Talent crunch leading to companies rethinking where to locate
The trend is particularly pronounced in the technology sector, where 73% of respondents said there had been a reduction in the availability of skilled employees.
Occupiers are considering diverse location strategies to address these concerns, says Savills: 16% of those surveyed said they’re expanding into new markets to access fresh sources of talent, while 35% said shortages are leading to them prioritising sourcing talent in their existing markets through a variety of different strategies, including upskilling.
As competition for talent intensifies, Savills says that real estate is playing a more strategic role in where companies choose to grow. Some 68% of organisations consider the availability and cost of high-quality commercial real estate to be an important or very important factor in location decisions, while 53% cite access to plentiful housing. This underlines how both workplace and living conditions influence talent attraction and retention.
Paul Tostevin, director of world research at Savills, comments: “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. These areas can often offer fast-growing, youthful populations and high educational attainment in STEM fields. In Asia, Delhi, Jakarta, Manila and Ho Chi Minh City are emerging as strategic talent hubs, as we previously highlighted in our Savills Future Workforces Index.”
Scott Wiley, CEO, CoreNet Global, says: “The global talent crunch isn’t just a workforce issue—it’s a strategic inflection point. This research with Savills confirms what we’re hearing from leaders around the world: talent is now the lens through which location, workplace, and growth decisions are being made. At CoreNet Global, we strongly believe the future of work will be shaped by those who invest in people, not just places.”
Read more about the Savills Research and CoreNet Global Survey results in Impacts here.