With an eye toward cost savings, many employers are packing up everything and moving to a cheaper location - often from a downtown area to the suburbs.

In this year's tough economic climate, businesses are looking at saving any of their fixed expenses, including rent, confirms Jon Katz, chief marketing officer at FlatRate, a moving company headquartered near New York City. They're moving into smaller offices or less expensive offices. Katz says his company is doing more moving jobs than ever this year.

Richard May, corporate vice president of marketing at Alexander's Mobility Services, a relocation company that operates in six states, notes: "Folks do move from state to state where there are tax incentives. Folks are doing some downsizing or subletting of excess space ... Some of it is driven by the economy. Some of the recent moves are due to layoffs or companies selling part of their business. It's all done with cost-savings in mind."

They may have to spend money to save money, May explains. In fact, May says he's seen an uptick in temporary office space and rentals of office furniture, perhaps reflecting a time of economic uncertainty among some businesses and/or industries.

The increased prevalence of telecommuting also has played a role in office moves. Many employers have decided to save money on rent and utilities by allowing more employees to telework. In some cases, they can close a small satellite office or switch to a less expensive office location if a greater number of employees telework.

Ripple effect

There's no getting around the fact that an office relocation greatly affects employees' commutes, schedules, work-life balance and personal arrangements like child care, elder care and school. In every move, there are winners and losers. Employers and HR professionals need to think carefully about how the move will affect different groups of employees.

Parents may be concerned about uprooting their children from a day care center or school. In addition, an office relocation could mean that the parent loses proximity to a family member or nanny who took care of the child on certain days. An employer could have problems with low productivity, absenteeism and presenteeism if a lot of employees are starting to struggle with their commutes, child care and/or backup care arrangements.

Retention also is an important consideration. It's not uncommon for some workers to quit their jobs after their employer announces a move that would make their commute or child care arrangements unworkable. "If your employees don't want to relocate with you, you may have a human capital issue," says Fran Durekas, founder of Children's Creative Learning Centers, which provides employer-sponsored child care centers at worksites in 27 states. "You're impacting employees. You want to retain the best of the best."

Benefits like employer-sponsored backup child care, an onsite child care center, an employee assistance program, telecommuting and flextime can help to avoid turnover and alleviate some of the strain caused by an office relocation.

Plan before you pack

To make the office move go smoothly, Katz and May offer the following tips for employers:

• Conduct a feasibility study to get a realistic idea of the proposed move's costs and logistics.
• Do plenty of advance planning. The more organized you are ahead of time, the less downtime you have, Katz says. If you don't plan it the right way, you're going to waste a lot of people's time, lose productivity and possibly lose sales.
• Be open and transparent with employees about the need to move. Give them enough notice ahead of time, Katz advises. Don't rush employees at the last minute.
• Start the move on a Friday afternoon, if possible, so there's time to get computer and phone systems installed and running over the weekend.
• Move IT equipment first and all together.
• Color-coordinate boxes by department or business unit.
• Give employees boxes to pack their personal items ahead of time.
• To ease the transition for employees, distribute a document with helpful information about the new office location, including nearby public transportation and lunch options.

Four to six months before moving day:

• Choose a move coordinator
• Meet with the building manager
• Plan layout of the new location
• Set moving budget
• Choose the move day
• Communicate moving plans to employees
• Order new phone/fax numbers

Two to four months before moving day:

• Hire movers
• Order change of address labels
• Order Internet access
• Evaluate server room needs
• Order furniture

One to two months before moving day:

• Assign office space to employees
• Clear out clutter
• Send change of address to vendors and customers
• Update Web site
• Order keys and access cards
• Arrange for coffee service; order vending machines
• Order checks and update financial records
• Build out new office

Month before moving day:

• Inventory existing computers
• Inventory, tag existing furniture
• Store items that won't be moved
• Obtain moving crates/cartons
• Pack up common areas
• Install phone system
• Assign new phone numbers, extensions
• Order utilities
• Notify post office of change of address
• Order new stationery

Week before moving day:

• Pack up desks, personal spaces
• Label packed items according to new location
• Back up computers
• Reserve freight elevators and loading docks
• Distribute new keys, cards
• Assign staff to help oversee movers

Day of the move:

• Keep most employees out of both offices
• Post coded signs in new office for movers
• Clean out old office
• Collect old keys, cards
• Have a welcome breakfast on the first work day in the new space

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