Strategies to Grow (and Market) Your New Economy Workforce
by Chris Schwinden, on Oct 19, 2018 2:07:29 PM
Chris Schwinden represented Site Selection Group at Area Development’s Indianapolis Consultants Forum featuring a presentation on strategies to grow (and market) your new economy workforce.
Workforce is critically important in every industry these days. In an except
ionally tight labor market, it
’
s
becoming increasingly difficult to find a community that can
deliver the talent growing companies
require
.
Deeper digging can help you find the workforce you need today and th
e one you may need
tomorrow. The following are tips on how to create a complete picture of
the sites you
’
re considering
and its surrounding labor pool.
Labor cost is often a top criterion for a location
—
but wages alone don
’
t tell the full story of a location.
Neither do incentives. For long-term success, what is a community doing
to build a pipeline of qualified
labor? What is the community doing to create a foundation for the ski
ll sets you might need in 10 or 20
years? For a well-rounded analysis, you need to look at primary and secondary i
nformation.
Primary sources include the individual conversations you should be h
aving with economic development
organizations (EDOs) and community development sources. One-
on
-one or small-group interviews can
reveal a deeper story about a community that numbers alone don
’
t reveal
—
and can tip your select-
deselect decision. Secondary data sources include the U.S. Census or state go
vernment databases.
Data and the story-behind-the-numbers make a difference. The following are fou
r often-overlooked
clues to a market
’
s true labor pool potential.
- Untapped, non-traditional labor supply. In a less active market, you may find an underutilized labor force—and a lot less competition from other employers. Ask your EDOs for data about workers on the sidelines and how they could be upskilled.
- Middle and high schools.We’re not suggesting a company employ seventh graders. But is the community investing in workforce development? For example, do schools offer robotics, engineering or other technical clubs and externships to de-stigmatize manufacturing work? Also, some communities are hosting bootcamp-style programs to introduce potential workers to maintenance engineering and technical associate fields without having to commit to a lengthy, more costly program. Dig into how the EDOs collaborate with the technical and community institutions. What success stories and outcomes can EDOs brag about—especially for the programs most relevant to your workforce needs today and tomorrow? What have they accomplished for similar enterprises? Unlocking these answers is key to supporting your future workforce.
- Pubs and art galleries. The conventional view is ͞get the jobs and the people will follow.͟However, some communities are trying a new approach, creating a quality of life that will attract talent and employers alike. Lifestyle amenities, like breweries, coffee shops and good food, are becoming as important as broadband access. Big cities have rich arts, culture and lifestyle offerings, but real estate costs are usually very high, too. Cities like Tulsa, Okla.; Greensboro, N. C.; and other mid-sized towns offer lower-cost housing and labor than the big cities, and the hip lifestyle options, too. In some communities, you may even be able to recruit talent from a distant higher education institution even if it doesn’t have a local campus.
- Follow the policy wonks. State and community policies and governance are sometimes overlooked in site selection process. Yet, politics and policy can affect the long-term success of your company. If your company values a diverse workforce, for example, you’ll be more successful in a community aligned with your goals rather than one seeking to limit residents’participation in society and the economy.
- Also, pay attention to teacher strikes and pension liabilities. These issues relate to a state or community’s bond ratings and ability to govern. Well-governed states have more resources for workforce training and better environment for long-term corporate growth.
- Look where growth isn’t obvious. Site selectors typically favor growing communities. Yet, a community may warrant a second look even if it isn’t growing. Yet, growth presents issues like traffic congestion and skyrocketing housing costs. A less-popular location might offer more favorable housing costs and higher quality of life for workers.
Overall, look for communities that have command of their data. The sm
art EDOs know their hot points
and keep track of comparative data for their community versus others
.
Be skeptical if the EDOs seem
overly optimistic about how many machinists are on hand. The most
trustworthy EDOs acknowledge the
labor challenges that everyone is facing, and can present their process and so
lutions for long-term
workforce development. Your relationship with your EDO continues after yo
u select your site, and open
conversation is the foundation of a successful site selection.
About Site Selection Group
Site Selection Group LLC is a leading independent location advisory, economic incentive and corporate real estate firm providing solutions to corporations and communities across the world. Site Selection Group offers four core services to our customers: Location Advisory, Economic Incentive Services, Corporate Real Estate services and Economic Development Consulting. Site Selection Group's mission is to align the needs of corporations with the optimal locations in order to provide the absolute maximum economic benefit. For more information, visit: www.siteselectiongroup.com.
