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THE Relocation Guide

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SECTION 1 Introduction

This guide provides information on the Executive's relocation policy and advice on the relocation process. It explains the stages involved in a location review and where further help can be found.

1.1 This guide provides information on the Executive's relocation policy and advice on the relocation process - setting out in detail the location review process. It explains the stages involved in a review and where further help can be found. For Scottish Executive core staff, guidance relating to Human Resource relocation issues can be found on the Executive's Intranet. For non Executive staff, best practice guidance on HR relocation issues is attached at Annex D.

1.2 There is a Relocation Policy Team in the Executive's Public Service Reform Group - who provide general guidance on relocation policy and act as a point of contact for all stakeholders and customers. The Team has been expanded to form the basis of the Support Team for relocation - working with colleagues from other parts of the Executive to provide expertise and experience for relocations, and location reviews in particular. Having the Support Team at the heart of all location reviews will provide consistency of approach and ensure that reviews have the full benefit of previous experience. The Team will maintain a publicly-available register of information that can be used by any organisation under review. This will include a list of potential locations suggested by local authorities and enterprise companies, backed up with up-to-date socio-economic data that will make the review process quicker and more transparent. The Team will also provide examples of criteria that can be used to assess locations in terms of their impact on efficiency and effectiveness for organisations. The Team will work with the organisation all the way through the process, right up to the move itself and beyond. This will be vital not only in terms of support but also in terms of being able to evaluate the impact of all moves, to inform future development of the relocation policy.

1.3 Relocation Policy Team enquiry point: 0131 244 4297 email: relocation.policy@scotland.gsi.gov.uk

SECTION 2 Relocation Policy

The policy covers the Executive's Departments and Agencies, Non-Ministerial Departments and the sponsored public sector. The policy covers bodies throughout Scotland and not just those currently based in and around Edinburgh.

Relocation Policy Objectives

2.1 The Executive's relocation policy was introduced in September 1999. The overarching objectives of the policy are to:

  • Ensure that the government in Scotland is more efficient and decentralised;
  • Provide cost-effective delivery solutions; and
  • Assist areas with particular social and economic needs.

2.2 The policy covers the Executive's Departments and Agencies, Non-Ministerial Departments and the sponsored public sector. The policy covers bodies throughout Scotland and not just those currently based in and around Edinburgh. When the Executive establishes a new unit, agency or public body or where an existing one is merged or otherwise reorganised, this triggers a location review and there is a presumption against locating in Edinburgh. Where a significant property break is reached - for example, the termination of an existing lease - this also triggers a review and location options will be considered that could include Edinburgh. In either case, the final location will be decided by Ministers after the location review has been undertaken.

The focus of the Initiative is to bring the benefit of public sector employment to fragile rural communities.

Small Units Initiative

2.3 The Small Units Initiative is a separate strand of the policy that is aimed at supporting Scotland's more fragile rural communities by relocating small discrete units of work, normally comprising between 10-15 staff, to agreed locations that would benefit most from such moves. The location of small units under the Initiative will take account of the policy objectives above and the review process is similar - although streamlined - but the focus of the Initiative is to bring the benefit of public sector employment to fragile rural communities. There are no external organisational or property-based triggers for a Small Unit review. Instead, senior management identify for review suitable free standing, non location dependent units within the Scottish Executive and its sponsored bodies. All bodies undertaking a location review should consider whether parts of their organisation could be located in rural communities under the Small Units Initiative. As decisions made in this Initiative are not driven purely on costs and efficiency savings, Ministers have established a fund to assist with initial start-up and accommodation costs.

2.4 Full guidance on the Small Units Initiative can be found at Section 4 of this document.

The objectives of the relocation policy are consistent with the aims of efficient government.

Efficient Government

2.5 Implementation of the relocation policy has to take account of the wider policy context in which bodies operate. The efficient government initiative is a significant development that all bodies should be focused on. The objectives of the relocation policy, above, are consistent with the aims of efficient government - and relocations will generally give rise to efficiency savings in terms of money and time. Location will clearly be a factor in efficient government. Moving to a location outside Edinburgh where running costs are lower will allow savings to be realised. Relocating jobs closer to stakeholders will save time in terms of access and travel. Co-location will make it easier to share back-office functions that will lead to efficiency savings.

2.6 This guidance sets out how efficient government considerations should be included in relocation. Opportunities to realise efficiencies should be considered throughout a location review

SECTION 3 The Location Review Process

Responsibility for conducting a location review lies with the department or body being reviewed. A project team should be set up to undertake the review.

3.1 Responsibility for conducting a location review lies with the department or body being reviewed. A project team should be set up to undertake the review. Advice on setting up the project team and on all aspects of the review process is available from the Executive's Relocation Policy Team in the Public Service Reform Group (see helpful contacts on page 2). The project team will probably include senior management, but Ministers expect it to include representatives to cover the views of staff (such as relevant unions). The project team will be assigned support from the Relocation Support Team - to cover policy interests and to provide professional expertise in economic and financial appraisal, property availability and suitability, as well as general human resource issues.

3.2 Project teams within the Executive will always include local HR representation. The Executive also has an agreement with Council of Scottish Executive Unions ( CSEU) to involve them in reviews. The project team will be responsible for monitoring progress against the project plan.

3.3 In some previous reviews work has been contracted out to independent economic or property consultants. The arrangements set out above should mean that consultants would only be required in exceptional circumstances or for very specialist input - such as detailed space planning. Where that is the case, the Relocation Support Team will contract the consultants for project teams. Ministers will require justification for the use of such consultants.

Stages in the Review Process

3.4 A review will consist of two stages: an initial 'sift' stage that identifies a short list of six or seven options, followed by a full appraisal stage that examines the short-listed options in detail. This section of the guidance gives an overview of both these stages. Detailed consideration is attached for reference at Annexes B and C. It is vital that before the review begins the project team is clear on the exact needs of the organisation in terms of building specification. The number of posts to be relocated should be determined as accurately as possible as this will have an impact on the choices of location available.

Stage One

3.5 The first stage considers a list of potential locations that have been identified from across Scotland in partnership with local authorities and local enterprise companies. The list is ranked in terms of the socio-economic benefit a relocation would bring each community - taking account of the efficient and effective operation of the unit under review. A transparent 'weighting & scoring' system is used to assess each location. The Relocation Support Team will provide all the data required to compare locations in terms of socio-economic benefit on the Executive's Internet site. 1 The Team will also suggest measures that could be used to assess efficiency and effectiveness of operation - such as staff retention, accessibility to stakeholders, labour market considerations and efficient government opportunities. To obtain information on these, staff and stakeholder surveys will usually be required. A template for a staff survey is attached at Annex E.

3.6 In addition to the above, the first stage should consider whether there are any factors, unique to the particular review, which may significantly restrict the options that are realistically viable. This may include the uniqueness of the business area under scrutiny or particular HR issues, such as the business depending on specialist staff.

3.7 When Ministers have agreed the shortlist, and staff have been informed, the project team will issue a news release to make the shortlist public. The Relocation Support Team will contact the relevant local authorities and enterprise companies to co-ordinate their input into stage two of the review.

Stage Two

3.8 The second stage involves a full economic appraisal of the short-listed options, in line with HM Treasury's 'Green Book' guidance, Appraisal & Evaluation in Central Government. 2 It is important to note that an economic appraisal is wider than a financial appraisal of the cost of each option. The aim of an economic appraisal is to make an assessment of overall value for money, taking account of all significant economic, environmental, and social impacts. Information on the prospective impacts could be obtained from additional staff and stakeholder surveys as well as from local authorities and enterprise companies.

3.9 This means that as well as considering the direct impacts, such as rental and relocation costs, the appraisal also needs to consider the wider impacts on customers, stakeholders, and society as a whole. For example, will the relocation affect the quality of service provided to the public? Will there be any wider social and economic benefits, e.g. due to the redistribution of jobs to less economically buoyant areas? What levels of skilled workforce are available in the areas being considered? The Support Team will provide a range of indicators to assess these factors. Rental, purchase, relocation costs etc. will be assessed on a consistent basis allowing Ministers to judge recommendations against consistently used criteria.

3.10 The detail of the appraisal will depend on the timescale of a prospective relocation. When relocations are more than 2 years in the future the appraisal could be conducted with generic information on costs and benefits. This would be sufficient for a decision to be made on a location, with the final decision on which buildings or sites are to be appraised being made later. Where relocations are less than 2 years in the future it would be more appropriate to conduct the appraisal on specific buildings or sites.

Making Recommendations

3.11 After each stage of the review the findings should, in the first instance, be presented to the responsible Minister for consideration and subsequent approval by the Relocation Ministers (First Minister, Deputy First Minister, Minister for Parliamentary Business, Minister for Finance and Public Service Reform and Deputy Minister for Finance, Public Service Reform and Parliamentary Business). The Relocation Policy Team will be able to advise on the handling of this part of the process to ensure that decisions are reached as quickly as possible and are communicated as clearly as possible. At the end of the first stage, approval is sought for the shortlist, which Ministers may wish to amend, before proceeding with further analysis. After the second stage has been completed the information should be presented again to Ministers, so they can make an informed decision as to which location best meets the objectives of the relocation policy and provides good overall value for money.

SECTION 4 The Small Units Initiative Location Review Process

Responsibility for conducting a small unit location review lies with the unit being reviewed. The Relocation Support Team will advise and help you on all aspects of the review process.

4.1 Responsibility for conducting a small unit location review lies with the unit being reviewed. A project team should be set up to undertake the review. Advice on setting up the project team and on all aspects of the review process is available from the Executive's Relocation Policy Team in the Public Service Reform Group (see helpful contacts on page 2). The project team will probably include senior management, but Ministers expect it to include representatives to cover the views of staff (such as relevant unions). The project team will be assigned support from the Relocation Support Team - to cover policy interests and to provide professional expertise in economic and financial appraisal, property availability and suitability, as well as general human resource issues.

4.2 Project teams within the Executive will always include local HR representation. The Executive also has an agreement with CSEU to involve them in reviews. The project team will be responsible for monitoring progress against the project plan.

Stages in the Review Process

4.3 A review will consist of two stages: an initial 'sift' stage that identifies a short list of options from a list of agreed locations, followed by an appraisal stage that examines the short-listed options in detail. The criteria that will be used to assess locations are set out at Annexes B and C. It is vital that before the review begins the project team is clear on the exact needs of the organisation in terms of building specification. The number of posts to be relocated should be determined as accurately as possible as this will have an impact on the choices of location available.

To start the first stage of the review the unit should define its business objectives and provide a business case relating to the relocation of the unit.

Stage One

4.4 To start the first stage of the review the unit should define its business objectives and provide a business case relating to the relocation of the unit. It is expected that such a business case would:

  • Provide a clear business statement;
  • Cover efficiency and effectiveness; and
  • Address longer-term issues.

4.5 Once the business case has been defined, the list of potential locations approved for the Small Units Initiative - provided by the Support Team - should be assessed for their suitability in terms of the business case. This should narrow down the options available to around five or six for more detailed assessment. The Relocation Support Team will provide all the data required to compare locations in terms of socio-economic benefit, sustainable transport and property availability, and will be able to assist in the final analysis of the location options, to ensure the

shortlist meets your business needs, and long term requirements. The status quo option should always be included in the shortlist of reviewed locations, although it is only there for comparative purposes.

4.6 The first stage should consider whether there are any factors, unique to the particular unit, which may significantly restrict the options that are realistically viable. If any such factors exist, then they will affect the shortlist.

Stage Two

4.7 The second stage involves a full economic appraisal of the short-listed options, in line with HM Treasury's 'Green Book' guidance, Appraisal & Evaluation in Central Government. 3 It is important to note that an economic appraisal is wider than a financial appraisal of the cost of each option. The aim of an economic appraisal is to make an assessment of overall value for money, taking account of all significant economic, environmental, and social impacts. Information on the prospective impacts could be obtained from staff and stakeholder surveys as well as from local authorities and enterprise companies. An example of a best-practice staff survey is included at Annex E.

4.8 This means that as well as considering the direct impacts, such as rental and relocation costs, the appraisal also needs to consider the wider impacts on customers, stakeholders, and society as a whole. For example, will the relocation affect the quality of service provided to the public? Will there be any wider social and economic benefits, e.g. due to the redistribution of jobs to less economically buoyant areas? What levels of skilled workforce are available in the areas being considered? The Support Team will provide a range of indicators to assess these factors. Rental, purchase, relocation costs etc. will be assessed on a consistent basis allowing Ministers to judge recommendations against consistently used criteria.

Making Recommendations

4.9 At the end of the review the findings should be presented to the responsible Minister for decision and copied to the Deputy Minister for Finance, Public Service Reform and Parliamentary Business. The Relocation Policy Team will be able to advise on the handling of this part of the process to ensure that decisions are reached as quickly as possible and are communicated as clearly as possible.

SECTION 5 After the Review

Once the decision has been made and a location has been identified, the Support Team will assist with making an announcement, identifying the final property (if not already decided) and help with the practicalities of making the move.

5.1 Once the decision has been made and a location has been identified, the Support Team will assist with making an announcement, identifying the final property (if not already decided) and help with the practicalities of making the move.

Staffing Considerations

5.2 One of the first considerations at this stage of the process will be staff engagement. Staff should be informed at the earliest opportunity of the details of any relocation decision - the location chosen and the timescale for the move (including any detailed proposals for double-running at more than one site or of phasing moves over a number of years). The detail of assistance available for staff wishing to move or commute and assistance for staff unwilling to move or commute should be made available immediately. It is likely that a further staff survey will be required to determine how many staff intend to move or commute to the new location. This is covered in more detail in the Best Practice Guidance on Staff Engagement at Annex D. For Executive staff, local HR teams will advise the project team on this aspect of relocation.

Choosing the Building or Development

5.3 If the second stage of the review has not already identified a specific building or development site, the Support Team will now take this work forward. The Team will identify suitable buildings or sites that meet the terms of Ministers' decision, and make sure they are appropriate - in terms of meeting the Executive's standards and the relocating unit's needs. This may require the services of an independent space planner. The timing of availability will be crucial, and units should be aware that resources may have to be available well in advance of proposed relocation dates to ensure a property can be reserved or acquired. Advice on this is available from the Support Team.

It is important to note that there are several support services that will be less available in certain locations. Early consideration should be given to the availability or resourcing of ICT support, security, postal services etc.

Support Services

5.4 It is important to note that there are several support services that will be less available in certain locations. Early consideration should be given to the availability or resourcing of ICT support, security, postal services etc. at the prospective new location. Other sponsored bodies or government organisations in the vicinity should be investigated to ensure that solutions are as cost-effective as possible. The Support Team can provide some information on how organisations which have already relocated have managed to source certain support services.

Making the Move

5.5 Once the building has been identified and has been made available, the Team will assist as appropriate or required with the physical movement.

Evaluation Surveys

5.6 Evaluating relocations as they take place and then after they have become established is an important part of the process. The Relocation Support Team will undertake an evaluation of the impact of relocation in the long term and also undertake a more short-term financial evaluation of the process. The longer term evaluation will cover socio-economic impacts as well as impacts on business efficiency. The Scottish Parliament and others have taken a keen interest in the costs and benefits associated with relocation. Relocating units should bear in mind that they will be asked to provide information on the financial costs and benefits of relocation soon after the move. Details of the questions that will be asked are attached at Annex G, and units should, where possible, maintain records from which these questions can be answered.

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Page updated: Monday, June 27, 2005