Almost 20 years after the influential article was published in McKinsey Quarterly, the “War for Talent” continues to be waged. In fact, winning the competition to recruit and retain high potential young talent is more important than ever. Unfortunately, there is little consensus on what companies need to do in order to be successful in attracting and keeping these employees. One strategy some companies have used is to open satellite offices. Numerous articles have been published recently about companies that have decided to move the location of at least some part of their operations into or nearby major metropolitan centers in order to increase the size of the talent pool from which to recruit. These include many of the biggest names in business; S.C. Johnson, Kraft Heinz, Google/Motorola, and McDonald’s to name just a few. However, it has yet to be determined if this will result in long term benefits in recruitment and retention.
Before making drastic changes, a systematic review of the factors involved from the perspectives of both candidates and organizations is important before revising a firm’s strategy in this regard. A special consideration will be to understand how these factors, including those that revolve around the location of the company, can inform the firm’s recruitment and retention strategy.