EconomicDevelopmentCouncil.com
21st Century Economic Development Education, Strategies & Solutions
COMMUNITY ECONOMIC
REVITALIZATION STRATEGIES
R3 Economic Development Strategy...
Retention, Relocation, and Recruitment
In today’s Economic Development strategies, one of the issues that must be addressed it that the funding for many such projects has dried up, and alot of those tasks have been left to chambers of commerce, city governments, and nonprofit organizations trying to develop tourism, new businesses, and recruit corporations into the area to hire more people. After all, jobs are always very serious issues connected with it, and many economic development projects need those jobs for increased tax bases, consumer confidence, and to help keep local economy’s above water.
Now then, lets also talk about new economic development strategies which we will call; R3 or R-cubed. Instead of trying and traveling to other states to recruit their top corporations to come to your state, region or area, it seems that you should have a three-pronged approach. It's not that you shouldn't recruit those corporations that are dissatisfied with their current location, but you should also work hard to make sure the businesses that are currently in your region stay put, and don't fall for the recruitment tactics, tax deferment promises, incentives, or reduced regulation guarantees.
If another state, region, or even country is offering a better deal, it is a free-market and free-market competition will indeed determine where those businesses are located, therefore where those jobs stay or go. All too often governments local, state, or federal are busy trying to use large corporations as their tax cash register rather than asking them what they need to succeed. This is where retention comes in, it's where you stay in constant contact with the needs of your local job suppliers, and if your on top of things and informed, you should certainly know their needs, you should’nt even have to ask, you better have open communication lines.
So, in a nutshell that should fully explain the need for recruitment and retention. What about relocation? What about those companies who are planning to relocate, but could use some assistance? Shouldn't you have a place to go with all the information they need, even a streamlined way to help them process all of their requests and projects with local, state, and national governments? When you put the R3 concept together, and everything seems to flow it is because in a way it is all one.
Merely recruiting a company does no good if you give them a hard time as they relocate, you are setting up a negative mindset with the powers that be in that corporation, leading to negative referrals and lack of future retention. The reality will spread fast through the business community no matter what PR propaganda your economic development team puts forth. It would be wise for you, your team, or organization to consider all this and think very hard on it as you move forward with your economic development ideas and tread lightly.
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