Congratulations on the launch of your Company! All that hard work has finally paid off! You’ve got VC financing, a hip office space, and a retro espresso machine. You’re ready to expand your workforce with passionate, like-minded employees. You’ve put together a competitive compensation package, stock options and other perks. You’ve put the Help Wanted sign in the window (or on AngelList) and waited. Resumes from the local talent pool begin to flood in. Some are better than others. While some of your targets come on board, several others go to your competitors who have better name-recognition and more resources. Have you thought about recruiting outside your local area?
The War for Talent – Recruiting Outside Your Local Area
The economy is growing again and the largest generation in history (millennials) is looking for work.
- According to LinkedIn’s 2017 Global Recruiting Trends, 56% of recruiters said that their hiring volume will increase in 2017 while their team sizes and recruiting budget are likely to stay the same.
- About 40% of the nearly 2,400 HR pros and hiring managers surveyed by CareerBuilder recently said they plan to hire full-time employees in 2017. That’s up from 36% last year — and it’s a 10-year high for the survey.
- The CareerBuilder survey also revealed 66% of employers plan to increase salaries on initial job offers (with 30% increasing offers by 5% or more).
- A survey that was just released by Business Roundtable revealed 41% of CEOs plan to increase hiring in the next six months, up from 35% in the fourth quarter.
- A long-running employment outlook survey of 11,000 U.S. employers by the ManpowerGroup revealed employers have the strongest second-quarter outlook since 2009, with more than one in five companies planning to increase staffing in the second quarter.
- Not only will competition for talent be high, but also it looks like it’s getting harder to retain top talent, as private payroll processor ADP released estimates that about 500,000 U.S. workers left one job for another in the fourth quarter of 2016, up from 406,000 in the same period in 2015 and 365,000 two years ago.
All this growth puts pressure on recruiters to look to fill jobs quickly, so the easiest thing to do is stay in your own local talent pool. This is especially tempting if you are located on a major metropolitan area like New York or Los Angeles, the home of Relocity (and this writer). After all, Los Angeles is the second largest city in the country. This is true, but also short-sighted.
No matter how big Los Angeles is, top candidates are top candidates, and the larger the market, the greater number of job opportunities exist. Can you beat your local competition’s best offer every time? Do you even want to? What if you looked beyond LA?
Los Angeles as a Destination
In a recent survey, Los Angeles was named the #2 most desired destination in the US for millennial employees. That very same survey found that more than 80 percent of those surveyed would be willing to take a pay cut if necessary to relocate to a dream destination, 71 percent would be willing to postpone marriage and 72 percent would be willing to postpone having children!
The influx of millennials is even affecting the growth of LA’s more urban neighborhoods due to the fact that millennials tend to be ecologically aware and commute-averse. Dense developments near transit stops are attracting millennials to communities such as downtown, Echo Park, Koreatown and Highland Park.
This is clearly an opportunity. For over a century, Los Angeles has been the go-to destination for dreamers who wanted to try their hand at Hollywood. While that industry continues to employ thousands of people in Los Angeles, there is a new gold rush happening.
The blossoming Los Angeles tech industry recently surpassed San Jose as the number 3 employer in the United States. Companies like Oculus, Dollar Shave Club and most recently Snap got their start in LA, while Bay-Area behemoths like Facebook, Google, Netflix and Uber have all set up offices in LA as well.
The next generation of start-up success stories in LA accumulated $4.5B in start-up financing in 2015, a 40% increase from the previous year according to The Mercury News.
With all this capital investment, there are thousands of positions that need to be filled. Instead of focusing only on the Los Angeles market for your next big hire, why not cast the net a little wider, and try recruiting outside your local area? There’s a good chance that many of your competitors are not searching beyond LA for talent, and an even better chance that top-notch talent in a different city would be interested in an opportunity in Los Angeles.
The Aerospace/Defense Industries
President Trump has proposed a $54B increase in defense spending. This proposal has been lauded by the Republican held House/Senate. While the number may not be final, it is obvious that the defense industry is going to see a huge boom in jobs. Defense titans like Raytheon, Lockheed Martin and Northrup Grumman employ thousands of people in Southern California while Aerospace innovators like JPL, Space X and Virgin Galactic are also primed for significant growth in the next few years. These same Companies will be battling Snap, Google and Facebook for top notch talent. Can you compete?
The Reluctance Problem
Part of the reason recruiters focus exclusively on the Los Angeles market is that there can be an issue with relocation reluctance. Moving is always a big deal. It gets even more complicated when there is a spouse or children involved.
The typical relocation services providers (Cartus, Serva) tend to focus mainly on the departure side. They help plan the logistics of getting a home sold, coordinating with immigration if necessary, selecting a moving truck, and then ultimately buying/renting a home in the destination city.
Companies like UrbanBound provide similar services, but also include a software tool which HR departments can utilize to monitor each activity and track the costs.
For the most part, your typical relocation provider does not do much for the candidate once they’ve arrived in Los Angeles.
Overcoming reluctance is not as difficult or as expensive as it might seem. Companies with a modest relocation plan can overcome this obstacle by setting the candidate’s mind at ease from the start.
The Wooing Phase
Unlike most relocation service providers, Relocity is more than happy to get involved during the recruiting phase. If the candidate is coming to LA for a job interview, Relocity can arrange a tour of Los Angeles. When the candidate is considering a job offer in Los Angeles, Relocity can consult with them about the move to put their minds at ease.
Fishing in a new pond
This is where Relocity can be an asset for recruiters. By adding Relocity into your quiver, you can stake your claim on talent across the world, maximizing success for recruiting outside your local area. Consider a 30-year-old “rock star” software engineer with no kids, living in Chicago. Chances are he’s being approached by several headhunters/recruiters in Chicago, but none in Los Angeles. Why not? With as little as 20 hours dedicated to this individual, Relocity can set them up with a place to live in a desired location, have all their services established, give them a full tour of LA and introduce them to the lifestyle and culture that interests them. This A-Level Candidate who was off everyone else’s radar has now been placed for your firm. Congratulations.
Ultimately, Relocity provides recruiters with a decisive edge in the war for talent.
For more about how Relocity can help your business, visit our Corporate Page. Also, check out our Method page to learn about how we pamper our customers with personal attention and comprehensive services.