It is time to call your insurance man to review your home insurance. With property values sky rocketing and more importantly the cost of materials going through the roof, you need to make sure you have enough insurance to cover the full replacement value of your home in the event it burns to the ground. The odds are pretty good that you may be underinsured if you have not done a review in a very long time. The last thing you need is arguing with your insurance company in the event of a disaster.
Full replacement value will vary by area. If you live in high cost California or other states with high values and high cost of living, the likelihood is that the cost per square foot to rebuild your home will be higher than if you live in a second or third tier city and or lower cost of living state. The amount of insurance you purchase will determine the premium you pay. If you need to increase your premium to buy more coverage, there is a pretty good chance that the premium will go up 10 - 20% per year; but that is better than not having enough insurance if disaster strikes.
The more equity you have in your home, the more important that you have the right coverage. The reality is that if you have little equity in a worse case scenario, you could just walk away and hand the keys to the bank. However, if your home is paid off and or you have a lot of equity, you will not want to walk away in the event of a disaster. You will want your home rebuilt with the same quality materials and standards it has now.
Baby Boomers are turning 65 at the rate of 10,000 a day for the next 15 - 20 years. By 2030, there will be 74 million Baby Boomers age 65 or older. This huge demographic will have a tremendous impact on our country. The real question is where are all these people going to live. Half of them have little in savings and so their Social Security income, assuming it still exists in its present form, will be most of their monthly earnings.
Even today, 65% of those who need home care and or assisted living is being paid for by Medicaid. That basically means that they have no means to pay for their own care so the government must step in to provide financial assistance. This entitlement actually happened with the passage of ObamaCare. However, when 30 or 40 million Baby Boomers can't care for themselves in the next 20 years, the government will face an impossible situation. With Social Security and Medicare headed toward insolvency if something is not done pretty quick adding this Medicaid entitlement to the mix is going to lead to huge government deficits.
From a housing perspective families may start to recognize that they may have to care for their aging parents. We could see more situations where Mom or Dad moves in with one of their children. This could have an implication related to housing design. Many news homes are now being built to accommodate multi generational living with mother in law suites. I suspect we will see housing additions and or renovations to allow for Mom or Dad moving in with one of their children because they will not be able to afford any other solution. This could be a back to the future moment as occurred decades ago when parents lived with their children.
The next 20 years will present many challenges related to caring for this Baby Boom generation. There will have to be solutions for many that combine family and government assistance. The day is coming fast.
Everybody knows that renovations of kitchens and bathrooms return
the most on the investment; but that assumes that you choose wisely. We
are starting to see people install tiles with wild patterns and or choose
cabinets in various colors other than wood tones or white. These choices
can be risky when it comes time to sell your home and they often look dated
sooner. It is best to stay with neutral tones and/or tiles or flooring that is
not too busy with patterns.
Ceramic wood looking tile has become very popular. It looks
like wood in various types and colors; but it is easier to care for and
definitely more kid or pet friendly. The cost is about the same as real
wood; but since it is easier to care for and will last longer without a major
refinish needed, it could be more cost effective. If buying any kind of
ceramic tile, make sure the glaze is not just on the surface because the
cheaper tiles if they chip will show a clay color underneath. So, spending
a bit more is better.
If you go neutral, which is best, you can always express you style
and need for color with all sorts of accessories and color in
furniture. These things are not permanent and can be changed easily
whenever you feel the need for a refresh in look. Renovations can be very
expensive, so it really is best to choose wisely with tiles and flooring that
will stand the test of time. Spend a little more on upscale appliances to
get that gourmet kitchen that everybody loves. That will be money well
spent.
In a time of skill shortages and an ever more connected world, having the
right
Relocation Management Company
(RMC) can offer your company an upper hand over your competition. However,
selecting the wrong Relocation Management Company can cost your
organization dearly. In this article, we share the most significant signs
its time to find a new Relocation Management Company and what to do about
it.
Employee Relocation is complicated with its intersection of talent, tax
policy, innovation, immigration regulations, and other moving parts.
Relocating employees is intricate, and assistance from the right Relocation
Management firm is essential. Many growing businesses have no idea how to
find the assistance they need to support their relocation program. They
often realize the Relocation Company they chose to help with their
relocation program was a mistake once it's too late.
For lots of companies, employee relocation starts in an ad hoc way. There
are no guidelines or policy benefits, so the program frequently includes an
uncomplicated reimbursement of relocation costs as they happen. It is a
prime time for organizations like this to consider an official, outsourced
relationship with a relocation management business (RMC) and
well-thought-out relocation policies if this describes your company.
When is it time to go out to bid for a new Relocation Management Company
partner?
1. Employees are not happy with their relocation experience
This is the most significant sign that it is time to find a new RMC. How is your current RMC taking care of the employee experience while they are being relocated? Would the employee recommend the experience to other employees inside or outside the organization? Does the RMC understand and reflect the core values and culture of your organization? After all, an organization's talent is often cited as the number one resource. If employees feel like their relocation experience to a new location is terrible, it poorly reflects the organization itself. When relocations don't go well, employees tend to start looking for positions at other organizations.
2. Costs are exceeding budgets
When RMCs are not keeping costs contained and recommending policy
improvements to save money while maintaining a high employee experience, it
is time to go out to bid. Relocating an employee, in general, can be a
costly proposition. Therefore it makes sense to make sure that you have an
RMC advocate for your organizational financial goals. It is essential to
make every relocation dollar spent go as far as possible to make sure you
get as much bang for your buck as possible.
3. Tax annoyances become big problems
Your RMC can do many things right, but if they mess up when it comes to
finances, it can blow up in your face. Relocation financial disaster is
most prevalent in the area of taxation. In all employee relocations, some
benefits need to be treated from a tax perspective differently than income.
Suppose this isn't handled in a proactive and ongoing way. In that case,
simple administrative processes mishandled can create tax disasters for the
employee and their organizations. The worst-case scenarios include having
your entire organization receive an IRS tax audit. When audited, you may
have to pay back penalties which can be a PR nightmare. Still, more than
anything, it will tie up valuable organizational resources to go back and
accurately report on everything needed in an audit. This should never
happen in a professionally run relocation program from an RMC advocating
for your needs.
When I decide to go out to bid for Relocation, what do I need to do?
You need to start an RFP process…
What Actions Do I Need to Take Before Issuing a Request for Proposal (RFP)?
A competent RMC can help you guarantee you offer the relocation support required to satisfy your retention, talent, and recruitment mobility goals while lessening tax exposure for your business and your employees. Ensure
you engage the top business relocation companies during your RFP process.
There are five steps to take internally that will lead to a more thorough
RFP process. Furthermore, check out this guide from the
leading HR organization in the world, SHRM
.
Step 1 – Understand Your Current Relocation Program
Answering these questions will help you understand your relocation program
needs:
What is the size and scope of my current program?
How many employees do I move per year?
What types of services do employees need when being relocated?
Before you connect to the relocation management companies, try to discern your organizational needs. Think of previous relocation activity, if any,
and the benefits you used. If you have a current RMC in place, request from
them Relocation Activity reporting for the last few years to better
understand your program.
If you have no experience with Relocation, you should consider:
What is unique about your company culture? How does that influence
relocation?
What is your organization's approach to benefits? Are you a leader in
your industry, conservative or competitive?
What do your competitors offer as it relates to Relocation?
You do not need to have a formal plan or all the answers at this phase;
however, a common-sense understanding of where you want to end up will be
helpful. This preliminary thinking will help you determine the shape of your program and choose among the top employee relocation companies to discover the one that's right for you.
Besides learning more about your culture, the relocation management company
will ask you particular questions about your anticipated employee
relocation program volume to provide an appropriate response to your RFP
and price based on your needs.
What questions will an RMC ask to provide an RFP response and pricing?
How many individuals do you expect to move within the US each year?
Internationally?
The number of are property owners? Renters?
Where are your typical relocation locations?
Do you currently offer homesale assistance?
What are your "pain points" or recurring relocation issues?
Step 2 – Who within your organization should be involved in deciding on the next RMC?
Your business ought to designate a corporate relocation program manager to handle the search process and, ultimately, own the RMC relationship. This is often an HR or benefits supervisor. More broadly, you should consider adding other stakeholders from other functional groups such as procurement,
talent management, recruitment, payroll, and or finance, etc.
Many organizations have a procurement department that takes on a Relocation
RFP as a project they participate in or manage. Procurement professionals can be of considerable assistance in handling the process. Still, it is
crucial that the procedure centers on your requirements, not simply finding
the lowest bidder.
Step 3 – Which Companies are the Top 3 Best Fits for Our Organization?
Once you have decided on the top 3 relocation management options for your organization, the next step is to schedule presentations. Typically at this stage, it is common to have presentations from the top 3 companies you have selected based on your criteria. While the selection shouldn't entirely be based on the presentation, it should be another critical data point.
Here are some critical questions to ask during a Relocation RFP
Presentation:
Do you feel comfortable working with the proposed day-to-day contact?
What happens when something goes wrong during a move?
How are after hours calls and emails handled?
What is their turnaround time on expense reimbursement?
What is their employee satisfaction rate?
What is their satisfaction rate among senior executives?
Step 4 – Making Your Selection - How do I find the best employee Relocation
Management company?
After the presentations, typically, the next step is to narrow the process further down to 2 more providers. You have the option of requesting more
information from each provider or selecting the company that checks the
boxes for your organization based on your needs.
Step 5 – Signing an Agreement – What is typically included in a Relocation
Management Contract?
Once you've selected the company that is the best fit for your relocation
program, it's time to let them know they've been selected. Likewise, it is
time to tell the other bidders that they weren't selected this time but
that you will keep their information on file. If a losing bidder asks for
information on why they lost, you get bonus points for providing that info
candidly.
In any case, you have selected a winning bidder. Now is the time to sign an agreement. Typically, an RMC will provide their standard boilerplate agreement to kick off this process. Don't be alarmed if the agreement goes
through a few rounds of edits. It is vital to make sure terminology is
synced up between the two organizations and make sure both organizations
are on the same page. Sometimes it is helpful to schedule a call with both
groups, including legal, to talk through any sticking points when they come
up. Afterward, both groups can move forward in a positive way towards
contract language that meets the program's needs and goals.
Finally, you are ready to sign the contract. The next step is to schedule
an implementation kick-off meeting. The new RMC should handle the rest
after that, including providing information on how to transition employees
currently in process (if needed). After that, you are off and running with
a new partner. Congratulations! You have done the due diligence that will
pay dividends in supporting your organizational business goals for many
years to come.
Do you need help finding the right RMC for you?
Paragon Relocation has managed and responded to thousands of Employee
Relocation RFPs. We would love the opportunity to help support your
Relocation RFP process. We can provide helpful
Relocation RFP Guides
, Free Relocation RFP questions, and more.
Employee Relocation Programs today are often seen as a balancing act between high employee satisfaction and cost containment. Why are these two elements connected? The reason is that organizations need to strike a
competitive balance between both elements. Maintaining tight cost controls may be meaningless if you cannot recruit and retain critical staff members needed to make your organization successful.
What are the main types of Relocation Policies and Programs?
Generally speaking, there are three types of relocation policies used by companies to support relocation programs. Then within the relocation policy types, there are further divisions made employee level called policy tiers.
You'll need to work within these guidelines if your company already has actually embraced one of these policies.
Lump Sum Relocation Program
What is a Lump Sum Relocation Program?
Lump sum policies typically are administered by giving the relocating employee a lump sum payment. Typically this would be one check to cover transferee moving expenses, consisting of all associated details. The transferee has the main burden to sell and buy a house, find temporary living accommodations, fund house searching trips, and handling all other elements of the move.
What are the pros and cons of a Lump Sum Relocation Program?
Pros:
It is easy for HR/Payroll to administer
Costs are generally fixed for the company
It gives the employee the flexibility to make their own decisions
Cons :
Requires employee to use their time to manage the move themselves
The employee may not feel very supported by the organization
Lump sum payments are considered fully taxable income to the employee
Exceptions to the policy are common because the employee underestimates
the costs of the move
The employee has to ask the HR/Hiring manager for help figuring out
relocating to a new city
Direct Reimbursement Relocation Program
What is a Direct Reimbursement Relocation Program?
With a Direct Reimbursement relocation program, the organization would repay the transferee for each move expense. This provides less cost control but results in better, more productive staff members. This policy does involve more administrative work for you or your third-party relocation
company.
What are the pros and cons of a Direct Reimbursement Relocation Program?
Pros:
It gives the employee the flexibility to make their own decisions
Employee's relocation expenses are not necessarily limited by a set
budget
Direct reimbursements of homesale related expenses are not at risk of
being audited by the IRS
Cons :
Requires employee to use their time to manage the move themselves
Direct reimbursements of expenses are taxed as income to the employee
Exceptions to the policy are common because the employee underestimates
the costs of the move
The employee has to ask the HR/Hiring manager for help figuring out
relocating to a new city
Direct reimbursements of homesale related expenses are considered taxable
income to the employee, making homesale assistances much more costly
Professionally Managed Relocation Program
What is a Professionally Managed Relocation Program?
Professionally managed relocation programs are managed by relocation
experts that typically work for what is called a Relocation Management
Company (RMC). Using an RMC is attractive to both relocating employees and their employers. If your business is dedicated to recruiting and retaining the best personnel, this is the best approach for you. Having a
professional relocation company handle all information will keep your
expenses controlled and your personnel from stressing-out.
What are the pros and cons of a Professionally Managed Relocation Program?
Pros:
Relocation Management Companies are experts at moving employees
Relocation Management Companies reduce company time spent managing
employee moves
Relocation Management Companies include at no additional cost policy and
program design as part of a standard implementation
Relocation Management Companies provide technology to both the employee
and the employer to make managing key milestones and next steps easier
Relocation Management Companies provide reporting, expense reimbursement,
tax calculations, and more, reducing spend and risk
Cons :
Selecting the right Relocation Management Company often requires a formal
RFP process which can be time-consuming
How can I make a Relocation RFP Process Easier?
Check out our guide on
Employee Relocation RFPs
. Furthermore, we've managed and replied to thousands of Relocation RFPs.
Feel free to reach out to us with any thoughts or questions about structuring your Relocation RFP. We would be happy to point you in the
right direction.
What are the key elements needed to relocate an employee?
Key Elements of Domestic Relocation
Unlike international relocations, which include foreign currency and visa
issues, domestic relocation crucial elements depend predominately on the
following items.
Homesale Assistance
Whether you provide "loss on sale" monetary assistance or marketing services to encourage a prompt homesale, this is the key element of domestic relocation policies. You can cover the closing cost through a
buyout, Buyer Value Option, or direct reimbursement program. Many organizations offer their senior executives a Guaranteed Buyout Offer, as well.
Full-service moving help, from packing to unpacking.
This aspect lowers the stress-level on you and your transferee. Quality
full-service moving suppliers help ensure all of the family's household
goods arrive safely in the new location.
Home Finding Assistance
This aspect features recommending real estate representatives with relocation experience to help transferees discover relevant housing in the new area. This includes company-funded trips, usually two, for the
transferee and family.
Do you need help creating the right relocation program for your
organization?
Paragon Relocation has been in business for over 30+ years, helping organizations of all shapes and sizes build competitive relocation programs that support their business goals. We would love the opportunity to explore
doing the same for your organization.
