Strategies for Sustainable Global Mobility & Sustainable Future

by | Apr 14, 2025 | News

The future of global mobility is not just about moving people – it’s about moving towards a sustainable future. In a time when sustainability is a top priority for businesses across all sectors, the global mobility industry has a unique opportunity to lead the charge. Rather than seeing relocation as an obstacle to sustainability – given the right circumstances, it can result in a positive impact on the environment. By embracing a holistic view of relocation, the global mobility industry can redefine what it means to move talent across borders, creating a future where business growth and environmental sustainability are not mutually exclusive.

Relocation is a major life event, where nearly every aspect changes at once – from their home and country to the surrounding language and culture. Daily habits are disrupted, and new ones are formed. This is known as habit discontinuity and presents a unique opportunity to encourage sustainable behaviors. During this time, people are more receptive to adopting new habits, making it an ideal time to introduce sustainable habits.

Sustainable Global Mobility

Research by psychology professor Bas Verplanken highlights that our behaviors are largely shaped by habits rather than conscious decisions. His studies reveal that during major life changes, such as relocation, habits are naturally disrupted, making it easier to break old patterns and establish new, sustainable ones. This means that, with the proper support, assignees can be encouraged to adopt more sustainable transportation methods and integrate sustainable practices into their daily lives.

The global mobility industry has the potential to serve as an enabler of positive change, and this is where we, as your Relocation Management Company (RMC), can facilitate and encourage sustainable choices. Through our tailored services and dedicated support, WHR Global (WHR) empowers organizations and assignees to adopt environmentally responsible strategies.

Strategies for Sustainable Global Mobility

To realize the full potential of sustainability in relocation, it’s first and foremost crucial to move from treating relocation as a singular event and to start viewing it holistically by considering the entire assignment lifecycle. Relocation extends beyond simply relocating an assignee from one place to another; it’s about helping them succeed in their new environment while minimizing the impact on the planet.

To make relocation more sustainable, it’s crucial to align relocation policies with ESG objectives and corporate goals.

Embedding sustainability in global mobility goes beyond good intentions; it requires a well-structured and strategic approach.

For example, at WHR Global, we partner with organizations such as:

Expatride-Logo

ExpatRide, whose EcoRide program offers fully electric and hybrid vehicles—an option that helps reduce the overall CO₂ emissions associated with relocation assignments.  They offer employee relocation support in 176 countries.

Home-Sweet-Home-logo

Home Sweet Home provides discard and donate services to the following locations worldwide: the United States, Canada, Puerto Rico, Mexico City, Ireland, the UK, Germany, the Netherlands, Switzerland, China, Hong Kong, Singapore, and Australia.

Incorporating sustainability into every stage of the assignment not only facilitates sustainable business practices but also provides the opportunity to track and manage Scope 3 emissions more effectively. By aligning sustainability policies with sustainability training, the assignees gain the knowledge and resources to make sustainable choices and recognize their potential impact. Continuous support ensures that they can implement long-term changes, making sustainability an integral part of every step of the relocation process.

While integrating sustainability into policies and providing sustainability training are necessary steps toward making relocation more sustainable, the real impact for sustainability happens during the assignment, not just during the move. This is where the choice of RMC is crucial, as we are in a position to bridge the gap between policy and action. By choosing an RMC that works towards embedding sustainability into every step of the assignment and leveraging our global network of suppliers, we can ensure that sustainability is not just an option—it’s the default. 

Sustainable-Air-Shipment

Through practical pieces of advice, such as reassessing your organization’s use of air shipments, WHR can help you drive meaningful change in sustainable global mobility. By guiding the assignee to make more sustainable choices, it is possible to significantly cut Scope 3 emissions without disrupting productivity. Partnering with an experienced RMC ensures that the assignees receive the proper support, guidance, and practical solutions to make sustainable choices easier.

WHR Commitments to Sustainability and ESG

WHR is proud to have achieved a Silver EcoVadis Sustainability Rating in 2024, placing us in the top 15% of companies globally.

We are also a participant in the Science-Based Targets Initiative (SBTi) for sustainability & corporate climate action.

WHR commits to reducing Scope 1 and Scope 2 greenhouse gas emissions by 50% by 2030, compared to a 2018 base year, and to measuring and reducing its Scope 3 emissions.

But what happens when there is an off-hand approach to relocation? Why not just let the assignee decide what sustainability efforts they want to pursue?
This brings us to an essential challenge in sustainability efforts: lump-sum relocation policies.

The Downside of Lump-Sum Relocation Policies

While lump-sum policies may appear flexible and cost-effective, they often hinder sustainability efforts. Placing the burden of decision-making on employees leads to choices driven by convenience rather than environmental considerations. They do not utilize the potential of the relocation by breaking habits and creating new, more sustainable ones. Without structured guidance, organizations lose control over sustainability-related decisions, making it challenging to manage Scope 3 emissions.

A structured relocation policy, complete with pre-approved green mobility options, ensures alignment with sustainability goals and enhances the overall relocation experience for both employees and businesses, ultimately benefiting the planet.

Lump sum benefits include the freedom of being able to use their relocation money as they see fit

New Perspectives and New Possibilities in Global Mobility

Sustainable-Electric-Car

Relocation undeniably has an initial environmental cost, primarily due to travel and logistical emissions. However, viewing relocation holistically offers opportunities to instill long-term sustainable behaviors. Consider an employee relocating to a new country who chooses to lease an electric car rather than opting for a traditional combustion engine vehicle. In said country, there is an excellent electric car charging network, meaning the assignee does not have to compromise on their comfort. Throughout the whole assignment, the reduction in carbon emissions from daily commuting may be more significant than the emissions emitted from the move itself. This highlights that when sustainability is embedded into relocation policies and assignees are provided with the proper support, relocation can drive positive environmental change – sometimes making it more sustainable than not relocating the employee.

Relocation is more than just moving from one country to another—it represents a significant life event that disrupts established habits and creates an opportunity for change. This shift offers the Global Mobility industry a powerful opportunity to influence sustainable choices. By seizing this opportunity, the industry can play a crucial role in helping companies achieve their ESG objectives and make a positive environmental impact.

For a more in-depth exploration of these insights, we invite you to read ExpatRide’s comprehensive white paper here and join us on our journey toward a more sustainable future.

This article is based on ExpatRide’s white paper Global HR’s Green Opportunity: Using Global Mobility to Drive Environmental Change, which examines the immense potential of the global mobility sector in fostering a more sustainable future.

What is Relocation Assistance?

by | Mar 17, 2025 | News

A good place to begin a discussion on defining relocation assistance is to briefly discuss why companies relocate employees. Most organizations relocate employees for one or more of the reasons listed below:

    • To attract new talent
    • To fill key positions in different geographic locations
    • To support business expansion
    • To enhance organizational efficiency

If an organization needs to relocate an employee permanently or temporarily, offering relocation assistance can help ease the transition. Relocation assistance programs are designed to reduce the emotional and financial strain that often comes with moving to a new city or country by providing services and guidance throughout the process.

These services and guidance are either coordinated in-house by the HR/Mobility department or through a relocation management company like WHR Global.

Relocation benefits may also be offered to help an employee transition to a new role that requires specialized skills or to enable them to work in high-demand markets.

 

Relocation Assistance

How does a company decide what types of benefits an employee will receive?

Most companies have developed a formal relocation policy (or policies) that outline the specific guidelines and benefits available to an employee in conjunction with a job-related move or assignment. This policy typically details the types of relocation packages available, the scope of services offered, and the eligibility criteria for receiving assistance. Employers may offer different types of relocation packages based on the employee’s level, job role, or distance of the move.

Common relocation packages include the three options below, including: comprehensive full-service relocation plans, lump-sum payment and direct reimbursement.

1) Full-Service Relocation Package:

    • This comprehensive option may cover all aspects of the move, from hiring professional movers to providing temporary housing and helping with home-finding services. For high-level employees, this can also include additional support like spousal job search assistance and school placement for children.

2) Lump-Sum Payment:

    • A lump sum payment provides the employee with a set amount of money to cover their relocation expenses. It offers flexibility but places the responsibility on the employee to manage their moving costs within the given budget. The employee is responsible for any costs over and above the lump sum provided.

3) Direct Reimbursement:

    • This type of relocation support is not as common as those listed above. With a direct reimbursement package, a company will reimburse the employee for their moving-related expenses. Spending limits and the types of incurred costs covered for reimbursement are defined in the relocation policy. These costs are paid by the employee up front and reimbursed by the employer.

      • For U.S. Domestic assignments, benefits included in these packages might include travel allowances, home sale assistance, and the cost of temporary lodging until the employee finds a permanent residence.
      • For an international assignment, benefits may also include immigration assistance, destination services, and cultural/language training assistance.

Cost Perspective and Tax Implications:

  • When receiving relocation assistance, being aware of the potential costs involved is essential. In many cases, employees may be required to sign a repayment agreement. This means that if the employee leaves the company within a certain period after the relocation (usually a year or two), they may be required to pay back a portion or all of the relocation assistance provided to the employer.
  • From a tax perspective, relocation benefits are generally considered taxable income, and employees may need to account for the associated tax burden. Employers may offer a Gross-Up on relocation packages to cover the additional tax cost. A Gross-Up is an amount added to the relocation assistance to help employees offset the taxes owed on the benefit. The specifics of how the Gross-Up works will vary depending on the company’s policy, but it typically ensures that the employee doesn’t have to pay out-of-pocket for the additional tax liability.
Cost Perspective and Tax Implications with relocation assistance

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Understanding the Cost of a Relocation Services RFP 

by | Feb 18, 2025 | News

Issuing a Request for Proposal, (RFP) for relocation services is a significant investment for any organization. It is crucial to understand that issuing an RFP is not just about evaluating Relocation Management Companies (RMCs) but also about the time, effort, and resources to manage the process effectively.

Cost considerations can vary depending on several factors, but direct and indirect costs are generally involved.

These costs stem from the time, resources, and effort required to manage the RFP process. Below are some key considerations in issuing an RFP for relocation services, followed by examples of associated costs and how this investment can lead to long-term benefits for your company.

6 Key Considerations include:

Understanding the Cost of a Relocation Services RFP

1) Internal Resources and Time Commitment

    • Personnel Involvement: The RFP process often requires input from HR/mobility, finance, legal, and procurement departments. Each department may need to review proposals, assess the RMC’s capabilities, and coordinate meetings. Depending on your organization’s structure, this can be a resource-intensive process.
    • Time Investment: The process typically takes several months, depending on the complexity of your relocation program, the staff’s schedules, and the number of proposals received.

2) RMC Selection Process

    • Evaluation: Companies must establish criteria to assess RMCs’ capability of managing their programs, including service offerings, reputation, and past performance. Some organizations do this through a formal Request for Information process.

3) RFP Preparation and Administration

    • Document Drafting and Design: Preparing the RFP requires a comprehensive understanding of your company’s relocation program needs and may include the help of specialized consultants or internal subject-matter experts.
    • Reviewing and Responding to RMC Questions: Clarification questions are part of the RFP process. Upon receipt of the questions from potential RMCs, the company will consult with relevant internal teams and/or subject-matter experts to craft the responses.

4) RMC Proposal Evaluation

    • Time spent reviewing proposals: Reviewing multiple RMC proposals requires time and careful consideration. This is especially true if numerous individuals are involved in the review process. Organizations may allocate time from various departments, including HR/Mobility Managers, Procurement Officers, and finance experts
    • RMC Presentation Costs: In most cases, shortlisted RMCs are invited to present their proposals in person or via virtual meetings. Cost considerations include time spent by internal resources planning and attending the presentation. This includes follow-up discussions.
    • Contract Negotiation: Once the RMC is selected, a detailed contract negotiation occurs, which may involve legal counsel reviewing terms and conditions.

5) Estimated Process Cost

While the cost of the RFP process can vary, companies should be prepared for an investment of anywhere between $30,000 – $40,000 (or more), depending on the scope and complexity of the relocation program being outsourced, the level of internal resource involvement, consultants/advisors involved, and any 3rd party procurement platforms used. For smaller companies with fewer relocations, the cost may be lower. Larger organizations with a high volume of moves may see higher costs due to more complex programs, detailed evaluations, and vendor negotiations.

Cost Example

Below is an example of how RFP costs might break down for a typical relocation RFP for a mid-sized global organization with 100 relocations per year. The costs can be higher for more extensive programs, depending on loaded salary costs, the number of people involved, program complexity, and scale (U.S. Domestic, International, Global).

Resource
Procurement Manager or Equivalent
Global Mobility Manager or Equivalent
Global Mobility Director or Equivalent
Compensation Manager or Equivalent
CHRO or Equivalent
Legal Review
Estimated Hourly Salary
$62
$80
$64
$71
$176
$87
20% Added Benefits
$12
$16
$13
$14
$35
$17
Hourly Weighted Cost
$74
$96
$77
$85
$211
$104
Est. Hours Required for RFP
120
80
80
60
40
40
Weight
100%
100%
100%
100%
100%
40%
Total Cost
$8,928
$7,660
$6,144
$5,100
$8,433
$1,666
Total: $37,951

6) Other Cost Considerations:

    • Opportunity Costs: While more challenging to quantify, the company should also consider the opportunity cost of dedicating resources to the RFP process. During the time spent managing the RFP, these resources may not be available to focus on other vital projects, such as supporting ongoing employee relocation efforts or other core business operations.
    • Consulting or External Expertise Fees: In some cases, companies may hire external consultants or experts to assist with drafting the RFP, evaluating proposals, or providing industry insights. This can add additional costs to the process, ranging from a few thousand dollars to tens of thousands, depending on the level of support required.
    • Software & Tools: If the company chooses to utilize software or platforms to help streamline the RFP process (such as automated RFP platforms, vendor management systems, or third-party procurement tools), there may be additional subscription fees or costs associated with these tools. Depending on the platform, these costs can range from hundreds to several thousand dollars.
Issuing an RFP for relocation services can be a substantial financial and time investment for a company

Issuing an RFP for relocation services can be a substantial financial and time investment for a company.

However, the benefits often far outweigh the costs when the process is conducted strategically by investing the time to evaluate multiple providers and choosing a partner that offers value, high-quality services, long-term flexibility, and better alignment with your company’s needs.

These savings, combined with improved employee satisfaction and retention, can yield a significant return on investment, particularly as your relocation program scales over time. 

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WHR Global,a leader in global mobility, is an independent, full-service relocation management company with offices in the US, Switzerland, and Singapore. WHR strives to offer cost-effective relocation benefits without compromising empathy, ethics, or service

Information Systems Security: A Good Defense is a Good Offense

by | Feb 12, 2025 | News

Security – whether online or offline – is extremely important.

According to Identity Theft Resource Center, the number of data breach notices issued in 2024, was 1,350,835,988 (and those are just the ones that were officially reported!).

Every day, we entrust our information to others, hoping that they will keep it safe. But what steps are they really taking? And, are they following through? Just one mistake on the company’s part can leave thousands of individuals primed for an attack.

It’s an epidemic.

That’s why it’s imperative that companies focus on physical, infrastructure, and operational security. As they say, a good defense is a good offense! There are a variety of ways companies can strategically approach security. But to be truly effective, more than one measure should be taken and used in conjunction with the others.

Cyber Security is a top priority for WHR Global and we have always taken proactive measures to secure confidential data for clients and their transferring employees.

Information Handling

    • The way your organization chooses to manage your electronic information is the foundation of a strong security plan. Data encryption translates your data into concealed code, which greatly reduces the vulnerability of attacks from hackers and data thieves. Utilizing a Transport Layer Security (TLS) certificate on your website encrypts any data communicated over the internet.

Secure Infrastructure

    • To keep pace in the ever-changing security landscape, it’s important to have measures in place to protect infrastructure. Firewalls, guest networks, and endpoint protection are additional critical components. Coupled with encrypted backups and off-site storage of information assets, you’re looking even better.

Security Best Practices

    • Organization-level security is important, but a culture of security is also crucial. Best practices surrounding password creation should be relayed to your teams. With the number of online tools available, it is highly likely that your employees are creating their own passwords. Instruct them not to use easily found information (i.e., birthdays, anniversaries, pet names, etc.). You should also host an annual security training to remind your staff of your protocols.

Audit

    • Another way to ensure data is continually protected within your organization is to complete frequent internal and third-party audits. At WHR, we undergo an annual
      SOC 1® (SSAE18 Type II) audit. A third-party organization extensively evaluates our systems design, operating effectiveness, and internal controls. We elect to participate in this audit to uphold our client commitments to data integrity.

Following Security Regulations

    • Beyond what a company can choose to do, there are many things that companies must do. There are a plethora of security regulations depending on the industry and the type of work completed. The most recent regulation buzzword is “GDPR” – the data protection rules set forth by the EU. Other regulations across many industries include the Federal Information Security Management Act (FISMA), the Health Insurance Portability and Accountability Act (HIPAA), the Family Educational Rights and Privacy Act (FERPA), the Payment Card Industry Data Security Standard (PCI-DSS), the Gramm Leach Bliley Act (GLBA), and so many others.
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Data Security – A Top Priority at WHR Global

The fact is, data security must be a top business priority and become part of the corporate culture.

It’s something that we take very seriously at WHR Global. We ensure that our employees are up-to-date on information security best practices, not only for our company, but for their personal safety as well.

We understand that we possess sensitive and confidential data relating to our clients and their transferring employees. We have always taken proactive measures to secure information against accidental or unauthorized access, disclosure, modification, or destruction and to assure everyone involved of the availability, confidentiality, and integrity of our data.

A Security Tip from Jeff Beyer,
WHR’s IT Director

Everyone loves online shopping!

It’s important to remember that you’re exposing yourself to threats each and every time you enter your credit card online.

Many sites offer two factor authentication, and I strongly recommend you enable that when possible.

It definitely doesn’t eliminate attacks, but it can help protect you when there is one.

Our Custom Technology Solutions and on-site IT Team are available to cater to your mobility program’s specific needs:
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9 Items to Include in Your Next Relocation Management RFP

by | Dec 16, 2024 | News

If you have ever been through the Request for Proposal, (RFP) process for employee relocation services, you know how stressful and time-consuming it can be.

An integral part of every RFP is the detailed timeline.

This timeline explains when the RFP was sent, the due date, when questions are due from bidders, when you are to respond to questions, and dates for the next steps (presentations, start date, and more). However, the timelines often underestimate how long some items take to complete.

Sometimes, Relocation Management Companies (RMCs) will have dozens of questions requiring responses, which can add several business days to the process. This often results in extensions and delays that you did not anticipate when going out to bid.

In this post, we have outlined 9 of the most common questions that RMCs ask after receiving an RFP.

RFP proposal timeline includes deadlines and 9 Items typically asked by RMCs

The 9 questions below are actual questions
from RMCs in actual RFPs from the past 24 months.

The goal should be to answer these questions up front in your RFP before ever sending it to an RMC.

This will save you a significant amount of time during the Q&A process and enable each bidder to provide you with a response that more accurately addresses your needs.

1) Can you please provide copies of your relocation policies?

RMCs require access to your relocation policies or a detailed summary to tailor their pricing and responses accurately to your needs

This is the most commonly asked question.

RMCs want to look at your policies to tailor their responses and pricing to your program. It helps to provide all of your relocation policies or, at a minimum, a detailed summary of your original bid package so that prospective bidders know exactly what you are looking for.

Some RMCs suggest policy changes that suit your needs and budget without adversely impacting the employee’s transition.

2) Do you have any preferred or company-designated third-party suppliers or vendors?  If so, can you please provide the company names?

Including existing relationships and specific requirements in the RFP allows RMCs to show how they’ll work with your current providers and disclose any related management fees.

Typically, RMCs will work with client-designated service providers.

However, they expect your provider(s) to meet their quality standards to maintain a consistent, excellent experience for your relocating employees.

Describing any existing relationships and specific requirements in the RFP gives the RMC an opportunity to demonstrate how they will interact with your existing preferred providers and disclose any associated management fees that may occur. 

See the WHR Global Supplier Partner Code of Conduct

3) What is your annual volume?

Include detailed annual volume information in your RFP and a clear transition profile ensures a more accurate bid.
When answering this question in your RFP, include:
  • Number of homes sold per year
  • Number of renters you relocate
  • Any short-term domestic assignments
  • Lump Sums
  • Internship programs
  • Other relevant information
A precise transition profile results in a more accurate bid response.

4) What type of home sale benefits does your company offer?

The most common home sale benefit types include a Guaranteed Buyout (GBO) or Buyer Value Option (BVO) program and Direct Reimbursement (DR) program

Do you offer Buyer Value Options (BVOs), Guaranteed Buyouts (GBOs), Direct Reimbursement (DR), or marketing assistance only?

    • If so, how many of each do you typically offer in a given year?

This information tells the RMC what areas and processes to focus on in their response and provides the most accurate pricing structure.

An experienced RMC will also help you to evaluate each method and determine which is most beneficial for your company.

How do BVO and GBOs programs compare? Read to learn more!

5) What is your average home sale price?

Knowing the average home sale price helps each RMC determine a fee structure for your home sale program

This information is essential if you offer home sale benefits to your employees.

  • Knowing the average home sale price helps each RMC determine a fee structure for your home sale program.

Additionally, providing the average home purchase price gives the RMC a good idea of the type of home you are interested in finding for your employee.

6) What are the top challenges that you have with your current program?

Sharing any challenges you're facing and areas for improvement in your RFP allows the RMC to propose solutions that can improve the process for you and your employees.

RMCs are well-acquainted with the myriad of challenges that occur when relocating employees.

  • Do you need help with exceptions or failed relocations/assignments?

Letting the RMC know some of the problems you are having and the areas you would like to see improved in your RFP allows them to suggest solutions that will enhance the process for you and your employees.

7) What are your historical locations?

Including historical information in your RFP helps the RMC identify volume discounts, particularly if you frequently relocate to the same destinations.

Listing out historical information allows the RMC to scout volume discounts, especially if you frequently move to the same location.

  • What are your top departure location(s)?
  • What are your top destination location(s)?
  • Do you have locations that have been historically challenging?
    (e.g., remote/small towns.)

Providing these details enables the RMC to share their knowledge and familiarity with the locations you list and provide any creative solutions to meet the needs of your relocating employees.

8) Will the RMC be taking over any existing files?

It's crucial to inform your prospective RMC whether they will need to take over any ongoing relocations or assignments. If so, specify the number and outline the expectations.

It’s important to let your prospective RMC know whether or not they will be required to take over any existing relocations or assignments. If so, indicate how many and what the expectations will be.

  • Primary considerations for the RMC include where the employee is in the process

    • Domestic – is there a home sale involved?
    • International –  how much time is left on the assignment?

Providing some detail on this upfront in the RFP will enable the RMC to provide you with their criteria, which determines how certain types of files will be transitioned, as well as recommendations for those files that should stay with your current provider until completion.

9) If you have international assignments, does the global scope of work include any compensation services?

By providing detailed information on International assignments, including compensation services, the RMC can share its capabilities and processes and offer accurate pricing for these services.

Compensation services would include:

  • Creating the compensation calculations and balance sheets
  • Updating the balance sheets
  • Tracking the compensation data
  • Working with your payrolls to ensure proper payment and reporting
  • Providing the year-end compensation summary report to your third-party tax provider to prepare the assignee tax return

By providing as much detail as possible about this, the RMC will provide you with its capabilities, processes, and appropriate pricing for this service.

Including all of these points in your RFP does not guarantee
that there will not be any questions.

However, it will make the responses more uniform, reduce the number of questions from the responding RMCs,
save you some time, and ensure that you are comparing similar responses.

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WHR Global,a leader in global mobility, is an independent, full-service relocation management company with offices in the US, Switzerland, and Singapore. WHR strives to offer cost-effective relocation benefits without compromising empathy, ethics, or service

Buyer Value Option (BVO) vs Guaranteed Buyout (GBO) Home Sale Programs. How Do they Compare?

by | Aug 27, 2024 | News

In the realm of corporate relocation, home sale assistance programs play a crucial role in easing the transition for employees and companies alike.

Among the relocation home sale programs, the most popular options are the Buyer Value Option (BVO) and the Guaranteed Buyout Option (GBO) programs.

Each option offering distinct advantages tailored to different needs, our blog will review:

BVO vs GBO Home Sale Benefit home sale with contract

Buyer Value Option
(BVO)

In a Buyer Value Option program (BVO), the employee is responsible for listing their home for sale, with marketing assistance from the Relocation Management Company (RMC). The employee must secure an outside buyer willing to purchase the home at a fair market value. A buyer value option program provides all the tax benefits to the employer and employee, but it depends on the employee securing an outside buyer. The employee is funded their equity, if the contract is deemed valid, based on the outside offer amount. The RMC closes the sale with the buyer at a future date. In a BVO home sale scenario, home appraisals are never ordered.

Buyer value options are a good way for an employee to oversee the entire process and ensure the best fit for their home. The risk of the home sale falling through falls onto the employee in this home sale option.

Read our blog: What is a Buyer Value Option (BVO) Home Sale Program

Guaranteed Buyout Option
(GBO)

What is a Guaranteed Buyout (GBO) program and how does it differ from a Buyer Value Option (BVO)?

Under a GBO program, the RMC orders two home appraisals and then averages the two to determine a guaranteed offer, with a fixed acceptance period. If the employee cannot sell their home on their own, the employer takes the home into inventory. The employer must maintain it until the company can resell it. This carries potential risks and additional costs for an employer.

A BVO home sale, on the other hand, minimizes this risk since the employer only purchases the home after the employee has secured an outside buyer. BVO and GBO home sale programs provide tax benefits to the employer and employee.

BVO Home Sale versus GBO Home Sale

When comparing the two, the choice between BVO and GBO depends largely on the company’s risk tolerance, market conditions, and the level of support they wish to provide to their employees.

BVO programs are cost-effective for companies but can place additional burdens on employees, making them more suitable for strong housing markets.

Conversely, GBO programs, while more expensive, offer greater assurance to employees, making them a preferred choice in uncertain markets or when a company prioritizes employee satisfaction and seamless relocations.

Relocation Home Sale Comparison reviews Buyer Value Option versus Guarantee Buyout Option

Here’s a side-by-side comparison of Buyer Value Option (BVO) and Guaranteed Buyout Option (GBO) home sale programs

Program Structure
Risk to Employee
Risk to Company
Home Sale Timeline
Employee Involvement
Financial Considerations
Market Impact
Flexibility
Appeal to Employees
Usage
Buyer Value Option (BVO)
Employee secures an outside buyer before the company purchases the home
Low risk if the home is sold quickly; however, the employee bears the risk if the market is slow
Lower financial risk since the company only purchases the home after an offer is secured
Typically, longer as the employee must find a buyer before the company purchase
High, as the employee is responsible for marketing and negotiating the sale of their home
Costs are generally lower for the company, but the process can be more stressful for the employee
The success of the BVO depends heavily on the current housing market
More flexible for companies that prefer to minimize upfront financial commitment
May be less attractive to employees due to potential delays and uncertainties
Preferred in stable or strong housing markets where homes are likely to sell quickly
Guaranteed Buyout Option (GBO)
Company provides a guaranteed buyout offer to the employee before listing
No risk to the employee as the company guarantees a buyout, regardless of market conditions
Higher financial risk for the company as they commit to buying the home regardless of market conditions
Generally faster, as the company buys the home directly if it doesn't sell within a set period
Lower, as the company takes over the home sale process after providing the buyout offer
Higher costs for the company due to the guaranteed purchase but provides more certainty and support for the employee
The GBO is less impacted by market conditions as the company assumes the risk
Less flexible due to the company’s financial commitment but provides more stability for employees
Generally, more appealing to employees due to the certainty and reduced personal risk
Often used in slower or volatile markets where securing a buyer may be difficult

Our countless years of BVO and GBO Home Sales experience can help you better navigate your journey.

This can include the range of tax implications, relocation variables, benefit payouts/amounts, and marketing work.

Let the experts at WHR Global help you with your BVO or GBO home sale relocation
and other global mobility program needs

WHR Global,a leader in global mobility, is an independent, full-service relocation management company with offices in the US, Switzerland, and Singapore. WHR strives to offer cost-effective relocation benefits without compromising empathy, ethics, or service

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Domestic Relocation Policy Designer

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Relocation Benchmark Comparison

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RFP – Relocation Request for Proposal Generator

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