Harvard Business Review recently released a 2023 talent management piece by Richard Florida from the University of Toronto and Vladislav Boutenko, Antoine Vetrano, and Sara Saloo, all with Boston Consulting Group, entitled The Rise of the Meta City. Their thesis reveals an emerging development in the evolving work-from-home (WFH) paradigm that is novel and worth considering as we envision the future of both our careers and where to become a resident.
It is no secret that mobility-enhancing technologies combined with the face to face limitations wrought by the Pandemic resulted in a rapid expansion of remote work. From approximately 6% of the American workforce working remotely in 2019 to 18% by 2021 shows how briskly the phenomenon swelled. A recent BCG survey from August 2023 indicates that only 7% of companies require full time return to work whereas 8% of companies have discarded offices completely. This means the vast majority of business are operating with some form of hybrid working.
A consequence of the proliferation of WFH employment is that many more digitally-centric employees are choosing to live outside of the traditional commute radius from their employers’ offices. With customary commutes being curtailed, workers are incentivized to look at residential options in areas that are more affordable and which feature a higher quality of life. For example, a LinkedIn study identified small to mid-sized cities receiving WFH transplants such as Springfield, MA, Tallahassee, FL, Portland, OR, College Station, TX, and Wenatchee, WA. Some locations actually offer cash incentives for WFH employees to move there like Tulsa, OK and Perry County, IN.
This realignment of workers from office to home and from employer-based cities to increasingly distant residential locations is starting to reveal patterns. A significant new template emerging is the rise of what Florida et al call the “Meta City”. Initially, it is helpful to think of meta cities as not entirely fixed geographically. The old inner city to suburb to exurb to rural model is not applicable here. Rather, the dimensions of the meta city extend from a major economic hub city to a host of far flung smaller cities in other parts of the country or globe. Modern telecommunications technology and talent flows allow for cities which may be geographically separate to operate as distinct units economically.
Some examples are called for to better visualize this spectacle. New York City is a top-dog economic hub in a number of industries, but most importantly in the finance sector. Financial talent flows into and out of NYC most measurably with other American cities like Los Angeles, Miami, Chicago, Washington, DC, and Atlanta, among others. This hub and satellite configuration comprises a finance meta city. London, too, is major finance hub with Manchester, Birmingham, Dublin, Edinburgh, and Cambridge serving as financial talent satellites. San Francisco is a principal technology hub city connected to smaller, but also tech heavy cities like Austin, Seattle, Boston, and San Diego.
The concept of talent flow is crucial to an understanding of the growth of meta cities. The flow of talented employees refers to physical mobility of people among the cities of the meta unit and also to remote contributions made by talent within the unit. To illustrate, Emily retains employment with Company A in New York, but chooses to live and work from Miami because of the high cost of living in New York and its long winters. Jason also works at Company A in New York where he intentionally lives because he loves the vibrancy of the city, and from there collaborates with Emily on a daily basis as part of a development team.
Although Florida et al do not refer to rural living, presumably the meta cities are speckled with geographically dispersed talent who “work” inside of meta cities, but live in a variety of non-urban locations.
Meta cities are an interesting outgrowth of the remote working trend, a glimpse into how the new generations choose to live and work, and also how the economy of the twenty-first century is coming into its own.
