Impact of Relocation process on retention of employees

Impact of Relocation process on retention of employees 

One of the most critical issue in the private organization, now-a-days, is to how to retain their employees. Surveys are held to find out the reasons behind non-retention policy of the employees. Two of them are Turnover of the organization and another is Relocation[1].

Relocation is a significant event in the course of an organization's lifetime. The purpose of this article is to focus on the impacts that relocation has on the existing employees and to identify the economic, social, and environmental impacts of relocation.

Reason of Relocation and Role of Government:

            Generally, an organization moves towards relocation due to many reasons like profit-loss ratio, access to talent and skilled labor, access to market and opportunity for growth [2].

This decision of relocation can lead to several setbacks as well in terms of employees point of view. Many of us doesn't like to move with the decision and results in leaving of job rather retaining it.

Employers are being encouraged by the Government to change their policies to promote the work-life balance of their employees. Little is known about the extent and nature of job-related moves and their effects on family life. Research examining the family impacts of such relocations, carried out by Anne Green and Angela Canny of the Warwick Institute for Employment Research, shows thatEmployers' business needs and career development considerations for employees are the main reasons why employers initiate the relocation of their employees. Those relocated are predominantly male, drawn from the younger and middle age ranges and working in higher level non-manual occupations.

Impacts on Employees:

Changes in family life and in the labour market - together with the growing interest in 'work-life' balance - mean that it is increasingly important to take stock of the effect of job relocation on families.

Some of the employees interviewed, faced with the option of relocation, chose rather to commute long distances [3]. However, long distance commuting also has impacts on families, especially through separation for prolonged periods. Its sustainability in the long-term is also questionable.Uprooting family is one major consideration.

Why one does not prefer retention of job:

Few more questions are there which often comes to mind related to family. Will the new location be affordable? Are there good schools in the new location? The decision to move away from what's comfortable to the unknown can bring on many emotional issues. Not being accepted into the new community is a common fear. This can be easily removed with the emotional and physical support by the family and friends. One should not neglect the better chance and should try to cope up with the situations.

Financial instability is another problem. Factoring in the cost of relocation, it could mean having less resources available [4].But few of us prefer relocating our jobs because of favorable conditions like better conditions, attracting salary, good opportunity.

Relationship concerns are also on the forefront. If one spouse has a career, it may mean that the spouse will have to give up his or her livelihood. It may also mean losing a salary if the spouse cannot replace the job after the move[5]. This problem can be resolved easily if support is provided by the relocating organization. Moreover, one can ask for all kinds of support like housing etc from the organization.


Relocation of an organization has a mixed impact on the financial growth of the nation, employment scenario gets affected. Organization loses truth value from the employee. Employee face several limitations like resignation, searching another job, emotional setback, family pressure.

To avoid these outcomes, and to retain the truthful employees, organization should try to support the workers. And if employees want to still work with the organization, should manage to relocate with the company.

In the end, a relocation or restructure represents change in whole.

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