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Crucial Aspects to Consider Before Relocating Your Workforce

Editor's Note: Take a look at our featured best practice, HR Strategy: Job Leveling (26-slide PowerPoint presentation). Job Leveling is a disciplined approach to gauge the value of work for individual positions across the organization. It entails ascertaining the nature of work done by each position, authority levels, and the effect of each job on business results. Jobs that are configured inadequately bread [read more]

Also, if you are interested in becoming an expert on Human Resource Management (HRM), take a look at Flevy's Human Resource Management (HRM) Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

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Moving to a new workplace is an exciting endeavor. The thought of settling into an office with a different view and a new set of furniture is a great way to spark your team’s motivation and achieve your goals this year.

However, moving your team could also be a double-edged sword and inflict damage to your business if you’re not careful. Besides the upfront logistical costs, there are many variables that come into play and will affect how your team performs.

In this article, we’ll take a look at key considerations you must make before relocating your workforce.

Your Employee’s Concerns

You can be a stuck-up boss that wants things done their way, or you can be an inspiring leader who factors in the concerns of their employees and finds a way to solve them. If you have staff that are in their 40’s, their concerns are different than their peers who are 10 years younger.

If they have families, they need to look for good schools for their children. The household will need time to adapt to an entirely new neighborhood and look for the right property to live in. In the meantime, what will they do with their current mortgage?

Sure, your employees will move if they have no alternative. But just one disgruntled employee can be a heavy enough anchor to drag your team down. It pays off to invest some time in addressing these concerns.

Luckily, relocation companies like ARCrelocation.com can solve most of the issues related to moving employees.

Proximity to Suppliers and Clients

If your business relies on inventory, then one factor you really need to consider is how far the new workplace is from your suppliers and client or customer base. If you’ve found the balance between the two, you are at an advantage because you can negotiate for better transportation costs that end up saving you more in the long run.

Your customers, too, save a lot of money since their part of the transportation costs is also cut down.

However, there is still a balancing act. You may get a better deal on transportation, but if your new workplace area is more expensive, you’ll still need to provide your employees with more allowances for gas, parking, and toll charges if applicable. This brings us to the next point.

Costs of Living

If you’re serious about moving your workforce, I’m sure you’ve already considered the increase or reduction in your rental and other overhead costs. But many employers don’t put enough thought into giving their employees their rightful salary increments and benefits.

If you’re from Denver, CO, and plan on moving to Chicago, IL, your costs of living increase by 8% if you want to maintain the same living standards. Now, multiply this with the number of employees you have.

Rightfully, your employees may also demand that they are compensated for the effort they put into moving into a new location.

If your company offers insurance benefits, the premiums may go up as well since hospitals cost more.

17-slide PowerPoint presentation
Improving Employee Engagement is a priority in most Talent and HR Strategies. This presentation provides a 5-step approach to building a culture of Employee Engagement. This processed was developed by Aon Hewitt based on the Aon Hewitt Top Companies for Leaders study. Best practices from the [read more]

Want to Achieve Excellence in Human Resource Management (HRM)?

Gain the knowledge and develop the expertise to become an expert in Human Resource Management (HRM). Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

The purpose of Human Resources (HR) is to ensure our organization achieves success through our people. Without the right people in place—at all levels of the organization—we will never be able to execute our Strategy effectively.

This begs the question: Does your organization view HR as a support function or a strategic one? Research shows leading organizations leverage HR as a strategic function, one that both supports and drives the organization's Strategy. In fact, having strong HRM capabilities is a source of Competitive Advantage.

This has never been more true than right now in the Digital Age, as organizations must compete for specialized talent to drive forward their Digital Transformation Strategies. Beyond just hiring and selection, HR also plays the critical role in retaining talent—by keeping people engaged, motivated, and happy.

Learn about our Human Resource Management (HRM) Best Practice Frameworks here.

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About Shane Avron

Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.


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