Mickey Williams, President and CEO of Capital talks about leadership with Executive Leaders Radio. Press the play button below to listen to the interview.
When I talk about gross-up, I get looks of uncertainty. Many have heard the term, but most don’t fully understand the meaning and complexity. I empathize with this uncertainty as gross-up was foreign prior to the start of my relocation career. Now, it is so much a part of my every day life that my dreams often include the word “gross-up”.
The benefit of ‘gross-up’, a.k.a tax assistance is best described as an estimated amount of money added to taxable relocation payments to offset the increased tax burden that results from the addition of said expenses to the employee’s wages. In other words, the reimbursement amount is “upped” so that the employee nets the actual amount of the relocation expenses. The ‘gross-up’ total is typically higher than an employee’s actual tax rate since the gross-up itself is considered taxable and therefore, also grossed up, a.k.a. tax on tax methodology.
The gross-up price tag often surprises corporations as a costly benefit. However, gross-up is a necessary component of any competitive relocation program. Without it; transferring employees would be required to pay the extra taxes that result from taxable relocation expenses added to their income. Consequently, an employee would not net the actual relocation benefit amount and experiences a financial burden as a result of the relocation.
If an employer chooses not to provide gross-up assistance, the result could be the difference between a relocation that is successful from beginning to end and a productive, happy employee or a relocation that becomes burdensome for the employee and family. The cost of the latter being much more substantial than providing the tax assistance benefit and potentially including hidden costs, such as loss of employee productivity, or worse, loss of the employee and the company’s overall investment in that individual.
Conversely, employers who provide gross-up assistance as part of their comprehensive relocation benefits package recognize the importance of providing the appropriate support to relocating families, ensuring a more successful transition. This has a direct impact on employee productivity, return on investment, employee loyalty and performance.
Capital Relocation Services is committed to ensuring our clients get the most out of their relocation policy. I’d love to hear from you regarding the success of your relocation program, or questions you may have regarding gross-up. We are here to help ‘connect the dots’ between relocation policy, corporate strategy and recruiting and retention goals. Write to me at noverholt@caprelo.com.
Nicole Overholt, CRP
Capital Relocation Services REMINDER: It’s a GREAT Time to Buy a Home
The number of homes for sale is HIGH, and, mortgage rates are at historical LOWS. What are you waiting for?
The benefits of owning a home:
The long-term investment concept of owning a home shows:
Not sure of the next step to take? Contact a Capital Relocation Services representative to focus on identifying a top realtor and lender. We’ll ‘connect the dots’ to make certain you understand the entire process. This ensures that you’ll find the best home in a location that meets the needs of you and your family.
Barbara Miller, CRP, GMS, CRB, GRI, PMN, e-Pro
Although this written communication may address tax issues, it is not a covered opinion as described in Circular 230. Therefore, to ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments), unless expressly stated otherwise, was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matter(s) addressed herein.
HAPPY NEW YEAR FROM CAPITAL RELOCATION SERVICES!
By: Jim Finch
As the New Year begins, now is the time to “connect the dots” with strategic tips from Capital Relocation Services to help sell your property in a challenging real estate market.
Property Condition – “You can never change a first impression”
Hiring the Right Real Estate agent – “It pays to hire a professional to do the job right”
Intelligent Pricing – A property attracts the most attention, excitement and interest from the real estate community and potential buyers when first listed on the market.
Continual Analysis of Market Performance – No one will make an offer if they do not know your home is for sale, it is not priced correctly, or in very poor condition.
Capital Relocation Services “connects the dots” to align relocation program, policy, and practice with corporate strategy. Targeted transferee service and adherence to budgetary goals are several benefits of a well connected, strategically sound program. The goal of our proprietary Low-Stress Relocation Process™ is to proactively empower you in managing your relocation program challenges.
Wishing you a wonderful and prosperous 2009!
Moving is one of the most stressful events in our lives. In fact, moving ranks with taxes and death.
Recently, I was relocated for my job and can say first hand how stressful it was. Trying to juggle so many things was challenging. Focusing on my new job and finding a new home while coordinating moving from my old house was very difficult. Are you helping reduce the stress of relocating your transferring employees? Below find a sampling of useful tools to help reduce the stress of relocation of transferring employees.
1.) A well designed relocation policy helps reduce stress for your transferring employees. The challenges facing transferees today are far different then they were 5 years ago. A declining real estate market is one of the biggest differences your homeowner transferees face.
If you have a policy in place, has it been updated?
2.) Professional relocation assistance is crucial. Are your transferees moving on their own or do they have professional assistance? A relocation company employs relocation professionals trained in helping navigate and guide your transferring employees through a much less stressful move. The professional services of a relocation company not only reduces employee stress but can facilitate a more efficient move process saving your company money in lost productivity, and overrun relocation costs.
Capital’s Low-Stress Relocation Process brings it all together to make relocation a strategic advantage. Reducing relocation stress for the employee will increase their productivity in their new position faster and saves your corporation money.
Chris Finckel
cfinckel@caprelo.com
The holiday season is literally upon all of us. What a wonderful treat to pen a brief message just after Thanksgiving. I’m sure that each of my readers have many worries during the unsettling times we are in. I’m also certain that you have many things to be thankful for. So, thank you for letting me share some of the work life matters that I am grateful for.
First and foremost, I am grateful that Capital is the kind of business that is focused on its clients, customers, employees and suppliers. I can assure you that is why I have invested myself in this organization for the past eight years. This clear focus is an enabler that frees us to do what is in the best interest of each of our stakeholders with the knowledge that making decisions that are best for them will benefit the entire company with increased profits, client loyalty and empowered team members. I’m grateful for each of our clients. They are the reason for our existence. Our clients have helped us grow Capital over the past five years. We are appreciative of these professional relationships and the trust you put in us to move your employees around the world . I’m thankful for our thousands of relocating customers each year. You enrich our life by giving us an opportunity to be of service to you. I’m eternally grateful to my fellow colleagues. They are the proverbial “engine that drives this train”. Their passion for operational excellence; dedication to their customers and determination to have fun while serving others give me reason to leap out of bed each morning and be eager to join them at work. I’m indeed thankful for the many supplier partners we use around the world. Your professionalism and caring are one of Capital’s competitive edges in the marketplace.
If you love to cook, you know the key to a producing great dish starts with planning, preparation and the right ingredients. Creating a perfect home sale solution is no different. You can put together a bland, quick meal – start with appraisals, add a few inspections and disclosures, and you have a ‘ho hum’ home sale dish…..But you want a home sale solution with flavor. You want to create an optimum solution that results in the customer selling the property for the most money in the time available while leveraging the cost. The recipe below is guaranteed to provide flavorful results!Planning: First, establish the program objective. Sell the property on the open market by way of an amend from zero, buyer value option or amended sale. Emphasizing, and sometimes, making this a mandatory event is critical. The tone and direction of everything you do is predicated on achieving this goal. Home sale programs should focus less on the appraised value process and emphasize a strategic initiative of working closely with the primary stakeholders (the transferee and listing agent) to design marketing strategies that help the customer realize an acceptable offer. Historically, the focus has been to help the transferee obtain a higher outside offer. However, we have allowed transferees to expect a guaranteed offer first. In other words, the appraised value offer became the ‘be all to end all’ program of choice. Optimizing the efforts through a planned series of action steps must be the objective.
Preparation: Selecting the right real estate agent who understands the relocation process and the complexities is important. Transferees often rely on recommendations from family and friends when they first learn of their relocation. However, transferees are not a typical seller. This is where Capital Relocation Services expertise comes into the recipe. Capital’s supplier selection process provides the transferring customer referrals from high performing agents/ brokerage firms who embrace Capital’s vision to provide the highest quality of service and commitment for our customer.
Ingredients: Now that we have the right agent, it’s time to add the remaining ingredients-–a pinch of realistic price setting, a dash of creative marketing strategy, and a splash of cooperative collaboration with the major stakeholders (the transferee, the agent and Capital Relocation Services’ consultation) and in my experience the result will be an offer from a buyer! �
Remember, the appraised value offer remains a solid way to help transferring employees, but it is still a very plain dish. Spicing up process with an effective marketing strategy and a focus on helping the transferee secure a higher offer sale is akin to spicing up a meal with the perfect blend of ingredients.
The secret ingredient in all this? Changing and reshaping your own perspective on what the home sale program should be. At Capital Relocation, we feel it should be an integral part of an overall process – The Low-Stress Relocation Process. That’s the secret ingredient that enables our clients to transform their relocation programs from a cost center and a headache into a significant competitive advantage as they confront the “Talent Wars.”
Thought: Email me at jreeves@caprelo.com
LEADERSHIP
Wikipedia defines leadership as: “The ability to affect human behavior so as to accomplish a mission” While the word leadership has a lot more meaning than this modest definition, leaders have the privilege of leading in manners that positively affect human behavior, in turn, inspiring others to believe in and want to accomplish the mission of the company.
Capital’s President emulates our message and mission in his day-to-day behavior and leadership behavior. As a result my belief in this message is innate and find it second nature to do my best to fulfill that mission each day. Inspirational leadership motivates me to carry out Capital’s mission to provide superior service through The Low-Stress Relocation Process™.
GREAT COLLEAGUES
My colleagues inspire me to put my best foot forward each day. Capital continually strives to recruit and develop the right talent for the right positions. We all have at least one thing in common and that is we were “built to serve” which connects each and every Capital employee. That connection naturally drives us as a team to effectively accomplish the same mission.
GUIDING CLIENTS
I am excited when clients ask for guidance in reviewing existing policies or to help them develop new policies for their recruitment “tool boxes”. Companies are faced with ongoing recruiting and retention challenges in a competitive marketplace with notable talent shortages and creative relocation tactics are becoming an important recruiting tool. I am motivated by the opportunity to partner with our clients and help them transform their relocation program into a strategic recruiting and retention advantage. Our great clients motivate me to do my best.
Nicole Overholt
And to our clients – THANKS FOR LETTING US DO IT.