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The Downfall of Silicon Valley and Its Impact on Hiring

By Greg Gary, Director of Business Development

The outbreak of COVID-19 has spurred a tremendous work-from-home push around the globe, particularly among some of the world’s largest tech giants. The likes of Google, Facebook, Twitter, and countless other companies have announced long-term – or even indefinite – remote work policies. While virtual workplaces will undoubtedly remain prevalent for years to come, the results have not all been positive.

Ready for one of the worst-kept secrets of 2020? Silicon Valley is crumbling. Yes, the demise of the global hub for technological innovation and evolution may officially be upon us. Not only are thousands of Ivy League-educated, high-profile employees fleeing the confines of northern California, but some of their employers are departing with them.

Don’t believe me? Take a look at the following stats:

  • Rental prices in San Francisco, Menlo Park, and Mountain View – some of the most high-profile residence areas within the Silicon Valley region – have tumbled by up to 15%, according to national rent reports from Zumper.
  • Housing inventory in San Francisco witnessed a 96% year-over-year increase while listing prices dropped by 5%, according to Zillow.
  • Since the declaration of the pandemic, San Francisco saw 80% more people depart the area than move in, according to Hire A Helper.
  • Almost 4 in 10 urbanites were debating relocating to a more rural place of residence, according to CBS News.

Although Silicon Valley looks to now be a shell of its pre-pandemic self, the mass exodus of high-quality talent out of California represents a positive sign for the labor market around the U.S. Residents choosing to relocate outside of Silicon Valley could look to seize employment opportunities in other parts of the country, while companies who have abandoned the region in search of greener pastures will be able to set up operations in more affordable and economically practical locations.

If your organization is looking to attract top-tier talent from the Silicon Valley area, it’s time to consider RPO as your solution. It won’t matter if your company is based on the east coast but your employees work on the west coast – with a well-thought-out remote work strategy, project collaboration and teamwork will be more effective than ever before. RPO programs will help to maximize your access to unique talent pools and equip your organization with the approach it needs to take advantage of these highly sought-after workers that are now available on the candidate market.

If your organization is considering a move to a different state, it’s inevitable that valued employees will be lost along the way. It’s quite possible that – upon relocation – you’ll be entering a completely different talent market with entirely new talent pools. To atone for these workforce departures, leveraging a strategic RPO solution can help your company to hire premier talent to replace them. By structuring a well-designed recruitment plan, you’ll be able to discover even the hardest-to-reach candidates to augment your bench of talent and enhance your organization’s performance.

Although the outbreak of the coronavirus pandemic has been a pure detriment to millions of Americans, it appears the migration out of Silicon Valley will prove to be a silver lining for some employees and employers alike. While our world awaits the long-term ramifications of COVID-19, this relocation trend is shaping up to be a positive development that impacts the future of the workplace for years to come.

Interested in learning more about Broadleaf’s flexible RPO solution? Connect with Greg on LinkedIn or send him an email at garyg@broadleafresults.com.

To discover more about Broadleaf’s innovative recruitment process outsourcing programs, check out the blog section on our website.

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