HR & Employment Issues when Relocating Your Business

By hrlineup | 15.02.2021

Managing employee relocation can be overwhelming to hr managers. Most employees will find it difficult to move, especially if they have dependents. The human resource department has to ensure smooth and seamless relocation. For the success of the relocation process, you must most importantly keep open communication with your workers.

Business relocation idea is sometimes a smart move for stakeholders. It allows the business to re-strategize and reposition its staff for better performance. It’s not easy to complete the business relocation procedure without a few bumps on the road. Below are some of the human resource challenges in a corporate relocation.

  1. Fear of moving. When a hr manager announces plans for the business to move, some employees will take a step back to move. This reaction applies to employees who know it will be difficult to commute or move to their new workplace. Explain to them why the business must relocate. You can also suggest nearby schools, hospitals, malls, or markets for them. Note that if an employment contract has a mobility clause, such employees do not have a right to challenge your move.
  2. Fear of job security. The first thing that comes to your employees’ minds when you announce employee office relocation is job security. They believe that once you move your business, you will also lay them off. Ensure you assure them that’s not the case, and the company must relocate for better growth and performance. If you must lay off a few, explain to them the reasons behind your decision and compensate them handsomely.
  3. Difficulty settling in the new location. Employees who will have moved to the new site will be struggling to settle down. Their struggle will slow down the business progress to be more productive. Help them find their way by orientating them about the new environment. The quicker they settle, the sooner your business will resume production.

As stated above, some employees will not bend to the idea of relocating. So, what options do you have to retain talent during business relocation? Find out below.

Contractual obligation

If a contract has a mobility clause limiting an employer from working outside a town or country, you cannot force such an employee to move if they do not feel like moving. Contracts bind employees to employers, and they must abide by the rules accordingly.

Hire again

The process of hiring new employees can slug your business. It is wise to notify employees of the plans to relocate earlier so that you have enough time to employ another talent if need be. You may decide to hire talent from where the business is relocating to. That way, you won’t incur other expenses for relocation.

Practical consideration

If employees refuse to move because of various reasons, you can adjust the benefits agreement clause. For example, if they refuse to move because of expenses, see if it is something you can take care of. Assure them that you will also adjust the working environment and hours.

Do not rush to dismiss an employee for refusing to relocate. See if the reasons for refusal are something you can handle or help. Remember finding and retaining the right talent is not easy.