The five cultural dimensions (individualism vs. collectivism, power distance, uncertainty avoidance, masculinity vs. femininity, and time orientation) provides valuable insights into the cultural practices of different countries. This is the type of information that global relocation managers need in order to better understand cultural similarities and differences while on an international assignment. The ability to effectively communicate with people from all over the world is also key to a global manager's success. An expatriate will have to interact with all types of people in the assignment location, i.e. employees, customers, shareholders, regulators and vendors. Effective cross-cultural communication requires finding integrated solutions and compromises that allow decisions to be implemented by members of diverse cultures.

Cross-cultural training will provide relocating employees with a starting point for the preparation of working overseas or long distances, addressing cross-cultural communication and cross-cultural conflict resolution. For example, by knowing whether a society is individualistic or collective, an global manager would benefit by knowing what to do in cases of decision making, offering incentives or even scheduling meetings.

Knowing the cultural dimensions of the society he or she is working in, the expatriate will have a point of reference when investigating what to expect with respect to all management practices.

Depending on assignee needs, there are a variety of cross-cultural training programs available. Prices typically start at $1,500 to $3,500 for one to two day programs, and increase as the duration and complexity of the services increase. These costs are miniscule, however, when compared to the overall cost of a global relocation assignment, and could save your organization from absorbing the financial burden of a failed assignment due to the assignee's inability to adjust to his or her new location. Read more.


Accurate and timely accounting of relocation expenses has a far-reaching impact on the overall performance and success of a corporate relocation program, to both the company and the individual transferee. With relocation costs per employee homeowner topping $70,000 in recent years (according to averages reported by Worldwide ERC), effective management of expenses can easily exceed several million dollars annually for a company. Because all relocation services funnel through the expense management function, to be appropriately recorded and paid, this function is a significant responsibility for those managing the relocation program. As a result, corporate relocation managers and/or payroll managers should consider several key issues when evaluating the effectiveness of the expense management process in their companies...read more.



What’s new? Well, everything that has to do with the current real estate market is new to most of us. We in the relocation industry have experienced almost two decades of prosperity and have gotten used to the good life.

 

Suddenly, we find a huge number of transferees are “upside down”, “under water” or any one of a number of other terms or phrases to describe a phenomenon that arises out of the transferee being unable to sell their home in a timely fashion for an amount of money that allows the employee to pay off the liens on their homes.

 

Issues that were only occasionally raised are commonplace today in the management of relocation home sale programs.

 

A few of the issues that will be discussed in the future:

  1. Caps on relocation costs – In an economic downturn where everyone is focused on cost containment, is it tax-safe to develop home sale programs where there is a cap on commissions, closing costs, etc. requiring the employee to share in the costs?   
  2. The one year rule - What does it really apply to? Are there tax implications and exceptions to the rule?
  3. Directed offers – It seems that using directed offers is becoming more common with employees finding themselves unable to realize enough from the sale of their home to pay off their liens. What about the use of directed offers and the tax implications of using them?
  4. Loss-on-sale – What are the best practices in offering a loss-on-sale program?
  5. Short sales – What is a short sale process? How prevalent is its use? What are the benefits of using the process and what are the tax and cost ramifications of using it for the employee and the employer?

If you have other issues you would like me to discuss, let me know in the comment section of the blog.

 

Hank