In today’s work environment, employees have the opportunity to communicate virtually and to work from the comfort of their homes while continuing to be productive. Those looking for new opportunities have a large variety of positions to choose from as they can potentially live anywhere in the county and find a stimulating, challenging job.
Businesses, on the other hand, also have opportunities to take advantage of relocating thanks to this new work environment that we are currently experiencing. For businesses that are currently located in expensive, crowded metropolitan areas and currently employ a large amount of remote workers, it may be time to consider relocating.
By relocating away from metropolitan areas, businesses may be able to save money on rent and can move to lower-cost regions. Companies may notice that moving to lower-cost areas will allow them to hire new talent that may require less compensation since they do not live in high cost communities.
However, it is important to note that moving to a lower-cost region may not mean cost savings for every company. For example, you may no longer have to pay expensive rent, but you may see an increase in IT costs, off-site events, IT security, and cultural initiatives.
Take the time to consider if your office location is right for the current talent market as well as if having remote staff is ideal for your company. Overall, switching to a remote model could be considered a great recruiting tool.
Many employers have found that it has been difficult to fill open positions, however, by offering employees the option to work from home, candidates may see this as a big advantage for working for your company.
Thankfully, you have the ability to hire virtually while still maintaining the quality of candidates and maintaining an efficient hiring process. You have the option to pull resumes from applicants all over the country and can conduct interviews through video chat.
If you are considering moving to a remote environment or making an office move, consider the following points of advice:
1. Be Comprehensive
There are roughly between 40 to 60 geographic-specific variables that you must assess when you are considering a move. From residents’ educational level, risk of natural disaster, to cost, there are many factors to think about prior to making a decision.
It is important that you don’t rush into a decision based on one factor. It is recommended that you first examine what makes your organization successful and whether a large move would change that.
2. Don’t Overemphasize Cost
It can be easy to only look at the financial elements that may make you want to move, however, this is only one factor. As stated above, there are multiple items besides cost to consider when determining if you are going to physically move your business or change to a remote work environment.
Be sure to look at the other variables that will be affected by this big decision. It is important to remember that saving money won’t necessarily enhance your organization’s strengths and the quality of your product or services.
3. Understand There May be Costs and Savings
As discussed previously, there could be a few cost savings involved with changing to a remote environment or moving your company, however, there may be additional costs as well. For example, IT and security will need to be increased due to remote work. You may also have to spend more money for Human Resources since you will have a larger talent pool to choose from and will also need updated policies to reflect the new hybrid environment.
4. Be Open-Minded
Organizations considering relocating their office, shouldn’t overlook smaller cities. For example, there are many Midwestern cities that offer a range of advantages. These cities can offer lower housing and child care costs, shorter commutes, and a closer proximity to nature. In addition to these advantages, Midwestern cities may also have access to high-net-worth individuals who are looking to invest in tight-knit communities.
5. A Move Doesn’t Have to Be All or Nothing
If you are considering moving to a smaller city, but feel that it is necessary to continue a presence at your old location, consider retaining a branch in your current location. You could always move your headquarters to a more affordable area, while keeping a smaller satellite office where your business originally started.
As you rethink your physical footprint, keep not only the above advice in mind, but also state licensing and business laws as you look into transitioning to a new location and changing to a remote status.
https://www.journalofaccountancy.com/issues/2022/jun/rethink-firms-physical-footprint.html
