Last week the subject of my column was part two of lesson two. The title indicated it was lesson three. This week my topic is lesson three. Last week’s subject was a continuation of the lesson on workforce education and training. This week the lesson subject is: Be Transparent in Hiring and Vendor Contracting.
Since many wanted to work at the new BMW plant, it was the cause of some anxiety for existing small and mid-sized employers in upstate South Carolina. They were convinced that many of their best employees would be lured to BMW for the pursuit of higher wages and better benefits. The first round of hiring attracted 60,000 applicants for 1,000 jobs.
Last October, the leadership team visiting South Carolina from the Chattanooga region heard a variety of stories about cannibalization of employees. Some of the South Carolina hosts felt cannibalization was minimal while others felt that many gravitated to BMW. Many of those seeking employment at BMW were just as concerned with the perception that many would relocate to the region seeking the jobs that South Carolina had given rich incentives for. BMW addressed this concern early on by establishing that applicants had to have established residency prior to the announcement of the plant in order to be eligible for hire.
An important distinction needs to be made concerning the labor pool of upstate South Carolina of 1992 and that of the Chattanooga region today. When BMW announced it would be building in South Carolina, the 1,000 jobs would be a part of a 250,000 job labor pool. The Volkswagen labor impact of 2,000 new jobs will be a factor within a labor pool of over 1.2 million jobs. Although the impact will be less significant than the impact to South Carolina, the region labor market will be affected nonetheless.
In South Carolina, BMW took steps to convene regional CEOs. They explained the company’s intentions for hiring and recruiting. Given the size of the region that will be affected by Volkswagen, the direct approach utilized in South Carolina may not be possible or effective. But, the consideration of transparency should still be factored in. Cannibalization will occur to some degree. But the overall increase of good jobs with good benefits will directly and indirectly improve the employment climate for all.
Put another way, those who have the education and experience that will be hired for the positions with higher pay and better benefits, will open up other positions for many. In a region with higher than normal unemployment and projected to be high for awhile, the creation of net new jobs is critical.
As jobs are filled that require better skills and education, those seeking employment will stay in school until graduating or return for their GED.
The recent announcement by the German company investing in Bradley County will also affect our region. It will create cannibalization. Although some of us are experiencing a little envy of our neighbors to the north, we congratulate them and are grateful for their aggressiveness in creating economic development and economic growth for the region. Both will benefit the entire region for many years to come.
Given these changes concerning hiring and vendor contracting, it will be important to minimize the issues associated. As a community, it will be important to fully ascertain the employment implications as Volkswagen begins production. The Greater Dalton Chamber will work with neighboring chambers in understanding the impacts on employment. We will create forums for communicating the intentions of stakeholders, the impact on employers, and the benefits of those in the workforce. The free market will enable the best talent to flow to the best positions. Even those with the least amount of education and experience will work harder on improving their skill set for future opportunities.
While we are discussing our neighbors to our north, let me suggest that the leadership of Tennessee seems to be very aggressive in their economic development efforts. Again, I applaud them and thank them for the creation of jobs and investment for the region. My conversations with leaders from Chattanooga have indicated a strong desire for partnership and collaboration.
A few days ago, leaders from our community spent the day in Atlanta. We met with Commissioner Ken Stewart and his team from the Georgia Economic Development Commission. We also met with Gov. Sonny Perdue. In both meetings we emphasized the need for Georgia to be just as aggressive in pursuing new investment and new jobs for Georgians. We must be just as competitive as our neighbors. The chamber will continue to build relationships with all stakeholders involved in creating a new economic reality for our community.
By working hard, working together, and seeking mutually beneficial policies, we will succeed! God Bless our community, our state and our country.
Brian Anderson is president and CEO of the Dalton-Whitfield Chamber of Commerce.
