Staffing: Part 1—Employees

Attracting and Retaining Regional Talent

To create a dynamic market that attracts and retains top talent, Pittsburgh must leverage its size, foster cooperation and embrace a shared vision to compete with larger cities.

Consider the following hypothetical story of an officer at a healthcare startup in Pittsburgh: After years of working as a senior executive, Sarah witnessed the company’s collapse due to the financial difficulties common at startups. When the project failed, finding another executive-level position locally proved nearly impossible. Despite her strong connections in Pittsburgh’s business network, the few available roles didn’t match her experience or compensation expectations. Faced with limited options, she had no choice but to move her family to a more dynamic market with greater opportunities in healthcare and tech. Knowing that a local job means limited career mobility makes it harder to convince young executives to commit to relocating to Pittsburgh in the first place.

In today’s rapidly evolving job market, the dynamics of employment in smaller markets like Pittsburgh are increasingly complex. For employees, a rich and diverse employment ecosystem is essential for career growth, economic stability and personal development. Smaller markets often present unique opportunities, such as tighter-knit communities and cost-of-living advantages. However they also come with challenges—including limited job mobility, fewer large employers and constrained resources for skill development.

A “rich employment ecosystem” goes beyond just having a few dominant employers. It includes a vibrant mix of startups, mid-size firms, large corporations and access to both professional development opportunities and mentorship. Such an ecosystem allows employees to explore career options, make lateral moves and advance without having to leave the region. Yet the lack of this rich ecosystem in smaller markets often leads to talent migration to larger hubs like New York, San Francisco or Boston​.

Sometimes Size Does Matter

Smaller markets face several issues when it comes to retaining expert talent. For employees in established companies, the primary challenges are a lack of mobility and limited career advancement opportunities compared to larger, more competitive markets. Employees working in these smaller regions often find that once they have reached a certain level within their career path, the options for further advancement become severely limited. This stagnation can push skilled professionals to relocate to larger markets that provide a more dynamic employment environment​.

For startups the lack of lateral mobility in smaller markets remains a particularly significant issue. Early-stage companies may provide excellent opportunities for initial growth, but if the company doesn’t scale or fails, employees have fewer alternative employment options nearby. Larger markets typically have a denser network of similar or related companies, allowing employees to easily transition to another role while remaining in the same geographic area. Without that ecosystem, employees face the risk of having to move cities or pivot to unrelated fields.

Moreover, lower compensation remains a problem in smaller ecosystems regardless of company size. Startups in markets like Pittsburgh are often competing against offers from larger firms in major cities that can provide more robust compensation packages. Meanwhile established corporations generally adjust compensation based on the local cost of living—lessening the benefit of a cheaper market while also putting pressure on discretionary spending. Startups can offer equity as a form of long-term compensation, but the instability of smaller companies often deters talent from accepting these offers unless they feel confident in the region’s overall ecosystem for career security.

Keep Them Happy, Keep Them Working, Keep Them Engaged

Pittsburgh and similar smaller markets have recognized these challenges and begun implementing programs to improve talent retention and strengthen the local employment ecosystem.

Career development programs like UPMC’s Pathways to Work are crucial for helping employees transition from entry-level positions into specialized roles. By providing a clear pathway for growth within the company, these initiatives allow healthcare workers to up-skill without the need to relocate to larger markets. In Pittsburgh, this program has been instrumental in keeping talent in the region by fostering a sense of long-term commitment. Employees who see opportunities for advancement within their current geographic location are more likely to stay—further stabilizing the local workforce and preventing a talent drain to bigger cities with more job prospects.

The expansion of remote and hybrid work has become another important tool for retaining talent in smaller markets. Startups and companies now offer flexible work arrangements that allow employees to stay connected to larger corporations and job markets without needing to leave their hometowns. This flexibility provides workers the ability to engage with opportunities in bigger markets while still contributing to the local startup ecosystem. For example, workers can tap into national or international opportunities while maintaining their ties to Pittsburgh-based companies. This helps alleviate the pressure on local talent to relocate and opens the door for more integrated and balanced career paths.

Innovation hubs like AlphaLab Health, along with cross-industry collaboration efforts in Pittsburgh, have further strengthened the local employment ecosystem. AlphaLab supports healthcare and life sciences startups, fostering a dynamic environment where talent can flow freely between research institutions, startups and more established companies. Additionally, Pittsburgh’s emphasis on cross-sector collaboration—such as initiatives connecting the tech and healthcare industries—provides employees with more diverse career opportunities. By allowing talent to move seamlessly across sectors, Pittsburgh creates robust career pathways for workers who might have otherwise felt confined to one industry. These programs ensure that local talent has a wider range of opportunities to explore within the region.

These programs, policies and trends are well-intentioned, positive contributors to the local environment. But unfortunately, without economic incentives or market forces to encourage increased hiring and market dynamism, they are the equivalent of watering a brown field.

Got Ideas?

To attract and retain top talent in smaller markets like Pittsburgh, it’s essential to recognize that the defining elements that appeal to professionals in large markets are the same factors that must be considered locally. Relying solely on arguments about cost of living or lifestyle quality does little to address concerns around career growth, opportunities or long-term professional security. Startups and established industries need to collaborate more closely. Further fostering formal partnerships between tech startups and institutions like healthcare or education will encourage talent to stay and develop hybrid skills—allowing them to be more valuable across multiple sectors. Initiatives bridging tech and healthcare, particularly in medical technology, could create new avenues for both employees and employers in smaller regions.

Direct career support initiatives, such as financial incentives and career development programs, are important tools in retaining talent. Government or private sector investment in these areas can help build long-term advancement opportunities for local workers. However, it’s crucial to recognize that simply offering these programs may not be enough. Visibility and cross-regional engagement may prove more effective in driving career success, as attention often begets opportunity. Events, conferences and locally initiated national programs may actually be a better bang for your buck than universal tax incentives which incentivize headcount over expertise.

Startups need to ensure that local employees are not only advancing, but are also being recognized on a national or international stage through cross-market networking and visibility. These initiatives can include offering access to remote work opportunities that allow workers to connect with broader networks while contributing to local businesses. Local programs that educate or empower employers to provide those opportunities also create viral marketing opportunities for the city—raising its profile to potential employers and employees.

No Room for Small Town Parochialism or Egos

To fully leverage the talent in smaller markets, it’s also essential to make better use of existing resources by minimizing the divisions between industries and organizations. Smaller markets must avoid the pitfalls of bureaucratic silos or territorialism that can prevent cross-sector innovation. The efficient utilization of resources requires collaboration across sectors, enabling professionals to move fluidly between different industries—whether tech, healthcare or finance. This flexibility allows workers to explore diverse career paths within the region, reducing the desire to leave for larger, more dynamic markets. By breaking down these barriers, cities can create a more integrated, supportive employment ecosystem.

Smaller markets undeniably offer unique advantages, particularly the tight-knit communities that foster stronger professional networks and more personalized collaboration. With fewer players in the field it becomes easier for individuals and organizations to know one another—potentially leading to more fruitful partnerships and easier communication across sectors. However, the challenges these markets face cannot simply be ignored or dismissed.

If we aim to create the kind of dynamic, talent-attracting market seen in larger cities, we must learn to do more with less. Smaller markets lack the sheer volume of opportunity that larger cities boast, but this should drive innovation, efficiency and collaboration, not stagnation. The familiarity that comes with a smaller talent pool can either become a breeding ground for competition and division, or it can be leveraged as a powerful tool for cooperation. By embracing an “us against the world” mentality, Pittsburgh has the potential to break down barriers between industries, reduce territorialism and encourage a shared vision of success.

In the end, it’s not the size of the market that matters most, but the strength of the community and its ability to work together toward a common goal. By removing barriers and fostering cooperation, Pittsburgh can turn its size into an advantage rather than a limitation.