The selection of a location is one of the most critical decisions an organization can make. Here’s how it affects your workplace attractivity.
A location is an important asset for businesses of all kinds. Good locations with strong ecosystems that can be used to build experience and activity-based clusters can offer competitive advantages. They are becoming increasingly popular around the world because they allow for greater flexibility, access to talent, higher rates of innovation and creativity, and limit costs through shared services and amenities.
Poorly selected locations can lock-in operating costs as well as limit organizations’ ability to adjust rapidly to changing employee demands.
Location as a key element in talent attraction
Location is a key element in talent attraction as the location of the workplace and the amenities they offer are benchmarked by employees against what other companies offer through websites like Great Place to Work and Glass Door.
Increasingly, organizations seek locations in or near areas that are attractive to talents, i.e. urban areas. Urban areas’ attractiveness for companies seeking locations for their offices will depend on factors such as the type of city, educational attainment of the population, cost of living, the condition of existing infrastructure, and the degree of implementation of smart technologies.
Employees seek locations that have a good combination of amenities, facilities that support how they will work, and where there are other talented organisations and people.
Younger workers want everything when it comes to location – cultural amenities – theatres, museums, fairs, concerts, live music, all forms of entertainment. They also want to live close to people like themselves.
Consider organizational clusters
Organisations located in clusters or ecosystems gain strength from the collaborative value-generating eco-system surrounding it.
Technology supports the creation of such clusters and can be realized in the context of talent (contingent workforce), and space and amenities (co-working places, shared service solutions). The use of data and technology via apps like UpWork and LiquidSpace makes it possible to identify available talent and physical space and allow organisations to monetise underutilized resources.
Being located in clusters can nevertheless give organisations a better access to talent, provide better quality service solutions, help to create economies of scale and enable greater sustainability.