Hiring talent in some regions of the country is not only difficult but expensive, too. So much so, that instead of hiring local employees, one law firm bought a private jet to shuttle its lawyers from their base in Houston to clients in the Bay Area. That’s right, it was cheaper to buy a plane than relocate workers from Texas to Silicon Valley.
Silicon Valley’s high cost of living is one reason companies are getting creative with where they hire. Median rent in the San Francisco is $4,450, and $3,300 in the nearby suburb of San Jose. Purchasing a home in either place can cost an average of $1-1.5 million. On the East Coast, New York’s tech startup community, dubbed “Silicon Alley” since the 1990s, sees similar steep living costs with Manhattan’s cost of living 25% higher than the national average.Competitive talent markets got you down? Check out what a leveraged recruitment model can do for your #recruiting challenges:Click to Tweet
High Costs & High Expectations
Of course, cost of living is only one pricey element in this messy talent acquisition puzzle. Because these expenses are high and steadily growing, talent themselves are expecting more. The average tech salary in NYC is $129,000, but the Silicon Valley/Bay Area still reign supreme with an average tech salary of $142,000.
These costs are exactly why a Houston law firm purchased a private jet instead of hiring Bay Area talent for Bay Area clients. It’s also why one Facebook employee making 6 figures couldn’t continue to work for the tech giant, live in the area and support his family.
The big brands and highly sought after employers headquartered in the area are also in tough competition with each other. Each and every one of them is looking for the best and brightest. But are they actually finding it?
Jenn Steele, Senior Director of Product Marketing at Bizible has been wondering if “the best and brightest” are actually even in Silicon Valley. After speaking with a colleague whose Silicon Valley company recently set up another office in Seattle, Steele’s theory seemed validated.
“Hiring and retaining people in the Bay Area is hard because there’s stiff competition for mediocre talent.”
- Jenn Steele
Up & Coming
Cities like Houston may not boast high average salaries, but their sheer affordability helps companies and their employees see more of their paycheck (and afford private jets). In fact, only 3 hours to the north of Houston lies Dallas, a city considered a potential candidate for the next Silicon Valley Hub by Glassdoor. Eight other potential cities were named in addition to Houston, calling on their rapid growth and startup cultures as clear markers of future success.
Similarly, exponential startup growth, skilled talent and hungry entrepreneurs in the Midwest have earned it the title “Silicon Prairie.” Interestingly enough, the highly educated talent in those expensive tech hubs can be easily swayed to these locations for more lucrative careers overall in these less costly areas.
While these “Tier 2” metros aren’t THE metros, they are packed with potential. The brands and company names might not be as well-known as Google or Apple, but they are still solving interesting problems and implementing innovative technology - all with less overhead. The talent coming out of those nearby universities is educated, motivated and determined to work on exciting projects.
Finding Interested & Qualified Talent
The next question is how do you get these educated, motivated candidates with the energy to work in a startup culture? And once you find them, how do you know they are the best fit?
First, you have to understand that relying solely on traditional hiring methods may bring you some great hires, but it will still limit your talent pipeline potential. You need to infuse a modern candidate experience with fresh recruiting processes.
Unfortunately, it’s not as simple as searching for the latest and greatest technology. You need strategy and deep consideration for your organization’s culture. Simply bending trends and theory around your company values and mission could lead to disaster.
The right leveraged recruitment model can bring that balance of modern, technology-backed processes to your unique workforce. IQTalent Partners approaches hiring talent a little differently than the rest. Our goal is to apply our expertise in talent acquisition and knowledge of industry-leading techniques to build recruitment programs customized to our partner’s needs.
If our client needs a complete recruitment overhaul, we strategize and build the new program while continuing to support their talent needs. If our client is only struggling in a few areas, we know how to fill the gaps and train their team for the future.
Working with IQTalent means access to solutions for any and every talent acquisition challenge. That includes finding the best and brightest, wherever they might be located. We don’t just connect to top candidates in Silicon Valley - we know how to find amazing talent all over the country. We work with your organization, budget and hiring needs to build the recruitment model for you.