The Art and Science of Assessing the Labor Market
Wednesday, November 21, 2018
Only through a combination of data analysis (the science) and labor interviews (the art) can a company be sure of choosing a location where its workforce needs are satisfied now and in the future.
As a corporate executive team analyzing the right community in which to locate its next company investment, access to a deep labor pool with the appropriate skill base is one of the most important project drivers to thoroughly understand. More than any other site selection factor, evaluating the labor market accurately will enhance or inhibit your company’s success and return on investment in a chosen community. Misreading the labor market reduces profitability due to high turnover, inability to fill positions, and/or the need to recruit from outside a labor shed area to find/relocate workers.
Labor markets are complex and inherently capricious, and potentially filled with unexpected pitfalls even when one is seemingly doing the proper due diligence. Veering off course — and making wrong inferences and conclusions — is easy to do without the right framework to guide one’s decisions. So how does one go about reading the market accurately? In short, it comes down to analysis and executing a plan around two broad but related questions.