Better amenities, talent pools, tax breaks, affordable real estate and increased odds of success are just a few of the reasons businesses choose to relocate. Change is almost always positive. A new address has the potential to improve profitability, provide access to new markets, increase employee happiness and even lower the overall costs of doing business.
Of course, there are challenges. In addition to logistics, moving costs and operational disruption, a lack of an effective relocation strategy can also increase the risk of losing valuable employees.
The topic of relocation can be polarising in the workplace. In the US, one report revealed nearly two-thirds of employees declined relocation in 2017, with family ties and partner job commitments ranking top two on the list of reasons for reluctance.
In a more extreme case, when the UK’s Office for National Statistics moved from London to Newport in the early 2000s, up to 90% of its London-based staff quit.
According to a study by YouGov, geography plays a major role in the willingness of talent to relocate, with more workers likely to move to a location if it is relatively close.
What Encourages Employees to Relocate?
In the US, the top factors influencing employees to move include better pay and perks, with 44% saying these are major decision swayers. When asked which relocation assistance perks are most valuable, 57% of US employees ranked a relocation allowance as their top choice, followed by housing assistance at 53%.
With Brexit uncertainty in the UK, 28% of businesses are gearing up for some kind of relocation as they identify opportunities both in and outside of the EU, putting a possible move on the cards for many workers in the UK. Fortunately, top talent is on board, and most of the millennial and Gen Z workforce say financial incentives are not as important as experience and cultural understanding, with 33% saying they would likely leave a company if relocation opportunities weren’t offered as an option.
In the UK specifically, research also found the tech and finance sectors are under the most pressure to offer relocation opportunities to top talent, or risk losing them.
UK employees rank the following cities as destinations they would most likely relocate to for work:
- Cambridge
- Brighton
- Edinburgh
- Bristol
- Manchester
When it comes to crossing borders, one of the most significant relocation surveys covered 28,000 employers across 27 countries. The survey revealed that 78% of people are willing to relocate within their national borders or abroad for increased pay, to advance their careers or to learn another language.
The top 10 work destinations include:
- United States
- UK
- India
- Canada
- Australia
- United Arab Emirates
- France
- Italy
- Germany
- Argentina
Retaining Talent During a Relocation
Finding and keeping top talent is crucial for business success, so whether moving one city away or setting off abroad, there are ways to retain your top workers during a big move.
- Offer a Relocation Package
Losing top talent can impact more than just the bottom line. Replacing an employee can cost up to six times their salary, on average, in recruiting and training expenses, and also impact morale and overall productivity. If aiming to retain talent, relocation packages can be negotiated and may include things like assistance with moving costs, legal fees, travel costs or temporary accommodation. In the UK, some relocation costs up to £8,000 are exempt from reporting and paying tax and national insurance.
- Support the Transition
Whether by helping financially or curating a list of resources to assist with a stress-free move, ease the concerns of your talent by providing a clear, step-by-step road map of what the move entails, what it means for their career and how the business is willing to assist.
- Encourage Flexibility
Support employees who have loose ends to tie up and agree on a realistic time frame for moving. By introducing flexible hours and providing an agile work environment, employees can ease into a job in a new location while balancing the act of settling into a new environment.
- Consider Remote Work
Just because your business is moving, it doesn’t mean you need to lose top talent. Business owners predict around 50% of the UK workforce will be working remotely by 2020. With the growth of technology and the increase in flexible office space and co-working options in major cities around the world, your workforce is able to connect from anywhere.
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