The Impact of Quality of Life on Recruitment and Retention of Key Personnel

Abstract

Business retention and expansion are pointed to in the literature as being more effective economic development policy in comparison to business recruitment. The ability of a business to attract and retain this nucleus of key personnel is critical for remaining competitive. The quality of life of an area is considered to be an important ingredient for the attraction and retention of key personnel. Public sector investments in quality of life not only make the community a more attractive place to live but also contribute indirectly to economic prosperity. In this article the input from chief executive officers in over 700 businesses in Wichita, Kansas, are examined to determine the value of 10 quality-of-life attributes for attraction or retention of key personnel. Input from 6 classes of business are examined, and important differences in the quality-of-life values of key personnel are discovered. The first major conclusion is that targeting by business type is an important consideration for local economic development policy. A second conclusion is that local schools are not necessarily the key ingredient for recruitment and retention of key personnel. Well-developed community spirit building and entertainment opportunities are, in many cases, the greatest lure. Finally, effective economic development action will require cooperation between public and private sectors.