Talent shortages driving company location decisions, survey finds

63% of corporate occupiers said there was less talent in their headquarters location over the past three years, according to a global survey by Savills and CoreNet Global found.

Of those surveyed, 79% said skilled talent was important or very important when choosing where to base their business.

The issue was felt most in technology, with 73% of respondents in that sector reporting a drop in skilled staff.

16% of those surveyed said they were expanding into new markets to find talent, while 35% said shortages meant they were focusing on finding and upskilling people in their current locations.

Savills said real estate was now playing a bigger role in these decisions. 

Of those surveyed, 68% said the availability and cost of good commercial space was important or very important to them, and 53% pointed to access to plenty of housing as a key factor. 

The research highlighted that both workplace and living conditions were shaping talent attraction and retention.

Paul Tostevin, director of world research at Savills, said: “While only 16% of survey respondents said they’re actively expanding into new markets to address talent concerns, the broader trend is already leading to some locations benefiting, especially in regions such as Eastern Europe, Latin America, South and Southeast Asia, and Africa.