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Here's what the Bay Area can learn from Houston

When it comes to maintaining a good ecosystem, diversity is key. Houston learned that the hard way. Photo by Tim Leviston/Getty Images

Hello Bay Area! We Houstonians are concerned about you.

We think your economy is becoming overly dependent on Silicon Valley. In 2018, the technology industry accounted for around 62 percent of all office leasing activity in San Francisco. From September 2017 to September 2018, tech companies and realty investors bought $1.43 billion worth of San Jose downtown properties, nearly three times what they spent the year before on property in the city.

Some of your biggest search, social media, and database companies are expanding their headquarters in San Jose, San Francisco, and the rest of Silicon Valley. This is causing the construction industry to become more dependent on tech. But it's not just the construction industry that is becoming attached at the hip with Silicon Valley. According to the Bay Area Council, for every one high tech job created in the U.S., four more are created in industries as varied as education, law, dentistry, retail, and food. That means a lot of jobs in the Bay Area are, and are going to be, dependent on Silicon Valley.

Meanwhile, the Bay Area's high cost of living is pushing low and middle-income people further and further away from the state to places like Colorado, New York, and Texas (thanks for that by the way). The Bay Area had the highest income disparity between those migrating into the area and those leaving it than any major metro area in the country between 2010 and 2016. An economy can't last with just high-salaried tech workers.

We here in Houston have seen what happens when a metropolitan area becomes overly dependent on its dominant industry.

The 1980s were a tough time in Houston's history due to the huge fall in oil prices. In 1986, crude oil prices fell 52 percent to about $27 a barrel in today's dollars. The majority of Houston's economy was centered around the oil business at that time. The industries that were not directly related to energy, such as restaurants, car dealerships, and real estate were in a symbiotic relationship and were in some cases catastrophically hurt. When the oil industry took a hit, the entire economy took a hit. During this time, Houstonians lost 225,000 jobs, or one in eight jobs in the city.

Many young workers in petroleum engineering, geophysics, and other energy positions were laid off, many leaving the industry altogether. Older workers retired. In the mid-2000s, when the shale drilling revolution began, the needed manpower was just not there to meet the demand and it was expensive to hire and train a new workforce.

We were able to recover. Some 175,000 Houstonians are now working in oil production, oil field services, materials, and fabricated metals, and tens of thousands more are working as suppliers and contractors. We're more ethnically and industrially diverse than we ever were before, but it took time.

What did we learn from the 1980s?

First, diversify.

While we still have a vibrant oil and gas business in Houston, we've also expanded further into our other core industries: health care, technology and space. The Bay Area is fortunate in that it has strong banking, agriculture, and tourism industries. It ought to be putting more TLC into these industries or expanding into other fields.

We learned not to keep all of our wealth in the oil and gas companies in which we work. It's far too common for Silicon Valley workers to have too much trust in the companies they work for, hoping that their stock options will propel them to riches one day. As we learned in Houston, this can lead to disastrous results. Diversify your portfolios, but be careful. Houstonians over invested in real estate in the 1980s and miscalculated the future of that industry.

Second, Houston has also learned to keep well-educated professionals trained and capable of finding support for those in between jobs. Luckily this doesn't seem to be a problem for the Bay Area. While the Greater Houston Region keeps roughly 66.1 percent of its four-year college graduates in the area, the Bay Area keeps 65.2 percent of its graduates around. So, Bay Area, never take your universities, like U.C. Berkeley and Stanford, for granted.

We know the Bay Area has seen its own troubles before. The dotcom bust of the early 2000s was devastating to the local economy. We're just especially sensitive to what happened to us in 1980s and we'd hate to see the Bay Area go through something similar again.

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Elizabeth Biar is vice president of Strategic Public Affairs, a government elations and PR/communications firm based in Houston. Sam Felsing is a former reporter and who currently works as a senior account executive at Telegraph, a political consulting and public relations firm based in Oakland, California.

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Building Houston

 
 

SeekerPitch exists to update the job hiring process in a way that benefits both the job seekers and recruiters. Photo via Getty Images

Companies across the country have been requiring resumes and cover letters from their new hire hopefuls since the World War II era, and it's about time that changed. A startup founded in Houston has risen to the occasion.

Houstonian Samantha Hepler had the idea for SeekerPitch when she was looking for her next move. She felt like she had developed a formidable career in digital transformation and had worked with big name clients from Chevron to Gucci. However, she couldn't even get an interview for a role she felt she would be a shoe-in for.

"I knew if I could just get through the door, a company would see the value in me," Hepler tells InnovationMap. "I wasn't being seen, and I wasn't being heard. I didn't know a way to do that."

And she wasn't alone in this frustration. Hepler says she discovered she was one of the 76 percent of job candidates who get filtered out based on former job titles and keywords. At the same time, Hepler says she discovered that 80 percent of companies reported difficulty finding talent.

Samantha Hepler had the idea for SeekerPitch based on her own ill-fated job hunt experience. Photo courtesy of SeekerPitch

"I was just a symptom of a larger problem companies were facing," Hepler says. "Companies were using algorithms to dilute their talent pool, and then the hires they were making weren't quality because they were looking for people based on what they've done. They weren't looking at people for what they could do."

SeekerPitch, which is in the current cohort of gBETA Houston, allows job seekers to create an account and tell their story — not just their job history. The platform prioritizes video content and quick interviews so that potential hires can get face-to-face with hiring managers.

"We empower companies to hear the candidates' stories," Hepler says. "We're bringing candidates streaming to computer screens. We are the Netflix of recruiting."

Hepler gives an example of a first-generation college graduate who's got "administrative assistant" and "hostess" on her resume — but who has accomplished so much more than that. She put herself through school with no debt and in three years instead of four. SeekerPitch allows for these types of life accomplishments and soft skills into the recruiting process.

SeekerPitch profiles allow job seekers to tell their story — not just their past job experience. Photo courtesy of SeekerPitch

Over the past few years, a trend in hiring has been in equity and diversity, and Hepler says that people have been trying to address this with blurring out people's names and photos.

"Our belief is that connection is the antidote to bias," Hepler says, mentioning a hypothetical job candidate who worked at Walmart because they couldn't afford to take multiple unpaid internships. "They can't come alive on a resume and they won't stand a chance next to another person."

SeekerPitch is always free for job seekers, and, through the end of the year, it's also free for companies posting job positions. Beginning in January 2022, it will cost $10 per day to list a job opening. Also next year — Hepler says she'll be opening a round of pre-seed funding in order to grow her team. So far, the company has been bootstrapped, thanks to re-appropriated funding from Hepler's canceled wedding. (She opted for a cheaper ceremony instead.)

Right now, SeekerPitch sees an opportunity to support growing startups that need to make key hires — and quickly. The company has an ongoing pilot partnership with a Houston startup that is looking to hiring over a dozen positions in a month.

"As a startup, your key hires are going to make or break your company — but you have to hire quickly," Hepler says. "That's the ultimate challenge for startups. ... But if you don't hire well it can cost your company a lot of money or be the demise of your company. It's people who make a company great."

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