One of the most fascinating trends of recent years is the rapid growth in urban residency, with more people than ever before living in ever expanding cities.  Whilst considerable focus has been given to cities in developed countries, especially in terms of their innovative potential, a recent report from Mercer aims to shine a light on cities in developing countries.  The population of these cities is expected to grow by around one billion people in the next decade.

The paper examines 15 cities that are both existing megacities and ones of the future.  The cities span seven countries and the research attempts to better understand the kind of things that matter most to residents in these cities.

How cities function and prosper

The research revolves around four distinct yet interrelated needs: human, health, money and work.  Across these are 20 decision-making factors that are ranked in order of importance to try and hone in on the things that really matter to people when they both move to a city and then try and prosper there.

The findings are then segmented according to demographics, life stages, career progression, levels of financial security and various other factors that help to create five distinct personas.  Each of these have a unique set of needs and motivational drivers.

“What emerged most of all is that for cities and businesses to attract workers with the talent and skills to do the work of the future, people’s needs must be addressed more specifically, holistically and meaningfully,” the authors say.

Key drivers

In something as complex as urban living, it’s perhaps not too surprising to see that there is no hard and fast rule that determines why people move to a particular city. Instead, our choices are based upon the four factors of human, health, money and work.  Of these four, the human factors were most important. Human factors include things like life satisfaction, proximity to family and friends and security and safety.

This then evolves further once we actually live in the city, with our choice of employer and neighborhood determined by unique factors.  For instance, our choice of employer is largely determined by financial and career opportunities, whereas our choice of neighborhood is based primarily on local factors such as access to amenities.

Interestingly however, employers often misinterpret these drivers, and instead believe people largely choose a city based purely on financial factors.  The social factors that are so important to individuals are largely ignored by employers when trying to attract candidates.

This insight can be further explored via five personas that characterize the respondents.  For instance, confident achievers typify 26% of us, and are typically senior professionals with high income levels.  White-collar professionals are typically graduates who are at an earlier stage of their career to the confident achievers.  Three other personas help employers to identify different employee types, and specifically their unique requirements when choosing a place to live and work.

In order for both employers and cities themselves to prosper in future, it’s vital therefore that the wants and needs of people are listened to. This will require them avoiding the temptation to make sweeping generalizations and understand the unique needs people have.  It will also require public and private to work effectively together.

“No one group can (or should) be responsible for addressing the systemic issues of a city,” the authors say. “To accelerate progress and to create the environment workers and their families need to thrive in, companies and governments must combine their resources, databases/analytics, technologies and know-how. In many growing cities, companies are tackling the challenge and finding new ways to address workers’ needs and ensure their safety and well-being.”

It’s a challenge that is perhaps just as pertinent for cities in more developed countries too.