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How to Move to Japan – Moving to Japan from the US

Written by admin on October 25, 2023. Posted in International Relocation. No Comments on How to Move to Japan – Moving to Japan from the US

Moving to Japan from the US is not difficult if you are prepared. If you do not prepare for the move, living in Japan can be a major culture shock. The language barrier, different cuisine, and other cultural differences can be stressful.

Like you would need to do before any move, there are some hurdles you will need to take on to adjust to life in Japan. Here is what you need to know before moving.

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Allow Yourself Enough Time to Get a Visa

Before moving to Japan from the US, it is essential to allow yourself enough time to get a visa. While going to Japan for tourism or if you are there for less than 90 days, you do not need a visa, just a passport, and a return ticket home. However, if you are moving to Japan permanently, you must apply for a visa.

Getting a visa is not all that time-consuming, but getting your paperwork in order takes some time. While obtaining a visa in Japan is quicker than most countries, you should still apply for a visa at least two months before your move. There are different visa types, so you must apply for the correct one.

If you’re moving to Japan from the USA, you should apply for a work visa. A work visa in Japan allows you to stay there between four months and five years. Once the five years are up, the visa needs to be renewed.

Work visas are becoming increasingly popular these days, as international recruiting is so common. Without a work visa, you will not be allowed to work in Japan. There are a number of professions that are acceptable for a work visa. To obtain a work visa, you must have proof of your career and job title. Job titles acceptable for work visas include:

Professor
Medical services
Religious activities
Artist
Legal/Accounting services
Researcher/Investigator
Business manager/Investor
Journalist
Engineer
Skilled labor
Entertainer
International service specialist

Prepare Yourself for the Language Barrier

Learning how to move to Japan from the US comes with multiple challenges, especially the language barrier unless you know Japanese. Unfortunately, there are not many accommodations in Japan for English speakers.

You will definitely run into Japanese citizens who speak good English, but you will not find that everywhere you go. Before you move, you should try to learn the basics of speaking Japanese. Try to learn simple phrases, such as “yes,” “no,” “I don’t know,” and “bathroom.” Simple phrases and words can be helpful to you when you are trying to navigate your new surroundings.

What to Know About Finding a New Home

Japan is an expensive country as a whole, but Tokyo is especially expensive. It is expensive to purchase a home in Japan, as it can cost as much as $337,000 ( 35,760,000 JPY). For that price in America, you will likely find a spacious home.

Homes are usually tiny in Japan because it is a narrow island nation populated by about 130 million people. You can typically choose from different homes, but finding a home with much space is complicated.

You can also rent, which is more affordable, but your apartment will be even smaller. While you do not need to be a Japanese citizen to purchase a home, you do need your work visa to prove permanent residency.

Budget Your Move

Since the cost of living and purchasing a home are high in Japan, it is essential to budget your move. In addition to the costs of renting or owning a home, you need to pay utilities and probably other recurring expenses.

For example, the costs to eat out and use Japanese transportation can quickly add up.

There is also the cost to plan your move to Japan. You need to budget for flight costs, visa and permit fees, shipping of your household goods, daily living costs, and additional charges if you have a family or pet to take with you.

You may also need to pay for temporary living accommodation when you first arrive.

You also cannot open a Japanese bank account until you arrive in the country. Therefore, you need to have other ways to access your money until you get banking sorted out. It should only take a few days for you to get a debit card so you can make ATM withdrawals.

To open a Japanese bank account, you will need your valid visa, passport, residence card, and Japanese phone number and address.

Understanding Japanese Culture

Understanding how to live in Japan as an American requires effort. Western culture is different from Japanese culture. In Japan, it is polite to bow rather than shake hands. The deeper you bow, the more respect you show. Take your shoes off before entering someone’s home.

Usually, there is a shelf next to the door to put your shoes on. In America, it is common to drink and eat while walking, but it is considered rude in Japan.

Even if you purchase food from a vending machine, you should sit down to eat it. If you are accepting a business card from someone, always take it with both your hands and slightly bow.

When you give your business card to someone, do the same thing because it shows respect. When answering calls in Japan, especially business calls, you respond by saying “yes” and then saying your name or your company’s name. In America, it is usually rude to have no eye contact when talking.

However, Japan recognizes prolonged eye contact as uncomfortable. So it is normal for people to look away during a conversation. It is also common for the Japanese to shove you around a bit on the bullet train or subway since it is so crowded.

If you go out for a work dinner, it is common to split the bill equally. It doesn’t matter how much you ordered, the price will be evenly split.

Making Friends and Meeting Expats

It is stressful to think about making friends when moving to another state, let alone a new country. Japan has a strong expat community, so it is simple to make friends that are similar to you. It can be intimidating to put yourself out there, but it is a good thing to meet new people and make friends when moving to Japan from the US.

Some good ways to meet expats and make friends is to participate in a Meetup group or other social networking group. These groups are usually based on activity, so you will likely meet somewhere with shared interests to go out with.

You can also take up a hobby to meet more people, like martial arts, Yosakoi dance, hiking, photography, baseball, football, or Ikebana (arranging flowers). Tokyo particularly is a strong community with plenty of expats.

Also, consider volunteering to make new friends. You can use social media to find a volunteer group, including English speakers. Volunteering helps you meet like-minded people while doing something good for society. Some great volunteer opportunities in Japan include working with children, disaster relief, community building, farming, and caring for animals.

Understand Your Relocation Requirements

Before committing to moving to Japan, it is essential to understand your company’s relocation requirements. It would help if you understand your company’s relocation package and what it includes.

Typically, a company provides a an employee relocation to help make the move less stressful for them. Relocation packages usually include relocation reimbursement, a flexible start date, free visits, temporary housing, familial support, real estate cost assistance, and pay adjustments.

Your company may also have specific career requirements you must follow when moving to Japan, so discussing these things with your employer before moving from the USA to Japan is essential.

What to Know About Relocating Your Household Goods and Pets

Moving your household goods is usually simple when leaving America and moving to Japan. You should have an itemized list of your belongings in English and Japanese to ensure there are no issues once you arrive.

Your belongings can be brought into Japan duty-free if you can prove ownership for a minimum of six months before your move. Moving your pet to Japan is also an easy process.

Unfortunately, Japan mandates a quarantine of your dog or cat for seven days once they enter the country. If you have an animal other than a dog or cat, the quarantine can be longer if you cannot provide all the necessary documentation regarding their health.

Final Thoughts

Moving to Japan from the US can be time-consuming and stressful, but once you are settled, Japan is a great place to live. ARC Relocation can help you with your international relocation.

We specialize in assisting companies of all sizes relocate employees anywhere in the world. For assistance with your international move, contact us today!

CRP Certification [Requirements for Certified Relocation Professionals]

Written by admin on October 24, 2023. Posted in Relocation Strategy and Policy. No Comments on CRP Certification [Requirements for Certified Relocation Professionals]

For professionals looking to manage issues related to employee mobility across the country, the Worldwide ERC Certified Relocation Professional (CRP®) designation is a necessary qualification.

Those not familiar with Worldwide ERC might find this foreign. But in truth, this is a highly-regarded program in the mobility industry.

What is a CRP Certification?

The Worldwide ERC (Worldwide Employee Relocation Council), is a recognized organization that has been around since 1964. The CRP certification program was launched in 1990. Its primary objective is ensuring a well-established and universal understanding of employee relocation practices. It also offers support and guidelines to relocation professionals.

The organization aims to empower relocation professionals with the knowledge and latest insights about talent mobility. The CRP examination review board comprises veteran industry professionals. The board updates the program every year to heighten the competence of the mobility community.

In fact, it is the only credential respected across the industry for managing and planning employee mobility programs across the United States. The CRP certificate program is recognized across multiple industries, including health, insurance, real estate, and relocation management.

For CRP certification, it is necessary for candidates to qualify for the examination conducted by the ERC once every year. To register for the examination, the candidates need to acquire the necessary work experience and a body of knowledge.

ERC also provides a Global Mobility Specialist (GMS) certification for candidates looking to expand their expertise in the field. Such certified relocation professionals have the in-depth knowledge required to manage international relocation assignments.

Beyond that, there is the special Senior Certified Relocation Professional (SCRP) certification for industry veterans. These are senior professionals who have made significant contributions to the betterment of the relocation and mobility industry.

There are multiple advantages of being a CRP-certified relocation specialist. Here are a few of them.

This certification is one of the best ways to highlight your knowledge and expertise to employers.
The recertification structure allows the candidates to stay updated on industry trends and changes. This way, the candidates can keep updating their knowledge.
The certification helps relocation specialists to advance their careers and ensure professional growth by raising professional standards.

How to Get a CRP Certification

For the current year, the examination window will remain open between November 14, 2022, and December 9. The examination is offered in the internet-based testing (IBT) format and candidates can choose from the list of worldwide testing centers. In addition, they can also choose an online examination session.

Candidates need to submit their applications for the examination along with the requisite amount of fees. In 2022, the last date for submitting the application is the 28th of October. The required eligibility criteria for the candidates are listed below.

The first option is for a candidate to be a member of the Worldwide ERC for at least 12 months. This period should be within 18 months prior to the examination window.
The second option is for the candidate to have at least a tear of “corporate relocation-related experience”. In addition, they should secure an attestation from a CRP or SCRP designee who is a Worldwide ERC member. The candidate also needs to become a member of the Worldwide ERC after registering for the exam and remain a member throughout the examination window.

The examination is based on 125 multiple-choice questions out of which 110 are scored. The remaining 15 questions are marked as potential future questions. Candidates are given 3 hours to complete the examinations.

The questions are based on ERC educational programs and research publications dealing with a wide range of relocation issues. After registering for the exam, candidates can purchase these study materials.

Note, to retain the CRP certification, candidates need to go through a 3-year recertification cycle. This involves the accumulation of 30 CE credit hours within this period and maintaining membership in Worldwide ERC. In addition, one has to pay the recertification renewal fee at the end of the 3-year cycle.

What Does a Certified Relocation Professional Do?

A relocation specialist with a CRP relocation certification has an in-depth understanding of the principles and practices related to relocation. So, their fundamental role is to streamline the employee relocation process and remove any obstacles in the way.

The role also involves developing the best plans for the process and managing cost-control issues related to relocation packages.

The support of a certified relocation specialist greatly benefits the relocating employees. They get the best services and a hassle-free experience from the relocation company.

When to Hire a CRP

Planning a relocation is not an easy task for a team unfamiliar with the intricacies of the process and lacking the expertise of a professional with a CRP certification.

We can help. To ensure a smooth relocation process for your employees, we work with our partners to develop and execute relocation policies that best fit their organizations. With our team of experienced and professional relocation planners, ARC remains an industry leader offering the best relocation services to its clients. If interested in a no-obligation strategy session and our recommendations for your organization, contact us today.

What Is an Ethnocentric Approach? [Definition, Meaning, and Best Practices]

Written by admin on October 22, 2023. Posted in International Relocation. No Comments on What Is an Ethnocentric Approach? [Definition, Meaning, and Best Practices]

An ethnocentric approach is one of the methods used during international staffing recruitment. The HR department recruits a person suitable for the job for international businesses based on their skills and willingness to blend with the organization’s culture.

In an ethnocentric approach, your organization’s key positions worldwide are filled with employees of the same nationality as your parent company. An ethnocentric approach is considered to be a common approach to international staffing.

Benefits of an Ethnocentric Approach

Ethnocentric staffing involves staffing your company’s most important positions in a foreign country with employees of your parent company’s nationality. Ethnocentric staffing offers many benefits to your company for a few reasons:

There is no need to have a full-fledged international labor market
Communication is better between the parent company and the host
You have effective control over the subsidiary
There is typically better coordination between the parent company and the host
The parent company’s culture can be easier to transfer to the subsidiary company, combining practices and beliefs in the foreign country
The parent company can closely watch over the subsidiary’s operations
Technical expertise is shared more efficiently
Communication is better between the parent company and the host

Drawbacks of Ethnocentric Approach

Your company may have missed out on the opportunity to hire the best employees from the host country
The parent country’s staff might find it challenging to adjust to the host country because of cultural differences
The host country’s government’s restrictions might infringe on the parent company’s business
Employees may consider this approach to be a form of adverse impact
It can be difficult to guide your employees that are far away from the parent country
There could be cultural clashes between the staff of the host country and the executives of the parent country

When to Use Ethnocentric Staffing

An ethnocentric approach in international business should be used when you open a new office in a new country because it makes it easier for your company’s procedures and policies to be transferred from the parent country to the company’s new unit.

Expatriates from your parent country should encompass less than 20 percent of a foreign office so you can minimalize hiring costs. Ethnocentric staffing is used when a new subsidiary is set up in a host country, and the parent company’s employees initialize operations while visiting. Cross-cultural training can be beneficial when using ethnocentric staffing.

What Is Polycentric Approach?

A Polycentric approach is when you hire locals to fill positions in a foreign country. You can create a contract with a local recruitment agency or advertise on local job boards. Polycentric staffing is used when you need the skills of locals to help run your business.

You can hire a local professional who understands the market and can coordinate sales operations if you want to expand your clientele to a particular country. In a Polycentric approach, those with the host country’s nationality are recruited for upper-level positions to implement the subsidiary company’s operations.

Many companies choose the Polycentric approach because the locals of the foreign country understand their culture better and can efficiently run the business better when compared to their foreign equivalents.

Benefits of Polycentric Staffing

Removes the need to adjust team members
Saves money on relocation and hiring costs
Can increase the morale of your employees
Increases local support and knowledge

Drawbacks of Polycentric Staffing

There is a lack of knowledge about the host country’s market conditions
It can be difficult to implement control over the subsidiary
There can be a lack of coordination between the parent company and the host
Communication might not be effective between the staff of both the parent company and host due to a barrier in language
There can be a conflict between the managers of both the parent company and the host due to different ways of thinking

What Is a Regiocentric Approach?

A regiocentric approach to recruitment means that you either transfer or hire employees within the same geographic area to fill your open positions because their environment and culture closely match the host country.

Regiocentric approaches can help regional and international companies recruit the best of the best from neighboring countries. Ther similar cultures help to develop an integrated working environment and bring expertise at an affordable recruitment cost.

Using a regiocentric approach requires less cost than hiring employees from a foreign country, and as a manager, you will likely face fewer difficulties being from a similar culture. In addition, moving between the parent country and the host country is simple to manage.

Benefits of a Regiocentric Approach

Less cost is sustained in hiring natives of the host country
The host country’s nationals can better influence the manager’s decision at headquarters concerning the whole region
It is a better cultural fit
Managers work well in the geographic region of business throughout all the neighboring countries

Drawbacks of a Regiocentric Approach

Managers in different regions might not understand the viewpoints of managers at the parent company
There can be a communication barrier due to different languages
Confusion can arise between the regional and global objectives

Final Thoughts

An ethnocentric approach, polycentric approach, and regiocentric approach are all different ways your company can recruit international employees. ARC Relocation can help with the relocation of your employees. Schedule a free consultation with ARC Relocation today.

Global Talent Acquisition

Written by admin on October 19, 2023. Posted in Relocation Guides for Human Resources Managers. No Comments on Global Talent Acquisition

Expanding Your Global Talent Acquisition

It goes without saying that the pandemic has changed the way the workforce behaves and functions. Months of lockdown have driven companies to focus on developing a hybrid work environment.

Since the workforce is not limited to the boundaries of office space anymore, a hybrid work culture provides the HR team with new opportunities and challenges. Most importantly, now they can look all across the globe for the right talent.

Besides, the virtual work environment is also allowing employees to relocate to new locations of their choice. With this new flexibility, HR managers need to be ready to deal with the possibility that hiring global talent can become a necessity.

What is Global Talent Acquisition?

With the rise in telecommuting, recruitment drives are no longer limited by geographical boundaries. A borderless HR that manages recruiting, onboarding, and working through the virtual world is a new reality.

Global talent acquisition is the process of identifying people who can be a part of a skilled team and add value to the company from a talent pool anywhere on the planet. While the process has many similarities with traditional recruitment it requires a more holistic perspective.

That means you need to make some adjustments to scale up the recruitment process and frame the right strategy. Essentially, the strategy should be dynamic and needs to evolve constantly. Beyond that, you need to have a clear idea about the company’s business goals and any specific skill gaps that might exist.

Here are a few factors that you need to keep in mind while creating a global talent acquisition strategy:

It is necessary to form a clear idea about the local job market of the area you are planning to recruit from. Note that cultural differences, skill levels, labor laws, and local regulations keep varying. You also need to familiarize yourself with the local hiring processes. That way, you won’t end up offending or alienating the top candidates.
Performing the right level of employer branding is important to define the brand image, reputation, and key differentiators in a new location. It will also help potential candidates to learn about the work culture and understand the market position of the company.
Since the nature of candidates can vary from one region to another, the outreach strategy should be flexible too. For some regions, the hiring trends can be based on skill and competency. For others, it might be relationship-based.
Make sure that you use the right candidate selection process that complies with the local laws and employment regulations. The process should also be in line with the local culture. If needed, in-country recruitment managers can be hired to oversee the entire process.
Assuming that you can save costs through global talent recruitment can be a mistake. Salaries for top positions in some countries may be higher than those in the US. That means you should use the right tools to ensure that you don’t underpay or overpay the global employees.
Even though you allow remote working, it’s best to consider what your candidates might require if the need to relocate arises. In fact, an attractive relocation package can be an added bonus for the top talents to join your company. You need to answer their queries about relocation and provide assurance of offering support during the process.

Why is Global Talent Hiring Important?

One of the primary benefits of global talent hiring is that it provides you access to a vast talent pool. By welcoming talent and experience from other countries, you are casting an international recruitment net to improve your workplace performance and culture.

In a competitive talent landscape, reshuffling existing talent will lead to continuous wage escalation. To avoid that, employers need to pursue a multifaceted approach including hiring from the global talent pool. This can be done without changing the missions and values of the company.

Beyond that, global talent hiring also leads to the development of young talent across the globe. It also provides growth opportunities to talented workers coming from emerging economies. That way, future talent will not be concentrated in specific technology hubs in a few locations.

In sectors like finance and insurance, the majority of people who quit their jobs in the past two years are not returning to the same industry. Similar effects can also be observed with employees affected by downsizing.

For employers, managing this problem requires a new approach to hiring and looking beyond the traditional approach. Hiring global talent is one of the best ways for gaining access to new employee pools.

Benefits of Hiring Global Talent

Global talent acquisition is not just about finding access to a larger talent pool. It is an effective tool for organizational success when used correctly.

Here are some of the main benefits of hiring global talent.

Diversity promotes profitability

A global talent hiring plan promotes diversity within the company. This diversity can be racial, gender, age, education, skill sets, age, religion, and more. Statistics indicate that companies that are racially and ethnically diverse, have a 35% higher chance of performing better. In addition, diverse teams are better at taking decisions and can capture new markets more effectively.

Hiring Flexibility

As per the latest data, the number of job openings in the US stands at 11.2 million in July 2022. At the same time, there is a shortage of skilled workforce across different industries. Global talent recruitment can be a solution for companies facing such issues as your talent search is not limited to a single country.

Increased Market Insight

International recruiting adds regional experts to your teams who have intimate knowledge about the local market norms. The result is fewer legal issues and cultural misunderstandings. It will also save the time and money needed for extensive market research. Overall, it makes your enterprise better equipped for international expansion.

Better Workplace Diversity

Global recruiting can also help to enhance the company’s brand image and build a positive perception of the brand. Encouraging the recruitment of a diverse team shows that the company is ready to embrace a global culture, encourage new ideas, and advocates inclusion.

Final Thoughts

Today, the process of global talent acquisition is not limited to large multinational corporations. Even small and mid-sized ventures are picking up the pace and expanding their talent pool.

While finding the right fit from a global talent pool can be challenging, implementing the right hiring strategy will make the task easier for you.

To attract the best employees, you can also invest in a global mobility program that will give your workers the flexibility to work from any location of their choice.

If you need support for creating a new global relocation program, don’t hesitate to call ARC Relocation for a consultation or fill out our form online.

BMA in Real Estate: Understanding the Broker’s Market Analysis

Written by admin on October 14, 2023. Posted in Relocation Real Estate. No Comments on BMA in Real Estate: Understanding the Broker’s Market Analysis

A BMA in real estate stands for a Broker’s Market Analysis. It’s a method used to determine the value of a home during a relocation. It’s often confused with other home valuation strategies like BPO, CMA, and appraisals but it’s quite different and there is a reason why it’s used primarily in relocations.

In this quick reference guide, we’ll cover what a BMA is in real estate and how it applies to your relocation.

What is a BMA in Real Estate?

A BMA or Broker’s Market Analysis came into play when relocation companies started using Broker’s to list and sell their relocation client’s home. At the time, this process was exclusive to the relocation industry and was essentially a more basic and much quicker form of an appraisal.

The Broker would compare the house to other similar ones on the market to come to the conclusion of the final listing price to sell the property within a specific period of time.

What makes this different from a Comparable Market Analysis or CMA is the timeline.

Since relocation companies are generally working on a tight deadline to sell a home during the moving process, the price that the BMA comes to would likely be lower than a CMA because of the urgency behind the sale.

What is a BPO?

What does BPO stand for? It stands for Broker Price Opinion and it’s considered to be a step up form a CMA and can be ordered from a lender, homeowner, or bank to determine the price of a home being sold as a result of a business relocation.

This process is still less expensive than an appraisal because of the person preparing it. Since it’s not being performed by a certified appraiser, it’s actually illegal in some states. The adjustments are limited on a BPO which can skew the value of the home in one direction or the other.

What is a CMA?

A CMA or Certified Market Analysis is prepared by a Licensed Realtor to determine the best sales price of a home based on the current market.

The main thing that separates this from the previous two options is that it focuses less on the features and improvements of the home and more on the current market.

Adjustments are made based on square footage of the comparable properties then compared to other properties of similar size that have sold recently within a certain mile range of the house in question.

This is considered a highly standard procedure and if you’re hiring a real estate agent for relocation to help during the relocation process then chances are, this is the type of valuation you’ll receive.

How Does an Appraisal Compare?

As appraisal is considered the most comprehensive way to determine the value of a house and what it should sell for in the current market.

This is because it combines all the elements of each option into one. It uses the current market conditions, recent sales, comparables, and every detail about the house in question.

During an appraisal, a Certified Residential Appraiser will go into the house and take an extensive look at all the details of the home rather than just factor in the square footage and exterior appearance.

Factors like the age of the roof, condition of the windows, hot water heater, heating source, foundation, and updates will all play a major role in the actual value of the home compared to other sales in the neighborhood.

How These Apply to Relocation

A BMA in real estate is one of the most common options for a relocation. If you or your team members are in the midst of relocating and you have employees that need to sell their home, part of the relocation package could include the business purchasing these homes and selling them.

It’s also important to remember the timeline and why a BMA has an impact on this. If you’re relocating employees in 30 days and they’re securing a home in their new location, this opens a small window of opportunity for you to sell their existing home to ensure that the company doesn’t have to take a hit.

No appraisal licensure or accreditation is required for a BMA so it’s also much easier to perform one quickly.

How to Decide What You Need

Depending on the situation, it often comes down to cost. An appraisal can help you get the most for the sale of a home but it can also take the longest to complete and it will cost the most to get the appraisal performed.

If you’re looking to save some money and time, a BPO or BPA will be the easiest way to determine the value of the home but it doesn’t factor in various details such as comparable internal features of homes that only a Certified Residential Appraiser would have access to.

A Certified Market Analysis is one of the simplest options because you’ll likely need to have a real estate agent help you during the relocation process. They’ll perform a CMA to determine the value of the property compared to what is currently selling and they’ll settle on a price from there.

What’s most important is to understand that you don’t need to go at it alone. Whether you’re the General Manager, HR Manager, or an employee with the company; hiring a professional relocation company can take a lot of this off your back.

We specialize in helping businesses of all sizes to relocate, and we can assist in every step from A to Z. We have a proven process that helps you sell off the homes and relocate smoothly while ensuring you preserve as much of your relocation lump sum as possible.

To learn more about ARC Relocation, schedule a free consultation today by clicking here.

How to Write a Relocation Letter for a Mortgage

Written by admin on October 12, 2023. Posted in Transferee Resources. No Comments on How to Write a Relocation Letter for a Mortgage

The process of getting a mortgage can be intimidating, especially if it is due to a relocation for work. Relocation loans can differ slightly from standard mortgage loans, as additional requirements exist.

To help make the process of obtaining a loan easier for your employee, it is recommended to write a relocation letter for a mortgage. Many companies often include a relocation mortgage in their relocation package for their employees.

A letter of employment for mortgage can help ensure your employee gets their loan in a sufficient amount of time during their relocation for work. The letter will enable the mortgage lender to trust that your employee is responsible enough to pay their loan by including information about their income and how long your company has employed them.

How to Put Together a Relocation Letter of Employment for Mortgage

Obtaining a mortgage while going through the moving process can help to have a relocation letter of employment. A homebuyer must receive an accepted offer letter signed by your company or the head of human resources.

This letter will include information regarding the employee’s income to help them qualify for their mortgage in a time-efficient manner. The relocation letter for a mortgage will help prove your employee’s income to the mortgage lender, which will make the lender more likely to approve the mortgage application.

Mortgage lenders use specific criteria to determine whether or not your employee is considered to be high risk or safe, like checking your employee’s tax documents, all income, and the stability of their employment over the past two years.

Your employee’s relocation letter of employment should include how many hours they work, their income, tax information, their job title or position, and how long they have been employed with your company.

Important Considerations When Getting a Mortgage in a Different State

If your employee is relocating to a different state, there are some important considerations to keep in mind. Some mortgage companies will only allow your employee to close on their mortgage after they have started their new job, but other mortgage lenders are different.

Fannie Mae, for example, allows its homebuyers to close on their relocation mortgage before starting their new job. However, there are conditions to keep in mind:

The homebuyer is qualified using only salary or hourly based income
The home must be a principal primary residence
The mortgage can only be obtained for one unit of properties
Your employee’s new position at their job needs to be within 90 days of the closing date
Employees cannot be employed by family members or anyone involved with the mortgage process
The mortgage is only allied in purchase transactions

Suppose your company requires the employee to obtain a drug screening or background check before relocating or changing positions. In that case, that will need to be completed before the employee closes on their loan. An underwriter will verify with your company that the screenings have been completed and satisfied so that the mortgage process can proceed.

Final Thoughts

A relocation letter for a mortgage will help your employees get on the right track to obtaining a mortgage for their job relocation. If your company is looking for assistance with relocation, ARC Relocation can help! Contact us today for a free quote or to set up a free consultation call.

Core Flex Model for Employee Relocation [How to Implement]

Written by admin on October 12, 2023. Posted in Relocation Guides for Human Resources Managers. No Comments on Core Flex Model for Employee Relocation [How to Implement]

The core flex model is one of the most popular and highly debated topics amongst relocation programs. Core flex combines elements of a set relocation benefit as well as supplemental offerings that employees can choose from.

One of the reasons why this method is so popular is because it allows employees more flexibility and also puts less weight on the employer having to provide the same benefits to every employee.

HR and recruiting managers have begun implementing this type of business relocation due to a need in the marketplace. When done properly and thoughtfully, the core flex model can be a great option for both employees, managers, and stakeholders.

What is the Core Flex Model?

Let’s break it down. The core flex model consists of two parts. Part one is the lump relocation package that is available to everyone. This aspect exists to cover transportation, moving costs, travel costs, and whatever else is deemed necessary by the person in charge.

The second aspect is a range of optional items that can be cherry picked to create the perfect relocation package that works for each employee. These can include home purchase assistance, payment for transporting pets, tax support, immigration, culture training, and spousal support.

Advantages of Core Flex Models

There are significant advantages of this method no matter what industry you’re in and regardless of the size of your business.

Money Savings

Think about it this way. You’re relocating two employees in the same position but one has a family with three kids and the other is a single male. Why would you provide them both with the same amount of money for their relocation when one is clearly going to cost more?

By offering a lump-sum relocation, you’re doing that. With a core flex model, you can offer the same lump sum benefits but have the married man with children elect to take some of the extra benefits because he will need them.

More Flexibility

From a business owner standpoint, a flex policy reduces the chances of outstanding circumstances. Since each employee has the choice to elect for whatever benefit they deem is necessary, no one will feel that they’re taking the brunt of the responsibility and won’t have the need to reach out to make a change or request something else.

Great for Recruiting

With the younger workforce demanding a mobile lifestyle, the core flex model is a great recruiting tool for bringing in younger talent. If you implement this style of corporate relocation, it could make your business more appealing to qualified talentinternational-relocation-services/.

Disadvantages of Core Flex Models

While this model may seem like a no brainer, it’s not always as simple as it looks. There are issues and concerns as well.

More Red Tape

Naturally, when you’re designing a package unique to everyone’s needs, it creates more paperwork. Every transferring employee will receive their own package including finances, administration, and supervision. Working on a case to case basis like this will take a lot more time than a typical relocation bonus or reimbursement.

Higher Risk

From an employee morale standpoint, there is a higher risk of upsetting certain employees. When they find out that someone received benefits they didn’t, they could become resentful of the company and try to negotiate something into their package that wasn’t there before.

Just because someone doesn’t have children, doesn’t mean they may not be interested in finding a house for example. This can also increase the overall time it takes to execute the relocation as you find yourself negotiating with every employee about the flex options.

How to Establish a Core Flex Policy

There are a few ways to simplify the model and make it easy to understand for employees and managers. Here are some of the most popular employee driven models:

Menu Approach

Employees receive a list of optional benefits
Employees are allowed to choose a specific number based on factors such as dependents, marital status, and position

This method works best when the cost for all the menu items are similar and all the benefits are a means of sweetening the deal for employees. None of the optional benefits should be something that an employee actually needs to complete the relocation. (ex. Moving truck and packing costs)

Monetary Cap Approach

Also called “dollar value cap”
No exact benefits are provided, instead, a monetary number is provided on top of the lump sum for optional benefits
The cap can be set based on employee position, dependents, marital status, etc

This approach works well when it’s properly thought out and a correct number is used to determine how much the average employee will need to spend to cover the cost of their relocation.

A capped strategy isn’t always ideal because it puts a lot of pressure on the employee to spend wisely and the stress of managing their budget can only make the relocation more difficult for them. Also, if they don’t have any experience in relocating whether it’s across the country or the world, this can have a negative impact that will trickle up to the business as well.

Points-Based Approach

Each flexible benefit has a certain number of points
Employees receive a set number of points based on various factors

In reality, this method is the same as the cap approach but it’s simplified when dollar signs aren’t the main factor in play. This strategy requires a lot of due diligence and experience on behalf of the employer so many businesses are not able to execute it without the help of a trained relocation consultant.

Lump Sum Approach

A complete sum of money is provided to employees to use on flex benefits
Amount of money is calculated based on historical cost of various relocation factors
Employees can spend their money however they want without employer intervention

Lump sum relocation is one of the more popular methods but there are risks. This method increases the chances of mismanagement by the employee who may not have experience with the costs and timelines associated with relocation.

It can work best in cases of executive relocation where the person relocating has experience and has done it many times before. In this example, it can actually improve their relocation by putting them in the driver’s seat.

Wrapping Up

At ARC Relocation, we’ve helped many companies design and implement a successful core flex model. It starts with clear communication, careful planning, and follow up with individual business units to make sure everything is running smoothly.

If you’re planning a business relocation and think that the core flex model is an option that may work, consider setting up a free consultation to learn more today!

Replacement for the USAA Movers Advantage Program

Written by admin on October 7, 2023. Posted in Military Relocation Guides. No Comments on Replacement for the USAA Movers Advantage Program

ARC Now Offers the Replacement USAA Movers Advantage Program for Active Duty and Prior Service Military Personnel.

Use our proprietary program and preferred network of realtors, and receive an average of $1,000 to $1,500 per real estate transaction (So if you are selling a home and buying a home, this could mean $2,000 – $3,000 or more back in your pocket!).

What makes this possible? It’s simple. We work with a dedicated network of real estate agents who have agreed to share their commissions.

You win by getting a great rebate, and they win by getting referrals as part of our military loyalty network.

1. Register for Your Rebate

2. Use a Network Realtor in Your Buy or Sell Transaction

3. Receive a Rebate Check within A Week of Closing

What Was the USAA Movers Advantage Program?

Before it was discontinued, the USAA Movers Advantage Program offered cash rewards for their military customers and families to help them save money when moving.

This USAA program was meant to put money back into their customer’s pockets, offer more referrals to real estate agents, and also increase their own profit. However, the USAA Mover’s Advantage Program was ultimately discontinued at the end of 2019.

There’s good news though, ARC Relocation offers an even better rebate for military families (or civilians!) looking to move, and can also pair you with a dedicated relocation specialist to make your move easier.

USAA Movers Advantage program was created by USAA to help their military customers during a move. It was supposed to put money back into the buyer’s or seller’s pocket, but USAA did this by arranging lesser commissions for real estate agents, and also keeping a portion of the money for itself. They had a list of preferred realtors that had agreed to this commission arrangement, whom the family buying or selling their home was required to use for their transaction.

The realtor, per the program, gave 30 to 35 percent of their commission back to USAA for the referral. Then, USAA gave a portion back to the home buyer or seller, for using their preferred realtor. USAA Movers Advantage program typically provided their customers with a rebate incentive of somewhere between $1,000 and $1,500 for using one of their preferred realtors for their move.

While some real estate agents grumbled that this was unfair or even unethical, the program was designed to be a “win-win-win”, and many people chose to use it. Here’s how each party benefitted:

The real estate agent benefitted by receiving more referrals, in exchange for a lower percentage on each deal.
The home buyer or seller benefitted by receiving a rebate check, in exchange for only working with an agent in USAA’s real estate rewards network.
USAA benefitted by receiving a portion of the commission, in exchange for sharing some of it with the home buyer or seller.

USAA Realtor Program – Here’s How It Worked

To become a USAA preferred realtor, the realtor was required to

share up to 35 percent of the commission they would’ve earned with USAA.
have their realtor’s license in the state they operated in
The realtor did not need to be a member of USAA to have access to USAA’s preferred agent portal.

While being one of USAA’s Preferred Realtors came with the benefit of getting referrals, you did give away some of your commission for that privilege. Still, many agents participated in the program, because of the tremendous advantage that it is to get real estate referrals. Similarly, ARC Relocation partners with the most qualified real estate professionals in each market, to assist our clients with their relocations (if interested in learning about our partner program, contact us here).

USAA’s Real Estate Rewards Network For the Home Buyer or Seller

As a USAA customer, using a preferred realtor was advantageous because it put money back in your pocket, but it also could be limiting because in order to qualify for the rebate, you were required to use an agent in the network.

If you had a friend or personal contact that was a real estate agent, you wouldn’t be able to use them if they weren’t part of USAA’s real estate rewards network (frustrating on several levels). You might’ve only been given a handful of realtors to choose from in your area. Even so, being given a check for $1,000 or more is a compelling benefit, that many home buyers and sellers took advantage of this while the program lasted.

Examples of the USAA Movers Advantage Program in Action

Here are some examples of why you might have considered using USAA’s program before it was discontinued:

Job Relocation

You might have considered using USAA relocation services if you sold your house and relocated to another state due to your job. You would receive some money back at the end of the deal if you used one of USAA’s preferred realtors. Likely, your employer might’ve offered you a lump sum relocation deal to help you feel more financially secure about moving.

Moving

You could have been moving to a different state, a different town, or just trying to get out of temporary living quarters and buy a home of your own. No matter the reason, the USAA movers advantage program was used by many. The same types of factors applied as they did with a job relocation. You received some money back once the deal was closed, in return for using one of their realtors.

Good News! There’s a Better Alternative

The movers’ advantage USAA program has been discontinued since December 31, 2019, due to the increasing complexities in financial services. This allowed USAA to shift its focus towards the insurance business, relocation mortgages, and banking.

ARC offers a home buying or selling rebate to anybody who is buying or selling a home–not just military personnel. We will help you find a realtor, plan your move, and provide options of van lines and moving companies to get your household goods and belongings to their new destination safely. ARC offers an entire suite of services to help prepare you and your family for your move. ARC can help you find moving companies to help you with:

Packing
Unpacking
Providing packing supplies
Moving furniture
Transporting your belongings
Disposal of packing materials
Furniture assembly and disassembly

If you’re planning a government or corporate relocation, ARC is the right choice for you. We’re proud to serve our veterans (and civilians), and we go above and beyond to ensure a smooth and easy transition into the next phase of your life.

To learn more about how ARC helps relocate veterans and military families, schedule a consultation today.

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Register for Your Real Estate Rebate Now

Network Relocation

Written by admin on October 6, 2023. Posted in Relocation Guides for Human Resources Managers. No Comments on Network Relocation

Network relocation is the process of moving your information technology infrastructure from one place to another. There are a number of reasons why you may need a service like this.

If you’ve outgrown your current office space and are looking to expand somewhere new, you’ll need to move the existing technology to your new location.

Perhaps you’re simply one cog in the overall corporate relocation and are tasked with the process of moving the IT infrastructure.

Maybe you’re simply ready for a move. Regardless of your reason, your new office needs to be able to support the technology required to conduct business and a network relocation company can help you safely and efficiently move everything.

Why is Network Moving Important?

Why does this matter? Why is it important to properly relocate your network to your new office?

Think of all the data and information your business uses in a day. What if all of those important files, customer information, and data sheets were gone? How would that impact your business?

In most cases, loss of data is a huge concern for businesses and can lead to the overall downfall of an otherwise successful business. By hiring a professional relocation company you can trust, you ensure that you’re dealing with people who do these kinds of jobs every day.

Plus, the company can help you think about things you might not have considered like servers, cabling, WiFi, and telephone plans.

How to Ensure a Smooth Network Relocation in 5 Steps

Having an overall office relocation checklist is important but you want to make sure the move management services you employ understand your goals and objectives.

One way to do this is by having a strategy to help make your network relocation run smoother. Here are five important things to think about.

1. Plan Now

Don’t wait, don’t assume, and plan ahead. Make sure your IT department (if you have one) has already seen the new location and has determined its feasible to simply move everything there. They should review the network requirements well ahead of time so they have time to plan and buy whatever you may need in the new office.

Also remember to contact your internet and phone service providers well ahead of time to alert them of the move. For some businesses, as little as one day without access to the internet could be catastrophic.

2. Back Up Data

When relocating a business, it doesn’t matter if it’s one small branch or the headquarters, every office has data. Make sure the person in charge has multiple full-recovery backups of servers, firewalls, and all data.

No matter what, things can go wrong and information loss is a real possibility in network relocation so it’s important to have multiple backups in case something happens to the main system or any of the duplicates.

Also, it’s a smart policy to transport the backups separate from the main system. In the event that the main system is lost due to something extreme, you’ll still have the backups.

3. Make a list of Equipment

A network relocation can be a great time to evaluate your current system and procedures and see if you can make any improvements. It’s also a time to look at the current hardware and see if it makes sense to move it or upgrade to something new.

If parts of your computer network are no longer fully functional, consider replacing or upgrading them. Be sure to dispose of them properly or see if there are programs in your area that allow you to donate them to growing businesses.

4. Hire Professionals

While DIY might be a bit cheaper, hiring professional commercial relocation services can help you tremendously in the long run. Dealing with computer networks, data rooms, software, work stations, and servers shouldn’t be left to a few of your buddies and a Uhaul truck.

Hiring certified movers can help ensure that the move runs smoothly and safely without the risk of losing any data. We’ve been doing this for decades and we’ve seen it all so it prepares us for the worst.

Many commercial moving companies will also help with the disconnection and reconnection of computer equipment as well as packing and crating in a safe and sturdy manner.

5. Run Diagnostic Tests After the Move

Once everything is set up in your new office, it’s time to test it out. Ensure that all the equipment is where it belongs and nothing is missing. Start all network servers, check to see that data has properly migrated, and make sure you can send and receive emails. This will prove that everything is properly connected and the network is up and running.

Final Thoughts

Network relocation is one of the most important pieces of your overall move. Transferring important and sensitive customer data is not something you want to play around with.

We highly recommend hiring a professional relocation company with experience in helping businesses relocate their networks. Click here to learn more about how ARC can make a difference in your move.