Minimizing Risk While Relocating Abroad
According to Piotti (2007), most companies tend to move their primary functions abroad due to economic reasons. The Boeing organization seeks to relocate its manufacturing processes abroad with the aim of decreasing the manufacturing price. One of the main risks that a company can face when it relocates abroad is attraction and retention of staff (Lewin, Massini, & Peeters, 2009). Most businesses that relocate abroad fail to plan adequately on how they will attract, retrain; retain staff members once the companies have moved their functions abroad. In addition, many businesses often lose their current crop of employees because they did not involve the latter in the decision making process.
To deal with this uncertainty, Boeing will inform current employees about the move abroad beforehand. This will give the employees ample time to decide whether they would like to stay with the company despite having to move abroad. Furthermore, the company needs to choose a suitable location in the new country that provides access to a sufficient pool of talented human resources, who can provide a sustainable workforce for the years that the company will be in the country (Contractor, Kumar, Kundu, & Pedersen, 2010).
Contractor, F. J., Kumar, V., Kundu, S. K., & Pedersen, T. (2010). Re-conceptualizing the firm in a world of outsourcing and offshoring: The organizational and geographical relocation of high‐value company functions. Journal of Management Studies, 47(8), 1417-1433.
Lewin, A. Y., Massini, S., & Peeters, C. (2009). Why are companies offshoring innovation quest; the emerging global race for talent. Journal of International Business Studies, 40(6), 901-925.
Piotti, G. (2007). Why do companies relocate? The German discourse on relocation.