Wednesday, January 28, 2015

How Might the "Rich City" of San Diego Impact Talent Recruitment?

Is San Diego a Rich Person's City? According to the article The 10 Richest Cities in America San Diego is in the top 10 cities in the nation for households that earn over $150,000. The only problem is that you have to earn $101,000 to live comfortably while that number is $75,0000 in other cities; much lower in other areas of the country. The high quality lifestyle has an advantage for living but can be prohibitive for young professionals who want to move to the area.

Business thrives when motivated young adults move to the area, invest their time, and spend their money at local establishments. The price of living certainly is impacted by demand and supply. One of the most expensive aspects of living in San Diego is housing. For those who are young they are more likely going to be paying rent.

In either case, the cost is prohibitive and the higher income is justified if trying to recruit young people to the area. The problem is when companies must pay this higher amount to attract talent and still compete with businesses that have lower wage and building costs.  New businesses that attract young talent may find other places to set up their operations.

There are no easy solutions as demand economics has taken precedence. The charm of San Diego is its relatively clean environment, sunny beaches, outdoor activities, and trendy lifestyle. People pay a lot of money to live in places like that. If you want to eat the worlds best fish tacos while sitting over the ocean go for a walk along the beach and pick one of the many taco outlets.

Despite its charm there are a few things that could detract from talent recruitment. The higher taxes are prohibitive and anyone who moves to California should consider the tax rate when compared to other states. The difference can be substantial leaving long-term residence less likely as housing is outside the reach of most.

San Diego may be a rich city but it also costs a substantial sum to live within city limits. Understanding these costs helps in determining recruitment policy and helping people find affordable housing in the area. Doing so may tip the scales toward successful recruitment versus loosing qualified talent to another business. Companies will need to consider these benefits and detractors when designing their recruitment and compensation packages.

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