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India: A Market Guide for Global Mobility Leaders
September 27, 2024
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A warm welcome to the March issue of PerchPeek’s US Market Monthly update!
Here’s where you’ll find the hottest updates around employee relocation and international talent strategy, insights from our experts on housing and cost-of-living news affecting your staff, the latest trends in global mobility, and tips and tricks on ways to support your teams.
A fly-by summary
● Of the 140,000 workers affected by tech job cuts so far in 2023, many are foreign nationals who risk losing their work visas and are now on the lookout for employment
● San Francisco is the second most expensive US city for renters after San Jose, with a 1-bed apartment costing $3,000, but data shows price rises are slowing
● A new report from the US Chamber of Commerce helps shed light on the current shortage of 4 million workers in the US being seen across all states and industries
● Help relocating employees set up the best bank account for them, with this review of the most popular features of checking accounts, and the best online banks for 2023
● Calling all HR leaders - don’t miss Transform 2023 in Las Vegas, March 27-29 - the people-driven thought leadership conference driving new conversations and innovations
Mass layoffs in the tech sector continue in the US (and worldwide), with over 94,000 workers in US-based tech companies having lost their jobs so far in 2023, according to Crunchbase.
This is a huge increase from the 140,000 jobs slashed from tech companies in the whole of 2022 - which was already a massive number - as these businesses confronted soaring inflation and a tumultuous stock market, not helped by a culture of over-hiring and over-valuing.
Many of the skilled tech professionals laid off are foreign workers in the US on specialist visas, putting them in a difficult position where they’re under extra pressure to find new employment within 60 days, or risk losing their visas.
US employers generally sponsor ‘highly skilled foreign professionals’ for H1-B visas, of which 65,000 are issued each year and allow holders to work for US-based companies for an initial three-year period. Tech-related occupations account for up to 70% of H1-B visas issued.
● While it’s a delicate subject, this presents a valuable opportunity for companies with open roles in tech and knowledge-based positions to snap up top talent
● It’s important to be mindful of the situation these candidates from abroad are in, and strike the right balance between cost efficiency and offering a fair compensation package
This month we're focusing on San Francisco, home to tech companies galore from Atlassian to Zendesk, and one of the most popular cities for the movers that PerchPeek supports!
Here’s a summary of the latest unit prices and trends, and other key updates for People leaders supporting relocating employees.
Key trends at a glance (source: Zumper.com):
● The average rent for a 1-bedroom unit in San Francisco is $2,998 - up 2% YoY
● 62% of San Francisco households are renters, and 38% own their properties
● Average rent for a studio and a 1-bed apartment has remained flat month-over-month, while the average rent for a 2-bed apartment has decreased by -1% to $4,000
● The most affordable neighbourhoods in San Francisco are Central Richmond, Mission and Marina
Breakdown by apartment type:
● San Francisco is the second most expensive major rental market in the US, second only to San Jose, and followed by New York, San Diego and Boston - Forbes
● Prices might rise in some of the nation’s most expensive metros such as San Francisco and San Jose, as companies order workers back to their offices. However, prices have only risen by 2% overall YoY, suggesting future rises may be minimal - Realtor.com
Skilled worker shortages are impacting many countries around the world at the moment, and in the United States it’s no different. The latest data shows that there are over 10 million job openings in the US, but only 5.7 million unemployed workers.
The US Chamber of Commerce has recently released an analysis of the state of the workforce on a national level. The full report can be found here.
Key insights from the US Chamber of Commerce analysis:
● Workforce participation remains below pre-pandemic levels
● There are 3 million fewer people working in the US today versus February 2020
● This worker shortage is being seen across nearly every state and various industries
Factors driving the worker shortage
● The ‘Great Resignation’ - workers are searching for better working conditions
● Many people have been able to increase their savings and rely on this alone
● The pandemic drove over 3 million adults into early retirement
● Lack of access to childcare has meant parents needing to stay at home
What about recent trends like people coming out of retirement to return to work, and savings being hit by inflation? While certainly notable, these trends haven’t reached the point where they’ve had a significant effect on mitigating the worker shortage.
What this means for People leaders
● The market is hyper-competitive at this difficult time for companies, and candidates are in a great position to choose. To stand out from competitors, review compensation and benefits to make sure you’re in a position to offer an outstanding package.
● Where the local talent pool is insufficient, companies may look to hire from abroad. Generally, limits on new visa quotas can make this difficult, but as we mentioned in the first section, it’s worth noting that due to layoffs, there are many foreign workers already on US visas looking for employment, so it’s a great time to attract them.
Relocation isn’t just about finding a place to live - there are a whole bunch of other tasks that need to be done when setting up one’s life in a new destination. One of those tasks is banking, as of course your employees need to be able to receive and spend their hard-earned salary!
For newcomers to the US, banking norms might be quite different to what they’re used to. It’s important to make them aware of the salient information, to help them choose the right account.
● No fees (73% of survey respondents chose this)
● Branch access (47%)
● Nationwide ATM network (36%)
● Rewards/cashback (26%)
● Interest rate / Annual Percentage Yield (APY) (19%)
These are the factors that relocating employees should look out for when choosing a bank.
● Quontic Bank - Best for low fees and high APY
● Discover Bank - Best for avoiding fees
● Axos Bank - Best for ATM access
● Ally Bank - Best for savings tools
● nbkc bank - Best for combined checking and savings
Relocating employees, especially those from abroad, should massively appreciate being given this information when starting out, to help them understand US banking norms and to make an informed decision on the best bank and type of account for them.
At PerchPeek we love to keep our fingers (or feathers!) on the pulse of what’s hot in the world of HR and people leadership, and wanted to spread the word about a massive upcoming event!
Transform 2023 is taking place in Las Vegas at the MGM Grand from Monday, March 27 to Wednesday, March 29, bringing together thought leaders from across all areas of people leadership, talent acquisition, global mobility, L&D, retention, and compensation and benefits.
In their words, “Transform is the ecosystem that connects people-driven leaders, entrepreneurs, and investors to influence strategy, ignite innovation, and shape the future of work.”
Over the course of three days, Transform will welcome over 300 expert speakers from brands such as Oyster, Airbnb, Microsoft and Klaviyo. They’ll speak on a huge range of topics, via formats ranging from keynote addresses to interactive small group discussions.
Notable sessions include:
● Unlock Cost Savings with a Flexible Benefits Program
● Talent as a Service: Tapping into Non-traditional Sources of Talent
● Transforming your Compensation for a Globally Distributed World
● Progressive Strategies for Managing Retention & Engagement
● Human Flourishing and the Future of Work
And if all that wasn’t enough to tempt you, there’ll even be morning yoga sessions and the crowd-favourite after party with a special musical performance - it’s a can’t-miss event!
We hope you enjoyed this month’s update!
If you have any feedback, comments or questions about what's happening in your location, feel free to reach out via the form at the bottom of this page.
Thanks for reading, and see you next month!
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We hope you found this update insightful! We’d love to hear your thoughts.
PS - if you’d like next month’s PerchPeek USA Market update delivered start to your inbox, you can signup here:
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