Labor is the most important factor for most companies - all the businesses that are considering moving the company is located, on the factors that influence the decision. It is generally known that people who work for the company's success and profitability is a key component of quality commitment. As part of the initial investment decision to focus on getting this right with no surprises later.
The number of individual elements within the labor forces. Labor costs and productivity; labor laws and the flexibility of the labor skills. The importance of each component depends on the nature of the business.
Labor skills. Many companies, especially the knowledge-based, this is an important factor. Space for a company that typically require the expertise of its business with a sufficiently large pool of labor demand is located. It is difficult to recognize the rights of the individual skills of the workforce data as possible by business type company sites usually exist in clusters or by the existence of an area is found. This may be broad - an area of engineering or metalworking or for example a long history of mining. Sometimes acquire skills transferable across industries - for example, renewable energy, transferable skills are associated with many of the aerospace industry. Clusters are generally more specific - ICT; Life Sciences; marine engineering, etc. This expands into more and more specialist areas - mobile telecommunications; computer games; Internet Security, etc., are often a few specialist centers of excellence for specific industries and their decision to seek selection on which is best for other factors. One option of course for any company to train their workforce, create their own skill base. This is much easier if the required skills not easily acquired, even if that training costs are included. The only other alternative for the quality of life issues with appropriate skill levels to attract, select a location that is very attractive as a place to stay.
Labour costs and productivity. The value is really important for business. After all of the profit motive and that is the way to achieve low cost and labor cost is usually the largest component of the cost base. Labour productivity is counter productive labor costs for the low relative cost. It is possible to have higher levels of productivity with the net result of low productivity will be the same place as a location yet to be paid higher wages. Course is always a temptation to lower wage costs can be run, and we can work on the productivity issue.
Labour laws and relief. The other factor that really matters in the country of choice. Flexibility as possible with the strength of the company is really important. No company is highly regulated labor market, where the hard work of staff and there are significant costs required to comply with local regulation where it wants to dismiss.
Macro level of the individual country or regional level, where the force is always the right skill set by the terms of the availability of an important component of the trading right from a business location decision is a critical factor.
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Thursday, February 23, 2012
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