When most people think of government incentives for expanding or relocating businesses, the subject of work force training programs rarely comes up. Talk to professional corporate site consultants, though, and it’s one of the first things they’ll mention.
Sure, training doesn’t sound nearly as glamorous as some of the more exotic incentives doled out in the high-profile expansions that make the national news but, dollar for dollar, they’re one of the most valuable incentives most companies will receive.
The reason is very simple. Almost every company can actually use them.
You see, that’s the problem with many of the incentive programs that the various state and local governments offer. While a particular inducement may sound generous in the abstract, it doesn’t really matter what the theoretical dollar value of a program is if your company can’t make use of it.
| Let’s face it. If a program doesn’t save your company any money, do you really care how much money it saved somebody else? |
Let’s face it. If a program doesn’t save your company any money, do you really care how much money it saved somebody else?
It’s very easy to get lost in the clutter of all of the many economic development incentive programs out there. In fact, the chart found on pages 10 and 11 of this month’s issue is really only the tip of the iceberg of some of the more commonly available inducements.
To the uninitiated, it almost looks like a corporate candy store, full of goodies that are there simply for the asking.
Of course, that would be just like looking at the overall U.S. tax code and assuming that you’ll be able to cash in on every single deduction on the books. Dream on.
That’s what makes the typical work force training incentive program so valuable, particularly to the “little guys” (i.e., smaller companies).
Generally, they are tied to job creation goals so, if your facility expansion or relocation involves additional employment to a particular geographic location, the chances are excellent that your company would be eligible to receive money and other assistance to help train your new employees.
In others words, these programs address an area you will have to spend money on anyway — training your new employees to do the jobs you want them to do at your new facility — and reimburse a significant portion of your expenses.
Another important value of these programs is that they are easily monetized. They don’t require you to employ an army of caffeine-juiced accountants in order for you to be able to use them. Unlike many other types of incentives you might encounter, this one is relatively straightforward in its application.
In addition, local community colleges are usually tied to these programs and can help you design your training, as well as implement it. They can provide facilities and, in many cases, instructors to help you conduct your training.
Finally, work force training programs are used so frequently that the people charged with managing these incentives actually know how to implement them. This isn’t one of those programs where the only person who understands how it works retired and moved to Florida five years ago.
So, when you get to the point where you’re evaluating competing incentive programs, don’t overlook work force training. It may not sound as glamorous as some of the other incentives you’ll hear about, but just remember this: if you can’t actually use a program, it has no value to you.
That’s the bottom line.
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