Relocating your office or corporate headquarters can come with a number of benefits. A move might help you attract new talent, reduce your overhead, or offer other advantages, such as easier travel for everyone in your organization.  

Whatever your reasons, a relocation represents a significant investment of time, money, and resources. In other words, it’s not a decision any leader takes lightly. 

As you examine your own organization’s relocation, consider these five not-so-obvious considerations. They may shape your decision as you choose your future location—or choose not to move at all. 

Consideration #1: Do You Understand All the Costs—Even the Hidden Ones? 

As you do a cost-benefit analysis, some moving expenses will be easier to identify than others. For example, the cost to physically relocate your office can be relatively easily calculated by a professional moving company. The same is true when it comes to relocating your employees. 

However, there are a few costs that are less obvious, including: 

How much time and energy will your staff invest to execute this move?

This includes everyone and everything involved with the planning and execution. The steering committee overseeing the relocation (if you nominate one) and the staff executing the plan will all dedicate significant time and energy to your move. Additionally, many organizations ask employees to pack their own desks and work areas. This means every member of your organization will contribute to the moving expenditure in one way or another.

You’ll also want to consider the opportunity cost. While your staff is executing this move, would their time have been better spent elsewhere, such as in finding new clients or other revenue-generating activities? All of these need to be taken into account when making decisions.

How will cost of living changes impact your organization?

If you move to an area with a higher cost of living, you’re likely looking at greater overhead in the form of rent, utilities, and more. Furthermore, your employees might expect a salary increase to meet the COL in your new location. Consider this carefully before making the jump to a more expensive locale. 

Consideration #2: How Will Your Employees React? 

Some of your employees may be thrilled by the idea of a relocation. Others may have put down deep roots in their current community and feel reluctant to leave. If you relocate, you need to be prepared to lose staff members who don’t want to make the journey. 

With flexible, work-from-home and virtual arrangements becoming more popular—and easier to navigate—these possibilities might help you retain key employees who don’t want to relocate. Work closely with your HR department to set a consistent policy for your organization around which positions will be eligible for these arrangements, as well as the terms surrounding them. 

Your staff’s expectations will also be impacted by the environment you’ll be relocating to. For example, a number of tech companies are relocating to Austin, TX to take advantage of the talent pool in the area. If you relocate to Austin, know that you’ll be surrounded by organizations that offer their employees significant perks.  

 For example: 

  • Progressive Insurance’s location includes an on-site gym with a personal trainer. 
  • MVPindex, a software company, offers its employees unlimited vacation time. 
  • Other companies offer benefits like free drinks and snacks, as well as sponsored Friday happy hours. 

 As your employees consider whether or not to relocate, they may expect similar perks—or they may get lured away by those proffered by your local competitors. 

Consideration #3: How Does Your New Location Fit into Your Future? 

Part of your role as a company leader is to have a clear vision for your company’s future for the next five, ten, or even twenty-plus years. How do your current and proposed location fit into that future? In other words: 

Will a relocation set you up for growth?

What kind of talent pool can you expect in your new location? Is it expected to wax or wane in the coming years? What have past trends revealed? Is the area experiencing an influx of new residents—or negative growth?

What about if you expand? Will your new area give you room to grow, or will you find yourself squeezed for space?

Make sure that whatever area you choose will offer you plenty of opportunities to achieve your long-range vision.

What's the area's future outlook?

You’ll also need to take into account broader trends in the area that may affect its future—and the future of your organization.  

 For example: 

  • Weather: As extreme weather starts to become a reality, is your new area at high risk for fires, floods, or other natural disasters? 
  • Transportation: Will your employees enjoy strong infrastructure for their commute to work, or future public transportation options? 
  • Quality of Life: More and more, employees are making choices based in this area. What kind of environment will your new location offer—one that will help you attract the top talent you need to move forward?  

 All of these can—and should—feed into your final decision. And, finally… 

Consideration #4: Will Your Company Fit In? 

 If you’ve built a strong company culture, one that’s created a cohesive organization you’re proud of, this final consideration will be especially important.  After all, if you want to cultivate that culture, you’ll want to be sure that you’re relocating to a business environment that supports it.  

For example, if you’re running a relatively traditional, buttoned-up financial services firm, a move to quirky Portland may leave your organization feeling adrift, especially if you plan to cater to local customers.  

Those same concerns extend to the staff you’re bringing with you. Will you be moving them to a radically different area? In addition to impacting their quality of life, it might also mean they never end up putting down roots in your new town. As a result, you may end up losing them in the long term. 

It may sound trivial to some. However, for companies whose culture is their stock-in-trade, it’s worth some research. That way, you’ll be sure to find synergy in your new business community, which will fuel the future of your organization and the happiness of your employees. 

Getting the Full Picture of Your Corporate Relocation 

Deciding whether or not to relocate your office is a complex undertaking. Pros, cons, costs, benefits—they all contribute to your decision. However, by examining all the angles, especially the more subtle ones that you may not have considered, you’ll arrive at a well-considered decision, one that sets your company up for long-term success. 

Considering a corporate relocation? One of our experts would be happy to talk with you. We can help you with all the aspects of your move, from your equipment and furnishings to your individual employee relocations. Simply get in touch with us for a complimentary consultation. 

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