Articles & Whitepapers

Understanding Barriers and What To Do

A family’s reluctance to relocate can often stem from a variety of hesitations. Whether that be a spouse’s need to re-establish their career in the new location, loss of established social and professional networks, as well as concerns regarding children acclimating in school, activities, and friendships. As Jennipher Christensen of IPR Consulting aptly said, “Getting to... ‘what do they need and how can we help them?’ is critical in the pre-decision phase. This involves not just showcasing the new location but helping them visualize their life and addressing concerns of each family member.”

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Easing the Transition

Caring for the well-being of employees and their families necessitates comprehensive policy frameworks that prioritize support and inclusivity throughout the relocation process. These services aim to minimize the challenges associated with relocation and ensure that employees can quickly adapt to their new environment:

• Destination Services and Area Orientation: Assistance finding suitable housing, schools, transportation, banking, healthcare, and other essential services in the new location. Offered by 86% of companies for international permanent transfers, 60% for short-term assignments, and 83% for long-term assignments. Though area orientation is typically part of a home finding trip for US Domestic transfers, formalized area orientations in the US are becoming more common.
• Cultural Training: Programs to familiarize employees with the local culture, customs, and etiquette to facilitate smoother integration into the community. Offered by 65% of companies for international permanent transfers, 70% for short-term assignments, and 82% for long-term assignments.
• Language Support: Language training services to help employees become proficient in the local language. Offered by 62% of companies for international permanent transfers, 60% for short-term assignments, and 76% for long-term assignments.
• Family Acclimation Assistance: Services designed to assist the spouses and families of relocating employees by addressing their specific needs and concerns. This support includes spousal career assistance, community integration, and ongoing support. Offered by 51% of companies for international permanent transfers, 10% for short-term assignments, and 61% for long-term assignments. Depending on employee level, the benefit is offered by up to 35% of companies for US Domestic transfers.

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Policy Implications and Recommendations

The intricate dynamics of family involvement in corporate relocations require careful consideration of how to navigate this terrain with empathy and efficacy. Formulating actionable policy changes not only serves the immediate interests of employees and their families but also aligns with broader organizational objectives of talent retention, productivity, and corporate social responsibility.

Effective relocation policies must address various aspects of a transferee and their family’s transition. Here are some key recommendations:

• Comprehensive Acclimation Services: Expand services to include cultural training and pre-assignment assessments. These are essential components of the relocation package.
• NEI’s YOU Allowance: Consider introducing this flexible allowance, which can cater to the unique needs of each family.
• Support for Single Transferees: Recognize that finding social support systems and activities through a Destination Service Provider (DSP) is as crucial for single transferees as it is for those with families.
• Awareness of Available Services: Enhance awareness of the full range of available services, which can significantly improve the relocation experience.

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Conclusion

By prioritizing comprehensive mobility programs that address the challenges faced by relocating families, employers can cultivate a culture of inclusivity and support within their workforce. As employers strive for excellence in their operations, integrating these policy recommendations can serve as a beacon of guidance, ensuring that the welfare and stability of relocating families remains at the forefront of corporate decision-making. Ultimately, relocation is about creating a supportive journey that begins well before the move and continues long after settling in, ensuring a successful transition and a rewarding experience in the new environment.

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Chinese New Year and Relocation Service Impact

As the Year of the Rabbit comes to an end, communities around the world are looking forward to a year of prosperity and good luck as the Dragon takes its reign in the Chinese zodiac. This Lunar New Year (Chinese New Year) begins February 10th, 2024 and concludes January 28th, 2025 will be celebrated as the Year of the Wood Dragon.

The Chinese zodiac is a system that assigns an animal to each year in a repeating 12-year cycle. The Rat, Ox, Tiger, Rabbit, Dragon, Snake, Horse, Sheep, Monkey, Rooster, Dog, and Pig, each has its unique characteristics, symbolism, and cultural significance.  

Lunar New Year celebrations, including traditional lion dances, stunning parades, and family reunions with elaborate decorations and magnificent feasts, last up to 16 days. While NEI’s Singapore office will only be closed February 9th and February 12th, it’s possible you may experience other disruptions or delays in service as many of our service partner offices in mainland China and in other countries that celebrate the holiday—such as Indonesia, Malaysia, Singapore, South Korea, Taiwan, Vietnam, and Brunei—will be closed for the full extent of the public holiday from February 10th through February 16th.

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Calendar of events include:

Feb 2nd – 9th

Little Year - Preparations for the new year begin on February 2nd, 2024, and last until New Years Eve.

Feb 10th – 20th

Spring Festival - Chinese New Year officially begins on February 10th, 2024, and ends on February 20th.

Feb 21st – 24th

Lantern Festival - Preparations begin the 21st, and the Lantern Festival is held on February 24th as a celebration of the end of the Chinese New Year and the start of the new year.

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A Cultural Phenomenon Across Continents

Carnival or “Carnaval” is an annual celebration steeped in tradition, energy, and extravagance, acknowledged across the world in more than 50 countries—running from 8 February 2024 through 13 February 2024.

The word Carnival itself likely came from the Latin carne levare, meaning “remove meat,” in reference to the Christian period of Lent, a time of fasting, and marks a time of festivities, parades, masquerades, and feasting before the more solemn and reflective period of Lenten sacrifice.

For employees on international assignments, the energy and excitement surrounding Carnival can offer a memorable and enriching experience, immersing them in the cultural vibrancy, traditions, and community spirit of their host countries.

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A Cultural Phenomenon

Most people will agree that Carnival is not simply another festival, but a cultural phenomenon. South America usually comes to mind as the most famous locations for celebrating the holiday with its energy and flamboyance:

• Rio de Janeiro, Brazil is the ultimate Carnival destination and the world’s most famous celebration spot with over a million people from across the globe typically visiting to dance, sing, have fun in the streets, at the beach, and partake in the Rio Parade.
• Salvador, Brazil’s Carnival has an African flavor with expressions of Afro-Brazilian folklore, music, and dance. Crowds dancing in the streets are fueled by the loud sounds of the region’s famous motorized floats carrying musicians and singers.
• Bolivia’s elaborate, 10-day Oruro Carnival is so good it’s said to be one of the world’s best festivals. UNESCO has recognized it as a 'Masterpiece of the Oral and Intangible Heritage of Humanity'. The celebration lasts 20 hours and combines Indigenous and Catholic traditions with amazing parades.

Sounds exciting, but did you also know Carnival’s also celebrated in over 50 countries, each with their own unique spin on the event?

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About Excess and Enjoying Life to the Fullest

For employees on assignment, Carnival can become a captivating blend of celebration and mystery, characterized by vibrant crowds, imaginative outfits, and elaborate masks. For example:

• Basel, Switzerland is well known for its celebrations each year, rejoicing with a parade of over 20,000 noisy revelers marching through the streets and parties in the city for hours after
• Istanbul, Turkey hosts the Baklahorani Carnival celebration featuring a masked parade through the streets and parties in the surrounding areas.
• Santa Cruz de Tenerife, Spain boasts nine continuous days of loud, boisterous celebrations during Carnival with elaborately plumed costumes and masked merrymakers in the streets.
• Dusseldorf, Germany’s Carnival takes place on the banks of the Rhine. It has a day of festivities dedicated entirely to family-friendly celebrations and is known for its “Rose Monday” street parade featuring colorfully decorated floats, more than 5,000 costumed performers, and capacity crowds that flood the city’s pubs and restaurants.
• Goa, India’s Carnival has been a fixture for 500 years and includes parades, colorful costumes, music, dancing and intricate floats in the streets with many parties.
• Venice, Italy has made it a tradition to gather with friends every Carnevale, but across the city’s piazzas, “Carnevale” draws many thousands from around the world. They don costumes and gather at pubs and restaurants, enjoying wine and cicchetti (appetizers).
• Slovenia, where Carnival is called Kurentovanje (koo-rent-oh-VAWN-yeh), has a celebration season that culminates in the town of Ptuj where merrymaking, concerts, parades, masked balls, and kids' events last days.
• Nice, France hosts three kinds of parades: the Bataille de Fleurs (Battle of Flowers), Corso Carnivalesque Illumine (Parade of lights) and the Corso Carnavalesque (Carnival Parade). Each float has a different theme.
• Binche, Belgium hosts loud cultural performances and presents unexpected rituals like revelers throwing oranges for good luck while performers dress in elaborate, feathery hats.

Employees on assignment in the U.S. have access to celebrations as well, and it’s not limited to Mardi Gras in New Orleans. Cities with notable Carnival/Mardi Gras events can be found in:

• Baton Rouge & Lafayette, Louisiana
• Orange Beach & Mobile, Alabama
• San Diego, California
• Orlando, Tampa & Pensacola, Florida
• Galveston, Texas
• Biloxi, Mississippi
• St. Louis, Missouri
• Washington, D.C.

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Expats Celebrating Local Culture

Carnival celebrations across the globe serve as a testament to the beauty of cultural differences coming together in a harmonious celebration.

Employees on international assignments often gain insights into the host country's culture through experiencing local Carnivals, which can add value to the overall experience while on assignment.

Often, employees on assignment will get together with locals and other expatriates to celebrate and, for employees returning from international assignments, the exposure to diverse traditions can become a cornerstone for fostering a stronger global mindset.

New holidays, traditions, and memories in assignment destination countries might be different, but with an open-mind—exploring the local holidays and traditions around the world can prove a fun, educational, and memorable experience.

Enjoy your 2024 festivities!

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Maximizing Talent Through Inclusive Relocation Programs

Inclusion is more than just a catchphrase—it's a necessity today for attracting and securing a new generation of recruits. In this article, we explore the significance of inclusive relocation and the steps organizations can take to promote diversity in their global mobility programs.

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Belonging, as an Outcome

“Diversity” and “Inclusion” have become common business buzzwords, but sometimes little thought is given to what they truly mean or what outcomes can be if they are prioritized.

One way to understand these concepts, as suggested by Ramona Blake in a 2023 AutoDesk article, is to consider:

• Diversity as a mix of employees,
• Inclusion as a proactive behavior, and
• Belonging as an outcome.

People feel their contributions are meaningful and their ideas are important to the company’s success. This makes them feel that they are a valued and valuable part of the company’s future,” writes Blake.

In fact, more than ever, research shows that organizations with inclusive cultures are more likely to attract and retain top talent.  

In a paper from Deloitte, researchers found that out of 1,300 employees and job seekers:

• 80% of respondents indicated inclusion is important to them when choosing an employer
• 39% said they would leave their current organization for a more inclusive one
• 71% said they prefer an organization that demonstrates inclusive behaviors, even if the company has inconsistent inclusive programs (as opposed to a company that has high-quality inclusion programming, but displays inconsistent inclusive behaviors)
• 23% of respondents indicated they had already left an organization for a more inclusive one (including 30% of millennial respondents)

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Inclusive Companies Perform Better

Recruiters for companies with a strong inclusion / belonging culture usually emphasize connecting with, interviewing, and hiring a diverse set of individuals through understanding and valuing different backgrounds and opinions. Not only can this help access a much broader talent pool, but it fosters a more innovative and high-performing workforce.

“Finding and hiring these employees is only the first step. For them to stay, develop their careers, and contribute meaningfully to the organization, they need to feel included,” reports consulting firm Bain & Company. Their 2023 research finds that employees who feel fully included are 14 times more likely to be promoters of their organization and up to 6 times more likely to stay with the organization.

As part of an inclusive / belonging company culture, team members are encouraged to challenge the status quo. This is critical for industries in transition. According to a September 2023 Harvard Business Review article, inclusive companies are:

• 73 percent more likely to reap innovation revenue,
• 70 percent more likely to capture new markets,
• up to 50 percent more likely to make better decisions, and
• up to 36 percent more likely to have above-average profitability.

In decades past, companies have designed “one-size-fits-all” benefits packages, but this may have inadvertently resulted in reduced access or opportunities for a wider talent pool and acceptance of company relocation offers.

To support inclusive recruiting efforts and business goals, there is a strong business case to be made for reviewing and adjusting relocation policies and benefits to address new family / employee needs and changing demographic trends.

Inclusive mobility programs recognize that the needs of a diverse group of employees differ significantly. Organizations might consider revisiting their program benefits and policy communications to ensure they reflect their companies’ inclusivity initiatives and maximize opportunities for success.

This could simply involve tweaking existing language to make it more inclusive or offering a wider, more creative range of support services tailored to today’s changing relocation needs.  For example, programs that can make a significant difference for individuals / families with different backgrounds and situations to accept a move could include.

• providing resources for spouse / partner transition assistance,
• addressing “sandwich generation” challenges,
• supporting families with special needs children,
• offering cultural and / or language training for those going to another country, etc.

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Confidence and Competency is Key for Belonging

Promoting inclusion in relocation policies / programs also might involve deeper cultural understanding, so teams that regularly work across cultures and employees taking assignments to other countries would both benefit from pre-departure cultural training to ensure a seamless adaptation.

After all, employees / families asked to relocate to new cities, regions or countries may face significant lifestyle differences that may challenge their personal and professional roles daily.

For instance, even in some moves within the U.S., we are starting to see more cultural training being offered by clients for challenging relocations (e.g., small town Midwest to New York City or vice versa) where living conditions and challenges can be vastly different. Training topics can include lifestyle and cultural changes, transportation, safety, education, spouse/partner career issues, how to make new friends, how to get things done, and more.

Cultural competency training equips them with the knowledge and skills needed to navigate differences effectively. Some of the most common themes that prevent participation in employee international mobility programs include:

• issues of cultural fit or language.
• career concerns/dual-career concerns.
• personal family challenges.

“Typically, the most common obstacles are visa and immigration requirements and timelines, language barriers, and cultural differences. Companies can mitigate these obstacles by planning ahead to align visa and immigration timelines with the timeline of the business need and by offering language and cultural adaptation services,” said Randy Wilson, President and CEO at NEI Global Relocation, in HRO Today Magazine.

“The fact that all employees feel valued and included in the success of the company as well as their own development is the biggest benefit to an inclusive relocation program,” said NEI’s Wilson.

Understanding and respecting different needs, cultures and challenges not only promotes inclusion / belonging, but helps:

• build strong, collaborative teams of employees across borders and cultures; and
• open global career opportunities for employees that never thought they would be capable of accepting an international assignment.

As highlighted in the NEI article “Helping More Women Accept International Assignments” in International Business Magazine, the faster employees and their accompanying families can adapt to new countries and cultures, the more productive employees are likely to be, increasing the chances of a successful assignment.

Such proactive assistance reduces relocating employee stress, assignment failures, and lost business opportunities for the company. Providing personalized support, services, and resources is key to accommodating varying needs. This includes local housing guidance, community information, or even mentorship programs to ensure a smoother transition for employees.

“Strength lies in differences, not in similarities.” ~ Stephen R. Covey

People want to work where they feel the organization is contributing to their growth and realization of their potential, and where they feel seen, valued, and respected and most business executives agree that the purpose of the organization should be to create value for workers as human beings.

Promoting diversity and inclusivity in relocation programs is not just a matter of corporate social responsibility, it's a strategic priority to be more competitive going forward. Whether it’s through redefining relocation programs, addressing cultural competency, or providing tailored support, organizations are taking meaningful steps that benefit companies and teams.

Tailored support initiatives contribute to a more inclusive, supportive work environment where all employees feel valued and empowered to make a positive impact.

If you would like to discuss this or any other global mobility trends or unique company challenges, please contact your NEI representative.

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

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NEI SOC 1 & 2 Audit Success - Zero Findings for the Third Year in a Row!

NEI Global Relocation is pleased to announce that our Service Organization Control (SOC 1 and SOC 2) audits achieved ZERO findings for the third year in a row and in six of the past seven years.

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SOC 1 – Compliance with Financial Laws and Regulations to Combat Fraud

A SOC 1 audit is for service organizations and assesses the internal controls and procedures which are in place to protect client data and ensure controls around processes are operating as designed – more specifically related to financial reporting. A SOC 1 report validates the organization's commitment to delivering high quality, secure services to clients.

This report provides customers with an independent opinion so they can be confident that financial laws and regulations comply with corporate responsibilities to combat corporate and accounting fraud.

“With the achievement of a SOC 1 report with no findings, the NEI teams have demonstrated our ability to provide reliable and secure services to all of our clients and their relocating employees, while ensuring the accuracy and integrity of their financial data.” said Michelle Moore, NEI Chief Global Mobility officer. “I’m incredibly proud of our teams.   This is an amazing testament to the strong internal control system maintained by every one of our stellar employees in their on-going dedication to complying and adhering to the internal control structure and processes.”

The AICPA clarifies that this type of SOC report for service organizations provides a level of assurance to the organizations’ clients that financial reporting is practiced in accordance with the Statement on Standards for Attestation Engagements SSAE No. 18.

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SOC 2 – Availability, Security, and Confidentiality

The SOC 2 report addresses a service organization’s controls that relate to services, operations, and compliance. NEI’s SOC 2 reports on the criteria of availability, security, and confidentiality – that which is often categorized under data security.

“Three years in a row of “zero findings” is an achievement only possible through the daily efforts of all NEI employees!” said Kevin Sefcovic, NEI Information Security and Privacy Director. “The fact that we can maintain this level of excellence shows our organization’s dedication to data security and privacy and our commitment to keeping our customers data secure. We are continuing to adapt our processes and services to meet the ever-changing security landscape and ensure this level of assurance in the years to come.”

The SOC 2 report is connected to the SSAE 18 standard and was created in part because of the rise of cloud computing and business outsourcing of functions to service organizations.

In addition to our excellent SOC 1 & 2 Type 2 ZERO findings results over the years, in the 2023 Trippel Relocation Managers’ Survey©, NEI earned the highest average score or Net Satisfaction percentage in: Willingness to Recommend; Continuation of Service; Culture and Partnership; and Transparency. NEI also tied for first in net satisfaction for Account Managers and Integrity, while also ranking in the top three for Responsiveness and Overall Satisfaction. In the Performance category, NEI was one of only two service firms to be described by each survey respondent as either “Best in Class” or “Excellent.”

Should you want more information about our SOC 1 and 2 Audit results, please reach out to Michelle Moore, NEI Chief Global Mobility Officer or Greg Keith, NEI Chief Information Officer. We are always here to help.

Current Realities in U.S. Homebuying Trends

The home buying reality today is stark and record low inventory caused by high mortgage rates have “trapped” owners in their current mortgages. Experts don't predict home prices to revert to pre-pandemic levels anytime soon, so even those who were able to buy a home may find the idea unacceptable with their other financial goals.

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Rising Costs, Limited Options

Warren Buffett once said, "Price is what you pay. Value is what you get." This highlights the essence of making a wise investment, especially in terms of buying and owning a home.

Today, however, Buffett’s advice above may be hard to swallow for would-be home buyers:  the average house price is around $400,000, much higher than it was twenty years ago when it was roughly $170,000. Also, the interest rates for home loans are now higher than they've been in 20+ years.

Prior to the pandemic, a home buyer with a $2,000 monthly housing budget could have purchased a home valued at over $400,000. Now, that same budget can only stretch to a home valued at $295,000 or less with rates in the 7 percent range.

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This Time’s Different

Usually, when mortgage rates go up, home sales slow down, and sellers lower prices to attract buyers, but, as the saying goes, “This time’s different.”

Despite the pent-up demand, with home sales decreasing and bidding wars becoming less common, prices are still going up due to a home inventory shortage. Many homeowners who locked in low rates in recent years are reluctant to sell and corporate investors accounted for 26% of all single-family purchases in 2023, up from pre-pandemic levels of less than 20%, per Business Insider.

These statistics for different regions in the U.S., provided by the National Association of Realtors (NAR), corroborate what so many people are experiencing in the market right now:

• Northeast: Median price $439,200 (up 7.5% from last year)
• Midwest: Median price $285,100 (up 4.2% from October 2022)
• South: Median price $357,700 (up 3.5% from last year)
• West: Median price $602,200 (up 2.3% from October 2022)

In 2024, according to Money Magazine, some semblance of a buyer's market in real estate could be on the way, ending a period of low inventory and record high prices.

Despite the Federal Open Market Committee indicating that no rate hikes are anticipated for 2024, and rates could begin coming down, don't get too excited.

Housing market predictions from real estate companies Redfin and Zillow show both companies forecast that buyers will see some improvements in terms of inventory and prices in 2024, both also say mortgage rates will remain stubbornly high. This will hamper the speed at which real estate will return to normalcy. Redfin predicted that rates will only drop to about 6% at best; Zillow said rates will have some definite "staying power."

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A Keystone of Wealth

Understandably, many people feel discouraged or have given up on the dream of buying a home since moving to a new home with higher interest rates could mean paying hundreds of thousands more in interest over a 30-year loan.  According to a Zillow report, current homeowners are likely to stay where they are until mortgage rates drop back to 4% or 5% before considering moving to a new place.

However, Suze Orman, a well-known financial advisor, emphasizes that "Owning a home is a keystone of wealth — both financial affluence and emotional security.” This might explain why, even with such high interest rates today, first-time buyers were responsible for 28% of sales in October 2023, up from 27% in September, and identical to October 2022. Overall, about one-third of buyers were first-time home buyers in 2023, according to the National Association of Realtors.

This may be due to mortgage rates dropping from recent highs, sparking interest in buying; not to mention the first quarter of most calendar years typically sees higher interest from buyers, making 2024 a strong period for selling if interest rates fall.

NAR's Chief Economist Lawrence Yun believes that after this winter, more homes will be available for sale, leading to more purchases. "Fortunately, mortgage rates have fallen…stirring up buying interest," Yun stated. "Though limited now, expect housing inventory to improve after this winter and heading into the spring. More inventory will result in more home sales."

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Factoring in Renting and ARMs

Mortgage loan applicants in October signed up for a median monthly payment of $2,199, marking a 9% increase – or an additional $143 each month – compared to the previous year, according to the Mortgage Bankers Association. In contrast, renters are experiencing a decrease in monthly rents. The national median monthly rent in October was $1,978, down 1.6% from the previous month and a 0.29% drop year-over-year, as reported by Rent.com.

Adjustable-Rate Mortgages (ARMs) have resurfaced as a popular topic in the media, particularly due to their significant role in the Great Financial Crisis. In 2005, ARMs constituted about 45% of all mortgages. Despite offering potential short-term cost benefits, ARMs carry increased risks and have also seen a rise in costs this year. The popularity of ARMs has grown as mortgage rates have recently increased. By April 2023, ARMs represented 18.6% of the dollar volume of conventional single-family mortgage originations, a substantial increase from its January 2021 low, according to CoreLogic.

The usage of Adjustable-Rate Mortgages (ARMs) differs based on location and loan amount. According to CoreLogic, ARMs are more frequently chosen by homebuyers who take out larger loans. This is particularly true for "jumbo loans," as compared to borrowers with smaller loans. CoreLogic cites: “Among mortgage originations exceeding $1 million in April 2023, ARMs comprised 45% of the dollar volume, a 6 percentage-point increase from April 2022.”

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Strategies to Overcome

The landscape of homeownership in America is undergoing a transformation, presenting obstacles for many aspiring homeowners. The decision about whether to rent or buy in today’s real estate market is largely dependent on what one can afford. Nevertheless, with careful planning and adaptability, achieving homeownership remains within reach.

In the face of today’s challenges, prospective homebuyers might consider several strategies to overcome the hurdles posed by the present housing market:

• First, thorough research and financial planning are crucial: use qualified brokers and mortgage providers to help guide your financial decisions.
• Second, assess your budget, explore different loan options, and consult with financial advisors to make informed decisions.
• Third, flexibility is key: consider a range of alternative locations or slightly smaller homes within your budget range.
• Fourth, stay informed about market trends and be patient: doing so could pay off in the long run. While the market may seem daunting today, the situation can change, and opportunities may arise.

Buyers should not hesitate to seek guidance from real estate or relocation professionals who can provide valuable insights and guidance tailored to your specific circumstances. By combining these strategies, prospective homeowners can better position themselves to navigate the current challenges within their individual financial situations and achieve their homeownership goals when the time is right.

If you would like to discuss this topic further, please reach out to your NEI representative at any time.

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_{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. You should consult your own tax, legal and accounting advisors before engaging in any transaction.}

Global Payroll Compliance and Accuracy

Ensuring compliance with a country's payroll reporting and withholding regulations, along with accurately managing the evolving intricacies of international relocation compensation, is crucial. While this can be intimidating, especially for those new to corporate global mobility, it doesn't have to be.

As global payroll operations for assignees (employees who work outside their home country) have become increasingly complex, global companies are placing increased importance on having effective compensation/payroll operations.

Tax authorities around the world have sought to increase revenue through additional taxation and more stringent enforcement of wage and tax reporting requirements, according to Deloitte.

“The market is experiencing a spike in payroll audit activity and reputational risk…Organizations and their mobile workforce are becoming increasingly visible to revenue authorities who require strict compliance with payroll reporting requirements, thereby creating challenges for internal functions such as Mobility, Tax, Payroll and Finance,” Deloitte reported.

Of surveyed companies, 67 percent now have a formalized payroll strategy in place according to an EY Global Payroll Survey. EY also found organizations with formal payroll strategies have a more efficient payroll operation: “Simply stated, organizations with formal and documented payroll strategies built a more efficient payroll operation than those without a formal policy.”

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Tailored Global Compensation Solutions

NEI streamlines payroll reporting with tax partners for clients, providing global compensation accumulation and reporting in-house. We further coordinate with each client’s payroll and tax partner to ensure all details are accurately captured. This benefits our clients through:

• Less work for client teams, freeing up time for other core responsibilities
• Potentially lower costs with the tax partner, as they can easily have all the details captured for filing without spending billable time gathering information or seeking data clarifications

Including the identified tax firm as part of our implementation / transition process for new clients creates a clear system and establishes expectations for required reporting formats, timing of scheduled reports, and year-end reports.

Tailoring procedures to client-specific payroll and accounting timelines directly benefits companies. We engage client global payroll departments to transmit data and discuss process / timing needs in order to coordinate filings with each client’s tax partner.

NEI can also work in conjunction with a company’s tax firm if they participate in the local calculations. If tax preparation services are outside of policy, we work within a client's designated parameters to determine appropriate timing, format, and information for payroll contacts.

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We Work with Experts, So You Don’t Have To

NEI manages global compensation of international assignments holistically and in conjunction with compensation experts to obtain approved allowances and differentials for each individual employee.

Doing so allows us to provide compensation information to each client’s payroll and global tax firm to ensure both have the data needed for making payments and properly reporting total employee income. As with all services, NEI can work with either our partners or client-preferred partners to meet each client’s unique needs.

If a company expands into a new country and lacks a local payroll system, which may be mandated by local law, NEI can facilitate the coordination of payroll services in specific countries. This is managed through our accounting service partners, renowned for their extensive experience in handling international payroll and accounting systems. They provide a comprehensive suite of cross-border services, including setup, payroll management, accounting, tax compliance, and advisory services. These services are tailored to meet the individualized needs as specified by NEI.

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Stress Free Support

NEI works closely with each client and their tax firm to report payments made to or on behalf of assignees throughout the year. We offer comprehensive support so that clients’ global compensation compliance requirements are met in a timely manner. Additionally, we will review programs and suggest improvements where necessary.

To learn more on how NEI can assist with compliance regarding Global Compensation, please contact your NEI representative or Michelle Moore, CPA, MPA, CGMA, Chief Global Mobility Officer.

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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.}

Global Mobility Strategies for Enhancing Employee Well-Being

Global mobility, the practice of relocating employees across borders for work assignments, has become essential in today's competitive and interconnected business landscape. As corporations expand operations globally, the demand for a diversified workforce capable of navigating different cultural contexts rises. However, global mobility carries its own unique set of challenges, a significant one being the necessity to ensure employees have a positive experience during their global transfers. This article highlights the significance of enhancing the employee experience in global mobility and proposes effective strategies for successful implementation.

Conclusion

Employee experience is vital for successful global mobility and business operations on a global scale. Prioritizing employee wellbeing, development, satisfaction, and recognition ensures rewarding global experiences for both employees and organizations. By adopting inclusive policies, promoting effective communication, and putting appropriate planning into practice, businesses can successfully address the challenges that come with global mobility.

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_{NEI Global Relocation is honored to feature this insightful article, expertly authored by Klippa Relocation. As part of our commitment to supporting employees and their families during their relocation journeys, we're delighted to showcase Klippa's exemplary services. Klippa excels as a leading provider of relocation, immigration, and corporate services, facilitating smooth transitions across the globe. Their dedication to seamless relocation experiences is evident in thand in every service they offer.}

Shipping Disruptions Impact Relocation

International shipping faces several disruptions heading into 2024, making it hard to forecast how things will play out.

Situation:

While freight rates are lower when compared to the recent past, concerns over rising costs and delays in import shipments are again increasing due to these developing situations:

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Middle East – Red Sea

Attacks on cargo ships in the Bab-el-Mandeb Strait of the Red Sea – where about 12 percent of global shipping sails through – have prompted hundreds of cargo ships carrying over 2 million containers to reroute from the Red Sea.  Rerouting will result in longer transit times and elevated costs.

Changing a cargo ship’s route from Asia to Europe around the southern tip of Africa, rather than using the Suez Canal in the Red Sea, represents a major detour. For example, a cargo ship’s voyage from Singapore to Rotterdam would be extended by 3,300 miles, a 40 percent increase, adding approximately 10-to-14 extra days in transit and sizeable costs.

With the international community mobilizing to stop this disruption to global trade, it is possible that these ship diversions could end soon, but only time will tell.

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Central America – Panama Canal

Simultaneously, the 50-mile-long Panama Canal – which 5-to-6 percent of global shipping flows through – has had a 33 percent capacity reduction due to a drought, posing challenges in the shipping bottleneck area. Ships moving through the canal have faced wait times of up to three weeks. Delays are expected to continue until April / May 2024, when the rainy season is expected to raise the low water levels and end the region’s drought.

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North America – US Mexico Border and West Coast Ports

Congestion of freight traffic at the Mexico-U.S. border is escalating and likely to continue its upward trend. This increase stems from the U.S. actively suspending freight train services across the border to counter unauthorized migrant crossings. The resulting shift from rail to truck transport for containers could significantly impact freight capacity, costs, and transit durations.

Both shippers and the broader supply chain should remain attentive to the potential recurrence of increased activity and congestion at major U.S. west coast ports next year due to  an anticipated surge in cargo from Asia to U.S. East Coast. This surge could strain trucking services and create logistical delays similar to those experienced during the pandemic.

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What You Can Do

Companies should look for rate increases and a potential rise in incremental costs due to delayed shipments (e.g., temporary housing), as well as increased stress from relocating employees who will have to wait longer than expected for their goods.

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

• Budgeting for additional freight rates in your cost estimates
• Working with partners to develop processes that include verification that freight increases are genuine
• Questioning rates that are much lower when compared to the overall market; which is often an attempt to lock in business with large increases coming without warning

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NEI Guidance

Be prepared for these shipping trends to continue. Consider reasonable policy changes going forward, like the following:

• Allowing exceptions specifically due to continued and new shipping disruptions in 2024
• Setting new expectations with relocating employees
• Considering alternative policy options for shipping international household goods

NEI remains committed to managing client costs for every move. Our Client Relations Managers will collaborate with each client to identify the most cost-effective options for international household goods shipping. They will also discuss providing a small allowance to employees for the extended transit period without their goods.

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In Summary

NEI and our service partners will keep you posted on this developing situation, but if you would like to discuss policy changes or options to reduce global container shipment costs, please reach out to your NEI representative or Mollie Ivancic, NEI’s VP, International Services.

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_{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.}

NEI’s Brian Digan Receives the NTRP 2023 Saul Gresky Relocation Professional of the Year Award

NEI Global Relocation is delighted to announce that our own Brian Digan, Vice President of Client Development, is the 2023 recipient of the North Texas Relocation Professional (NTRP) Saul Gresky Award.

This honor is bestowed upon an exceptional corporate or relocation service professional who embodies the essence of outstanding customer satisfaction, going above and beyond to serve corporate employees in their relocation journeys.

Located in Dallas, Brian boasts 40 years in the industry, fostering relationships with diverse corporations across multiple cities. Through his unwavering commitment to the industry, Brian has contributed significantly to enhancing the positive image of the relocation profession, fostering collaboration and support across numerous groups.

A proud Villanova University alumnus, Brian earned his MBA from the University of Connecticut School of Business and, as NTRP Treasurer, Brian has helped the group provide a forum for education and networking in all areas of relocation by both corporations and service sectors of the industry.

In an industry where service, ethics, and professionalism are key, NEI Global Relocation celebrates Brian for his industry efforts, achievements, and winning this year’s Saul Gresky Award.

Congratulations, Brian, for your dedicated and positive impact on improving corporate relocation experiences for employees and companies. Your efforts are truly appreciated.

Navigating New Mileage Rates, Tax Bracket Changes, and More for Relocation

With the new year comes new caps, tax tables and allowances from the U.S. Internal Revenue Service (IRS). Listed below are the areas related to relocation for tax year 2024.

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Standard Mileage Rate

The IRS announced an increase of the optional standard mileage rates for 2024. The standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 67 cents per mile driven for business use, an increase of 1.5 cents from 2023.
• 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, a decrease of 1 cent from 2023.
• 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2023.

Most companies follow the IRS guidelines to calculate the mileage reimbursements for final move expenses when driving to the new location. This rate increase will affect mobility programs:

• If you are an NEI client who has elected to follow IRS guidelines for your expense administration, nothing is needed at this time. NEI will incorporate the mileage change into your expense reimbursement policy, as agreed.
• If you are an NEI client who has not elected to follow the government established mileage rates in the past, NEI will continue to follow your prescribed rates unless you advise us that your company is changing the rate. Please contact your NEI Client Relations Manager directly, if you would like to confirm or update your current rate.

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IRS Federal Income Tax Brackets and Rates

The IRS has also announced new 2024 tax year tax brackets, for taxes one will file in April 2025.

• The IRS has adjusted the brackets for 2024 based on inflation, which is considered annually.
• One’s tax bracket depends on one’s taxable income and filing status: single, married filing jointly or qualifying widow(er), married filing separately and head of household.

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Standard Deductions

Standard deduction amounts have also increased:

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Social Security Wage Limit

The Federal Insurance Contributions Act (FICA) requires companies to withhold three separate taxes from the wages paid to employees.  The largest tax of these three is the Social Security, also known as the Old Age, Survivors and Disability Insurance Program (OASDI).

For 2024, the FICA tax rate for both employers and employees is 7.65% (6.2% for OASDI and 1.45% for Medicare) to be paid on the first $168,600 of wages in 2024. This is up from $160,200 in 2023.

$10,453 is the maximum amount of Social Security tax that will be deducted from an employee’s paycheck in 2024. This is an increase from $9,932 in 2023.

Supplemental Tax Withholding Rates  

As standard for previous years, the supplemental Federal rate is 22% for those who make under $1 million remains unchanged, as does the 37% supplemental rate for those who exceed $1 million.

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In Summary

As your relocation partner, NEI is here to explain year-end tax questions for your relocating employees. If you have any question about these changes, please contact Jaymi Stacy, NEI’s Sr. Director of Expense Disbursements, or your NEI Client Relations Manager at 800.533.7353.

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_{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.}

How Global Economic Trends Are Driving Relocation

As the global economy shifts at an unprecedented pace, the role of global mobility managers is becoming increasingly complex and vital. Understanding the intricate web of free trade, technological advancements, and evolving workforce trends is crucial, given their profound impact on the nature and structure of today's work environment. This article explores the interplay between these variables and provides insights into their collective impact on job distribution and talent management.

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Global Trade Dynamics and the Movement of Jobs

The last decade has witnessed significant shifts in global trade dynamics. While free trade fosters growth in total income at the country level, it also influences the distribution of jobs within and between nations.

A notable example is the United States, where manufacturing accounts for roughly 11 percent of total output and employs 8.4 percent of the workforce.¹ Over the course of 40 years, the U.S. has seen a major migration of manufacturing jobs to countries with lower manufacturing wages. Manufacturing jobs have declined from 19.6 million in 1979 to nearly 13 million by November 2022, representing a 56 percent+ decrease when adjusted for population growth.²

As the manufacturing sector in the United States shrinks, this not only affects those directly employed in manufacturing but also results in a ripple effect, causing a substantial loss of jobs in secondary and tertiary industries. One study calculated that for every 100 jobs lost in durable manufacturing, 744.1 indirect jobs were lost through connections to sectors that provided materials for manufacturing and where manufacturing workers spent their income.³

Debate continues over the potential to restore these manufacturing jobs through policy changes, but the rising influence of technology and automation could irreversibly reshape the employment landscape in manufacturing.

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Technology's Role in the Changing Workforce

Automation in industries, especially noticeable in sectors like automobile manufacturing, have drastically reduced the need for human labor. A modern automobile factory now operates with significantly fewer employees than it did four decades ago. Additionally, as exemplified by a shift towards battery electric vehicles (BEVs) with simpler, less part-intensive plans, broader technological advancements in product designs have the potential to further impact manufacturing jobs overall.⁴

This shift, while diminishing the number of manufacturing jobs, has increased the demand for higher-skilled labor. Consequently, the compensation per job in the manufacturing sector has risen, reflecting the need for more specialized skills. A 2021 Deloitte study reports the U.S. is expected to have 2.1 million unfilled manufacturing jobs by 2030, citing that, with technological advancements driving efficiency and productivity, “companies are willing to pay top dollar for skilled workers who can help them stay competitive in the global market.”⁵

With organizations facing increased challenges incentivizing both existing employees and new skilled workers to accept roles that involve relocation, offering competitive and cost-effective relocation benefits can prove to be a useful tool.

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Economic Trends and Predictions

The current state of the global economy presents a mixed picture. While some regions experience modest growth, there's an overarching trend of slowing economic activity. This slowdown is partly attributed to significant increases in interest rates, the Federal Reserve’s response to a burst of inflation not seen in decades. The tightening of financial conditions by central banks aims to temper this inflation but comes at the cost of slowing down economic growth.

Predictions for the near future include the possibility of mild recessions in some areas. In a recent interview with NEI Global Relocation, Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae, stated,

“In the first half of next year, still it's close to a toss-up, but we still think there's likely to be a mild recession starting sometime in the first half of next year… Right now, growth is pretty good, but we think it's likely to slow into next year.”

The reasons range from rising costs of goods and services due to increased credit costs to dampened employment and income growth. “Even though the rate of inflation is falling, it's still positive and prices have not come back down to where they were,” Duncan continued. “Of course, the Fed is concerned about the pace at which wages rise, which can be a contributor to inflation. So, there's going to be this period of frustration as time needs to pass with inflation at or below 2% and real incomes rising faster than that for households to catch up.”

Such economic concerns have profound implications for global mobility, affecting everything from talent acquisition strategies to compensation norms.

In the face of economic uncertainties, companies are sharpening their focus on roles crucial for enhancing operational efficiencies, such as HR business partners, process improvement specialists, and supply chain strategists. By focusing on strategic planning and efficient process management, these professionals help businesses navigate complex challenges, ensuring smarter and more effective use of resources. Simultaneously, with inflation impacting living costs, companies may reassess their compensation strategies. This could involve not only offering competitive salaries to attract key professionals, but also tailoring benefit packages to address the specific concerns of a workforce grappling with economic instability, such as increased healthcare coverage or flexible work arrangements.

As businesses recalibrate their talent acquisition strategies in response to economic challenges, understanding demographic shifts is the next essential consideration, given their significant impact on labor market dynamics and workforce availability.

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Demographics and Labor Force Implications

Shifting demographic trends, particularly in developed countries like the U.S., are significantly impacting the labor force and emphasizing the need for immigration and corporate relocation strategies. Between 2009 and 2021, the U.S. saw a significant decrease in fertility rates, dropping by nearly 15 percent from 66.2 to 56.3 births per 1,000 women aged 15-44, as reported by the Center for Disease Control.⁶  With the birth rate now below the replacement level, this trend points to a potential future decrease in the domestic workforce.

“The discussion of immigration is a flash point, but at some point there's going to have to be a realistic assessment of what it is that we would like to achieve,” conveyed Duncan. “We will not replicate our workforce absent immigration.”

That flash point may have been reached. Though Congress has traditionally capped the limits on annual H-1B visa numbers at 65,000, the program could significantly change in October 2024. The Department of Homeland Security U.S. Citizenship and Immigration Services (USCIS) published a 94-page Proposed Rule in October to modernize the H-1B program requirements beginning in October 2024.⁷

Talent acquisition professionals and relocation managers will have to balance workforce needs with shifting immigration policies, ensuring that their staffing and relocation strategies align with the evolving demographic environment and labor market demands.

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Adapting Talent Strategies in a Rapidly Evolving Global Economy

The interrelation between free trade, technology, demographics, and economic health creates a complex backdrop for Global Mobility and Talent Management leaders.  

In the manufacturing industry alone, jobs are likely to change significantly in the next five to ten years due to rapid technological advances, and the skills companies seek in their future workforce may evolve. Global Mobility and Talent Management teams, both in manufacturing and across all industries, will need to continually adapt, balancing the costs of relocation benefits with their effectiveness in recruiting and retaining employees who are requested to move.

Staying abreast of trends is essential for developing effective strategies for global talent mobility, workforce planning, and corporate relocation. In an era marked by rapid changes and uncertainties, global mobility and talent managers will remain critical to guiding organizations through future economic landscapes.

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Sources:

1. Maquiladoras, Mexico’s engine of trade, driven to navigate evolving demand, by Jesus Cañas
2. Forty years of falling manufacturing employment, by Katelynn Harris
3. Updated employment multipliers for the U.S. economy, by Josh Bivens
4. The stakes for workers in how policymakers manage the coming shift to all-electric vehicles, by Jim Barrett and Josh Bivens
5. 2.1 Million Manufacturing Jobs Could Go Unfilled by 2030, NAM News Room
6. Crude birth rates, fertility rates, and birth rates, by age, race, and Hispanic origin of mother: United States, selected years 1950–2019 and National Vital Statistics Reports, January 31, 2023
7. Modernizing H-1B Requirements, Providing Flexibility in the F-1 Program, and Program Improvements Affecting Other Nonimmigrant Workers

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Navigating Changes in Corporate Relocation and Benefits

NEI recently completed our 2023 U.S. Domestic All Benefits Survey. The survey covered all components of a typical U.S. domestic program, including policy overview, origination/departure services, destination services, the home sale process, and tax assistance. The top participant industries were Manufacturing, Medical/Pharma, Technology, Energy & Utilities, and Oil & Gas. There were 224 participants and forty-five policy components included in the survey, the key takeaways focused on flexibility in mobility programs, economic impact of policy changes, an increase in the number of renters, and the addition of Diversity, Equity & Inclusion (DEI) options for relocating families.

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Program Flexibility & Policy Structure

The survey indicates that more and more companies are responding to the ever-changing needs of employees and internal business units by including more flexibility in their policy structures. The 4-tiered policy structure is the most common way to meet these needs, which is a slight increase from 3 tiers in 2022.The usage of core-flex programs has also increased, as have lump sum-only programs, which have increased from 2% to 3% by offering incentives to lower-tiered employees.

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Influx of Renters

Traditionally, it was common for companies to assume their higher-tier employees would receive home sale benefits as part of their relocation package. However, survey results show that companies have noticed an increase in higher-tier renters and have responded by adjusting their lease cancellation benefits, with executive-level rental finding assistance increasing from 53% to 56%. Lease cancellation reimbursement ordinarily equals up to two months’ rent, but our research shows that nearly 11% of companies offer up to three months’ rent, likely at the higher policy levels.

Because an increase in the offering of rental finding assistance has been noted and is consistent with the increase of lease cancellation benefits, NEI recommends that companies offer all employees rental finding assistance, regardless of housing status in the old location.

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Economic Impact on Policy

Another factor influencing client decisions is the economic impact of policy parameters such as Loss on Sale, Cost of Living Adjustments (COLA), and Mortgage Interest Deferral Assistance (MIDA). Though the housing market is slowing slightly, Case-Shiller reports that prices are still increasing. While it is still possible for employees to experience loss, NEI recommends companies prepare an addendum to policy for unique or “one-off” loss on sale situations.

One question NEI kept in mind while preparing the survey was “Are more companies offering COLA and MIDA with the cost of living increasing and the mortgage interest rates climbing so much?”

According to the survey, the answer is not really. With the cost of living increasing everywhere, the use of COLAs has risen from 7% to 11%, which is a relatively small increase compared to the rise in living expenses, but the expectation is that usage could increase more in the coming years. Additionally, for MIDA, only 2% of companies offer it for their Executives and 1% for their Directors and VPs.

When considering implementation of a MIDA program, NEI encourages companies to consider the interest rate differential increase rather than the interest rate itself. While MIDAs of old used to impose an 8% minimum rate for eligibility, the differential was typically only 2-3%. Though rates are now still below that prior 8% threshold, we’ve seen an increase of nearly 5% for some homeowners who purchased around 2%. A more appropriate method would incorporate the MIDA based on a minimum differential vs. the rate.

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Diversity, Equity & Inclusion

The Benefits Survey shows that companies are incorporating DEI into many aspects of their corporate structure, including their relocation programs. Because the most common reason for an unsuccessful or declined relocation is spouse/family issues, there has been a significant shift from career assistance to family acclimation services.

New to the survey this year, DEI benefits are now outlined by 9% of survey respondents, a trend that NEI expects will continue to grow. The most common type of DEI benefit is employee/family integration assistance (44%), followed by DEI-specific allowance (28%) and flex benefit options to meet any need (22%). Also noted by some was their desire to minimize the gap between homeowner and renter benefits, bringing more equity to their programs in that way. As a result, new home closing costs are being more frequently offered to former renters.

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Looking to Stay Ahead of the Curve

In addition to the topics outlined above, one subject expected to receive even more attention in 2024 is the 2017 Tax Cuts and Jobs Act, which will either be extended or expire in 2025. If the Act expires and the excludability of some tax expenses is reinstated (e.g. household goods and final move benefits), companies may experience a decrease in tax gross-up expenses, lessening the burden of otherwise rising costs.

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If you would like a copy of the 2023 U.S. Domestic All Benefits Survey in its entirety, please contact your NEI representative or click here.

AI is changing the world, the only question is, "How?”

It's hard to overstate what “work” means to humanity—it's an integral part of what we do. A defining characteristic. From chariots to cathedrals, currency, jet planes, and colliders, our hunger for innovation is plain as day. But will our pursuit of technological advancements lead to further flourishing, or will we work ourselves out of a job?

Nearly every major advancement in technology has taken jobs away, but has made many more. The printing press, electricity, automobiles, the Internet, etc. Yet this time, maybe for the first time, we can see a future where human work has actual competition.

What does it mean for operators in shipping sectors when self-driving trucks can drive further, safer, and cheaper than human counterparts? Or for financial professionals when programs are able to analyze, appraise, and execute transactions with higher yields and lower risk in a fraction of the time? What does it mean for all of us? Will we fashion AI into the ultimate servant of our leisure and let it replace us entirely, or will we wield AI as a master tool to solve problems we never could before?

Our creativity is undefeated, but our resolve will be tested. For us to live productively at peace with AI, we must first know what it is.

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Getting Our Definitions Straight

Artificial Intelligence (AI), in its broadest sense, encompasses any machine or software that mimics human intelligence. For instance, the ability to learn, perceive, reason, comprehend language, and problem-solve. As technology advances, AI's capabilities have expanded from simple algorithms to complex systems capable of autonomous decision-making and incredible displays of knowledge.¹

For example, planes use to be rudimentary, mechanically operated vehicles protected mostly by skilled pilots.  These days, modern commercial aircraft house AI powered flight controls, collision avoidance, weather prediction and avoidance, air traffic management, and terrain/obstacle avoidance systems—all basically standard.²

Machine Learning (ML), a crucial subset of AI, involves algorithms that learn from and make predictions or decisions based on data. Deep learning, an advanced form of ML, is patterned off of neural networks and sends data through multiple layers of analysis to develop comprehensive familiarity with the data set or subject matter. We have used forms of Artificial Intelligence for some time now, but what's new is AI's ability to produce original and detailed outputs with a high degree of usefulness and accuracy.³ This is known as Generative AI (GenAI) and represents the vanguard of our progress thus far.

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What Lies Beyond Generative AI?

I'm glad you asked.

The answer to that question is Artificial General Intelligence (AGI).  As Dr. Jeremy Kedziora, Endowed Chair in AI at the Milwaukee School of Engineering, explains:

“Artificial General Intelligence is like the holy grail of computer science. An AGI would be a kind of A.I. that would be self-adaptive, self-learning, able to do any task as well as or better than a human can do. It doesn't necessarily mean that an AGI would be conscious, it just means that it's very, very capable, and doesn't have any need for human intervention.”

As cool as it might be to have such a system operational in our world, for now it remains a goal for the future. Current AI systems are considered narrow or weak AI, designed for specific tasks, such as voice recognition or image analysis. But with the advent of Large Language Models (LLMs) like OpenAI's ChatGPT, a generative language system that can understand and generate human-like text, it's clear that today's AI systems are getting stronger every day.⁴

“Once developers can generalize a learning algorithm and run it at the speed of a computer—an accomplishment that could be a decade away or a century away—we’ll have an incredibly powerful artificial general intelligence,” said Bill Gates. “It will be able to do everything that a human brain can, but without any practical limits on the size of its memory or the speed at which it operates. This will be a profound change.”⁵

AI effectiveness and reliability is highly dependent on the data it consumes. Biases or errors in training data can lead to skewed AI behavior, reflecting human prejudices and failings. This duality in AI capabilities—reproducing both our ingenuity and our flaws—underscores the need for responsible AI development, focusing on ethical training practices and diverse data sets.⁶

AI's potential is vast, but its real-world applications are currently bound by technological limitations, ethical considerations, and practical feasibility. The progression towards AGI, if at all achievable, requires not only technological breakthroughs, but also a profound understanding of human cognition and ethics.⁷  

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How Will AI Impact What We Hire For?

The interplay between evolving AI capabilities and human adaptability is reshaping the workforce landscape. Jobs involving routine, repetitive tasks or those heavily reliant on data processing are increasingly subjected to automation through AI. Clerical work, data entry, and aspects of manufacturing are seeing a shift towards AI and robotics. However, this technological disruption is not merely about job replacement but also about transformation and creation of new roles.

For example, AI in healthcare⁸ is not only automating administrative tasks but also augmenting medical professionals' abilities in diagnosis and patient care. AI tools are assisting radiologists in detecting anomalies in imaging scans more accurately and swiftly than before.⁹ Kedziora, in speaking on the matter, adds:

“A doctor, a med student, or a resident standing at a patient's bedside doesn't have to keep in memory a hundred different physical signs of something. They can offload some of that work because that's just beyond the ability of anybody to do it effectively. We have these kinds of things going on right now.”

Integration of AI necessitates an evolution in the skill sets required for the workforce. Jobs will increasingly require a blend of technical proficiency and soft skills like problem-solving, creativity, and emotional intelligence. AI literacy will become a crucial skill across various sectors – not just for IT professionals.

“The AI genie is out of the bottle,” said Cynthia Breazeal, a professor of media arts and sciences at the Massachusetts Institute of Technology. “It’s not just in the realm of computer science and coding. It is affecting all aspects of society. It’s the machine under everything. It’s critical for all students to have AI literacy if they are going to be using computers, or really, almost any type of technology.” ¹⁰

The changes extend beyond individual job roles to affect team dynamics and organizational structures. AI tools will act as collaborators, aiding human teams in achieving greater efficiency and innovation. This shift in workplace dynamics also brings into focus the need for ethical considerations and governance in AI deployment.

Future hiring practices will likely emphasize a candidate's adaptability and capacity to work alongside AI. Similarly, professional education and training programs will need to adapt, preparing individuals for a future where AI is an integral part of the work environment.

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How Should You Think About AI and Your Industry?

Understanding AI's potential impact on an industry requires analyzing current technological integration and the nature of work involved. For instance, manufacturing has already seen significant automation with robotic assembly lines, so further AI integration, while likely, will not have the same impact as in other sectors. In contrast, creative industries like advertising or software development, traditionally reliant on human ingenuity, are beginning to experience AI's influence in generating content and coding.

AI should be viewed as a toolset tailored to specific challenges and opportunities rather than a one-size-fits-all solution. It requires human oversight to identify process inefficiencies and engineer AI solutions that address specific needs. Industries must evaluate their unique contexts to leverage AI effectively, fostering a workforce that can synergistically work with AI.

Another example is in retail, where AI can improve customer experiences through personalized recommendations and efficient inventory management. However, it should be noted that while humans appreciate the many positives that AI can offer, in many instances customers prefer to retain a human element—especially when it comes to customer service and decision-making.¹¹

To prepare for AI's future role, companies should assess their operational challenges and opportunities, investing in AI technologies that align with their strategic goals. Developing a workforce skilled in AI integration and adaptation will be crucial in leveraging AI's full potential.

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A Word on Relocation

The rise of AI is not only transforming job roles and industries, but it’s also reshaping the global workforce landscape. Companies are increasingly focusing on recruiting talent that is proficient in creating and using AI solutions. This shift is influencing where companies choose to operate and the nature of their workforce.

AI-driven technologies like telecommuting, virtual collaboration, and autonomous vehicles are changing the dynamics of work location and commuting. For example, the advent of self-driving cars could make longer commutes more tolerable, potentially affecting urban planning and housing markets.¹²

The globalization of the workforce, facilitated by AI and digital technologies, is leading to more diverse and geographically dispersed teams. This decentralization offers companies access to a broader talent pool, but also presents challenges in managing a remote workforce.

AI's influence extends to how individuals consider job opportunities. Technologies like advanced AI voice translation devices could reduce language barriers, encouraging more people to consider international assignments. Similarly, AI's role in making travel safer and more efficient could influence decisions related to travel-intensive roles.

In this evolving landscape, companies must strategically consider the makeup of their workforce, the location of their operations, and how they can best leverage AI to maintain a competitive edge. The future of work will likely be characterized by increased flexibility, with AI playing a pivotal role in enabling this transformation.

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Balancing Human Creativity and Machine Intelligence

“There are two types of companies:  those who are great at AI and everyone else.” ~ Marc Cuban

AI is a transformative force reshaping the environment of work and industry. Its impact extends beyond technological advancements to influence hiring practices, workplace dynamics, and even the global distribution of work.

As we integrate AI into various aspects of our professional lives, it is crucial to balance its potential with ethical considerations, ensuring that technology enhances rather than eclipses the human element in work. Because the future of AI in the workplace is not just about automation and efficiency: it's about harmony and crafting the right relationship between human creativity and machine intelligence.

In every era technological advancement challenges us to adapt, and especially so in this current time. The odds are in our favor. But make no mistake, our imagination stands at the helm of our response and will decide our future. Will we rise to the challenge and test its bounds, or will we allow AI to lull us into complacency?

It's yours to decide.

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Sources:

1. Understanding artificial intelligence ethics and safety, by The Alan Turing Institute
2. Fly to the sky! With AI. How is artificial intelligence used in aviation? by Artur Haponik
3. The future of work after COVID-19, by McKinsey & Company
4. How remote work is reshaping America's urban geography, by Brookings Institution
5. The Age of AI has begun, by Bill Gates
6. Artificial Intelligence and Life in 2030, by Stanford University
7. Artificial General Intelligence: Concept, State of the Art, and Future Prospects, by Journal of Artificial General Intelligence
8. Artificial Intelligence in healthcare: past, present and future, by BMJ Journals
9. How Is AI Used In Healthcare - 5 Powerful Real-World Examples That Show The Latest Advances, by Bernard Marr (Forbes)
10. AI Literacy, Explained, by Alyson Klein
11. I Stats News: 86% Of Consumers Prefer Humans To Chatbots, by Gil Press (Forbes)
12. Autonomous driving’s future: Convenient and connected, by Johannes Deichmann, Eike Ebel, Kersten Heineke, Ruth Heuss, Martin Kellner, and Fabian Steiner

Global Mobility Leader Achieves Top Rankings in Willingness to Recommend and Continuation of Services

NEI Global Relocation proudly announces its outstanding performance in the 22nd Annual Relocation Managers Survey© conducted by Trippel Survey and Research, LLC. Demonstrating unparalleled commitment to excellence, NEI has secured the top position in the highly coveted categories of Willingness to Recommend and Continuation of Service, reaffirming its status as a premier Relocation Management Company.

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#1 Willingness to Recommend

‍“It means a great deal to us that our clients feel comfortable and even excited to recommend us to their peers in the industry.” Randy Wilson, President and CEO of NEI Global Relocation, remarked. “We try very hard to pursue collaboration with quality clients that align with our culture of excellence, so to have those same people willingly advocate for our services speaks volumes.”

Commenting further, Wilson expressed, “This recognition reinforces our belief in the power of genuine relationships and the impact of delivering exceptional relocation experiences. We see it as a validation of our commitment to not only meet but exceed expectations, and it motivates us to continuously elevate our standards. We are grateful for the confidence our clients place in us and are dedicated to maintaining the level of service that inspires such positive recommendations.”

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#1 Continuation of Service

In speaking on receiving the top ranking for Continuation of Service, Wilson commented, “It’s incredibly satisfying to see the deep trust our clients place in our services and the dedication of our team to uphold the highest standards of excellence. It not only validates our commitment to excellence but also reinforces our resolve to innovate and adapt in an ever-evolving industry. This especially isn’t just an honor; it's our motivation to continue forging productive relationships and delivering unparalleled service for those in our care."

The dual triumphs in Willingness to Recommend and Continuation of Service solidify NEI Global Relocation's position as a trusted partner in global mobility. In securing top marks across various key metrics in the 22nd Annual Relocation Managers Survey©, NEI Global Relocation demonstrates steadfast dedication to service excellence and client satisfaction. This consistent high performance, recognized broadly in the industry, reinforces NEI's commitment to provide reliable and first-rate relocation services.

_{About NEI Global Relocation}

_{NEI Global Relocation is a leading Relocation Management Company, providing comprehensive global mobility solutions. With a commitment to excellence and a focus on building lasting client relationships, NEI ensures seamless employee relocations worldwide. For more information contact your NEI representative or click here.}

Protecting Renters: Avoiding Junk Fees and Spotting Scams

‍Apartment shopping can be stressful enough, but in today’s marketplace scammers and crafty custodians can lead to a financial maze with potentially disastrous results. This is why professional rental assistance can be so valuable.

New Rental Reality – Uncovering Hidden Fees

Median national rent prices continue to sit well above pre-pandemic levels, having risen by more than 18.5 percent in three years, and now account for 30 percent of the average American household income.

Hidden 'junk' fees and rental fraud make it difficult to accurately estimate the true cost of an apartment – especially when using different search engines online. These additional fees typically range from $5 to $50, which may seem insignificant, yet can add up with multiple line items to more than tenants budgeted for, as reported by The Wall Street Journal.

What makes the charges hard to contest is their attachment to specific services such as rent processing, trash removal, mail sorting, parking, pets, "January Fees" (an added charge in some states on the first month of the year with no apparent benefit to tenants) and even “convenience” fees to collect tenant’s rent online…which is a convenience for landlords.

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Enhancing Rental Transparency

Beyond the obvious financial implications, the lack of transparency associated with these fees can mislead renters into choosing an apartment they believe is affordable, only to discover unexpected costs. Even before the pandemic, over 20 million renter households expressed concerns about housing costs jeopardizing their financial stability, according to a March report by the National Consumer Law Center.

In response, the White House took steps to enhance transparency and several online platforms have agreed to work towards disclosing all fees. Examples of efforts include:

• Zillow.com plans to display a "cost of renting summary" on its active apartment listings, summarizing all additional fees.
• Apartments.com will introduce a calculator to help renters determine the total cost of renting an apartment.
• AffordableHousing.com will ensure owners disclose all refundable and nonrefundable fees upfront in their listings.

These tools aim to make apartment hunting more transparent, allowing individuals to compare options and reduce uncertainties.

Application Fee Awareness

Prospective renters often contact multiple owners or property managers and visit several places during their housing search. Each rental application entails a fee, ranging from $50 to hundreds of dollars. This is supposedly to cover office work and background/credit checks. In a tight rental market, applicants frequently apply to multiple properties, and inaccuracies in tenant screening reports can lead to repeated rejections – despite multiple application fees paid.

The White House's recent crackdown on "junk fees" also aims to shed light on these additional application costs, aligning efforts to also address extra fees assessed by airlines and live-event platforms.

The hope is that by making all fees public, fewer apartment complexes/landlords can surprise tenants and tenants will be better equipped to make fair comparisons between rental options while searching for a place to live.

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Recognizing & Avoiding Scams

Sadly, rental fraud is also on the rise. According to a recent survey conducted by Dwellsy, around 85 percent of responding renters experienced financial losses as a result from rental fraud above $400 and 19 percent experienced losses of more than $5,000. Over 60 percent of respondents reported encountering suspicious activities on digital rental platforms, such as fake landlords trying to steal a rental payment or deposit.

To secure a fair and transparent rental agreement, awareness is crucial. Scam signs include:

• Photos look too good to be true
• Listing has grammatical/formatting errors
• Pressure to sign the lease or send money prior to touring
• No credit check required

Using a qualified rental finding partner who understands the local market helps tenants steer clear of unwelcome surprises. Scams can further be avoided by:

• Always requesting a tour
• Avoiding sending money by wire
• Asking to speak with the property owner/manager
• Disregarding listings that look/feel suspicious

Through programs like Extended Rental Assistance, NEI works directly with qualified rental finding partners – giving each agency both verbal and written guidelines outlining the anticipated needs of relocating employees, setting expectations, specifying timelines, and reporting protocols for the rental search. Following the agent's initial engagement with the transferring family, additional follow-ups between NEI and the partner occur during and after the rental finding trips. As always, communication is maintained with the employee through the lease finalization process.

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In Summary

Renting an apartment can be complex, but being equipped with the right knowledge is critical to making it a stress-free process.

New tools from platforms like Zillow, Apartments.com, and AffordableHousing.com will undoubtedly aid employees, however, having multiple options, back-up plans, and working with a trusted rental-finding agency can make all the difference in ensuring successful employee transitions.

Ensuring the peace of mind and productivity of our clients’ employees remains our top priority. NEI’s Client Relations Managers work with each of their clients to discuss the most cost-effective approaches available. If you would like to discuss this or other relocation trends or cost-saving solution ideas, please reach out to your NEI representative.

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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. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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.

10 Things That Will Surprise You When Relocating to Dubai

Dubai continues to rise in popularity when it comes to international relocation and global mobility. Whether it is its reputation for safety, its unique business opportunities or its year-round sunshine, there are so many attractive elements about the city that keep drawing in new people every day.

If you want to know more about this in demand destination, click here.

_{NEI is proud to feature how our service partners support your employees and their families as they relocate and transition to all points of the globe. EER Middle East is the region’s leading supplier of relocation, immigration and corporate services in Saudi Arabia, Bahrain, Qatar, Oman, Kuwait and the UAE.}

National Association of Realtors Found Liable

On October 31, 2023, a jury reached a decision that could potentially change how real estate transactions are conducted in the U.S., creating opportunities for significant changes to commissions paid to real estate agents. In the case, Burnett v. NAR et al, the Kansas City, MO, jury found the National Association of Realtors (NAR), and some of the largest national real-estate broker franchisors conspired to artificially inflate home-sale commissions.

The basis of the conspiracy is the condition that a home seller must agree to pay a commission to the buyer’s agent before the home can be listed on NAR’s nationwide Multiple Listings Service database – a database controlled by local NAR associations. And, since most home sales are through the MLS marketplace, the plaintiffs claim home sellers are forced to pay a cost that should be paid by the buyer.

Under the new model, sellers may no longer be responsible for covering the seller’s and buyer’s agents’ commissions, allowing negotiation of different compensation models, and having buyers assume the responsibility of directly compensating their agents.

The NAR believes this could be a substantial challenge for first-time and low-income buyers who might lack the upfront funds to pay an agent, potentially depriving them of valuable expertise.

According to Worldwide ERC, the resolution of this and other related lawsuits could potentially change today’s real estate business by bringing competition, cutting costs, and providing customers with more options.

With uncertainty on how the ruling plays out, and NAR planning to appeal the decision with confidence, NEI will continue to monitor the situation and will offer updates as they become available. If you have any questions, please contact your NEI Client Relations Manager or NEI Client Development Contact at 800.533.7353.

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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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Top Global Mobility Risk Mitigation Challenges for Corporate Relocation

International assignments are integral components of many companies’ global growth strategies, but with such global growth comes risks that can keep corporate mobility managers up at night.

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A Dynamic Global Mobility Landscape

The landscape of global mobility risk is complex and filled with potential potholes on the road to an employee’s successful international assignment. Political instability, security concerns, and/or health and safety issues are some of the top challenges employees and their sponsoring employers may face.

Addressing issues surrounding corporate global relocation risks requires a proactive, honest, and detail-oriented approach. It is critical corporate managers overseeing employee international assignments are knowledgeable and empowered from within and form close, collaborative partnerships with experts. This will help them navigate hazards with confidence and ensure the well-being of their employees and the duty of care obligations of their employers sending them.

Consider the top risks and ways to mitigate them:

‍Security

Terrorism, crime, geopolitical tensions –each pose unforeseeable dangers. Progressive companies will implement comprehensive security assessments and threat analysis to identify vulnerabilities and develop targeted risk mitigation strategies. Employee training on situational awareness, personal safety protocols, and emergency response procedures should be conducted. For clients, leveraging cutting-edge technologies such as online dashboard “heat maps” to show company employee / business travel assignment locations and cybersecurity protocols enhances online security to monitor and respond to potential threats in real-time.

Political Instability

To address political instability, global mobility managers must see the importance of staying ahead of political risks. They build networks of local partnerships and leverage geopolitical experts to gain valuable insights into the countries and regions where employees are assigned. By developing crisis contingency plans and protocols, they can respond quickly to political shifts, ensuring the safety of employees and the continuity of operations.

Health and Safety

Pandemics, natural disasters, employee medical conditions, on-assignment emergencies and more demand meticulous preparation. Proactive risk management involves developing crisis response plans, integrating remote monitoring systems, and ensuring access to telemedicine. By conducting pre-assignment medical assessments, organizations can identify any pre-existing health conditions and provide continued, appropriate on-going assignment support and resources. There are also options available for medical insurance coverage to consider such as:‍

• ‍Employer-sponsored health insurance: comprehensive plans for employees provided with employment; covering medical expenses. Includes check-ups, emergencies, hospitalization, and dental/vision. ‍
• International private health insurance: individual plans for global medical expenses; covering inpatient and outpatient services, emergencies, and medical repatriation. ‍
• Travel insurance: May provide limited coverage for emergencies, accidents, and medical repatriation, but there is usually a limit for travel insurance policies and how long one can be living in a foreign location; companies should understand all policy limitations.

Crisis response and emergency evacuation plans are often overlooked in the overall planning of a move, but doing so is essential. Doing so during a crisis is not the time.

Regularly monitoring and checking in on employees’ well-being on assignment – regardless of their location – is also best practice and NEI regularly checks in with employees during their assignments for clients.

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Collaborative Relocation Services Partnerships

By forging strong, mutually supportive partnerships with NEI Global Relocation, risk consultants, expert global security firms, global emergency evacuation companies, as well as local authorities, companies will gain access to invaluable expertise and worldwide resources.

Sharing best practices through industry collaborations and information-sharing networks further strengthens risk management efforts. Engaging in 24/7 open lines of communication with employees creates a culture of safety and empowers employees to be active contributors in risk mitigation.

Collaborative partnerships also foster a sense of mutual support and shared objectives among global mobility stakeholders. By combining resources, knowledge, and expertise, companies can effectively address complexities surrounding global mobility risks and strengthen both their operations resilience and the well-being of their employees during a global assignment on the company’s behalf.

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Global Relocation Duty of Care Responsibility

As organizations expand around the world and send employees to locations for permanent work or temporary projects, each employer has an obligation to safeguard their mobile workforce.  The Duty of Care concept includes a legal, ethical and moral obligation to reduce risk and provide the elements for a safe environment for employees during their global relocations or assignments.

By prioritizing Duty of Care, companies can demonstrate their commitment to not only individual employee / family welfare, but a commitment to conducting thorough risk assessments, implementing proactive security measures and developing robust health and safety protocols.  Integrating Duty of Care principles and strategies into risk mitigation strategies, companies can foster a culture of employee safety and well-being.

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Transform Risk into Opportunity

NEI believes risk management is essential for protecting both employee and company interests and for navigating the complexities of global mobility.

Organizations can transform risks into opportunities for growth, innovation, and sustainable success. By embracing risk management and mitigation practices, HR professionals can steer through the various, fluid challenges of international moves and assignments with confidence and help ensure the success of their organizations’ goals and projects.

If you would like to discuss policy change, risk mitigations or duty of care or any other topic impacting your global relocation programs, please reach out to your NEI representative.

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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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NEI Honors Corporate Relocation Partners

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Each year NEI Global Relocation is thrilled to recognize those service partners who go above and beyond and embody the principles that define our business. Given the challenges of the past year and the significant increase in relocation volume, it is even more appropriate to recognize those who are delivering on our mission to provide Service Exceeding Expectations to our clients and their relocating employees.

Listed below are all of our winners with links to the award category press releases.

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Partner of the Year

Press Release

• ‍GlobeSpec

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Service Exceeding Expectations

Press Release

• Corporate Living
• Nelson Westerberg
• Interconex Inc.
• City Apartments
• Star 7
• IPR
• Locators
• Rocket Mortgage
• CORT
• Ward North American
• @Properties
• Home Buyer’s Preferred
• Korman Communities
• Porchlight Rental & Destination Services

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Own It! Awards

Press Release‍

• ‍Icon Relocation
• ‍Professional Organizing Relocation Consult GmbH
• ‍Formula Group
• ‍Corporate Living
• ‍AltoVita
• ‍GlobeSpec
• ‍Cromwell Environmental
• ‍Synergy Housing
• ‍LARM Group
• ‍Palmer Moving Services
• ‍REA

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Corporate Responsibility

Press Release‍

• NYC Navigator‍
• Voerman International‍
• ‍Wells Fargo ‍
• Stewart Title‍

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Innovation Awards

Press Release‍

• ‍CWS Corporate Housing
• ‍MSS, Inc.

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Client and Employee Support

With the recent outbreak of the Israel-Hamas war, we want to make sure your employees are safe and that you have the support from NEI that you need during this turbulent time.

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Immediate State

• NEI is working with our clients to confirm the well-being of employees located in Israel. NEI’s International team began welfare checks on Saturday (10/7) as the news of the attacks were making their way around the globe.
• For expats who were scheduled to repatriate to Israel in the coming days, NEI is coordinating with clients to extend benefits as needed due to travel closures into Israel.

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Additional Client Support

• The International Team at NEI is assisting clients with their employees that live in Israel but were not in Israel at the time of the attacks (on business travel, vacation, etc.), and are currently unable to return to Israel due to travel closures. NEI has been, and will continue to, assist with sourcing temporary accommodations until travel back to Israel is permitted.
• NEI has proactively prepared “active employee” lists for clients with global volume into / out of Israel. Employees from Israel, but not living there, may be personally affected due to the violence that has occurred with family and friends remaining in Israel. These employees are being identified to clients for awareness.
• Clients can utilize NEI to liaise as appropriate with client’s global security teams to share needed information on employees in Israel.
• Account Executives will continue to relay all information learned from employees in Israel back to the client.

Remaining Proactive 

NEI continues to monitor the situation and will offer updates to our clients as they become available.  Should you have any questions, or like to discuss your needs beyond your relocation population, please reach out to Mollie Ivancic, VP, International services or your NEI representative.

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