ABB 2006/7 | Practical Advice | Moving to the US

It may not be surprising that global relocations are far more expensive – typically three times an assignee’s salary – and complex compared to relocations within the UK because of the wide range of locations, language barriers, assignment types and policy components that are involved. What some may find surprising is the level of complexity involved in relocating from the UK to the US. Transferees and companies may feel that because there are many similarities in culture and ideology between the two countries that relocating across the pond would be a less complicated process, but there are several things transferees and corporations often overlook.

Policies must address key differences between UK and US

One of the most vital components of a global relocation policy is acquiring visas and work permits, because without them, there can be no relocation. In today’s heightened security environment, visa and other immigration processes are much more involved and, as a result, it is critical that relocation policies address visa and immigration issues quickly, efficiently, and most of all accurately.

In addition to managing the immigration process, global relocation policies should address the tax and social security concerns that British expatriates will face in the US, such as estimating tax withholdings, assisting with the completion of all necessary tax forms, and managing social security contributions. As any British expatriate will confirm, one of the most significant differences between the UK and US is each country’s approach to healthcare. Because of the high cost of health insurance in the US, many British employees will not consider relocating to the country unless medical insurance is provided for them.

 

Aside from the high cost, the complexities of healthcare in the US can be confusing to many British expatriates, and as a result, global relocation policies must clearly address medical benefits, including global coverage, premiums and supplemental insurance. Another significant difference between the UK and US can be found in the housing market. Since the housing market in the UK is much more volatile, British expatriates should carefully consider whether to sell or keep their current home prior to relocating overseas. Many British expatriates have sold their homes, relocated to the US for a three-year assignment, and then found they were unable to afford a comparable home in the UK because house prices had risen dramatically.

Once assignees decide to relocate to the US, they will require assistance in selecting a home location, as well as determining whether to rent or buy. Global policies should provide for counselling in these areas as well as provide for additional associated costs such as management fees and utility payments, household goods shipping and storage.

Also, since multiple family members are usually involved in global relocations, policies must address issues such as enrolling children in schools, obtaining visas for the accompanying family or partner, transporting pets, as well as helping transferees establish social networks.

Allowances are other key components that must be outlined in a global policy. These may include – but not be limited to – spousal assistance, car purchase or loss-on-sale, education fees for dependants and household furnishing costs. Travel concerns, such as travel back to the UK for home leave, or a child’s travel to and from boarding school, as well as emergency travel associated with a relative’s illness or death should also be addressed in the policy.

Keeping policies current through cost estimates and benchmarking

In preparing for policy development, companies should acquire estimates to better understand key component costs such as housing, allowances and taxes. Companies should also conduct a cost analysis to better understand the costs or savings caused by changes to the relocation policy or exceptions granted. Companies should consistently gather valuable information, whether through a database or an industry specific survey, to measure or benchmark their current or proposed policies and identify cost or quality opportunities.

Benchmarking helps companies to identify the current position of their global mobility programme and to determine priorities for ensuring the expatriate policies are competitive. It also enables companies to compare their global policies against recognised best practices, encourages regular monitoring of progress for programme improvement, and increases its competitiveness to recruit and retain top talent.

Leveraging relocation providers’ expertise

With all of the complexities inherent in US relocations, it is nearly impossible for companies to accurately forecast and prepare for every challenge awaiting its expatriates in the US. For this reason, it is recommended that companies work with corporate relocation service providers to develop global relocation policies that include all the necessary components. These will include visa and immigration, medical, tax and social security, travel, housing, and financial and educational counselling.

By working with proven partners, companies can establish relocation policies that are clear and simple, while at the same time flexible, allowing for change throughout the life of the policy. There are several relocation providers that provide a variety of relocation policy services, including preliminary assessment, in-depth evaluation, cost analysis, benchmarking, employee surveys, focus groups and policy materials creation. By working with proven providers, British companies can mitigate mistakes, ensure policies are comprehensive enough to address any potential issues, and most importantly, simplify the global relocation process for the company and its assignees. Julian Yates, vice president, global consulting for SIRVA Relocation, has more than 25 years of extensive global mobility and broad HR experience, as both a client and service provider, working in the United States, Europe and Asia. Julian hails from the UK and now lives in the US, and therefore has personal knowledge of the challenges outlined herein.

For more information, contact:
Julian Yates
Sirva
700 Oakmont Lane
Westmont, Illinois 60559, USA
Tel: 001 630 570 3387
E-mail: julian.yates@sirva.com
Website: www.sirva.com

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