D O M E S T I C RELOCATION SERVICES
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1 HEALTH WEALTH CAREER D O M E S T I C RELOCATION SERVICES UNITED STATES AND CANADA
2 DOMESTIC RELOCATION SERVICES BASED ON EVER-INCREASING DEMAND FROM OUR NORTH AMERICAN CLIENTS, WE ARE PROUD TO INTRODUCE OUR NEW DOMESTIC RELOCATION CONSULTING AND COST OF LIVING SUPPORT! To help our clients optimize their domestic relocation programs, we are able to draw on Mercer s vast resources to offer both policy expertise and comprehensive data solutions. Our solutions will let you ensure cost-effective and competitive policies are in place and calculate the right incentives when transferring employees to higher-cost locations within the United States or Canada. OUR DOMESTIC RELOCATION SERVICES INCLUDE: Policy Development and Consulting Whether developing policies or facing specific challenges, we can help implement the right strategies for your domestic relocation program. Program Benchmarking Stay competitive with your peers by benchmarking your policies against Mercer s comprehensive domestic relocation survey data. Cost Comparisons Compensate relocating employees fairly for differences in housing, cost of living, and taxes using our state-of-the art methodology. Geographic Salary Differentials Compare salary information between locations using up-to-date, actual market data. Whatever your domestic relocation needs, Mercer has you covered! Contact us at mobility@mercer.com to discuss any of these solutions or a custom approach.. 2
3 DOMESTIC RELOCATION COST COMPARISONS Mercer s proven expertise in establishing defensible cost of living information is now available to help companies determine cost implications of domestic employee transfers and what incentives to provide when relocating employees to higher-cost locations. Cost Comparisons are available for hundreds of locations and cover day-to-day cost of living differences, housing, property taxes, income and national, state, and provincial income taxes. GEOGRAPHIC SALARY DIFFERENTIAL ADD-ON The Geographic Salary Differential calculation lets you compare the domestic cost differentials with relative salary levels between home and host locations. Add a one-time calculation to the Cost Comparison for a minimal fee. 3
4 SAMPLE COST COMPARISONS US TRANSFER Domestic Relocation Differentials King of Prussia, PA to Glen Cove, NY 7/1/16 King of Prussia, PA Glen Cove, NY Neighborhoods Blue Bell, Narberth, Evansburg, Wyndmoor, Oreland, Marlborough Roslyn Heights, Port Washington, Jericho, Woodbury, Long Beach Average National Housing Expenditure 11,832 National Home Price Indices Salary $ 162,500 Family Size 4 Estimated Host Housing Expenditure $ 15,162 $ 29,196 Housing, Goods & Services, and Tax Assumptions Home prices are based on estimated home values of comparable properties Estimated Home Utilities $ 1,150 National home price indices are a comparison of average home values versus average Estimated Host Utilities $ 1,425 national home values Property tax figures are based on regional averages applied to estimated home values Goods & Services differential compares day to day living costs in home and host locations Utilities Differential $ 275 Tax figures include all estimated applicable national, state and city taxes Estimated Home Property Taxes $ 3,835 Estimated Host Property Taxes $ 10,549 Notes Philadelphia, PA is used as a home city proxy for King of Prussia, PA New York Metro, NY is used as a host city proxy for Glen Cove, NY Property Tax Differential $ 6,714 Home Spendable $ 69,084 Host Spendable $ 80,828 Geographic Salary Differentials When establishing relocation packages, it is important to consider both cost of living differences as well as regional salary differences. Mercer's Geographic Salary Differentials provide this critical additional data at a very reasonable price. You can order a Geographic Salary Differential at: geo.aspx#pricingoptions Estimated Home Housing Expenditure Housing Differential $ 14,034 Goods & Services Differential $ 11,744 Federal & Pennsylvania Taxes $ 26,901 Federal & New York Taxes $ 39,045 Tax Differential $ 12,144 Total Differential $ 44,911 CANADIAN TRANSFER Domestic Relocation Differentials Edmonton, AB to Vancouver, BC 7/11/16 Salary $ 145,000 Edmonton, AB Vancouver, BC Neighborhoods Castledowns, Clareview, Riverbend, Sherwood Park, West End North Vancouver, Richmond, White Rock, West Vancouver Average National Housing Expenditure 7,433 National Home Price Indices Family Size 4 Estimated Home Housing Expenditure Estimated Host Housing Expenditure $ 6,296 $ 19,465 Housing Differential $ 13,169 Housing, Goods & Services, and Tax Assumptions Home prices are based on estimated home values of comparable properties Estimated Home Utilities $ 5,100 National home price indices are a comparison of average home values versus average Estimated Host Utilities $ 3,780 national home values Property tax figures are based on regional averages applied to estimated home values Goods & Services differential compares day to day living costs in home and host locations Utilities Differential $ (1,320) Tax figures include all estimated applicable national, state and city taxes Estimated Home Property Taxes $ 2,780 Estimated Host Property Taxes $ 3,906 Notes Property Tax Differential $ 1,127 Geographic Salary Differentials When establishing relocation packages, it is important to consider both cost of living differences as well as regional salary differences. Mercer's Geographic Salary Differentials provide this critical additional data at a very reasonable price. You can order a Geographic Salary Differential at: geo.aspx#pricingoptions Home Spendable $ 57,351 Host Spendable $ 64,233 Goods & Services Differential $ 6,882 Federal & Alberta Taxes $ 34,947 Federal & British Columbia Taxes $ 39,235 Tax Differential $ 4,288 Total Differential $ 24,146 4
5 GEOGRAPHIC SALARY DIFFERENTIALS Mercer s Geographic Salary Differential tool provides extensive survey data on salary differentials by city in the United States or Canada. Cost of living allowances are only a part of the solution to compensating domestic transfers. Relative salary levels should also be considered before making any compensation adjustment. Mercer s salary differential information is based on actual market data collected annually through extensive compensation surveys, rather than data interpolation. This ensures the highest-quality, reliable, and current data that reflects the latest market conditions US and 85+ Canadian locations are included. GEO COMPARATIVE ANALYSIS RATE FOR CHICAGO, IL COMPARISON RATE FOR NEW YORK, NY PERCENT DIFFERENCE 20,000 21, % 30,000 32, % 40,000 44, % 50,000 55, % 60,000 67, % 70,000 78, % 80,000 88, % 90,000 *** *** Aggregate Difference Between Locations: 11.0% *** Rate will produce a comparison rate outside the reliable data range 5
6 DOMESTIC RELOCATION POLICY DEVELOPMENT AND REVIEW Establishing appropriate and cost-effective domestic relocation policies for your organization can be a complex undertaking. Through extensive research and client work, we know that there is not a one-sizefits-all approach to implementing the right policies, as business needs and philosophies vary. A series of critical policy provisions have to be carefully addressed, including: Home sale and purchase assistance. Household goods shipping and storage. House-hunting trips. Temporary living. Spousal assistance. Relocation travel. Transfers to high-cost locations (cost-of-living differentials, housing allowances, tax differentials). Miscellaneous relocation allowances. Lump-sum payment approaches. Repayment agreements. Our consulting services on domestic relocation policy development will help set appropriate policies that are right for your organization. Our experts will work with you to deliver a customized solution that best fits those needs. Contact us today at mobility@mercer.com to start the conversation. 6
7 DOMESTIC RELOCATION PROGRAM BENCHMARKING Whether you are still developing a domestic relocation program, or you just want to make sure it is aligned with those of your peers, we have the latest data you need to benchmark your policies and practices for moves within the United States and Canada. Based on Mercer s comprehensive, market-leading surveys, the benchmarking data provides critical information on all core relocation policy elements, as well as companies approaches to addressing differences in the cost of living and in housing costs for domestic permanent transfers. Two Benchmarking Review options are available: Desktop Review Covers key policy elements Report provides general market review of key policy elements above, at, and below market; includes Mercer recommendations Consultation time: Half-day conference call Comprehensive Review Covers all policy elements Includes a custom peer cut with your organization s positioning Report provides general market review of policy elements above, at, and below market; includes Mercer recommendations Consultation time: Full-day on-site meeting Participants in the US or Canada Domestic Relocation Policies and Practices Survey may also purchase different custom cuts of the survey results, including: Relocation benefits for executives vs non-executives Relocation benefits for current employees vs new hires Lump Sum Policy Report Custom peer cut You can still take part in the Domestic Relocation Policies and Practices Survey for the US or Canada. Participation is evergreen! Participants that submit their information after the participation deadline can receive the full 2016 Domestic Relocation Policies and Practices Survey Report for a nominal fee. imercer.com/domesticrelo 7
8 For further information, please visit our website at: imercer.com/mobility Contact us at
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