Few industries are so intensely engaged in the war for skilled people as is the high tech industry. Talent is everything.
Microsoft and other powerhouses have been lobbying for more immigrant visas for skilled workers from abroad, which is illustrative of one way companies are dealing with the issue at hand – finding net new talent.
When it comes to attracting talent and venture capital, Silicon Valley is by far the leader compared to other US regions (though Wall Street is challenging Sand Hill road), but the race is on from other areas around the world. This study from the Bay Area Council Economic Institute and McKinsey reveals that some other areas are emerging as real threats to the current king of the war for talent, Silicon Valley.
As we see from the graph below the cost of doing business is highest in London, followed by the Bay Area, Stockholm, and Shanghai, respectively.
In addition to high cost of doing business, the cost of living in several of these high tech areas is becoming a steep hurdle for new people when they consider relocating. For instance, in the San Francisco Bay Area the portion of income spent on housing is more than double that of the US average.
Taking all of this into account – the need to take on this war for talent on a global scale is very real right now. High tech is struggling with it more than others today, but many industries will follow.
“Think globally but act locally” is a common saying, but I’d suggest that “think globally and act globally” could be a better recipe for winning the war for talent. Get the best people to work with you (that’s right not for but with) fully aligned with your strategy irrespective of where they are located. Build your business based on talent, collaboration, and focus on real customer value creation. Collaboration and value creation have nothing to do with real estate, immigration laws, peak hour commutes, and localized flexible work arrangements. It is all about integrating the right people to produce results. The smartest companies that embrace and execute on this philosophy will win the war for talent and hence the customers’ money, based on real value creation. The best people can work with you wherever they are. Embracing this will keep you competitive. Failure to do so will be costly and troublesome. The world is spinning let’s spin along with it…
You make some great points on this article. Really like the fact that you are highlighting that potential employees are making the choice as much as the employer when it comes to hiring.
Duncan