REELING IN JOBS WITH INCENTIVES
The decision to bring IT operations back to the U.S. often
hinges on what tax breaks and other incentives local, state
and federal governments can offer. Here’s where you can
find out more about what’s available:
The Reshoring Institute. The nonprofit consultancy compiles a list of state
economic profiles and descriptions of incentives ofered.
The Council for Community and Economic Research. The economic develop-
ment organization maintains a State Business Incentives Database of almost
2,000 programs available across all 50 states
The U.S. Department of Labor. The department ofers several resources,
including the following:
The Business, Industry and Key Sector Initiatives help companies access
government incentives and tax credits and provide workforce information,
such as local wages and economic trends.
The Ofce of Apprenticeship encourages employers to provide high-skilled
training opportunities through apprenticeships in all types of industries.
Gov. Scott Walker approved $3 billion in public money over 15 years to
encourage Foxconn to build a factory
in the state. In exchange, the world’s
largest contract electronics manufacturer agreed to invest $10 billion in a
LCD panel plant and initially employ
3,000 people, a number that could
rise to 13,000.
Foxconn is a Taiwanese manufac-
turer, but federal, state and local tax
breaks and training credits are also
available to U. S. companies reshoring
jobs in all types of industries, including
“Usually, incentives are not related
to what the job is. They are just incentives for jobs, period,” Coates says. The
Reshoring Institute helps company
leaders arrange meetings with local,
county and state governments, and
sometimes with representatives from
private organizations as well, to negotiate what types of enticements may
“Economic development groups are
eager to attract jobs to their commu-
nities. They may give a tax holiday on
property. That’s a big, big one,” Coates
says. They are usually very willing to
ofer companies generous terms to re-
locate. That’s because “they are aware
that every new job is a magnifer, that
the new employees will shop, buy cars
and houses and TVs. There’s a ripple
efect,” she says.
Explore incentives at the beginning
of the reshoring process. “It has to happen early, because it’s going to contribute to your cost modeling. You need to
know upfront,” Coates advises.
Some executives considering
reshoring their organizations’ IT
function and other operations to
California may decide that the state’s
regulatory environment is too onerous. They often look across the border to Las Vegas and Reno, Nev., or to
southern Oregon, Coates says, while
those bringing back call centers tend
to head north to relatively low-cost
areas like the Dakotas.
Southern states also are offering
lots of tax incentives to attract jobs to
the region. “Alabama, the Carolinas,
Tennessee are working hard. Texas is
turning cartwheels to get companies
to come there,” Coates says.
The best leaders don’t just look for
pockets of talent back home, they
create it themselves by joining forces
with local universities and with orga-
nizations involved in training and re-
training. “Find and partner with them,”
Shaneck says. “And talk with county
and state governments about where to
fnd workers. Every politician wants to
bring these jobs home.”
It’s a long road to get to the last stop
in the lengthy reshoring process, and
you can expect to face plenty of chal-
lenges along the way. It’s up to HR pro-
fessionals to help their companies suc-
cessfully map the route back home.
Stephenie Overman is a freelance writer
based in the Washington, D.C., area.
This article relates to Global & Cultural
Effectiveness, one of the nine competencies
on which SHRM has based its certification. To
learn more, visit shrmcertification.org.