After a nationwide search, online giant Amazon awarded its second headquarters (HQ2) location to the Washington, DC, metropolitan area. Since Amazon made the announcement in November 2018, the entire region has been crunching the numbers to determine the impact. While Amazon’s entrance will affect many aspects of life in the area, some may not be felt immediately. Still, when a major business enters your region, it’s important to understand how it will affect your association, especially from a human resources and real estate perspective.

What’s the Amazon Effect?

While Amazon HQ2 primarily affects the Washington region, other areas can learn some lessons from its example. On the real estate front, HQ2 will be situated in the neighborhood that’s been known as Crystal City, but it will get a new name: National Landing. According to David Ritchey of JBG Smith, the exclusive developer of HQ2, projects in National Landing will include between 4,000 to 5,000 new residential units, approximately 120,000 square feet of retail enhancements, and the creation of small public parks and green spaces. JBG Smith is also making a variety of tenant-specific upgrades to buildings in the area, which will cater to existing and future associations. These include more coworking space, 30,000 square feet of meeting and event space, and enterprise space that will allow small groups to occupy space with minimal startup costs.

Jeannette Chapman, an economist who has been studying Amazon’s impact to the region, says the company’s 20,000 new jobs over the next 10 years will have an effect, but the area’s size is better-suited to absorb 2,000 jobs a year without creating major shockwaves. Even better news: Chapman does not anticipate that Amazon alone will tighten the labor market enough to cause panic among associations.

How Can Associations Compete for Talent?

While Amazon alone shouldn’t cause a panic, a tight labor market requires techniques to attract and retain talent. According to Keith Mulvihill, a client executive at Lockton Companies, associations should already be considering the five generations in the workplace when competing for talent, regardless of the presence of Amazon or any other big employer in the region. This means learning to communicate, motivate, reward, recruit, and retain using tactics that can accommodate the unique needs of a multigenerational workforce.

For example, millennials want to perform meaningful work and prefer opportunities to develop new skills, versus earning frivolous perks. They choose purpose over paycheck, development over satisfaction, a coach over a boss, ongoing conversations over an annual review, a focus on strengths instead of weaknesses, and life over job.

Associations should already be considering the five generations in the workplace when competing for talent, regardless of the presence of Amazon or any other big employer in the region. This means learning to communicate, motivate, reward, recruit, and retain using tactics that can accommodate the unique needs of a multigenerational workforce.

How Are Associations Improving Their Office Space?

Similarly, associations should also be considering ways to design office space to compete for talent and advance the association’s mission. The following are strategies associations can use:

• Choice within the workspace. Provide employees opportunities to work in a variety of environments within an office to energize and create fresh ideas.
• Mission at the forefront. Create a showcase to communicate with members, coalition partners, and policy makers.
• Collaboration spaces. Collaboration is the reason to come to the office, so associations should create great places for employees to work together.
• Technology. Audiovisual equipment has grown as a portion of the overall fit-out budget, and things like videoconferencing, remote workstations, and employee-engagement applications should be considered.
• Flexible space. Space must do more as associations look to manage costs while maximizing space utilization.

Ultimately, Amazon’s occupancy will increase pricing in the National Landing market, as well as provide greater competition for talent in a market that’s already tight. When associations see large, new employers in the region, they should consider all aspects of their business model to ensure they have the tools in place to attract the best talent while maintaining costs.