Using an experienced third party negotiator, one that is knowledgeable about incentives, tax benefits, timing, use of bonds, change management and employer of choice, will put forth the best-known methods for monetizing a move. Part I deals specifically with the issue of incentives. Traditionally, incentives are realized monetary concessions given to an organization for locating in a specific geographic area. Those that are discretionary, which must be specifically granted by individual states or locales. Those that are considered non-financial discretionary incentives, such as relocation assistance to transferees, or temporary space provided by the community for recruiting and training.
Incentives can be state or community driven, or a combination of both.
While they can be substantial, they should not be the sole drivers in a location decision. Incentives can also directly affect the bottom line, which contributes to the viability of the location and often, can influence the corporate decision. However, incentive funds are generally provided without first obtaining a commitment from the organization for a far greater investment in the community. Most state governors are working to diversify their state's economy. Hence, they are focusing on using incentives as the carrot to lure specific types of corporations into their states or communities.