Brexit: The cost of relocation
Authored by: Synechron Business Consulting Group
Banks and other financial services firms relocate employees each year; however, monetary implications are far more severe when a member state decides to leave the European Union. In the wake of Brexit, Synechron determined that banks and other financial services firms will have to pay an average cost of £50,000 per employee to relocate parts of their workforce to another European city. Following the UK's decision to leave the European Union, many banks and financial services firms are having to consider where best to locate certain parts of their workforce. Financial 'passporting' is vital to the work many banks undertake across Europe, and they will have to think carefully about which city within the EU their interests and their clients' interests will be best served to manage these costs.
Synechron used a number of measures when calculating the £50,000, including hiring and redundancy costs, new building and rent costs and other infrastructure & contingency costs. These areas may differ across businesses, but using the model below, companies can determine their own cost of relocation, potential areas of cost savings and how big of an impact the relocation will have on their business.