KCRag Forum

Cratedigger wrote: ↑Fri Sep 02, 2022 8:39 am Perhaps wishful thinking, but Oracle?

We’ve spoken with a major employer in San Francisco, who told us that they are no longer even looking to hire people in that market, just because the cost of living is so high that they have to pay their employees a prohibitively high amount for them to live there comfortably. ... We are going to be on the short list of lots of companies very soon who are thinking along those lines. They want to find cheaper office space where they can improve quality of life for their employees and not have to sacrifice anything else.

From the recent KCBJ interview with CM Brian Platt

https://www.bizjournals.com/kansascity ... tives.html

Would be kinda nice if it were someone other than Oracle/Cerner, as it would potentially be another separate source of local employment building coming from the outside.

Oracle moved Cerner job postings to the broader Oracle job site. Over 600 KC job openings, far more than any other city, which is typically around 100 in their Oracle hubs (Austin, SF Bay, Boston, Chicago, Denver, Orlando, Nashville) and many are same job available in some of those cities.

So Health division is clearly their focus. But a lot of those jobs technically based in KC may not require living in KC area as only a couple of many spot checked say required to relocate to KC area.

https://eeho.fa.us2.oraclecloud.com/hcm ... iusUnit=MI

"But a lot of those jobs technically based in KC may not require living in KC area"

My daughter's job is technically based in New Jersey but lives in Grandview. Nice thing about it is she is paid at New Jersey rates as opposed to the KC area rates for the company.

aknowledgeableperson wrote: ↑Fri Sep 30, 2022 6:07 pm "But a lot of those jobs technically based in KC may not require living in KC area"

My daughter's job is technically based in New Jersey but lives in Grandview. Nice thing about it is she is paid at New Jersey rates as opposed to the KC area rates for the company.

Interesting, and honestly companies like Oracle the appeal to moving jobs to KC is to be able to pay less than than the coasts because cost of living is lower, as well as doing business. This means you can pay an equivalently skilled & seasoned employee less but the impact them is not there. I.E. you make 300k out East I can pay you 200k here and give you more bang for your buck. Live in KC as if you were making 450k out East. So definitely benefits to companies to have jobs in KC.

dukuboy1 wrote: ↑Mon Oct 03, 2022 12:06 am

aknowledgeableperson wrote: ↑Fri Sep 30, 2022 6:07 pm "But a lot of those jobs technically based in KC may not require living in KC area"

My daughter's job is technically based in New Jersey but lives in Grandview. Nice thing about it is she is paid at New Jersey rates as opposed to the KC area rates for the company.

Interesting, and honestly companies like Oracle the appeal to moving jobs to KC is to be able to pay less than than the coasts because cost of living is lower, as well as doing business. This means you can pay an equivalently skilled & seasoned employee less but the impact them is not there. I.E. you make 300k out East I can pay you 200k here and give you more bang for your buck. Live in KC as if you were making 450k out East. So definitely benefits to companies to have jobs in KC.

But with work from home these companies may bring 500 jobs but that doesn't mean those jobs will be done within KC's borders and within the office space the company needs to rent.

Apparently only about 15% of the job postings require living in KC area if I'm looking at it correctly. Would imagine many hiring managers would prefer local but may have no choice and must hire from outside area and allow remote or in other Oracle office elsewhere. I wonder if all the 12k workers said to be located in KC offices really live in area.

yeah if they are remote, then you are beholden to the economics of their location for sure. Being remote opens up the talent pool for sure but I'll be curious how compensation tracks. There will be some where the compensation will be hugely beneficial, say Midwest location getting coastal dollars. But if they try to offer money more in line with KC area to the Coasts it will be a negative in terms of attracting and recruiting talent.

Just saying the benchmark for compensation and the cost of living theoretically give KC a nice edge as a place to do business, even WOF from the KC area.

About $1B in incentives will expire in a year that I suspect Oracle won't take advantage of as it's currently defined. Hope I'm wrong. The State/City need to restructure the incentives with a different goal. Pursue Oracle Could data centers locally and target scope of all Oracle employees with KC as an optional hub rather than just Cerner/Health employees (who can now mostly work out of any Oracle hub in several other cities if not truly remote). I smell a significant reduction of local employment over next 5 years if City/State are not aggressive and savvy to Oracle needs.

https://www.bizjournals.com/kansascity/ ... tives.html

Friend just told me that the old Cerner employee health clinics, world HQ, and realizations campus all are being closed.

Not sure yet what the plans are for the KC data centers

This isn't too surprising but happening pretty fast after acquisition (if the case). With 12K local employees and I think 6K capacity of new Bannister campus would hope they've reconfigured remaining office for local rotating hybrid. But with over 85% of "KC" job postings apparently not required to live in KC, this might be the first steps for a trend of local downsizing even if only through natural attrition.

It's almost a given that the local data centers eventually go away as they move to Oracle Cloud and the last thing they want is keeping legacy systems for years as their legacy systems are a root of their problems and Oracle's goal is to modernize Cerner systems across the board as high priority.

Will be interesting to see how this plays out and while it's clear Oracle is heavily focused on Cerner and Oracle Cloud, what we aren't hearing about is a major capital investment into KC. Still could happen but optimism in starting to wane. Maybe a new incentives package will be restructured before the existing one expires next year.

Breaking News: Oracle is shutting down all its offices in KC area.

What your source on 'all''? These say some offices, not the new Bannister site...
https://www.kshb.com/news/local-news/or ... ion-campus
https://finance.yahoo.com/news/oracle-c ... 20150.html

Preston says Oracle is actively hiring new employees, and bringing Oracle employees to the Kansas City area.

Hopefully that continues, will be interesting to see if total local employee count goes up as there are enough reasons to suspect not.

I’m never not confused about where exactly North KC is. Is Cerner’s WHQ in KCMO or NKC?

Will that have any impact on attracting another employer to fill that space? Would NKC be more aggressive?

Cratedigger wrote: ↑Mon Oct 31, 2022 12:02 pm I’m never not confused about where exactly North KC is. Is Cerner’s WHQ in KCMO or NKC?

Will that have any impact on attracting another employer to fill that space? Would NKC be more aggressive?

WHQ is in NKC.

Collison on the consolidation...
https://cityscenekc.com/oracle-shutting ... nsas-city/

NKC not too thrilled to hear about it via Reddit after all the years of Cerner relationship. Lots of office space to add more vacancy to KC metro market. Hopefully lemonade out of lemons somehow come out of this. Some of the phrasing sounds like Oracle may indeed make KC not just the Cerner Hub but implying a general Oracle Hub outside Health division as well, but hard to tell.

What matters is number of employees actually living the metro area, not those based out of KC office 'on paper' but living remote elsewhere.

Imagine if the innovations campus and the KCK officers had been built downtown (River Front maybe?). Even if Oracle ended up leaving we would have been left with alot of great office space in a great location for attraction.

"we would have been left with alot of great office space in a great location for attraction."

Which likely would sit vacant for a long time. Yes some companies are recalling workers to their offices but it seems many more are adjusting to home based work for the long term. A few companies are leaving some office spaces open, on a minimal basis, just in case local workers want to come in and socialize some at work on a limited basis.

Wow, that stinks for NKC but hopefully they can step in and offer to be part of the solution for what to do with the property. Luckily NKC is still flush with Casino money to help fund projects with private businesses/developers.

Perhaps there can be some opportunities for North Kansas City Hospital, especially with research and such. Look to perhaps be a compliment to KU Med in the Metro. Hospital hill has its activity being boosted for development, maybe NKC could partner with KCU med school, as it is realtively close to their campus across the river.

Whatever happens I hope we have some innovative solutions to promote. My guess is it's like 60-40, 30-70 Oracle plans on investing anything significant in KC after the merger.

dukuboy1 wrote: ↑Mon Oct 31, 2022 5:08 pm Wow, that stinks for NKC but hopefully they can step in and offer to be part of the solution for what to do with the property. Luckily NKC is still flush with Casino money to help fund projects with private businesses/developers.

Perhaps there can be some opportunities for North Kansas City Hospital, especially with research and such. Look to perhaps be a compliment to KU Med in the Metro. Hospital hill has its activity being boosted for development, maybe NKC could partner with KCU med school, as it is realtively close to their campus across the river.

Whatever happens I hope we have some innovative solutions to promote. My guess is it's like 60-40, 30-70 Oracle plans on investing anything significant in KC after the merger.

We need to consolidate our medical efforts. Even 2 campuses feels like too much.

STL has 1 major medical center (national scale) and 1 that at least seems around UMKC sized.

The NKC Cerner campus is set up well to turn into an office park with multiple companies buying an individual building or renting space from an office park owner.

https://www.google.com/maps/@39.1505871 ... a=!3m1!1e3