Before You Ask About Labor, Ask This First

In the early stages of site selection, employers often move quickly to engage with communities, asking detailed questions about workforce size, competition, wages, and labor availability. While these are important considerations, they assume that the definition of a strong workforce is universal. In reality, it is not.

We often see companies become so focused on evaluating external options that they overlook a more fundamental step: defining what they are actually looking for in a labor market. Without that internal clarity, it becomes difficult to interpret the answers provided or which locations are truly a strong fit.

Before asking where the best workforce is, employers should first ask: What does the right workforce look like for us?

Defining the Right Workforce

Every labor market offers a different value proposition. Some provide access to large, specialized labor pools, while others offer a less competitive environment where employers can establish a stronger presence. Neither is inherently better. The right answer depends on the priorities of the operation.

For companies with existing operations, this evaluation should start with their current footprint. Do they like the markets they are operating in and, more importantly, why? Looking more closely at their existing workforce can provide valuable insight. 

The most effective site selection efforts begin by clearly defining these priorities. In practice, this comes down to a handful of key questions that shape how workforce data is interpreted and how locations are evaluated.

How Much Competition Are You Willing to Take on?

Competition for labor is not always obvious when looking at workforce size alone. Markets such as Charlotte, Atlanta, and Greenville-Spartanburg are often considered together, yet job posting activity relative to workforce size varies across them, reflecting different hiring dynamics even within the same region.

The differences are not dramatic, but they are meaningful. Atlanta, for example, shows slightly lower posting intensity but a significantly larger number of employers actively hiring, creating a more complex competitive environment than the headline numbers alone might suggest.

Are You Optimizing for Stability or Scalability?

The tradeoff between stability and growth is often understated. Smaller or less competitive markets can offer a more predictable workforce, but may become constrained as hiring needs expand. Larger markets provide more depth and flexibility, but often come with more volatility.

Turnover provides additional context here. Across these same markets, production turnover ranges from approximately 49% to 58%. Even within a relatively narrow range, differences in turnover can influence how a market is evaluated, particularly for operations prioritizing retention and consistency.

For companies with existing operations, this evaluation should not be theoretical. Looking inward at their current workforce can provide valuable insight into what stability actually means for their organization. Understanding the types of workers they attract and retain, as well as those who do not stay long term, often provides a clearer signal than external data alone.

Do You Need Experience, or Are You Willing to Train?

This is one of the most consequential, and often underdefined, decisions in workforce strategy.

A market that lacks deep experience in a specific role may still be highly viable for employers willing to invest in training. For others, that same market may introduce risk if immediate productivity is required.

What Matters More, Cost or Access to Labor?

Cost is frequently used as an initial screen, but on its own, it provides an incomplete picture. Lower-cost markets may come with tighter labor pools. Higher-cost markets often offer more depth and accessibility. Without clearly defining how to balance those factors, it becomes easy to prioritize cost savings in environments that may be more difficult to staff over time.

Why This Matters

By the time a project reaches the shortlist stage, most locations are viable.

The challenge is not a lack of good options; it's a lack of clarity on how to evaluate them. The same labor market can be viewed as either a strength or a risk, depending on how well it aligns with a company’s priorities. Site Selection Group works with clients early in the process to define these priorities, ensuring that subsequent analysis and community engagement are aligned with what matters most.