health wealth career d o m es t i c relocation services · services differential$ 11,744 property...

H E A LT H W E A LT H C A R E E R

D O M E S T I C R E L O C AT I O N S E R V I C E S U N I T E D S TAT E S A N D C A N A D A

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D O M E S T I C R E L O C A T I O N S E R V I C E S B A S E D O N E V E R - I N C R E A S I N G D E M A N D F R O M O U R N O R T H A M E R I C A N C L I E N T S , W E A R E P R O U D T O I N T R O D U C E O U R N E W D O M E S T I C R E L O C AT I O N C O N S U LT I N G A N D C O S T O F L I V I N G S U P P O R T !

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.

O U R D O M E S T I C R E L O C A T I O N S E R V I C E S I N C L U D E : 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 [email protected] to discuss any of these solutions or a custom approach.

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iMercer.com/domesticreloservicesCopyright 2016 Mercer LLC. All rights reserved.

3iMercer.com/domesticreloservicesCopyright 2016 Mercer LLC. All rights reserved.

D O M E S T I C R E L O C A T I O N C O S T C O M P A R I S O N S

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.

G E O G R A P H I C S A L A R Y D I F F E R E N T I A L A D D - O NThe 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.

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S A M P L E C O S T C O M P A R I S O N S

U S T R A N S F E R Domestic Relocation DifferentialsKing of Prussia, PA to Glen Cove, NY 7/1/16

Salary $ 162,500

Family Size 4

Housing, Goods & Services, and Tax Assumptions● Home prices are based on estimated home values of comparable properties Estimated Home Utilities $ 1,150

Estimated Host Utilities $ 1,425

● 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● 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

Home Spendable $ 69,084 Host Spendable $ 80,828

Geographic Salary Differentials

Federal & Pennsylvania Taxes $ 26,901 Federal & New York Taxes $ 39,045

King of Prussia, PABlue Bell, Narberth, Evansburg,

Wyndmoor, Oreland, Marlborough

Estimated Host Housing Expenditure (less utilities and property tax) $ 29,196

11,832

● National home price indices are a comparison of average home values versus average national home values Utilities Differential $ 275

Neighborhoods National Home Price Indices

Roslyn Heights, Port Washington, Jericho,

Woodbury, Long Beach

$ 15,162

Glen Cove, NY

128

247

Average National Housing Expenditure

(less utilities and property tax)

Total Differential

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: https://www.imercer.com/products/us-‐geo.aspx#pricingoptions

44,911$

Estimated Home Housing Expenditure


Tax Differential 12,144$

Housing Differential 14,034$

Goods & Services Differential 11,744$

Property Tax Differential $ 6,714

C A N A D I A N T R A N S F E R Domestic Relocation Differentials

Edmonton, AB to Vancouver, BC 7/11/16

Salary $ 145,000

Family Size 4

Housing, Goods & Services, and Tax Assumptions● Home prices are based on estimated home values of comparable properties Estimated Home Utilities $ 5,100

Estimated Host Utilities $ 3,780

● 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● Tax figures include all estimated applicable national, state and city taxes Estimated Home Property Taxes $ 2,780

Estimated Host Property Taxes $ 3,906 Notes

Home Spendable $ 57,351 Host Spendable $ 64,233

Geographic Salary Differentials

Federal & Alberta Taxes $ 34,947 Federal & British Columbia Taxes $ 39,235

Edmonton, ABCastledowns, Clareview,

Riverbend, Sherwood Park, West End

Estimated Host Housing Expenditure (less utilities and property tax) $ 19,465

7,433

● National home price indices are a comparison of average home values versus average national home values Utilities Differential $ (1,320)

Neighborhoods National Home Price Indices

North Vancouver, Richmond, White Rock, West Vancouver

$ 6,296

Vancouver, BC

85

262

Average National Housing Expenditure


Total Differential

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: https://www.imercer.com/products/us-‐geo.aspx#pricingoptions

24,146$

Estimated Home Housing Expenditure


Tax Differential 4,288$

Housing Differential 13,169$

Goods & Services Differential 6,882$

Property Tax Differential $ 1,127


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G E O C O M P A R A T I V E A N A LY S I S

R A T E F O R C H I C A G O , I L C O M P A R I S O N R A T E F O R N E W Y O R K , N Y

P E R C E N T D I F F E R E N C E

20,000 21,792 9.0%

30,000 32,643 9.8%

40,000 44,055 10.1%

50,000 55,684 11.4%

60,000 67,313 12.2%

70,000 78,274 11.8%

80,000 88,898 11.1%

90,000 *** ***

Aggregate Difference Between Locations: 11.0%

*** Rate will produce a comparison rate outside the reliable data range

G E O G R A P H I C S A L A R Y D I F F E R E N T I A L SMercer’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.

230+ US and 85+ Canadian locations are included.


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D O M E S T I C R E L O C A T I O N P O L I C Y D E V E L O P M E N T A N D R E V I E WEstablishing 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-size-fits-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 [email protected] to start the conversation.


D O M E S T I C R E L O C A T I O N P R O G R A M B E N C H M A R K I N GWhether 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.

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health wealth career d o m es t i c relocation services · services differential$ 11,744 property...

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