In the past six weeks, we've described the indexes young talent use to determine whether your community is "cool" or not. This week we roll out the last – the seventh – Cool Community index: Cost of Lifestyle.
The Cost of Lifestyle index is simple to understand: how much cabbage does a young person need to keep a roof over her head, clothes on his back, and fuel in the tank? Once you've determined that, compare it to his/her wages.
WARNING (especially to Midwestern communities): When attracting young talent to your community, it's not enough to say, "Our cost of living is lower." If your wages are ALSO lower – which they usually are – it's a wash. You have to sell your communities based on a combination of the seven indexes (Vitality, Earning, Learning, Around Town, After Hours, Social Capital, and Cost of Lifestyle).
Remember, young talent are normally in the early years of their earning potential, so affordability is key but it's not the ONLY key. Our Cost of Lifestyle index includes all the variables in the national cost of living index, which includes a roof over the head, food on the table, and a ride to work, plus a few others.
To achieve a high score in the Cost of Lifestyle index, ask yourself:
- Can a young professional buy a respectable starter home for $150,000 or under in our community? (The number of homes purchased by American under 25 had doubled since 1990.)
- On a "night out," how much will a young professional spend on dinner at a hip restaurant, tickets to a show, parking, and drinks?
- How does the average salary of an entry level computer programmer, customer service rep, educator, graphic designer, retail employee, accountant, or attorney compare to the national average?
To see the going rate for salaries and benefits in your zip code: http://salary.com/
To compare cost of living among cities, see the ACCRA Cost of Living Index: http://www.coli.org/
To learn how your community scores in the seven indexes, info@nextgenerationconsulting.com
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