As organisations embrace new ways of working and expansion opportunities, many are discovering that relocating outside London can offer compelling benefits. Recruiting the right talent, navigating cost-of-living pressures, and balancing workersโ new priorities for an improved work-life balance can be challenging at the best of times. Dakota Murphey looks at why moving your office outside London can be the right move…
Itโs not just businesses that are leaving the capital – employees are relocating too. While it would be naive to discredit Londonโs allure for working professionalsโ career aspirations and the sophisticated infrastructure and ecosystem the city has cultivated, the decision to relocate beyond the city is being embraced by more and more people each year. When you consider workers in London are among the most burned out, according to a recent Google search data study, the ambition to relocate becomes more enticing.
For PAs and EAs, understanding the advantages that such a broad business move can bring is vital. For businesses in certain industries, being confined to the capital city isnโt a requirement anymore, with reliable and prosperous opportunities existing throughout the UK. With that in mind, letโs explore some of the transformative changes, benefits and opportunities that can come as a result of taking your organisationโs headquarters a bit further afield.
The changing face of corporate location strategy
Firstly, itโs important to establish why many businesses and individuals are venturing out of London. The short version is that the traditional pull of London as the UK’s business epicentre is evolving.ย
Companies of all sizes, from startups and SMEs to established corporations, recognise that business success isnโt dependent on a particular postcode. The COVID-19 pandemic brought about forced remote working for many working professionals. Understandably, many of us found those subsequent work-life balance advantages desirable. Whatโs more, accelerated digitisation and organisations finding stability in maintaining operations and client relationships during and post-pandemic forced several to reconsider their location.ย
With London being one of the most expensive cities in the world to live and work in, itโs no surprise why many have sought cost-saving opportunities. Many individuals are looking beyond the capital to areas, for example, with strong transport links. Attractive commuter regions like mid-Sussex and Berkshire offer this. Here, costs are a bit less intense and the โhustle and bustleโ of London is not present 24/7. Many companies have responded positively to these flexibility requests, seeing it as an opportunity to provide their employees with a better quality of life and lower living costs.
But what if a company were to relocate out of the city entirely?
Why moving your office outside of London is a compelling choiceย
The financial advantages of moving outside London come immediately to mind. Office space costs in regional cities run exponentially lower than in central London, and the same applies to operational overheads on average. Savings on day-to-day costs can be reinvested into strategic initiatives not so readily attainable when situated in the capital – such as larger, more affordable facilities, business growth programmes and enhanced employee benefits.
Looking beyond economics, however, relocating to a space outside of London opens doors to a diverse and highly skilled talent pool beyond the city. Many workers within your industry may not have previously had access to opportunities in London, but depending on your new location, you may find yourself within a respectable commuting distance of other professionals. While the talent pool is largest in London, itโs important to consider that one in three people consider leaving their job – according to a recent study – and often work-life balance is a contributing factor to that.ย
Conversely, London still remains a transport hotspot, so finding ideal and more affordable locations near train stations can still be appealing to some workers already in the city, though leniency and flexible working arrangements may be preferable for them. However, the geographical diversity on offer often leads to two key benefits: lower staff turnover rates and the ability to offer competitive salary packages, especially when factoring in the lower living costs outside of London.ย
When considering locations reachable to and from London, employees may find they have shorter commute times and an improved work-life balance, thus seeing stress and anxiety reduced. The opportunity to live in more spacious homes in less urban areas, with access to green spaces, has become increasingly attractive to working professionals who may have previously felt tethered to Londonโs skyrocketing property market and living costs.ย
Why companies are choosing regional locations
Recent data from the Office for National Statistics reveals a significant trend in business relocations to regional cities. Manchester, Birmingham, and Leeds have emerged as particular hotspots, offering significantly lower living and operational costs compared to London. In recent years, these cities have invested heavily in infrastructure and fostered thriving business communities, making them standout alternatives to Englandโs capital.
The success stories are nothing to baulk at. For instance, the BBC (and most recently, its News at One programme) relocated to MediaCity UK in Salford, showing how major organisations can thrive outside the capital while maintaining their international presence. The North is also becoming increasingly desirable for some companies, and investors are taking notice. Such moves can not only reduce costs and overheads but also help organisations reflect and serve a larger proportion of the available workforce and their audience.
Itโs a case of risk versus reward
Any large-scale office relocation comes with challenges and obstacles. Not only is there the initial disruption caused by upending premises, but there is also the potential loss of some London-based workers who want to remain in the city, as well as the process of adapting to new business networks to consider.ย
However, these challenges are merely in the short term and are often outweighed by the long-term benefits that come with substantial cost savings, improved employee morale, access to a broader market, and the ability to attract talent outside the city. Depending on the location, London residents may also be happy to commute to the new spot as well, so organisations will need to judge each case on its merits.
Making the right decision for your organisation
For PAs and EAs involved in assessing potential relocation spaces, several key areas require careful evaluation.ย
- Start with a thorough workforce analysis, understanding each employeeโs mindset towards relocation.
- Assess remote working capabilities and talent retention strategies to inform a case for or against relocation.
- Spend time assessing the relocation strategy beyond cost comparisons, considering the strength of regional business networks, transport connections and proximity to key clients, partners and suppliers.
- Scrutinise the short- and long-term financial implications, including immediate relocation costs, savings projections, employee relocation packages (if necessary), recruitment costs, and so on.
Strategic implementation for success
When it comes to office relocations, PAs and EAs are invariably at the heart of the project. Developing a robust communication strategy that keeps all staff, partners and stakeholders informed and engaged throughout the process is essential. From the outset, establish clear timelines, milestones, and budgets with stringent cost controls. Specifically for employees, managing their expectations will be key, which is aided by a strong and well-designed employee support programme.
As for the physical aspects of a relocation, these shouldnโt be overlooked by any means. Office design and setup requirements should be planned and strategised well in advance, with careful consideration given to how the new office space can serve the organisation currently and well into the future. This may involve upgrading the space to be more open and collaborative, implementing new technology infrastructure, or sharing space with a neighbouring company, for example. However, outside London, exclusive office space is easier to come by, so this may not be necessary in your new venture.
The path forward
For PAs and EAs responsible for planning and executing a company HQ move outside of London, there may be challenges afoot, but the strategic, operational, and social advantages may offer your workforce more than what London offers. While such a move should not be taken lightly as a decision, itโs undoubtedly worth a conversation if your organisation is plateauing, encountering difficulties in worker retention or feeling buried by the financial burden of London residency.
Being clued into these advantages and challenges positions you as a valuable partner in your organisationโs growth, expansion, and diversification. Understanding and communicating the possibilities that await allow you to play a pivotal role in helping your company make informed decisions about its location and future plans.
