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2018 Employee Relocation Trends

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Tax reform, technology and beyond! Find out how new tax laws have impacted the relocation industry and learn predictions for 2018!

Published in: Recruiting & HR
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2018 Employee Relocation Trends

  1. 1. 2018 EMPLOYEE TRENDS RELOCATION
  2. 2. ● ● ABBY BAUMANN
  3. 3. ● ● MICHAEL KRASMAN
  4. 4. agenda ● UrbanBound Overview ● 2017 Changes to the Industry ● Tax Law Overview and How to Respond ● Predictions for 2018...and beyond
  5. 5. SHORT TERM HOUSING STORAGE VISAS & IMMIGRATION APARTMENT LEASING MOVERS FLIGHTS LANGUAGE TRAINING CAR SHIPMENT PHONE / INTERNET ORIENTATION TOURS PET TRANSPORT TRUCK RENTAL YOUR EMPLOYEE TECHNOLOGY
  6. 6. 2017: A YEAR IN REVIEW
  7. 7. Avg.household income 27% private sector employees switched jobs in 2017 4.1% unemployment rate More jobs posted than people to fill them Healthy Economy
  8. 8. “When the unemployment rate is lower,employers will adapt to people rather than asking people to adapt to them.” -Lawrence H. Summers, Former Treasury Secretary
  9. 9. $$$ A HEALTHY JOB MARKET REQUIRES THE NEED FOR COMPANIES TO OFFER STRONG RELOCATION BENEFITS
  10. 10. 2018 TAX LAW
  11. 11. 1. Changes to tax brackets for individuals 2. Increase in standard deduction 3. Lower corporate tax rate
  12. 12. Under the new tax law the following moving expenses are considered taxable: ● Household goods ● Storage ● Auto shipments ● Final destination travel
  13. 13. Gross Up Company estimates tax liability and pays the tax for the estimated amount on behalf of the employee
  14. 14. Direct Bill Employer directly pays a supplier for certain relocation expenses through a third party
  15. 15. OPTION 10 OPTION 11 OPTION 12 OPTION 13 OPTION 14 Paradox of choice
  16. 16. DIRECT BILL CORE/FLEX POLICY $ URBANBOUND RECOMMENDATION LUMP SUM/ CAP
  17. 17. 17 1. ADD GUARDRAILS OTHER WAYS TO CONTROL COSTS WITH NEW TAX LAWS REVISIT POLICY. REMOVE BENEFITS THAT ARE NOT NECESSARY.
  18. 18. 18 2. REDUCE CAPS OTHER WAYS TO CONTROL COSTS WITH NEW TAX LAWS SLIGHTLY REDUCE OVERALL CAP TO STILL PAY THE SAME AMOUNT, BUT ALSO PROVIDE GROSS UP TAX ASSISTANCE TO RELOCATING EMPLOYEE
  19. 19. 19 3. GROSS UP ON SELECT EXPENSES OTHER WAYS TO CONTROL COSTS WITH NEW TAX LAWS PROVIDE GROSS UP ASSISTANCE ONLY ON SELECT EXPENSES, LIKE HOUSEHOLD GOODS MOVE AND FINAL TRAVEL
  20. 20. 20 4. RE-BUDGET OTHER WAYS TO CONTROL COSTS WITH NEW TAX LAWS NEW TAX LAW INCLUDES A BIG CORPORATE TAX BREAK. DISCUSS WITH INTERNAL TEAMS TO SEE IF THERE IS AN OPPORTUNITY TO RE-BUDGET RELOCATION PROGRAM.
  21. 21. PREDICTIONS FOR 2018 & BEYOND
  22. 22. RELOCATION INDUSTRY TIMELINE 2010 2011 - 2012 2014 ● No technology ● Industry is people and paper heavy ● Tech is introduced as a supplement to a lump sum program ● Developed for millennial and renter populations ● First indication of policy and benefits being built out and supported by technology
  23. 23. RELOCATION INDUSTRY TIMELINE TODAY ● TECHNOLOGY THAT CAN SUPPORT LUMP SUM AND DIRECT BILL ● EXTENSIVE REPORTING CAPABILITIES ● SOLUTION FOR SMALL, MILLENNIAL MOVES, ALL THE WAY UP TO C-SUITE MOVES 2018 & BEYOND ● EMPHASIS ON EMPLOYEE EXPERIENCE ● INTEGRATION OF DISPARATE HR & PAYROLL SYSTEMS ● 100% AUTOMATION AND ARTIFICIAL INTELLIGENCE
  24. 24. THE RIGHT BENEFIT TO THE RIGHT EMPLOYEE AT THE RIGHT TIME
  25. 25. Where does the journey go from here?
  26. 26. Software will redefine the way the relocation industry operates.
  27. 27. RELOCATION MANAGEMENT SOFTWARE
  28. 28. FULL TRANSPARENCY INTO RELOCATION SPEND
  29. 29. REQUEST A DEMO abaumann@urbanbound.com 773-644-5697 www.urbanbound.com
  30. 30. QUESTIONS?
  31. 31. THANK YOU WWW.URBANBOUND.COM

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