidst challenges. Effective relocation depends on fostering a resilient mindset through strong leadership, clear communication, and empathetic support. Support systems play a crucial role in building resilience, equipping transferees to handle unexpected situations and promote growth. The relocation industry can transform challenges into growth opportunities by embracing resilience, turning trials into strengths. According to the American Psychological Association, resilience involves behaviors, thoughts, and actions that can be learned and developed, with resources like the Mayo Clinic offering individual and group training on resilience skills and strategies. Please visit their website for tips on fostering resilience in your life and within your organization.

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Workforce Retirements are Accelerating in the United States – Are You Prepared?

Statistics indicate more than 10,000 Americans reach the average retirement age of 65 every day. That figure is expected to peak in the summer of 2024 (referred to as “Peak 65”) to more than 12,000 a day. In a recent report from the US Chamber of Commerce, the US has 8.5 million job openings but only 6.5 million unemployed workers. Contributing factors were early retirements and less immigration.  

During the third quarter of 2020, approximately 28.6 million baby boomers retired, and the number continues to grow. This significant increase in retiring workers has substantial implications for the labor market, including, but not limited to, loss of proficiency, experience, and corporate culture. Current US domestic population growth alone simply can’t cover the worker gap.

According to a recent survey conducted by the Worldwide Employee Relocation Council, 56 percent of organizations are now addressing seasoned employee retention. As companies grapple with replacing such experience, it will become increasingly important to assess the impact on your organization and develop a strategic plan to ensure continuity and minimize disruptions.

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Strategies to aid your organization

Resourcing Key Personnel Through Immigration

Fostering a diverse workforce can be essential to meet the demands of the changing labor landscape and ensure a sustainable and adaptable future. Immigration plays a crucial role as a solution to bolster the workforce. The age of H1-B or L-1 Immigrants, on average, is lower than their American counterparts and is presently the primary driving force behind the country’s population growth. Increasing the number of skilled immigrants can supplement working-age Americans and the nation’s aging population.  

Attracting Experienced Team Members

When looking for seasoned talent, it can be advantageous to expand the search regionally and globally. An important point is to ensure advertising is inclusive for all ages. Avoid terms such as “energetic” or “high potential,” as these can imply only younger workers should apply. Other strong incentives include offering benefits such as health and long-term care insurance. Some organizations offer a final relocation package as a bonus for those that complete a company-requested assignment or for those who remain with the company past a certain age before retiring.

Utilizing NEI Services

NEI will help you develop and manage a Final Relocation program, facilitate home sales, household goods, and assist with destination services for retirees. Our global reach supports a robust international program to relocate key talent. NEI can also manage rotational programs for future company leaders to learn from the experience of seasoned co-workers across different areas.

Organizations can bridge staffing shortages and knowledge gaps by utilizing effective, proven immigration, employment, and training programs to help transition critical knowledge and expertise to the next generations.

If you have questions or would like to discuss how NEI can help, please contact your NEI Client Relations Manager.

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Additional Resources

How Workplaces Can Adapt to an Aging Workforce

What to do About Our Aging Workforce

Baby Boomers are Retiring | Implications for the Workforce and Economy

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Global Expense Management & Compensation Delivery Overview

In the area of global expense management and compensation, many companies often rely on historical practices, but as rapidly as the world is changing these key areas of relocation management should be reviewed frequently to ensure compliance. Now more than ever, for those companies with a wide-ranging breadth of assignment locations and projected assignment durations, attention to the details is critical to compliance.

Running a compliant global compensation and expense management program can lower stress and realize considerable time and cost savings for HR and Payroll professionals. It is important to understand the various approaches to Program Management; Payment; and Payroll Delivery options to maximize company accountability and accuracy when collecting, tracking, and reporting expense and compensation information for employees relocating internationally.

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Program Management - Outsourced or In-house?

When selecting a global compensation delivery model - whether managed in-house or outsourced – many considerations need to be evaluated. These items can include tax considerations based on the type of visa each employee is moving under; tax treaties and pay elements, as well as the associated global tax considerations of them.

‍Outsourcing to an RMC partner:

‍The client chooses a proven relocation management partner to assume responsibility for administration of the program with client global payroll internal stakeholders and a client-preferred tax partner.‍‍

‍Managing it In-house:

The client runs the process within the company for their employees relocating globally. In-house contributors can include HR, Payroll, Global Mobility in conjunction with outside tax partners to deliver services.

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Payment - Host, Home or Global?

As every company’s goals, culture and mission is different, each one also has a different rationale for determining how to conduct payroll options for employees working across borders. While each approach has its advantages and disadvantages, it is important to note that most multinational NEI clients use either home country or split payrolls for their expat employees. Let’s examine the primary options:

Host Based Approach:

Known for its cost- effectiveness to “localize” the employee, the host- based approach uses the market rate of the host country to determine the assignee’s salary. In other words, the assignee transfers to the host country payroll and receives both base and incentive pay based on local compensation norms and regulations. The assignee pays the tax and social security (or social insurance) contributions required in the host country.

• A host-based approach may support moves into countries with higher salaries, compared to their home country, as employees will often see the positive in taking a rise in pay versus a decrease in pay.

Home Based Approach:

This approach, known also in the industry as a “balance sheet” method, is to maintain assignees’ home country purchasing power, so they are no better or worse off while on assignment in the host country, than if they had stayed at home.

• It is also the most widely used approach by U.S. multinational companies as the aim is to help maintain home country purchasing power. However, for relocations from low-to-high salary countries, the new, ensuing salary level may be too low to provide an appropriate standard of living or too low for the countries’ immigration requirements.
• Many feel that the home-based approach is also more appropriate for assignments where an employee will return home after the assignment, compared to an employee who may go on to live in multiple countries and not return home.

Global Approach:

Though the “global” approach to payment has more equality and inclusivity among similar jobs within global organizations, it is also the least utilized approach due the complexity of global delivery.

Differences in each country’s laws, as well as vast differences in local taxes and living costs must be considered in establishing equitable expatriate compensation. Additionally, not all companies will have the corporate interest - or internal bandwidth – to establish a strategic global compensation system. This is a reason why host- and home-based approaches continue to be the most used approach.

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Payroll Delivery – Split or Shadow Payroll?

Global compensation rules are already complex and confusing and even seasoned relocation professionals sometimes need a refresher of the payroll delivery concepts and the particular importance it plays in today’s changing world of global mobility. Let’s examine the options:

Shadow Payroll Approach:

Some employers may have dual payroll withholding responsibilities in both their home country and a foreign jurisdiction. If so, they will often run what is known as a “shadow payroll” in respect to an employee’s taxable income. The payroll in the host country will “shadow” what is being reported in the home country for the purposes of being able to meet various withholding requirements.

Split Payroll Approach:

Some employers allow employees to receive a portion of their salary in both the home and host country payroll to receive a portion of their pay in the local currency. It is also common for assignment allowances to be paid in the host country if using a split payroll approach.

Split payrolls may also be required due to some countries’ regulations for compliance of local pay delivery.

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NEI’s Consultative Approach Benefits All Clients

NEI has extensive experience providing international payroll delivery support, including the compensation gathering from multiple payrolls. This expertise translates into less work for a client’s payroll department, freeing up important time for other core responsibilities.

We recommend performing up front analysis and planning in conjunction with any client tax firm to cover important items:

• Determine which payroll processing method– home or host country, split payroll, shadow payroll –works best for you and your company’s compliance and administrative processes.
• Obtain accurate information about tax requirements, labor laws and regulatory mandates.
• Comply with local customs, cultural issues of each country.
• Work with payroll firms to address technology needs surrounding global payroll plans.
• Assess language barriers and time zone differentials, which can affect payroll processing.
• Revisit payroll systems and processes regularly.

NEI takes ownership and accountability with our partners to ensure the domestic and international assignment process is not only seamless but stays as stress-free as possible and on track from the beginning by setting expectations upfront for each benefit.

Overseen by a staff of CPAs, NEI provides global expense management and global compensation accumulation and reporting. This service is performed in-house and coordinates with each client's payroll and tax partner to ensure the details are captured for reporting.

This means less work for client payroll and mobility / human resources departments, freeing up time for other core responsibilities. Potentially, this can also lead to lower costs with the tax partner as they are provided accurate details captured by NEI for easier filings without spending billable time gathering information or seeking data clarifications.

Our internal control process is SOC 2 Type II certified and supports accuracy through a series of audits and controls. Working closely with the NEI Account Executive,

the Expense Administrator and Auditor become experts in administering client expenses according to unique policies and procedures.

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Consultative Support

There is no single “best way” to implement Global Expense Management, Compensation and Payroll. NEI’s many years’ experience helping global clients navigate these matters provides consultative support, education or training as needed to ensure your global compensation program -- and compliance needs -- are or email away. Please contact your NEI representative; Mary Petersen, CPA, Controller; or Michelle Moore, NEI’s Chief Global Mobility Officer, at any time to discuss further.

_{The above information is for general information only and is not presented as tax or legal advice. Please consult with your tax or legal advisors and internal stakeholders before making decisions and taking any action.}

A Region of Extremes

The “ME” in “EMEA”, the Middle East, is the common name for transcontinental areas of West Asia and Egypt originating from the British worldview in late 1800’s. It is a region often in the news concerning oil prices, conflict, refugees, and political instability. It is also an area that can pose significant relocation/assignment-related challenges.

The 17 countries of the region have over 400 million people today and cultures with extremely diverse religious, political, and economic backgrounds. The region is young – over 40% of people are under age 25!‍

The extremes of wealth are also clear there. Some Middle East countries are fabulously wealthy while others are quite poor with high unemployment rates. Most nations in the region rely predominantly on export of oil and oil- related products for their GDP, but others – Turkey, United Arab Emirates, and Israel – have increasingly diverse economies. Exposed to global trade/financial conditions and any increase in regional tensions, the Middle East’s economic outlook remains “subdued”, says The International Monetary Fund (IMF).‍

However, the IMF also states that “attracting skilled expatriate workers to the region will remain key to maintaining competitiveness” as supported by the region being an increasingly popular destination for corporate investment. The World Bank reported growth has picked up across the region and The Harvard Business Review reported the region remains attractive, is rich in opportunities and is an exciting expansion opportunity for multinationals across industries.

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Varying Customs, Laws, Challenges

To mitigate risk and help relocation/assignment success, it is critical to ensure candidates going to the region are open minded, flexible, and open to cultural differences. Previous experience dealing with challenging situations and other international assignments are also a plus.

According to NEI Service partner Aperian Global, ways in which business is conducted differently in Middle Eastern countries include:

It is also important for candidates and accompanying family to be educated about not only the Middle East overall, but that of each nation’s customs and how each might impact their specific move or assignment or how they conduct business. One should not assume what is acceptable in Dubai will be suitable in Riyadh for example.‍

• Those in the region tend to value indirectness and aim to avoid offending others. They may talk around an issue or make promises that are not delivered upon if there is a reason that would potentially offend you.
• The word "no" is often avoided, with a polite but vague response offered instead. Watch for nonverbal cues, such as tone of voice, hesitation, or body language, to discern true feelings.
• Eloquence and expressiveness are considered positive traits; not showing emotion may seem insincere. Try to match your local counterparts' level of effusiveness to demonstrate sincerity.
• Be aware that words are powerful; many in the region believe that they may influence circumstances or create negative consequences. Pay careful attention to your choice of words when communicating with Arab counterparts.
• Personal space between people conversing is generally smaller than in some other cultures, and touching, hugs, and handholding are common among those of the same gender, so do not back away from these approaches.
• Avoid public displays of affection between men and women; it is illegal in many places.

Another area to note for the region is on personal rights: lesbian, gay, bisexual, and transgender citizens generally have limited or highly restrictive rights in some parts of the Middle East and face open hostility in others.‍

Attitudes towards women, compared with the Western world, can also be quite different. Saudi Arabia has considerable restrictions of women, who need to dress conservatively and generally be escorted by a male family member when out. Only recently was there a royal decree announcing the end of a decades-long unofficial ban on women driving. Other recent social reforms include the opening of movie theaters, music concerts and allowing women into sports stadiums for the first time. Such reforms are aimed at improving Saudi Arabia’s image abroad, increasing women’s participation in the workforce and boosting local household spending.

Yet, while discrimination against women remains prevalent in some areas, again, not all countries have the same laws or beliefs. Turkey, Kuwait, and the UAE are mostly modern, and many female expats have less difficulties adjusting to life there.‍

In the Middle East, expat women also may be more closely observed than expat men. To successfully integrate, it is important to be mindful of the local customs, traditions and show respect towards the dress codes, religions, and beliefs. 

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NEI Driving Solutions for Middle East Challenges

Frustrations with processes in the Middle East can be as common as other regions in the world, such as securing drivers’ licenses. Many expatriates who have moved to Dubai feel simple tasks, such as obtaining a driving license, prove difficult. According to Aperian Global, familiar challenges for outsiders to the region can include:‍

• Managing the pace to get things done
• Navigating hierarchy and the implicit rules
• Having misconceptions of Islam and the Arab region
• Being too task-focused (“Foreigners come and go…” as the local saying goes)‍

Assignee/family Middle East region assimilation can have unique challenges. Consider this case study:‍

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South Korea to Israel Assimilation Challenge

An assignee with highly specialized technology skills, along with his spouse and two children, accepted a long- term assignment to Israel from South Korea. Though strongly encouraged, the employee and spouse declined to participate in a cultural awareness training program offered by the client. They did not speak Hebrew and local Korean language translation services were scarce.‍

The family was extremely selective about housing they would accept and, after some delay, finally settled on a leased home of their choosing. During Israel’s monsoon season, heavy rain resulted in regular power outages and roof leaks, leading to the spouse slipping on a wet floor and visiting the hospital. Rain also damaged the home’s refrigerator and electric gate, denying them access to their property. The home was then robbed, requiring a security system to be installed. Pulled between job demands, travel and his family, the assignee was stressed.

Solutions: NEI advised our client of these unique challenges as they occurred and, together, strategized effective solutions. Due to our clear communication lines and recommendations, the following was proposed for the assignee to avoid a failed assignment:

Ongoing support was provided through NEI’s local expert DSP who spoke both English and Hebrew. He communicated to the assignee who spoke both English and Korean. This allowed the DSP to translate for the landlord and maintenance firm. All necessary home repairs were resolved.‍

Intercultural training that the couple had turned down originally was re-proposed and gratefully accepted. This was especially effective for the family as the selected consultant spoke their native Korean fluently and traveled to Israel for in-person training.

After completing the program, the family ventured out more and the spouse enrolled in local activities to meet people and network.‍

Result: The family began adjusting immediately – even extending their Israel assignment an extra year!‍

Sizing up Middle East Opportunities‍

More than ever before, today’s expats are expanding their horizons, taking on new challenges and pursuing new opportunities with their companies. Many global companies find the Middle East emerging market a great place to do business with a welcoming quality of life. HSBC’s Expat Explorer Survey examines countries around the world where expats have the best job security, safety, social life and how much it costs to live there. 

Several Middle Eastern countries consistently make the survey’s top twenty rankings including:

• Qatar
• United Arab Emirates
• Bahrain
• Saudi Arabia

Whether a seasoned expat or a first-time assignee, it is important for all to research and become familiar with their Middle Eastern destination location through formal intercultural programs and online sites – such as:‍

• NEI Cities – a web-based tool that provides links to destination information, so employees can become acquainted with the new location before the move, and
• GlobeSmart® – a web-based tool offered by Aperian Global, provides business personnel with access to extensive knowledge on conducting business effectively with people from countries around the world. With planning and preparation, relocations or assignments to the Middle East can be rewarding career and life experiences for employees and their families.

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Yes, We’ve Done That!

With over 30 years’ international expertise, NEI’s experience can quickly assess and navigate the sometimes unique or new opportunities that the Middle East might have for both relocation candidate and employer.

NEI has a long history of helping to manage clients’ Middle East relocations. We believe partnering with local, expert and strongly vetted Destination Service Providers is critical for success. All our DSPs must be well-versed in the customs and protocol of the country. Other partners include moving companies and forwarders, temporary living providers, tax reporting and consulting services, language and intercultural training specialists, and visa/immigration administrators.

 Local DSP representatives are pre-qualified by NEI and possess the expertise, credentials and experience needed to help the assignee fully acclimate to the new area. Consequently, assignees’ benefits are two-fold:‍‍‍

1. They have on-the-ground expert DSPs who helps immerse them in the local culture; and
2. They have a dedicated NEI Account Executive, available 24/7, to help counsel them through their life-changing event.

NEI provides custom solutions for any situation around the globe with our Americas, EMEA and APAC regional offices and network of global service partners. Our geographic reach extends worldwide to assist each of our global clients – whether in the Middle East or elsewhere. If you have any questions or would like further information, please reach out to your NEI representative or Mollie Ivancic, NEI VP, International Services.‍

The above information is for general information only and is not presented as tax or legal advice. Please consult with your tax or legal advisors and internal stakeholders before making decisions and taking any action.

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_{The above information is for general information only and is not presented as tax or legal advice. Please consult with your tax or legal advisors and internal stakeholders before making decisions and taking any action.}

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The Next Big Business Trend for Global Mobility

For decades, many Western manufacturers shifted production to Asia and China for countless items – including consumer products, textiles, cell phones, computers, microchips and much more. The intent was to lower labor costs and raise profits.

As global supply chains continue to feel great pressure, offshoring production to far off locations may be reversed.

How might this trend impact global mobility?

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Global Instability Impacts Globalization Efforts

Concerned with global stability and COVID-19 lockdowns, CEOs have started researching plans to relocate production closer to home – more than even during the first six months of the pandemic, according to Bloomberg.

U.S. Treasury Secretary Janet Yellen has called for more “friend-shoring” – also called “near-shoring”, “re-shoring” or “on-shoring” –in a push for U.S. companies to become less reliant on geopolitical rivals. Larry Fink, CEO of Blackrock, said the war in Ukraine has "put an end to globalization” and “companies and governments will also be looking more broadly at their dependencies on other nations."

A December study by Goldman Sachs found 75 percent of respondents plan to diversify their supply chains.

Such strategies are designed to:

• ‍Reduce risk: Numerous industries fell victim to offshored product availability that stalled their business.‍
• Avoid geo-political concerns: This can include trade wars and actual wars – as seen when hundreds of western companies exited Russia after its invasion of Ukraine. With China-Taiwan tensions escalating, U.S. companies in Taiwan are taking proactive measures to insulate themselves from potential business risks.‍
• Decrease supply chain delays: In-country or regionally produced products have a more streamlined distribution process and don’t usually require expensive overseas shipping.‍
• Greater quality control: Re-shoring closer to home provides greater control over the production process and quality standards to ensure consumers receive the highest quality of products in a timely manner.‍
• Reduce time zone differences: Re-shoring allows companies to proactively avoid issues before they disrupt their manufacturing process as collaboration between individuals in closer time zones reduces communication challenges.‍
• Sustainability Efforts: Re-shoring/near-shoring also adds sustainability and ESG (Environmental, Social, and Governance) benefits. Shorter, “greener” supply chains mean lower carbon emissions and reduced Scope 3 emissions (emissions generated indirectly by a company’s activities).

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Supply Chain Stability vs. Expense Savings

Some U.S. business sectors – automotive, aerospace, textiles, microchips, etc. – have started re-shoring faster than others, but re-shoring or near-shoring of manufacturing and supply chains is no small task. It is also not without risk and still influenced by the global locations where necessary manufacturing supplies and raw materials are sourced.

Consider the situation of an Italian maker of hydraulic equipment. They had re-shored their steel and wire supply chain from China to a European regionalized approach. One of the new regional suppliers where they sourced iron was located in Mariupol, Ukraine – a city that became completely devastated when Russia invaded. The company had to scramble to get this supply component all the way from India.

Despite much political pressure for companies to come back home, it is a huge investment and can often take years to accomplish. The biggest challenges may be in the U.S. and Europe:

• ‍First: energy and construction costs in the U.S. and Europe are higher than many offshored locations. If certain raw materials for production are sourced locally at much higher prices, companies may need to push that cost onto consumers who may not be willing to buy;‍
• Second: inflation in the U.S. and Europe have pushed employees to demand higher compensation and benefits, and construction and energy costs have grown even higher;‍
• Third: U.S. manufacturing employment is still below its pre-pandemic level and only two-thirds of what it was just two decades ago; and‍
• Fourth: not all employees of various countries are equally qualified. Depending on the product being manufactured, companies feel significant skills gaps exist in countries where companies can near-shore for precision, high-tech manufacturing skills and operations. Certain components of equipment also can’t be made in all locations and must be brought from countries with higher skilled employees.

Though nations like China have huge manufacturing advantages, more companies in western Europe have begun near-shoring factories to Eastern Europe and more U.S. companies are near-shoring manufacturing to Mexico and Central America due to lower capital and labor costs.

Consider that 172 of 260 company executives with manufacturing  plants  in China acknowledged their interest in near-shoring to Mexico to supply the U.S. market, as reported by Border Now magazine.

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What This All Means to Global Mobility

With all the talk of relocating manufacturing and supply chains, many experts believe companies will respond by both 1) diversifying suppliers and 2) relocating to near-shore, low-wage countries.

Global Mobility Managers would be wise to think about how best to plan and prepare for regional / global group moves and entries of new employees/families into previously untapped locations. For instance, regarding Taiwan, this may be a “slow drip” over time transition that might not be highly noticeable, unless there is a blockade or hostilities.

NEI encourages client global mobility stakeholders and management to collaborate and work closely before a decision to re-shore or near-shore is made so:

• key talent can be identified as potential relocation candidates,
• visa and immigration needs can be researched to establish necessary timelines, and
• realistic costs projections can be made.

As some countries fight “brain drain” – the loss of educated, skilled talent leaving for countries with more opportunity – they will take aggressive measures to keep that talent from leaving.

Yet the “brain drain” will continue.

In March 2022 alone, a Russian technology industry trade group estimated between 50,000 and 70,000 tech workers had left the country and an additional 70,000 to 100,000 would soon follow. In China, since the nation’s aggressive COVID lockdowns, middle-class and wealthy citizens’ inquiries to immigration consultants have surged.

History shows people will sacrifice and find a way to leave situations they do not see as sustainable. Western countries and companies may continue to benefit in the future and should be prepared.

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Pre-Planning is Everything

Consider the projection by the McKinsey Global Institute that re-shoring and near-shoring production will relocate between 16 and 26 percent of the value of world trade in the next five years – that’s up to one in four facilities!

Imagine having a crystal ball and being able to plan for the unimaginable disruptions like COVID-19 well in advance. This might be one’s chance to prepare for a potentially huge trend looming on our horizon.

If you would like to discuss how best to support your company’s initiatives with re-shoring, near-shoring or global group moves – as well as relocation, retention and immigration needs for key local national or international employees – please contact your NEI representative.

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_{In addition to normal global mobility services, NEI is also able to provide clients with worldwide assistance in identifying commercial locations in which to relocate.}

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Eager Competitors

Experienced employees repatriating from company-sponsored international assignments are highly pursued today by recruiters. The risk of losing these valuable assets – and negatively impacting the company’s Return on Investment (ROI) – is simply too great not to prioritize proactive, meaningful actions.

To protect the company’s investment in international assignees from eager competitors, organizations are encouraged to assess their program objectives and foster a successful employee retention culture with greater post-assignment recognition and career opportunities.

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Achieving Meaningful Results

NEI suggests organizations ask the following questions to achieve meaningful results:

1. How are assignment success goals defined and measured, and who reviews the results to gain meaningful insights into the company’s Return on Investment (ROI)?
2. How do our employees perceive the value of international assignments? What do they feel are the positive and negative aspects of the experience?
3. How do companies demonstrate the value it places in employees who accept assignments and are those rewards visible to others to reinforce the benefits of going on assignment?

Before a candidate accepts an international assignment, companies are encouraged to discuss the potential long-term benefits such an experience could have on their future with the company. While not all companies guarantee a position after an assignment’s completion, conveying how it has helped others in their careers can be an excellent recruitment tool.  

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Unexpected ROI Challenges

Repatriation for relocating families can have unexpected psychological challenges. Helping to establish repatriation expectations and highlight the potential reverse culture shocks upon returning are best discussed during the recruitment process, allowing the candidate to go into the experience with eyes wide open.

“Reverse culture shock is experienced when returning to a place that one expects to be home, but actually is not home any longer. It is far more subtle, and therefore, more difficult to manage than outbound shock precisely because it is unexpected and unanticipated,” says Dean Foster, founder and president of DFA Intercultural Global Solutions.

NEI can help clients support assignment repatriation retention strategies and company ROI. We recommend that companies:

• Initiate employee career discussions at both the onset of the assignment and within 6 to 12 months of the end of the assignment.
• Arrange for repatriation training three to six months prior to employees / families returning from assignment to ensure a smoother re-entry to the home country and a position in the company that could use their new skills.
• Survey repatriated employees for top-of-mind feedback on repatriation benefits, support and challenges, and track the career progress of these employees. It is common for employees to leave the organization within two years of being repatriated and these actions will provide a better understanding of why they left so strategies to retain those employees can be developed.

As your global mobility partner, NEI can support and address repatriation issues, along with assistance in achieving your assignee retention and strategic goals. We often provide clients with recommendations and support assignment analysis by:

• Conducting focus groups and / or surveys of employees who have recently returned from assignments.
• Interviewing company leaders and human resources to identify potential underlying issues and help future assignment candidate preparedness.
• Reviewing exit interviews of repatriated employees who left the company within two years to analyze causes that may be undiscovered by global mobility or business units within the company.
• Comparing tenure and turnover of repatriating employees to their peers who have not gone on assignment to determine if causes might be more related to business factors – like company business conditions, compensation increases, promotions, or skills development opportunities rather than a repatriated employee’s lack of ability to apply new skills gained from an assignment.
• Comparing retention and turnover rates of employees to and from specific global office locations.
• Understanding how many employees took advantage of recommended repatriation assimilation training and career discussions at both the onset of the assignment and within six to 12 months of the end of the assignment.
• Determining the impact on a spouse / partner who did not work while on assignment, but upon repatriation was unable to return to the workforce with suitable employment – especially if a dual-income household is needed upon return. Did the spouse / partner take advantage of company-sponsored career programs prior to repatriation?
• Analyzing the impact that a mentor may have had on the assignee, if he or she had one at any point during the assignment.
• Considering the pros and cons of offering a retention bonus for repatriated employees who remain with the company longer than two years upon returning and are also willing to act as mentors for company employees currently on assignment.
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Leveraging Technology for ROI Analysis

NEI can review the client’s established priorities and targets relative to specific retention challenges, assignment locations, culture, and costs. We can help client stakeholders analyze the effectiveness and costs for offered and used repatriation benefits, which can be useful in making decisions or adjustments on future benefits. Our flexible technology and reporting tools also allow clients to see the program status and expenses in progress as they accrue, as well as total cost reports and more.

If a company’s international assignment ROI is based upon how repatriated employees re-integrate and benefit the organization through new skills and expertise gained on assignment. Such investigations are best done through one’s internal Organization or Talent Development teams working together with each repatriate’s receiving manager over a period of time.

Based on information received, we can help recommend solutions to meet global needs, integrate these changes into your program and assist with your ROI measurements and goals. As one employee indicated:

"Now that I'm back, I just wanted you to know how much I appreciate everything that you have done for me and my family. You helped out more than you'll ever know.  Thank you very much." ~ NEI Client Assignee

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If you have questions or would like further information, please reach out to your NEI representative.

A Welcome Price Drop

The ocean is a giant “highway” of vessels moving containers of goods across the globe. During the pandemic and until recently there were significant price increases for overseas shipping, but global shipping costs are back down to pre-pandemic levels.

• Shipping a 40-foot container from China to a U.S. west coast port was down 93 percent from its high of $20,600 in September 2021.¹  That’s roughly equal to February 2020. Shipping costs from China to U.S. east coast ports and to Europe have also decreased.

• Other global shipping routes have seen costs fall also: freight charges on Europe-to-U.S. routes dropped from highs of $16,000 to around $3,000.

This is welcome news, but will the trend last for corporate relocation?

NEI Global Relocation has advised clients since the start of the pandemic that companies' global mobility programs should remain prepared and flexible for the unexpected in such uncertain times. Today is no different.

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What 2023 Could Bring

Issues that could threaten lower international shipping costs and fewer delays may include:

• Geo-Political Disruptions: The world has become more economically linked, and any military conflict can force the system to adapt in unpredictable ways including areas declared off-limits to shipping. Russia’s invasion of Ukraine could further disrupt global transport.
• China’s COVID Surge: This threatens to upset 2023 global supply chains again and could increase supply chain volatility. Three major ports across China have already experienced new supply chain delivery problems because of COVID and at the Port of Shanghai, the world’s number one container port, cancellations have increased.²
• Container Shipping Reliability: This will remain volatile in 2023 as a recent report found that global vessel schedule reliability had a 56.6 percent on time record in December – a huge improvement from 30 percent recorded earlier in 2022 – but the average on time was 74 percent in 2018 and 2019.³
• Rising Oil Costs: The shipping industry keeps a close eye on oil prices as fuel costs can correspond to 50 or 60 percent of a ship’s total operating costs, depending on vessel size. When oil prices/demand are on the rise and as China reopens after ending its Zero COVID policy, the shipping industry may pass those higher costs on to customers.
• Labor Shortage / Labor Strikes: Beyond finding moving crews / drivers, the global transportation infrastructure is under regular threat from labor strikes. 2022 saw many strikes at both air and seaports. The chances of new strikes disrupting supply chains in 2023 are high and there is pressure on employers to increase salaries with global inflation.
• West Coast Ports Avoidance: Cargo owners are seeking new supply-chain options and diversifying their port entry locations. Shippers continue to reroute to gulf and east coast ports, away from California, due to higher cost of transporting freight over land, labor disputes with dockworkers, and rail workers' unions causing uncertainty.

Despite these risks, some feel freight volatility and international freight shipping costs may continue to decrease. Dubai-based global logistics company DP World expects global freight rates to drop by a further 15 to 20 percent in 2023.

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Relocation Assistance Risk Considerations

Given the potential risk factors detailed above, what does this mean for client companies and global relocation assistance?  

Foremost, one should remember that:

• Potential rate increases could re-bound in 2023 if the recent, positive circumstances change; and
• Shipments could get delayed or re-routed to other ports, increasing time for one’s expected goods.

Companies need to continue to weigh the impact of potential, quickly changing rate increases and associated incremental costs of delayed shipments (e.g., temporary housing) on their budgets against the increased delays for relocating employees who could have to wait longer than expected for their goods should global supply chain disruptions arise.

If NEI is not managing your international shipments, we recommend:

• Remaining flexible on fluctuating rates due to swiftly changing economic conditions and budgeting for changing international container rates in your cost estimates.
• Working with the best partners to develop processes that include verification of all options, freight costs and that any increases or above average costs are genuine.

To be prepared for shipping costs to be fluid in the year ahead, set expectations with relocating employees and consider alternative policy considerations for shipping household goods internationally, if applicable.

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NEI Guidance and Diligence

NEI continues to be diligent about client costs for every single move. Our Client Relations Managers will work with each client to discuss the most cost-effective international household goods shipping options available and considerations for providing a relocating employee a small allowance towards being without those goods due to a longer transit.

To proactively discuss various options with our clients that may assist them in reducing or avoiding costs, NEI constantly monitors market and economic conditions so talent goals can be met.

For more information on this situation going forward, please reach out to your NEI representative.

Sources: 1) Freightos; 2) SCNBC; 3) Sea-Intelligence’s “Global Liner Performance” Report.

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NEI Global Relocation (NEI) is thrilled to introduce the latest in core-flex technology. Today’s relocating families want to be empowered to select benefits that fit their specific needs. That desire is nothing new, nor is the fact that companies have been using core-flex programs internally for some time now.

What is new is iSelect, our revolutionary design that improves the employee experience with choice and an online tool featuring opportunities to explore their options and various combinations of benefits before deciding what is best for them.

With iSelect, their onboarding experience begins with confirming and updating their information.  From there they are taken to a brief explanation of their core benefits, then quickly advanced to the selection process for their flex benefits. A points calculator is visible to show them how their budget is impacted with each selection.  Once initial selections are complete, your employee can easily coordinate a meeting with their NEI Account Executive through a collaborative calendar.

iSelect makes every relocation a personalized experience and NEI is here to help your relocating families think through their moves, manage the delivery of benefits and answer questions, enabling your employees to stay productive.

The entire process is streamlined, flexible and personalized!

It’s the latest in core-flex technology and we can’t wait to show it to you. Current clients should contact Cindy Beitel, CRP, NEI SVP, Global Client Relations to learn more. If you are not an NEI client, but would like additional information, please reach out to Pam Jacknick, CRP, GMS, NEI SVP Global Client Development.

Supporting Stressed Out Relocating Employees Today with Ease

‍Employees on the front lines of customer service across the United States feel that bad behavior from the public is more common today than before COVID and that insults, rants, and rudeness are on the rise. Why is this happening more and how can it be best dealt with?

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Post-pandemic Incivility

Any customer service professional knows they are likely to encounter a rude, impatient, or irrational customer among the countless pleasant and professional ones served. In the latest National Customer Rage Survey, 17 percent of Americans admitted to being uncivil in interactions with businesses.

Nevertheless, the frequency of irritable people seems clearly on the rise compared to the past. This could be attributed to more people reporting lower levels of sleep, exercise, and self-care and higher levels of stress, daily costs and being time-starved. In fact, Americans who want more time in their lives are happier than those who want more money, according to the journal Social Psychological and Personality Science. 

The phrase “Everyone has a Microphone” captures the inclusiveness of online communications in today’s hyper-digital age, but it also enables people to use more harsh language behind a keyboard than if the same interaction was face-to-face, for instance.  Psychologists feel technology, despite its many benefits, can sometimes lead to human disconnection when a human touch is needed most.

After all, according to a Harvard Business Review article “Frontline Work When Everyone is Angry,” the average person takes in considerable amounts of negativity online each day – both consciously and unconsciously – and the content one consumes not only affect ourselves, but others too.

A strong relocation management partner will appreciate that moving can be a stressful life event for employee/family customers. Patience and empathy, as well as turning any negative encounters into opportunities for growth and positive outcomes, are the difference. Consider the following service tactics.

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A Deeper Empathetic, Service Mindset

Simon Sinek once said, "Communication is not about speaking what we think. Communication is about ensuring others hear what we mean."

Understanding and acknowledging emotions behind a customer’s anger or impatience is key to addressing their concerns in a positive manner. It may be difficult and feel contrarian to do so in the moment, but seeing a situation through a customer’s eyes, acknowledging their frustrations, and making them feel heard can change the tone of a conversation and create calm.

This begins by hiring the right people and preparing front line professionals for success. Prepping front line team members to handle challenging customer interactions requires intentional efforts and, through workshops and role-playing exercises is necessary to learn to respond calmly and confidently-- even in the rare occurrence of hurtful verbal abuse.

Active listening, positive language, and clear expectations are the pillars of impactful communication

and communicating effectively can turn tense situations into opportunities for resolution.

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"My Account Executive makes you feel very welcome and that she always has time for you. Even when my husband was getting feisty with her over something that was NOT in her control, she maintained her professionalism and even harder, her cheery attitude. Not many people can do that...”

~ NEI Client Relocating Employee Customer

Tailoring Solutions to Relocating Employees

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American technology executive and writer Sheryl Sanberg said, “Leadership is about making others better as a result of your presence and making sure that impact lasts in your absence.”

Understanding different customer archetypes is akin to decoding a puzzle and each requires a unique approach. Whether it's addressing the impatient, building trust with the angry, or exceeding expectations of perfectionists, tailoring approaches leads to greater customer satisfaction.

Maintaining a professional, empathetic equilibrium fosters resilience to oversee difficult customer situations successfully and enabling companies to deliver service with a tailored approach for each individual. For instance, if a customer is curt or abrasive, it’s important to recognize they want the customer service representative to get straight to the point. Likewise, other relocating employee customers need to build trust with their representative and may need extra time to open up or discuss certain topics.

In every relocation management professional's service skills kit, identifying potential protection concerns and assessing when a client or management should intervene is paramount for protecting the customer service representative and team.

Finally, implementing instant and regular satisfaction and feedback mechanisms allow customer service companies, like NEI, to gauge the effectiveness of strategies and make data-driven decisions to enhance customer service efforts.  

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“My Account Executive was the brightest spot…available, understanding, kind, always quick to reply and help find solutions…She was always there to provide support, peace of mind and a ray of sunshine.”

~ NEI Client Relocating Employee Customer

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‍Rudeness: Like the Common Cold

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Research reported in the Harvard Business Review shows rudeness may be like the common cold: “It’s contagious, it spreads quickly, anyone can be a carrier — at work, at home, online, or in our communities — and getting infected doesn’t take much.”

Yet, with a positive mindset – and by embracing patience, empathy, and effective communications – global relocation management professionals can transform challenging customer interactions into positive, lasting impressions and success stories.

Proactively counseling relocating employees is more than just connecting at key touch points. It’s also about appreciating and managing the emotional ups and downs of relocating. It’s about doing so with calm, grace, and professionalism.

For more information on our customer service approach and awards or any other needs or to discuss in more detail, please reach out to your NEI representative.

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The Basics of International to U.S. Relocations

Managing an international employee’s relocation to the U.S. for a company-sponsored assignment or permanent move may seem straightforward, but overlooking details can result in delays, frustration, and added costs to an already expensive proposition.  

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What is important to succeed?

Ample planning – ideally 12 months – for relocations into the U.S. is encouraged today. This involves everything from coordinating visa/immigration needs to housing, household goods shipments, family challenges and more. Running cost estimates before employees are presented their relocation offer is wise, as is using professional pre-offer candidate assessments to confirm candidates have “the right stuff” to succeed. These range from self-administered tests to in-depth assessments and prediction models.

Second, it’s a best practice to cost-effectively manage international relocations to the U.S. using an experienced global Relocation Management Company (RMC) to coordinate services with vetted global suppliers and ensure cross-border compliance.  

Finally, consistent, competitive inbound-U.S. employee relocation benefits policies are critical to support business drivers, cultures, and budgets. Employees should receive proactive guidance from the RMC’s dedicated Counselors to maximize benefits. Counselors are employee advocates and expertly manage the entire process.

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Key Areas of Support

Families of relocating employees are often excited at the prospect of moving to the U.S., but that excitement can turn to apprehension in the following areas:

Visa/Immigration

Completing all required visa/immigration applications is key to scheduling U.S. arrivals. The RMC can manage this process with immigration experts. It is critically important to start the application process much earlier than in years’ past and to set realistic timelines. Immigration processes are now more complex and non-compliance penalties for employees reporting for work in the U.S. before work permits are secured may include fines and/or being banned from entering the U.S. for between three and ten years. Twelve months is the recommended time span to begin the process.

Employee/Family Integration

Integration can be daunting. Expats often report each of the 50 U.S. states feel like their own separate country with unique cultures, climates, regulations, dialects, and more. To ensure international employees to the U.S. are productive from the start, pre-departure intercultural and/or language training helps them live and work confidently – especially in areas without large expat populations.

Household Goods

RMC partners can arrange full moving services – from packing, crating, steel container loading, and shipping to unloading and unpacking in the U.S.  Moving companies and freight forwarders in each country coordinate with the RMC to manage customs/port delays in the U.S. or the departure country and track shipments. This involvement saves employees stress and companies money.

Housing and Settling-In

Employees entering the U.S. require professional home finding services. RMCs work directly with local Destination Service Partners (DSP) to view U.S. properties, assess leases for appropriate terms, verify rent fits within the housing allowance, and so forth. DSPs also help with settling-in by arranging utilities/internet connections, establishing U.S. bank accounts, and orienting to local shopping, schools, and hospitals.  

School and Spouse/Partner Support

School safety and academics are a top family concern when considering a U.S. relocation, so company-sponsored access to professionals who can identify destination solutions is encouraged. Accompanying spouses/partners who left careers and family behind, or perhaps find everyday tasks in the U.S. overwhelming, can impact the success of a U.S. relocation. Offering upfront, professional support can effectively overcome these obstacles.

Coming to America

Overlooking details or cutting corners when relocating international employees to the U.S. can risk non-compliance penalties and failed assignments, but also negatively impact valued talent who view the moves as significant career or growth opportunities.

Proactive, start-to-finish assistance and attention to detail directly supports international employees’ successes and companies’ business goals.

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Competition & Chaos: Navigating Relocation and the Paris 2024 Summer Games

Corporate Global Mobility, Human Resources, and Business Managers should prepare for potential challenges that employees and businesses will face both before and during the 2024 Olympic and Paralympic Games held in and around Paris, France.

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The Roar of the Crowd

• The Olympic Games run 26 July – 11 August 2024.

• The Paralympic Games run 28 August – 8 September 2024.

• The Olympic and Paralympic Games will take place in nearly three dozen sites in and around Paris.

Weeks before the games start, over 15,000+ athletes, 30,000+ volunteers, and 6,000+ members of media will descend on the Paris area. During the games, an estimated 13 million spectators will attend.

Paris is already one of Europe’s busiest tourist destinations. In fact, the city was so overcrowded in the summer of 2023 that the French Tourism Minister requested visitors stay away from popular tourist attractions in the city and check out other areas of the country.

In addition to the surge in pre-games preparation and ongoing games activity, intense security will also be a factor. Business Travelers and Employees on assignment in Paris will face significant challenges leading up to and during the games. These could include finding temporary or permanent accommodations, longer commute times while navigating crowded public transportation, and delays in simply conducting business.

Go for the Gold in Relocation Guidance

Proactive planning, open communication, setting expectations, and flexibility in work arrangements can help mitigate these challenges and ensure a smooth transition during this hectic, exciting time.

NEI’s service partner, Dwellworks, and their local experts in France recently provided sound “What to Expect” guidance about how to secure accommodations and navigate travel/traffic issues around the Paris Summer Games:

What to Expect:

Booking Well in Advance

Several providers have acted early in removing their inventory from Global Distribution Systems (GDS) during the Olympic and Paralympic Games as a way to control their inventory and maximize booking opportunities during this time.

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Inflexibility

Clients should be aware of the risk of block bookings as sales are often final, with providers historically being unwilling to negotiate terms for unused inventory, cancellations, deposits, etc.

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Stay Requirements

It is expected that minimum/maximum stay requirements will likely be enforced during this time period.  It is highly recommended to secure your Games accommodation sooner rather than later.

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Stringent Cancellation Terms

Cancellation terms will likely be far more stringent and are expected to include increased cancellation periods, as well as non-refundable terms, both before and during the Olympics/Paralympics Games period to avoid speculative reservations and to maximize opportunity for providers.

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Higher Deposit Requirements

Down-payment/deposit requirements are expected for all parties; it is highly likely that group/block bookings will be required to pay a deposit at a premium rate.  Booking rates are expected to increase by 120%, lower rates will return before and after the Games.

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Increased Traffic

Residents and visitors can expect every hour to be similar to rush hour during the Paris 2024 Games.  The anticipation of several million tourists travelling to Paris during the Games most likely will cause traffic congestion and overcrowded public transportation as well as limit the availability of ride-sharing apps.  It is recommended to travel via bike or walk when possible.

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Global Relocation & The Olympics

Mark Spitz, an American swimmer and 9-time Olympic medalist, famously said: “If you fail to prepare, you’ve prepared to fail.”

To avoid delays, we encourage clients to prepare and plan accordingly with both their business units and relocating employees.

Please reach out to NEI in advance of employees relocating to or from any part of France in the spring or summer of 2024. Proactively, NEI and our partners can look at each unique situation and conduct advance research to determine potential challenges and find alternative options.

NEI will continue to provide clients with updated information about how the Paris Summer Games might impact global mobility in and out of France and how to manage employee expectations accordingly.

If you would like to discuss this situation further, please reach out to your NEI representative or NEI’s VP of International Services, Mollie Ivancic.

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The text above is provided for informational purposes only. Please consult your tax, legal, immigration or accounting advisors before making any decisions or transactions.