Features

Make the right move

21 Mar 2011 by AndrewGough

Business travellers are used to jetting around the world for short periods, but relocating permanently is another thing entirely. Rose Dykins talks to the companies that help lighten the load

While London may be a hub for global commerce, UK firms still recognise the benefits of stationing staff in other financial hotspots – and with the worldwide economy picking up again, they are doing so in greater numbers.

Helmut Berg, president of the European Relocation Association (eura-relocation.com), says: “There was a decline in the relocation industry of about 25-30 per cent [during the recession] until the beginning of 2010, but now it is on the up again. Our expectation is that by mid-2011, it might reach about the same level as at the end of 2008.”

But, as anyone who runs a business will know, employees are not pieces on a chessboard, and moving them across continents can be a stressful process. Even short-term assignments of six to 12 months present a range of practical issues, as employees are obliged to set themselves up all over again. Local knowledge is required to complete even the most menial of tasks, such as connecting to the internet in a new home, as well as the more significant ones, such as finding somewhere suitable to live in the first place. Meanwhile, language and cultural barriers make these tasks even trickier.

That’s why many businesses enlist the help of relocation companies. Such firms are hired to assist with the entire process of moving and deal with any corporate, bureaucratic or domestic issues that may arise – from arranging removal services and setting up a foreign bank account to setting up language tuition and finding a new school for employees’ children.

They can also arrange trips to the new location prior to the move so employees can view potential new homes or get to know the area. All in all, they are there to help people settle into their new country successfully, which is key to making international assignments work.

“We work with individuals who are looking for a new home overseas, as well as small or medium-sized enterprises [SMEs] and large conglomerates,” says Paulene Grant, managing director of UK Relocation Services (ukrelocation.com). “Our clients are involved in all aspects of business, including oil, banking and embassies.”

So how do you know which company to use? Grant says: “When choosing a relocation company, you should expect to speak to professionals in the field who can offer advice on the location and the availability of housing and schooling, and who can offer total support throughout the process. They should also be accredited by the Association of Relocation Professionals [arp-relocation.com].”

Transporting businesses to foreign lands doesn’t come cheap, although, interestingly, rates charged don’t vary by distance, so relocating to Italy can cost the same as it does to China. “We charge a flat rate per service, regardless of the destination,” Grant says. “Clients choose services in the same way that one would order from a menu, depending on what they require.

“A ball-park figure for a home search would be £2,000, and I’ve heard that if an SME was to relocate their business and go for the full package of services, they could expect to pay an estimated £500,000, which includes taxes and immigration.”

According to a survey conducted last year by Brookfield Global Relocation Services (brookfieldgrs.com), China, India and Russia ranked first, second and third, respectively, as the most challenging countries for employees to adapt to.

Rick Schwartz, president of Brookfield, says: “Led by strong economic activity from emerging and developing countries in Asia, international assignments in the region are increasing, but challenges – mainly owing to difficulty in finding suitable housing, schooling, healthcare and immigration red tape – remain.”

The European Relocation Association’s Berg says: “Some countries in the East can prove more difficult to relocate clients to. Russia can be difficult, as can countries that were part of the USSR, and a couple in South and Central America such as Brazil and Mexico, so the process can be quite lengthy.”

Why is this? He says: “I think it has to do with the fact that some countries try to protect their labour markets from those companies coming into the country. Or there may be other cultural and political reasons.”

So what don’t relocation companies include in their services? “Tax advice – it’s not our realm, so clients would need an accountancy firm for that,” Grant says. “Our services don’t include healthcare either – while we give clients advice about health insurance, we don’t do it for them. We don’t offer visas but we do partner with immigration specialists to arrange them for people.” Be aware that the relocation provider will charge management costs if they partner with external companies to perform a service for you, such as removals or visa provision.

Another thing to consider is that if you are selling your house to move abroad, you may lose some of its value if you do so via a relocation company. In most cases two independent valuations of the property are obtained to help calculate a Guaranteed Sale Price, which is the amount the relocation company will buy the employee’s home for, although the final offer will depend on the individual company’s policy.

Natascha Clark, business development and marketing manager for UK relocation firm HCR (hcr.co.uk), says: “To offer a Guaranteed Sales Price is a complicated and risky action for relocation companies, and because of the financial crisis, only a few of them are able to do it. In a thriving property market companies typically offer 100 per cent of the Guaranteed Sales Price, but in a declining market many companies have reduced the offer to 95 per cent, sometimes even 90 per cent. In the end it will be up to the employees if they agree to the Guaranteed Sales Price.”

If you need to sell up quickly and would prefer someone else to deal with the hassle, you may accept a lower price as a necessary evil, but make sure you read the relocation company’s policy beforehand so you can decide if it would be better to sell it independently.

When it comes to removal services, bear in mind that international removals are a more complex affair than domestic ones, requiring more advanced planning, experienced staff and good-quality packing materials to ensure your possessions arrive safely. Find out which firm your relocation company uses, and whether they are a member of the BAR (British Association of Removers) and BAR Overseas Group (bar.co.uk).

Chris Marshall, sales and marketing director for UK removal company Bishop’s Move (bishopsmove.com), says: “Check that the removal company is a member of Fidi [fidi.com], a global alliance of independent international removers. This will mean they have been audited and passed Fidi’s stringent accreditation every two years. This means you can be confident that the mover at both ends will perform to high standards.”

Lastly, remember that international relocation is not only a life change for you but for those who make the move with you. A common emotional issue that arises is “trailing spouse syndrome”, which can affect the supportive partner who follows their other half to their new place of work (see case study, left).

“The spouse loses their job, friends and identity,” says Yvonne McNulty, who conducted the Trailing Spouse Survey in 2005 as part of a five-year study at Australia’s Southern Cross University. “They are arriving with nothing, whereas [their partner] immediately has something to focus on – a new job and colleagues.” Find out whether your relocation company offers a service to help your spouse find work, and what support is available if they struggle to adapt to the change.

In the end, such companies only help up to a point – making your move work is ultimately down to you – but all the same, their value shouldn’t be underestimated. “There is the feeling that we are at the lower end of services, but we have it in hand to make assignments a success or a failure,” Berg says. Which is what your firm will remember them for.

TYPICAL SERVICES PROVIDED BY RELOCATION COMPANIES

  • House search (to rent or buy), including a week-long trip for the employee to find a property
  • Organising temporary accommodation while the person is house hunting
  • Arranging the sale of your home property – be it through a Guaranteed Price Scheme or by managing the sale
  • Look-see programme – sending the employee over to their new location for a few days, arranging a tour of their new neighbourhood and place of employment
  • School search
  • International removals and shipping management
  • Furniture rental management
  • Arranging language lessons and cultural training
  • Helping one’s spouse to find employment
  • Settling-in services – including signing up with a doctor, arranging utilities and setting up bank accounts

THE MOST POPULAR RELOCATION DESTINATIONS GLOBALLY

1. US
2. China
3. UK
4. Singapore
5. Germany
6. India
7. Netherlands
8. Switzerland
9. UAE
10. Australia

Source: Brookfield Global Relocation Services’ Global Relocation Trends Survey 2010

 

CASE STUDY: THE RELOCATOR

Louise Fitzpatrick and her husband relocated for three years while he was working for a multinational company:

“When my husband’s firm offered him a job in New York, we were living in London, were newly married and didn’t have kids. The removal process takes a lot of time and your possessions are out of your hands for a while. Listing all of the items for insurance purposes was quite a painful process, and it was left up to us. We rented out our UK home and the company’s relocation service paid the agency fees to find a tenant, and managed the property for us.

“Once we were in New York, the relocation service offered to help with things such as setting up a bank account and getting a new mobile phone, but as we had friends there they sorted those out for us. We were also given an allowance for equipping our apartment.

“I managed to get a job as a journalist. It wasn’t something I enjoyed but it was easy to get a journalist visa, and at the time I thought: ‘How else am I going to meet people?’ In the end I only worked for six months, and looking back I wish I’d done something else. I was quite lonely at times – it’s hard when you don’t know where to go or who to speak to. Sometimes I’d talk to the doormen because I didn’t have anyone else, or I’d meet my husband at the office for lunch; that was my trip for the day. If I didn’t speak the language I think it would have been horrendous.

“Having said that, maybe if you relocated to somewhere like Asia, you could expect more of an expat community, where you’re better placed to meet new people in the same situation. Even though in New York, every second person is English, that doesn’t mean they’re in a similar situation to you or that they’re looking for friendship.

“I’d advise others in a similar situation to make sure the move abroad is what both they and their partner want, and to know what they’re getting from their contract. It’s easy to get wrapped up in the outward move and not think about how you’re going to move back to the UK one day.”

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