When the pandemic hit, some were skeptical of remote work and many fell in love with it. The skeptics understood it was a necessity at the time, but they refused to believe remote or hybrid work might be enduring. Now that a few years have passed, however, it is becoming increasingly clear that flexible work schedules are a hit. Not only do the vast majority of workers prefer remote work as a job requirement, but employers and companies are recognizing the many perks as well. One specific area where remote work has been celebrated has been in many smaller, non-coastal cities throughout the country. Though these municipalities once struggled with declining populations, remote work incentive programs have attracted more and more talent… and these cities are now thriving.
Prior to the pandemic, cities across the heartland of America were seeing new graduates and IT workers head for bigger cities. New York, Boston, San Francisco, and Atlanta had no trouble attracted top talent. The brain drain that occurred in these midland areas were worrisome, and many cities struggled with talent retention. But then COVID hit, and remote work became a thing. It soon became evident to some that a remote work incentive program might address their dilemma. As a result, several communities are now reaping the benefits of remote work initiatives to attract talent. Through these programs, individuals and their families relocate to places they might never imagine. And once there, the vast majority stay well beyond their contractual commitment. This reflects just another way that remote work has been a successful experiment.
The Birth of the Remote Work Incentive Program
Several cities in the U.S. have adopted remote work initiatives to attract talent in recent years. Such cities include Topeka, KS, Savannah, GA, as well as Tulsa, OK. These cities shared the same problem prior to the pandemic of keeping needed talent local. College grads would relocate shortly after graduation not because of a lack of opportunity. But instead, they would do so because compensation and lifestyle were perceived as better from their perspective. And of course, at the time, being on-site for your employer was a requirement, unlike the remote work environment today. Places like Tulsa was seeing a net loss of 1,000 college graduates each year leaving their community.
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As the brain drain progressed, these cities were seeing shifting demographics that undermined diversity and growth. The average age of its community members was increasing, and average income per household was declining. With the pandemic, these cities decided to try remote work initiatives to attract talent and better demographic segments. Though these remote work incentive program structures differed, some common elements existed. Basically, candidates who applied for the program would receive a stipend in return for a commitment to stay in the community. This commitment was typically one to two years, and only those deemed to match the city’s needs for talent would be accepted. In most cases, these remote work initiatives to attract talent worked extremely well, essentially reversing the talent exodus.
The Tulsa Remote Work Incentive Program
In terms of a case study, Tulsa’s remote work initiatives to attract talent represents a great example. In fact, a recent Harvard research project delved into the program, which was named “Tulsa Remote.” For this remote work incentive program, a selected recipient would receive $10,000 to move to Tulsa. They would then commit to a year to stay in town with selected recipients typically opening a business in town or offering needed talents. The program was funded by the George Kaiser Family Foundation, and it provided some additional supports as well. This included things like movie nights for recipients, celebrity lectures, and other activities to build a sense of community. In 2020, when the program began, 380 people moved to Tulsa as part of the initiative. The following year, this figure reached nearly one thousand.
As part of the Harvard study, roughly 1,250 people who participated in Tulsa Remote was surveyed. On average, recipients of the remote work incentive program saved $25,000 in housing costs. Likewise, three-quarters of the recipients still lived in Tulsa even after their year commitment had expired. At the same time, the city did quite well also. Both age and job demographics improved significantly with more youth and a higher number of IT workers. And for the state of Oklahoma, there was an additional $14.9 million in income tax revenue and $5.8 million in sales tax revenue. It’s clear that remote work initiatives to attract talent can be quite beneficial for some cities. This is especially true for those communities that have much to offer at a great value.
A Major Shift in Employment Culture
At one point, it might have been presumed that these types of remote work initiatives to attract talent would be a passing fad. Once the dust settled from the pandemic, a return to in-office staffing was though to be likely. But as time has passed, it is increasingly clear that remote work is here to stay. In fact, the benefits of remote work extend to both employees and corporations alike. While some CEOs of major companies continue to resist such ideas, research supports these advantages of flexible work schedules. Employees are healthier, have better work-life balance, and save time and money on commutes. And businesses save on office-related costs while enjoying greater staff productivity.
It’s therefore not surprising cities continue to offer their own version of a remote work incentive program. Cities like Tulsa have seen the boost that these programs provide their communities and workforce. With a small investment, such towns are able to reverse the brain drain they were previously experiencing thanks to remote work. As a result, expect more cities across the nation begin to offer remote work initiatives to attract talent. This decentralized approach to work represents the new employee-side norm. And cities as well as companies resistant to the idea are likely to fall behind those that embrace it.
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