Here are a few things to remember when instituting a cross-cultural awareness program into your corporate relocation program. For a full account of information regarding this service visit our resource library.

Don't forget the family
Just as spouses should be involved in the assignment selection process, they should be involved in training for global assignments. Some experts estimate that nearly 80 percent of all failed global (international) assignments can be linked to the spouse's inability to adjust to the new environment. Each member of the family faces special issues in the expatriate environment that should be addressed.

Other cultural resources
Organizations should consider utilizing their returning expatriates for help with cultural awareness initiatives. Employees who have already completed similar assignments can act as subject matter experts (SMEs) to help new expatriates learn business customs and how to navigate foreign business circles. SMEs can also prove invaluable in helping new expatriates learn the hierarchy in companies with which they will be dealing. It's important to note, however, that companies should not rely solely on employees to provide guidance to new expatriates. Relying exclusively on veteran expatriates can be problematic if the guidance reinforces cultural stereotypes or results in the new expatriate adopting the predecessor's bad habits. While other international assignees have a role to play in helping newcomers adjust, they should not replace professional consultants/trainers.

Alternative views
Although cross-cultural awareness is important, some might argue that its importance is just a hyped up myth. In actuality, on average only 30 percent of American managers sent on international assignment lasting from one to five years receive any cross-cultural training. It can be argued that managing is simply "managing," so where it is done is irrelevant. Another point of view is that any type of short-term cultural training would be ineffective because people can't learn to work and live in a foreign culture after only a few days (or even a few weeks) of training. Others argue that an understanding of a country's culture is something people assimilate over many years based on personal experiences in that specific culture. Others will say that corporate culture takes precedence over country culture. For example, a local employee working for a "bullish" American firm in Thailand might show traits of aggressiveness and conflict, which are not traits normally associated with the Thai culture. These traits, however, may be common in the corporate company culture of the employee's organization, causing the Thai employee to act outside his or her normal cultural dimensions.

Nevertheless, in order to be successful, an expatriate must be comfortable with his or her staff, colleagues, clients and business atmosphere--regardless of location. Cultural specialists also agree that to be successful in dealing with people from other cultures, expatriates need knowledge about the cultural differences (and the similarities) among work locations. The global employee of today's business world can only benefit from gaining cultural awareness, either through direct training or personal experience, which would lead to greater professional effectiveness and company performance. Read more

If you would like more information about cross-cultural education and how it can be added to your international relocation package/program, please contact our corporate relocation consulting team.



Group moves occur for a variety of reasons and in most cases can be treated (relative to the IRS rules) exactly as other non-group moves. A group move, however, may not meet the IRS 50-mile test. In that case, consideration should be given to providing a short distance group move policy. The IRS 50-mile test generally requires that in order for certain costs associated with a relocation to be excludable from income, the distance between an employee's old residence and the new work location must be 50 miles greater than the distance between the employee's old residence and the old work location.

It is not uncommon for companies to change office locations, or have multiple facilities in the same geographic area, where the distance between an employee's old and new work location may or may not meet the IRS 50-mile test. For example, in larger cities, where a move may be from one side of a metropolitan area to the other, it is likely that the IRS test will not be met. These "short distance" office relocations, however, can significantly impact the commuting patterns of employees. It is highly unlikely that employees impacted by an office move, where their commute could be increase by up to 49 miles, will simply accept an "IRS explanation" as to why they are not entitled to relocation benefits. Employees will often make their feelings known and ask management to consider providing some or all of the relocation benefits provided in a standard regular or "long distance" employee transfer.

The relative distance that a short distance group move involves, necessitates a closer look at the specific features provided in a company's relocation policy to see if benefits should be offered for a short distance group move. Properly structured, short distance group move programs reduce absenteeism, attrition and administrative time, and are often far less costly than a normal relocation program.

For more information about short distance relocation packages, visit our relocation resource library and view our white paper.






The continued weakness in many real estate markets has resulted in many companies spending more for relocation than anticipated. The cost of home loss-on-sale programs, extensions to temporary living benefits and the cost of inventory homes (in non-fixed fee programs) are three areas that are frequently cited by companies as being sources of concern.

None of us can control our real estate markets but we can manage our company’s relocation policy. We need to start with the realization that relocation (like other company benefits) comes with requirements of participation and the company (as the bill payer) has every right to set the rules. Transferees may want to use any agent or appraiser they wish but, like the medical plan they chose, they need to recognize that eligibility for relocation benefits requires that they chose from an approved list of service providers. Network real estate agents are critical in today’s market where they reduce the probability of inflated home values which lead to high listing prices and the increased probability of the home going into inventory.

The other critical control is the listing price. The relocation industry has long recommended that this be 105% of the average of the two MPSP’s (Most Probable Sale Price) and this has been widely adopted. Now more and more companies are going to 104% and 103%. Nothing is more critical in relocation cost control than seeing that a realistic listing price is set. No transferee should have the right to over list their property when it is their company (and not them) who will bear the unnecessary cost of such an action such as increased temporary living and the cost of a home that falls into inventory.




Thankfully long gone are the “olden days” when employees were told “your paycheck will be in Wichita, so be there next week.”  However, the state of residential real estate markets does appear to have raised the likelihood that employees are more reluctant to move and there are some very good reasons why they have every right to feel as they do.  

Consider the employee who took a transfer two years ago and followed all the company rules in the purchase of his/her home—in short they did not overpay for the property.  Now two years later the home is worth less than the employee paid for it and the company says we want to move you again.  Who should eat the loss on that home—the transferee or the company? The transferee has every right to look to the company to cover that loss on the sale of his/her property in whole or in part and, if they do not, no one should be surprised if the employee says, “no thanks, I’ll wait until the market recovers.”

Home Sale Loss Programs, while admittedly costly are clearly a legitimate and needed relocation benefit in today’s real estate market.