When it comes to remote working, all cities are not created equal. That’s according to the results of a new international study by HR platform WorkMotion which ranked the 80 top cities in the world for remote workers based on a variety of factors.
The ratings can provide important insights and perspectives for business leaders about retaining and recruiting employees or independent contractors who prefer — or insist — on working from outside the office in these and other locations around the world.
The Cities Best Facilitating Remote Work: A Global Index Study found that:
- Melbourne is the highest-ranking city in the index, scoring well for employment compliance factors, citizen happiness and its digital nomad visa. Montreal and Sydney rank second and third.
- 20 of the highest rated cities are in the U.S., including Pittsburgh (#34), Chicago (#35), Atlanta (#50), Los Angeles (#67), San Francisco (#70) and New York (#75).
- Dublin ranks best for ease of employment compliance, meaning its compliance regulations are most straightforward, ahead of Helsinki and Copenhagen.
- The city with the happiest citizens is Copenhagen, followed by Bern and Wellington.
- Istanbul has the most favorable tax rates for remote workers, ahead of Lisbon and Hong Kong.
The research project analyzed which cities are facilitating remote working based on several factors. They include the ease in complying with local employment laws and legislation, living costs, infrastructure, current location trends. and livability and affordability considerations that make a city attractive for relocation.
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The 80 cities were rated according to their rankings on 17 different lists including access to health care, cost of housing, cultural attractions and mobility. The study was conducted last September and October and includes data from 2020 and 2021.
Covid Hastened Remote Working Trend
Carsten Lebtig, co-founder and a managing director of WorkMotion said, “Although we had long anticipated the move to remote working and set up WorkMotion with this in mind, the pandemic has hastened the trend far faster than we could have imagined.
“Now that the initial shock of the pandemic has subsided, we wanted to capture a snapshot of the current remote working landscape as the first step in tracking how it changes over the coming years,” he said.
“Many remote workers are drawn to cities by the promise of a different lifestyle or climate. We hope this study can provide inspiration to anyone looking for a change of scenery and open up their minds to unexpected destinations,” Lebtig concluded.
Advice For Corporate Executives
Lebtig recommended that business leaders:
Cast A Wider Net
“When hiring new employees, businesses are now able to cast their nets wider, giving them more high-quality options and a deeper pool of talent to choose from, unrestricted by the local job market.”
“This is particularly true for companies based in less renowned cities that might normally struggle to attract top talent. It also means that companies don’t need to commit to upsizing their office space or facilities when carrying out recruitment drives, saving on operational expenditure.
Stay Open To Possibilities
“Regarding their existing workers, business leaders would be wise to remain open to the possibility of employees relocating to new cities while continuing in their roles. Offering a degree of flexibility ensures that employees feel valued by their company and generates loyalty. The pandemic has shown that for many people, productivity levels are not affected by working remotely, and this should be kept in mind if, as we expect, remote working requests increase over the coming years.
Prepare Now
“To prepare accordingly, business leaders should review their internal processes to ensure valuable employees seeking a new environment are accommodated…”
“The importance of retaining existing employees who might want to relocate is demonstrated by recent research from Oxford Economics that suggests it takes new professional recruits 28 weeks to reach peak productivity, underscoring the value of maintaining a knowledge base within companies through staff retention.”