“I’ve directly witnessed the negative impact of real estate pricing on our capacity to recruit/retain clinical and research talent here.”

Royce McCutcheon at VREAA 16 February 2011 at 2:47 pm
“I’ve directly witnessed the negative impact of real estate pricing on our capacity to recruit/retain clinical and research talent here. The reality is that the offers in Vancouver (vs. Toronto or USA) have typically been lower with respect to salary and support funding. From what I gather, it’s been this way for a long time. This was somewhat sustainable in the past because Vancouver held enough appeal that some folks were willing to take a hit. Of course, that hit was usually small-ish; by my estimation, we’re talking about ~15% lower salary at most. Lately, I’ve heard multiple stories about potential hires (MDs, researchers) expressing legitimate interest in these slightly lower Vancouver offers… but only until they started investigating our grossly inflated house prices. Once these people realized the true size of the hit they’d be taking after buying a place, they walked. One individual who was being recruited for a very senior position – who had local ties and wanted to come here – spelled out that he could make much more money in his current, more intellectually satisfying position while only working 9 months a year. He pointed out that this set-up left him ample time to pay for travel and rental accommodations at all kinds of fun spots in Vancouver and surrounding areas.
We are losing talent and we are having a tough time recruiting more. I fear this fact will stay masked until we see a real estate correction, so the sooner that happens, the better.”

6 responses to ““I’ve directly witnessed the negative impact of real estate pricing on our capacity to recruit/retain clinical and research talent here.”

  1. I have had the same experience in my industry. It is taking a toll.

  2. Same here in IT Security. It also might be because there’s no really big companies here. My manager says he’ll get maybe one reply thats not even qualified for the job.

    • Probably has a lot to do with the rates as well. There were some nice jobs in IT here, on paper, and then they tell you the salary range. Initially I thought they were joking, now I know they aren’t.

      Simple really: If companies want to retain talent they have to pay at least “market rate” for places like Toronto.

  3. “In Canada, Google’s hiring spree will likely take place primarily in three cities: Toronto, where the company does much of its sales work; Waterloo, Ont., where its employees work on key products, such as mobile applications; and Montreal, a growing engineering and sales hub.”

    Google is eschewing Vancouver as a home base in Canada. That is smart money walking away from Vancouver.
    http://www.theglobeandmail.com/news/technology/tech-news/googles-cross-border-talent-search/article1908691/

  4. People who buy RE in Vancouver can not be part of the working class…let’s be serious…I had to leave Vancouver to buy a place. Anyone with a million bucks in the bank for a down payment probably isn’t working a 9-5 job.

  5. It’s a positive-feedback loop that will gradually destroy any non-RE-related economic engines that Vancouver has. When MDs and PhD researchers are turning down jobs because the salaries don’t adequately cover the cost of paying a mortgage, you know you have a big problem.

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