Situation

"Brain drain" - the slow leak of talented and educated people from U.S. cities - now affects nearly every U.S. city. In the 1990's the US Census reported that 90 percent of America's largest cities had a net out migration of young talent. Only ten percent of U.S. cities had a net gain. Decreased birth rates from the 1960's through the 1980's are causing a "battle for brains" which the U.S. has never seen before.

To restate, in the coming years, U.S. cities will be deeply affected by several national labor trends:

• The next generation of talent ("Generation X," b. 1961-1981) is smaller in size than their Baby Boomer (b. 1942-1960) predecessors;
• By 2010 there will be a shortage of 10.3 million workers across all employment categories; (Source: Bureau of Labor Statistics)
• Generation X is the first generation to have deeply imbedded skills sets in technology, which makes them a highly desirable demographic to U.S. cities employers;
• The influx of minority talent is and will continue to cause a marked change in the complexion and culture of the U.S. cities region.
  

While labor trends like these are alarming, they do not account for the psychographic, preference-based shifts that are also impacting our cities' ability to attract and retain talent. Next Generation Consulting's research indicates that:

• Adulthood has been pushed back for young talent. The average age of a first marriage for an educated Gen X'er (b. 1961-1981) is currently 28. By the time young talent consider "settling down" in the U.S. cities region, they are in their late twenties and early 30's.
• Three out of 4 young people under the age of 28 first pick a place to live and then find a job. What can the U.S. cities region do to position itself as one of the "best places to live" for young talent?
• When asked what makes a city attractive, young talent report that factors like "Third Spaces," the arts, culture, ethnic restaurants, public parks, trails, and recreation areas, farmer's markets; diversity, and recycling are critical factors.
• Young talent behave regionally. In focus groups, young talent routinely report that some of the best assets a city has lie outside the city in which they live.
  

The winds of change - globalization, talent markets and preferences, and an economy whose value has transitioning from manufacturing to innovation - are gusting in U.S. cities. With an increasingly competitive market for talented and educated professionals, U.S. cities must define the unique regional characteristics that make it attractive to the next generation and position itself in the mediums and with the messages that will appeal to its target demographic.

Approach

Young Professionals Organizations (YPO) are a critical strategy to attract and retain talent to cities for two reasons:

1.    STEM BRAIN DRAIN - YPOs are keeping young talent in your city by helping connect YPs to each other. One of the key questions young people ask when moving to a city is, "Will I fit? Who in that city shares my interests? Who looks like me, and how will I meet them?"

2.    CULTIVATE LEADERS - YPOs are preparing a new generation to lead with vision and passion. Generally, when YP's feel they can make a difference in their city, they are 2-3 times as likely to stay.

In general YPO's focus on showcasing and shaping a city's quality of life - one that is more attractive to diverse young talent.

City leaders, business leaders and young professionals themselves need to embrace YP networks and leaders because it's those cities who stand to gain BIG rewards in their quest to attract and retain talent.  Cities that don't will compel YP's to relocate to cooler cities where the YP voice is active and respected.

How are the YPOs measuring their city impact?

The next generation has a "Live first, work second" ethic. Unlike their parents, the next generation does not simply follow the paycheck or the company. Often, they first pick a place to live, and then find a job. Therefore, U.S. cities must develop and emphasize the quality of life amenities - the arts, public parks and trails, a strong after 5 scene - that attract the next generation.

Increased positive perception of quality of life is the main YPO  impact measurement to help indicate possible "YP flight" from a city.  In the 2007 YP Global Impact Survey, conducted by NGC, 53% of YPs indicated that their YPO positively impacted their perception of the quality of life their city has to offer young professionals.

 

 

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