Business leaders are constantly faced with decision-making opportunities. These decisions can range from small and trivial to large and monumental, and the outcomes can affect an entire organization or even an industry. One of the most impactful decisions facing business leaders today is determining where to locate corporate headquarters. Here is a brief overview of some of the risks and rewards associated with this type of decision:
Heightened public scrutiny
When looking at the benefits of a corporate headquarters, it is always important to take into account the potential risks. This is especially true when considering a relocation in a high-profile location. The heightened public scrutiny that comes with a relocation to big city can affect your company’s image and reputation in several ways. If you are considering moving to new city, talk to an attorney about the potential pitfalls before making any final decisions.
Employee resentment
This can be a very sensitive topic, because you’re putting your employees in a position of having to choose between their loyalty to the company and their own personal safety. This is why it’s so important to communicate with them regularly about what is happening and why. It’s also a good idea to integrate employees into the design process as much as possible, so they feel like they have some control over what happens around them. If you can’t do that, at least make sure that all critical equipment or processes are located inside the building; if something goes wrong, it will be easier to keep things running smoothly while repairs are being made outside.
Location-specific incentives
You’ll want to make sure that the location is providing location-specific incentives, including tax credits and other goodies. These can range from land grants to infrastructure improvements, which you should be able to negotiate with local governments.
Local hiring burdens: If you’re looking at cities where there’s a high concentration of highly-educated workers, then it’s possible there will be more people vying for those jobs than your company needs—which means there could be increased local hiring burdens on your business.
Lengthy approvals: Another risk factor is that if you choose a city that requires a lengthy approval process for building permits, it could cause delays in construction and renovations for your new headquarters. This can lead to higher costs down the road when it comes time for expansion or renovation projects (or perhaps even relocation).
Risks vs Rewards When Considering Corporate Headquarters
When you’re deciding whether or not to move your corporate headquarters, it’s important to consider both the risks and rewards of this project. While it may seem like a good idea in the short term, there are many factors that could come into play if you choose to make this move. For example, moving your headquarters will be an enormous undertaking and will require significant financial resources. It also means that anyone who works in other locations would need to relocate as well—and relocating staff can be expensive! The physical costs of moving the office should also be taken into account. It is best to consult the experts at office removals from Sydney to get the best deal for a stress-free move.
On top of all of these logistical issues, there are also some risks associated with moving your corporate headquarters: if the new location doesn’t pan out as planned (for whatever reason), then there’s no guarantee that people will stay once they’ve packed up their things and moved elsewhere for work; additionally, if employees aren’t happy about being relocated then they might leave altogether which would lower morale among remaining team members which could ultimately impact overall productivity at work or even lead some employees to quit altogether.
Lengthy approvals
You may experience lengthy approvals. The process can take years, and your project might be approved but not funded, constructed, maintained or operated. A project can also be rejected despite having passed all of these stages successfully. This means that it’s important for you to have a solid plan in place for what will happen if your application is rejected: will you relocate elsewhere? Will you find an alternative location within the same city? Or will the business simply close down completely?
Local hiring burdens
If you’re considering moving your company to a new location, there are many factors to consider. One of these is the local hiring burden. The local hiring burden can be a risk for companies considering relocation—it may be harder to find qualified workers in the area than at your current headquarters, which means that it will cost more money and time to hire new employees. However, if you are able to find qualified workers who match your needs then this shouldn’t be an issue as long as you’re willing to pay more than what they would make elsewhere.
Fortunately, there are tools that companies can use to mitigate risk. For example, some companies will make sure that they have alternative locations in mind so that if one falls through or is rejected due to local opposition, they have another location where they can move forward with the project. This way, if something goes wrong—whether it’s a regulatory issue or an unexpected complication—they still retain access to their desired location.