Office relocations can be an exciting time for any business. However, moving addresses may also bring up certain challenges. One of these is making sure that your new premises stay attractive to your staff, so that you are effectively able to retain them.
In our experience, most businesses fit into the well-known “80/20” principle, where approximately 20 per cent of moving costs are spent on office accommodation and 80 percent on salaries. In effect, office accommodation is relatively insignificant when compared with salaries and wages.
For this reason, moving offices could result in an increased rate of voluntary staff turnover. The trigger could be anything from long commutes, toll roads, congestion or lack of public transport.
If your office moving strategy makes your organisation less attractive to your high quality employees, the longer-term impacts of this talent drain could be significant. When contemplating moving to an office space that takes something away from your staff, it’s important to balance it with a corresponding new benefit.
Our advice when deciding to move offices is to consider and involve staff in the decision making process. Forming a project team and including staff at various management levels can go a long way to achieving a positive outcome from a human resource perspective.