For years I have ruminated about what makes an application truly work within a given context.  For example, AirBnB is an application that disrupted an enormous sector of the international economy – hospitality.  The story behind the founding of AirBnB is fascinating for multiple reasons. One of those reasons germane to this post is that:

 “a few talented people with a good idea can change the world”

Innovation and disruption has been happening in every generation across almost all sectors – however we hear about it daily in industries impacted by technological change.  Additionally, what is unique about our modern technology driven society, is that the very levers of change are immediately accessible and can move major mountains.

Up in the Pacific Northwest, including downtown Seattle and nearby neighborhoods (such as delightful Kitsap across the Sound), we thrive on innovation but never at the cost of quality of life.  We enjoy sparkling snowcapped Cascade mountains, world-class hiking within minutes, walkable neighborhoods in every direction, and our treasured waterfront communities to boat, swim, and play in.  So it is no surprise that in a recent article in Time Magazine, “The San Francisco Housing Market Is So Dire That People Are Leaving In Droves — Here’s Where They’re Headed”,

Seattle is the #1 destination

The readers and leaders in business, government, and urban development need to observe a significant trend that is happening as well – the corporations must now follow the talent.

Many economists can share insight on macroeconomic trends throughout history, however in technology, it is essential for nimble businesses to hire the best and brightest.  When those best and brightest decide to move their families – simply because they desire a better quality of life – the corporations must respond.  What solutions exist for those corporations?

I would put forward three solutions – one of which may be more palatable than the others to the leadership team:

Move the Headquarters

As disruptive as this sounds, this is a plausible model for some companies.  The effective management team knows its economic engine.  It would be worth the study to evaluate how their location fuels their economic engine – or if it is a legacy attribute that is open to change.  Going to the talent can also open up reduced overhead for the corporation and achieve favorable tax concessions.  Of course, the cost of moving can be astronomical, but it just may be worth it.

Spend More Money

Sometimes money truly can fix any problem – just give the tech talent fat raises.  But when reasonable housing becomes 60% of the income of the average software developer, leaving very little for vacations, schooling, or date nights, something simply has to give.  There is also the normal management pressure each company must deal with – maintaining a healthy P&L.  It is difficult to justify to the board that spending an extra 25% on “staff retention” is as essential as sales growth. However, this is the reality of supply and demand for talent in our modern tech-fueled industries.

Flex to the talent

The solution that has the most promise for the future is for corporations to retain their corporate identity while actively embracing management changes that value the life decisions of the technology talent. This is a value that must be embraced at all levels, most importantly at the top. It is a cultural value that, when done right, allows for increasing productivity, retaining talent, and improving morale. Unfortunately many companies do not lead well in this and are afraid of change.  However, some practical ideas can be explored that will maximize the upside:

Create a culture of CAN

• You CAN work remotely
• You CAN flex your work schedule to accommodate children
• You CAN suggest innovative methods, solutions, and alternatives to not only achieve your team’s objectives, but to have every individual exceed them.

With a little brainstorming from leadership and with a little honest reflection about what incentives truly work (free bus passes? innovative coworking spaces like Vibe? flexible vacation schedules?), a modern company can not only retain their crucial talent, they can create a recruiting magnet.

Open up an engineering center that supports remote staff

This allows technical staff to have the best of both worlds – a safe, secure, productive, and professional work environment that is closer to home and the areas that want to be in.  This increases productivity and often increases loyalty and employee longevity.  As seen in a talent-rich small town of Silverdale, a ferry boat ride away from Seattle (article 1, article 2, article 3), Microsoft opened up an R&D office to woo some of the brainpower that refused to say yes to a brutal commute.  (Disclosure: I am a former Microsoft blue-badge, having spent 7 years in the server division and reluctantly did the brutal commute)

Create a well-managed culture of optimal remote workers

One of the best rules of thumb is to make this an employee imperative, not a manager’s dilemma.  Employees must commit to being more productive at home than in the office.  At weekly checkins and/or review times, the manager should never have to inquire. The employee implicitly and explicitly demonstrates that they are taking their professional productivity seriously enough that they alter their lives to achieve optimal work efficiency.  The manager then gets to report to their chain of command “good news” that their remote teams are killing it.

The power pendulum has indeed swung

From a 2017 article relayed from Quartz Media,

The Obama White House predicted that by 2020, there would be 1.4 million computer-science-related jobs available, and only about 400,000 computer science graduates who have the skills necessary to apply for those jobs.

This is not solely a US issue: this is true for all companies in all countries who are dependent on technologists.  Until computers are capable of building companies and solving problems through code (yes, that is close, very close), the best advice is to chase the talent and create a culture of CAN.

Do it now. More than profits are at stake.

Update:
– Some excellent feedback already.  A colleague, Charles Myers, provided a link to a recent Forbes article: “2018 Will Be the Year of the Employee Experience“

 

(Brett serves as an interim technology executive and is as happy discussing revenue growth strategy with executives as he is in leading technology staff.  He enjoys public speaking and advising corporate clients in their technology and cultural challenges.)