Factors impacting corporate relocation
December 03, 2015 / Corporate relocation
When a company starts to contemplate corporate relocation, a lot of thought must go into the process. Many factors play into this decision, most of which can impact the success of the business overall. However, certain internal and external circumstances have more influence over transferring employees than others. Here are a few of those corporate relocation determinants:
External factors impacting relocation
Not having enough qualified local workers is one of the biggest external factors that influences corporate relocations. According to the Atlas Corporate Relocation Survey, 43 percent of companies said this condition had a significant impact on their decision to relocate employees. If a company is going to succeed, it needs to have access to people with the right skills and experience. Unfortunately, not all cities have enough available workers with the right skill set. This is why transferring current employees is so useful - they already know how to complete the required duties.
The need for skilled employees isn't the only external force pushing companies toward corporate relocation. Economic conditions are another influence companies have to take into consideration, and 38 percent of companies cited this as impacting their relocation efforts. For the most part, businesses are rather optimistic about the U.S. economy and the housing market - 57 percent of corporations believe the economy was better in 2014 than in 2013, and 55 percent think the real estate market has also improved.
"43% of businesses say company growth impacts employee relocation."
Internal factors impacting relocation
Companies also face internal concerns when dealing with corporate relocation. At 43 percent, company growth is one of the larger influences. When a company expands, it usually requires more space, so it needs a larger building or new location. During this time, management also has to determine whether employees will need to be relocated or if they are even are willing to move. If a company can get enough people to agree to a transfer, the knowledge and skill gap between facilities can be reduced.
How to make relocation easier
Companies can take several steps toward making their worker relocations run more smoothly. The first step is to offer employees relocation reimbursement. A lot of corporations provide this benefit to influence employees' decisions to move. Companies often present this reimbursement to staff in lump sums. With this option, businesses offer employees a set amount of money based on previous relocations to help them move. Employees can then use this funding to pay for movers, rent or whatever they see fit. Other reimbursement options include capped and flexible allowance plans.
Another way a corporation can improve relocation experiences is to hire a reputable moving company. Moving from one location to another can be stressful for workers, but providing them with reliable movers will make the transition run smoothly.
Many moving companies also offer other useful services employees can take advantage of, such as shipment tracking and storage units. If a worker moves but the new house or apartment is not ready yet, items can be safely stored in clean, climate-controlled environments. All of these services combined will make corporate relocation a lot easier.
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