Choosing the right location for a business can be a major factor in its success or failure. In selecting a state to locate a business, two of the primary considerations are the available labor pools and regulatory environments.

According to SHRM’s Future of the U. S. Labor Pool Survey Report , “The available labor pool is affected by many variables.” The most noticeable variables are:

• The number of available jobs and the number of individuals in the workforce available to fill those jobs.
• Competencies and skills.
• Immigration.
• Technology advancement.
• Productivity.

Businesses may obtain detailed labor pool statistics from the U.S. Department of Labor’s Bureau of Labor Statistics . Businesses exploring opportunities for a new location may also be interested in the Forbes Best States for Business list. Here, the labor pool for each state is judged based on business costs, labor, regulatory environment, economic climate, and quality of life.
In considering a state’s regulatory environment, businesses will want to consider variables such as:

• Employment-related laws and regulations.
• Workers’ compensation laws.
• Business taxes.
• Health insurance laws and benefits.
• Union membership.
• General business-friendliness.

Businesses may also consider which states are considered the most employee-friendly. Additional resources for obtaining information about conducting business in specific states include the web sites of the U.S. Department of Commerce , U.S. Small Business Administration , U.S. Chamber of Commerce and state offices of economic development .

Once a state is selected, some of the factors a business must consider when selecting a more specific location include:

• The nature of the business.
• Who and where the business’s customers and competition are.
• The amount of office space.
• Change to employees’ commutes.
• Traffic.
• Accessibility.

Whether in-state or out-of-state, relocating a business can strain a company’s relocation resources and can preoccupy a large portion of an employer’s workforce for a long period—even as the company tries to maintain its pace of doing business.

But the numbers don’t tell the whole story. Such moves have their own dynamics, which HR professionals should be sure to address.

 
Please Note: This material is provided as general information and is not a substitute for legal or other professional advice. Contact the Knowledge Center for more information.
 

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