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. 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.
With Brexit uncertainty in the UK, a survey by Instant Offices had found 28% of businesses are gearing up for 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. 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.
However, 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. Backed up with research, Lucinda Pullinger, Global Head of HR at Instant Offices gives a breakdown on how business owners can retain their most valuable talent during their plans to relocate.
What Encourages Employees to Relocate?
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.
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.
UK employees rank the following cities as destinations they would most likely relocate to for work:
With Cambridge shown as the top destination that employees are most likely to relocate for work, a report by Bidwells also indicates Cambridgeshire remains a magnet for Science and Technology companies that are looking beyond the current Brexit Uncertainty.
When it comes to crossing borders, Sourcing Focus, one of the largest 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.
Top 10 Work Destinations
1. United States
6. United Arab Emirates
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
Replacing an employee can cost up to six times their salary, on average, in recruiting and training expenses, and impact morale and overall productivity, according to research by Accounts and Legal. 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, according to Gov.UK.
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.
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 location.
Consider Remote Work
According to OddsMonkey, 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 can connect from anywhere.