No business can afford to stand still – a business in the earlier days of development least of all. And younger companies, those generating growth and dynamism, often need to move quickly from where they started their business.
Most businesses that relocate never look back. But some do find themselves plunged into much deeper and muddier water than they ever anticipated and so flounder around (obviously to the detriment of the business) both during and after the move takes place. Let’s then have a look at some of the main issues anyone planning an office relocation project should be thinking about.
Critical Criteria
To ensure moving your business generates as many benefits as possible it’s essential to understand, and agree upon, the key criteria that any alternative office (or location, building or site) will need to satisfy.
Any new premises must, in the eyes of the decision makers in the organisation, be seen to offer really positive advantages. Failure to identify and establish these advantages, or get key staff to “buy into” the move, can lead to staff becoming moan machines – constantly saying how much better off they were before.
"It’s space Jim – but not as we want it"
One of the most common relocation pitfalls is to miscalculate the new office space needed. If you fail to anticipate growth you might end up trying to shoe horn yet more staff into an already overcrowded building. Or taking extra space close by – at best disruptive – at worst breeding a “them and us” culture.
By contrast, over estimating the space needed raises the spectre of paying for what seems like acres of unused space. And maybe even leading to staff amusing each other by scribbling messages on paper airplanes and flying them to each other across the empty floors.
To ensure you get your space needs right there are now a number of inexpensive and easy to use space planning packages around so there’s really no need to end up with staff either feeling like sardines in a tin or wandering across empty floors in search of human companionship.
Consumer Led Changes in the UK Commercial Property World
The 21st century commercial property world has now fully woken up to the consumer pressure for shorter-term leases and commitments. Exit therefore the old 25-year leases with five yearly upward only rent reviews so beloved of the pension industry. Enter, leases often as short as three to five years, running up to maybe fifteen years.
Enter also, the demand for really short-term space – what the Americans call “office hotels”. Offices where space can be rented by the month or by the year and “flexed” almost at will to suit the needs of the tenant. With this option rental costs are, of course, higher than for a longer-term lease, but in return, flexibility is almost absolute. Even large employers now run as much as half of their operations in this type of office building – able to react quickly to market pressures without the “tail” of an unwanted lease to pay for or try to get rid of.
Planning and Implementing Office Relocations
Two key things are needed to successfully plan and implement a relocation project. The first is capacity – the second experience.
“Younger” small to medium sized enterprises companies (“SME’s”) are at a disadvantage here. Only rarely do the people driving the business forward have first hand experience of relocating their business. And few younger thrusting companies usually have the luxury of a Human Resource or Facilities department. Even if they do, the argument runs that their skills are best employed in helping develop the business – rather than being diverted to handle a time consuming office move.
SME companies are therefore increasingly turning to relocation specialists to plan and implement their relocation projects – either in part or in total.
A removal – is a removal – is a removal
It always sounds so simple. Often though, an employer can find running the business AND planning and implementing an office move very difficult.
In most dynamic and growing businesses there often isn’t enough time available to properly investigate issues such as the most efficient physical juxtaposition of departments; AND new floor layouts; AND planning and phasing the transfer of IT equipment, AND plant & machinery AND ensuring everything is clearly marked, delivered AND up and running at the right time AND in the right place.
Enter the dedicated “move management” companies. They exist to take the hassle out of the physical side of moving all the nuts and bolts of a business. They take on the selection and organisation of a removal company and than ride shotgun to ensure everything is in the right place when the new office doors open.
Staffing Issues
However good their product or service no company can flourish without good staff. Relocation is a catalyst for change. And not everyone welcomes change. Losing key staff when you move offices is commonplace so care needs to be taken. Understanding and addressing staff concerns might avoid your best salesman being persuaded to join your major competitor.
In Relocating Staff it Pays to Focus on the "4 R’s"
An easy way of ensuring staff issues are being addressed is to use the “4 R’s” of relocating, recruiting, redundancy and retention.
Relocating
For those going with you to the new office a suitable support package needs to be established. After all they didn’t ask to move – you’re asking them. So even if the new office isn’t far away they may well have concerns. How to get there? What it will be like? How will it affect their future job and salary?
And if they are being asked to move home because they can’t commute to the new offices, their personal, family and job concerns multiply exponentially. Unless a comprehensive relocation support package is available to them there’s likely to be “trooble at t’office”.
Recruiting
The key lesson here is not to make assumptions. Can you find the new people you want? It pays to take time to check out the quality, availability and cost of staff in the new area. Talking to the local Recruitment Agencies and some of the local employers is time well spent.
Redundancy
Although redundant employees are left behind, the way they are treated is important. Employers need to avoid ill advisedly or innocently mishandling redundancies. Otherwise they risk being dragged into an Employment Tribunal by an employee.
Its’ also worth remembering the staff going with you will be aware of, and remember, how their former colleagues (who may also be their friends or relatives) were treated. Their future attitude and commitment to the business could be affected if they feel anyone made redundant was hard done by.
Retention
Maintaining effective and efficient working at the old offices is important to the smooth transfer of the business. Sometimes it’s worth considering offering “silver handcuff” incentives to persuade certain staff to stay on at the old office until closure. Otherwise, once they know about the move, they may start looking for a new job and leave just at the wrong time.
AND SO FINALLY – The Four Golden Rules of Relocation are:
- THINK (why, where, when)
- PLAN (discuss with colleagues and professionals)
- ORGANISE (appoint an internal or external project manager)
- ACT (move!)
Stuart Mitchell
Senior Partner
Business Moves Advisory Centre
Published in
Estates Review
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