What is a “de-location” and how can your company effectively manage it?

What is a “de-location” and how can your company effectively manage it?

“De-location” has emerged as a mobility trend amid COVID-19. Vice President of Consulting Services Chris Pardo takes a closer look in this Remote Relo Tip Tuesday.


Complete transcript: “Hi and happy Tuesday everyone! Welcome to this remote edition of Relo Tip Tuesday. My name is Chris Pardo and I am coming to you from my home office as we continue working remotely here in Minneapolis, doing our best to practice good social distancing while this pandemic rages on. So my questions today are, “What is a de-location and how can your company effectively manage it?”

Let’s start by defining it. De-location is a relocation where an employee is allowed to move away from their current location to another location and usually work remotely while keeping their position. Typically, employees self-initiate the relocation to escape a high-cost location or to move to a less populated location in the hopes of a higher quality of life. A de-location flips that traditional concept of moving a person to the job and facilitates moving the job with the employee.

Today, in the midst of this current pandemic, more companies have not only gotten comfortable with having employees work remotely but they are embracing de-location support as a valuable talent retention and cost reduction strategy. By providing employees with the opportunity to escape, or de-locate, from places like New York City, Los Angeles, Seattle and San Francisco where there are exceedingly high real estate costs, sky-rocketing rents and challenging commutes, they’re helping the employee to shave thousands of dollars off their monthly housing costs. However, some companies are implementing pay cuts for employees moving to less expensive locations.

More companies are looking at creating de-location programs that provide a win-win scenario for both the employee and the company. Recently, a number of other Bay Area companies in the technology sector have announced their de-location support.

And that support usually comes by providing a lump sum cash payment. That’s by far the most popular method that companies have used so far for supporting employees with de-location. But what if you could make the de-location for these employees dramatically easier and more organized, without adding much cost to your program? We feel there is an opportunity to more effectively manage de-locations by running it through the global mobility program and having the employees be supported by the relocation management company. Relocation is rarely an easy process, so by providing resources like cutting-edge technology and a properly vetted supply chain, the company can ensure that numerous positive outcomes are the result of the de-location process. Companies that offer thoughtful de-location and greater support are more likely to have the best chance at attracting and retaining their top talent.

Thanks for joining me today and have a great day!”

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