Skilled Talent: A Shift in Economic Development Incentives
I was reading the latest issue of Chief Executive magazine [1], and I was reminded of my prior experience working with regional, state and local economic development groups within the United States.
These organizations are typically funded by local businesses and government grants [2].
The Past: Facility Incentives for Companies
Historically, the process of economic development primarily meant attracting companies to build new facilities or relocate existing ones to the place that was seeking new jobs. The coveted 'corporate headquarters' relocation was a prize that many of the groups craved.
All these groups offered incentives (e.g. business tax reductions) to entice their desired prize. What I observed was an apparent lack of appreciation for the difference between good top-paying jobs -- and everything else that was of questionable economic value.
I witnessed incentives being offered to companies who planned to locate 'call center' facilities. Frankly, I was puzzled. Given the caliber of typical jobs created, why would incentives be appropriate? Was this a forward-looking investment that drives growth?
Fast forward to the current environment, and I'm now wondering how many of these economic development groups placing paid advertisements in the Chief Executive magazine are informed about the current and emerging trends in the marketplace for skilled talent.
The Future: Lifestyle Incentives for Individuals
That said, some are choosing to rethink their economic development approach, and how they communicate the inherent value of 'living and working' in their local community. For those who are willing to experiment, the focus has shifted to attracting skilled people at relatively little cost, rather than attracting new facilities or an existing facility relocation at any cost.
I'm reminded of this Time magazine article "How More Cities Worldwide Can Attract Remote Workers" and the forward-thinking U.S. economic development groups that are rethinking the possibilities of attracting individuals that can enhance their community.
Of course, this phenomenon isn't just about cities, or just in the United States, as other forward-thinking countries are paying skilled people to move and essentially start over.
Moreover, some companies now offer professionals the option to work from anywhere, whether in their home office, in another region, or around the globe. A growing group of digital-skilled talent is taking the Anywhere Workplace theme to the next level.
These Digital Nomads leverage their flexible work opportunity to live in desirable tourist hotspots or tropical island destinations for months at a time. Others engage in months-long work-cations, combining periods of working and vacations.
As I continue to research this topic, I'll share more insights about how leaders evolve and respond to this trend.
Sources:
[1] Chief Executive Magazine
[2] U.S. Economic Development Administration
Recent Comments
Based on what I've witnessed over the last decade, the high cost of healthcare in the United States, and the excessive profits of many providers, limit the demand for operational efficiencies.
Regardless of the publically stated commitments to reduce greenhouse gas emissions, I see very few incentives to positively change the current culture that is responsible for a lack of progress.
From my own perspective on this topic, having worked from home for more than a decade, the trend toward flexible working models is not really about changing places (office vs home), it's more about placing more significant on desired 'business outcomes' (rather than proof of attendance at a designated place of work).
My point: typical 20th Century middle managers fill their days with meetings and reading emails, but produce little that's truly meaningful or substantive (from a commercial outcome perspective). When they leave their job, for whatever reason, there is often no impact on the business. Proving that being 'present for attendance' is a pointless metric in a competitive economy where strategic business outcomes matter most in the achievement of results.
I'm seeing a need for Step 0, before your four steps.
Let go of the past. Leaders must stop their quest for a 'return-to-normal' status quo environment that's similar to the typical work life before the pandemic. Instead, start now to aspire for an environment that is exponentially better than before. Raise the bar of expectations and imagine the upside possibilities. Don't merely slip back into the old familiar ways. Be bold and brave.
As more executive teams adopt flexible working policies for their distributed workforce, procuring a secure cloud-native virtual desktop for remote employees is a high priority. Many forward-thinking leaders are considering a Digital Workspace solution that will enable their IT team to deliver any app, on any cloud to any employee’s device.
The evolution of the digital payment ecosystem has been a key enabler for participation in the Global Networked Economy. It's now forecast that mCommerce payments will reach $3.1 trillion in 2025 -- that's up from $2.1 trillion in 2020, according to the latest worldwide market study by Juniper Research.
If I were to give career advice to my younger self, then I'd focus more on developing a curiosity for the world at large. Career options increase when you embrace the possibilities of perpetual serendipity. I believe that curiosity, as a catalyst for serendipity, is essential in today's global networked economy. Moreover, I'm thinking that early exposure to 'hybrid learning' methodologies will enable students to develop the emotional intelligence they'll need later to prepare for the 'hybrid work' environment -- where flexibility and adaptability are valued more than any other fundamental skillset. Also, anticipating the rise of a future 'gig economy' would better prepare students to attain the required self-determination skills.
Here in the United States, I predict we'll see the higher education sector change significantly. The cost of attending college and university has grown exponentially and burdened many young adult graduates with huge debts to repay over many years. Meanwhile, remote online learning options have increased during the pandemic, but most traditional institutions have not restated their tuition fees. Besides, more students have discovered the numerous sources of no-cost or low-cost online educational courses that can be combined to create a customized -- and often, more pragmatic -- learning experience that will better prepare them for employment opportunities in today's Global Networked Economy. In summary, COVID-19 induced disruption will transform the legacy U.S. education sector. This was much-needed rapid progress, in an environment that's typically been resistant to progressive thinking and meaningful change management.
The internet is the essential infrastructure of the Global Networked Economy. National, regional and local government policymakers must avoid taxing methodologies that result in a burden that's similar to the alcohol and tobacco 'sin tax' approach.
My point: access and use of the internet isn't 'a sin' and should not be taxed excessively. That said, the combined taxes on mobile communication services are often more than 20 percent of the overall subscriber expense. Furthermore, for many people across the globe there is no choice, the mobile internet is their only option.