Housing a major cost headache • Federal government cancels relocation contract • The taxing question of taxes • Firms big on housing loans • The SARS effect • Financial counselling for transferees • Greater income parity reduces relocation
Housing a major cost headache
Toronto — Establishing appropriate housing-cost guidelines is the key issue facing expatriate transfers, according to a poll of 76 per cent of multinational organizations. The study of 557 firms around the world, representing more than 83,000 expatriates, was conducted by Organization Resources Counselors, the Employee Relocation Council and Toronto’s TheMIGroup. The study found that cultural differences make it hard for companies to draw up uniform housing policies. Firms assume transferees from European and Asian countries will not want to sell their existing homes for cultural, legal and family reasons, while North Americans will easily accept selling or renting out before transferring.
Federal government cancels relocation contract
Ottawa — The federal government has cancelled a $1-billion relocation contract awarded to Royal LePage following allegations of conflict of interest. The deal to handle relocation services for 12,000 military and RCMP personnel annually for the next five years will be re-tendered. Competing bidders allege bureaucrats were biased when reviewing bids.
The taxing question of taxes
New York — Most Canadian, American and British companies have tax equalization policies. About 74 per cent of Canadian, 88 per cent of U.S. and 66 per cent of U.K. firms follow an approach that ensures expats neither gain a windfall nor suffer undue hardship due to differing tax systems between their host and native countries, states a study by ORC Worldwide. Less popular is tax protection, where firms pay for any excess tax liability and employees keep any windfall; this approach creates resentment among expats posted elsewhere who receive no such windfall.
Firms big on housing loans
Rochester, Wis. — More than two-thirds of North American companies offer relocating employees interest-free or low-interest loans to facilitate home purchases in new locations. Sixty-nine per cent of 109 corporate relocation professionals surveyed by Runzheimer say they offer loans. About 90 per cent of these provide interest-free loans.
The SARS effect
New York — During the height of the SARS crisis earlier this year many expatriates living in Hong Kong, Singapore, China and Taiwan either worked from home or took flights back to their native countries, reports Crown Relocation. Those with families were particularly concerned, leading to speculation that future relocations to Asia may see a change in expat profiles favouring single executives over those with families. During the crisis, many expats were frustrated that they could not receive accurate information on the virus in English.
Financial counselling for transferees
Rochester, Wis. — Adding financial counselling to relocation support services would reduce failed and turned down assignments, say one-third of 86 relocation professionals surveyed by Runzheimer. When asked how much companies would pay to add the service, only 15 per cent of respondents answered more than $1,400 per transferee.
Greater income parity reduces relocation
New York — Greater income parity in married-couple households is a factor in the increasing reluctance of North Americans to transfer to new locations for work, says outplacement firm Challenger, Gray & Christmas. “With healthy incomes being earned by both husband and wife there is a greater cushion to fall back on regardless of which spouse loses a job,” said CEO John Challenger.
Toronto — Establishing appropriate housing-cost guidelines is the key issue facing expatriate transfers, according to a poll of 76 per cent of multinational organizations. The study of 557 firms around the world, representing more than 83,000 expatriates, was conducted by Organization Resources Counselors, the Employee Relocation Council and Toronto’s TheMIGroup. The study found that cultural differences make it hard for companies to draw up uniform housing policies. Firms assume transferees from European and Asian countries will not want to sell their existing homes for cultural, legal and family reasons, while North Americans will easily accept selling or renting out before transferring.
Federal government cancels relocation contract
Ottawa — The federal government has cancelled a $1-billion relocation contract awarded to Royal LePage following allegations of conflict of interest. The deal to handle relocation services for 12,000 military and RCMP personnel annually for the next five years will be re-tendered. Competing bidders allege bureaucrats were biased when reviewing bids.
The taxing question of taxes
New York — Most Canadian, American and British companies have tax equalization policies. About 74 per cent of Canadian, 88 per cent of U.S. and 66 per cent of U.K. firms follow an approach that ensures expats neither gain a windfall nor suffer undue hardship due to differing tax systems between their host and native countries, states a study by ORC Worldwide. Less popular is tax protection, where firms pay for any excess tax liability and employees keep any windfall; this approach creates resentment among expats posted elsewhere who receive no such windfall.
Firms big on housing loans
Rochester, Wis. — More than two-thirds of North American companies offer relocating employees interest-free or low-interest loans to facilitate home purchases in new locations. Sixty-nine per cent of 109 corporate relocation professionals surveyed by Runzheimer say they offer loans. About 90 per cent of these provide interest-free loans.
The SARS effect
New York — During the height of the SARS crisis earlier this year many expatriates living in Hong Kong, Singapore, China and Taiwan either worked from home or took flights back to their native countries, reports Crown Relocation. Those with families were particularly concerned, leading to speculation that future relocations to Asia may see a change in expat profiles favouring single executives over those with families. During the crisis, many expats were frustrated that they could not receive accurate information on the virus in English.
Financial counselling for transferees
Rochester, Wis. — Adding financial counselling to relocation support services would reduce failed and turned down assignments, say one-third of 86 relocation professionals surveyed by Runzheimer. When asked how much companies would pay to add the service, only 15 per cent of respondents answered more than $1,400 per transferee.
Greater income parity reduces relocation
New York — Greater income parity in married-couple households is a factor in the increasing reluctance of North Americans to transfer to new locations for work, says outplacement firm Challenger, Gray & Christmas. “With healthy incomes being earned by both husband and wife there is a greater cushion to fall back on regardless of which spouse loses a job,” said CEO John Challenger.
