Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies (House Document No. 20)
Summary
A report of the Virginia Economic Development Partnership to the General Assembly of Virginia on strategies to attract out-of-state talent to Hampton Roads maritime jobs, dated November 2022. Its executive summary states that the General Assembly directed the Virginia Economic Development Partnership Authority to evaluate strategies for skilled talent in shipbuilding, ship repair, and offshore wind, and that research ran from August through October 2022 and included 14 programs analyzed in depth and 18 stakeholder interviews. It states that evidence from other states and regions shows these programs result in the recruitment of small numbers of workers, and that no single initiative can fully address the skilled trades talent gap.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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“Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies (House Document No. 20).”
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REPORT OF THE VIRGINIA ECONOMIC
DEVELOPMENT PARTNERSHIP
Hampton Roads Maritime
Industry Out-of-State Talent
Attraction Strategies (2022
Appropriation Act, Item
125.R.)
TO THE GENERAL ASSEMBLY OF VIRGINIA
HOUSE DOCUMENT NO. 20
COMMONWEALTH OF VIRGINIA
RICHMOND
2022
Norfolk Internationl Terminals, The Port of Virginia Ørsted Dominion, Portsmouth Marine Terminal
HII, Newport News
Hampton Roads Maritime
Industry Out-of-State
Talent Attraction Strategies
November 2022
Table of Contents
EXECUTIVE SUMMARY 1
BACKGROUND & CONTEXT 4
Core Question and Method 5
Domestic Migration Literature Review and Trends 6
The Maritime and Offshore Wind Industries Within Hampton Roads 7
The Skilled Trades Workforce 8
Current and Projected Industry Pressures 9
Key Stakeholder Perspectives 10
Stakeholder Group I: Regional and Industry Associations 10
Stakeholder Group II: Workforce Development Agencies 11
Stakeholder Group III: Maritime and Offshore Wind Employers 11
Stakeholder Group IV: Skilled Trades Workers 13
OUT-OF-STATE TALENT-ATTRACTION
15
INCENTIVE PROGRAM CASE STUDIES
Case Studies from Global Talent-Attraction Incentive Programs 16
Summary of Benchmarked Case Studies 17
Insights from Case Studies 19
Worker Type 19
Program Scale 19
Incentives Offered 20
Program costs and benefits 20
Program Funding and Administration 21
Featured Case Study - New Worker Relocation Grant Program, Vermont 22
Table of Contents
RECOMMENDATIONS 24
REFERENCES 28
APPENDIX I: GLOBAL CASE STUDIES EVALUATED 32
APPENDIX II: CASE STUDY DEEP DIVES 34
Case Study I: Savannah Technology Workforce Incentive 35
Case Study II: Shift South 36
Case Study III: Talent Attraction Program Scholarship 37
Case Study IV: Tulsa Remote 38
Case Study V: Choose Topeka 39
Case Study VI: Life Works Here 40
Case Study VII: Ascend West Virginia 41
Case Study VIII: Remote Shoals 42
Case Study IX: Educational Opportunity Tax Credit 43
Case Study X: New Relocating Worker Grant 44
Case Study XI: Alaska Permanent Fund Dividend 45
Case Study XII: Revitalize Talent Attraction Program 46
Case Study XIII: M.O.S.T. Nova Scotia 47
Case Study XIV: Tuition and Training Tax Credit 48
APPENDIX III: INTERVIEWED COMPANIES &
49
INDIVIDUALS
Executive Summary
The General Assembly of the Commonwealth of Virginia directed the Virginia Economic Development
Partnership Authority (VEDP) to evaluate strategies to attract skilled out-of-state talent to fill maritime jobs
in Hampton Roads in support of shipbuilding, ship repair, and offshore wind industries.1
From August through October 2022, VEDP, in partnership with a consultant, conducted research for this charge,
which included reviewing literature on domestic migration drivers and trends; identifying and evaluating 44
domestic and international talent attraction incentive programs; conducting an in-depth analysis of 14 of the
most relevant programs in North America; and holding 18 interviews with key stakeholders in the Hampton
Roads area, including regional and industry associations, workforce development organizations, maritime and
offshore wind employers, and skilled trades workers.
Overall, while a targeted domestic worker migration program might have some value for Hampton Roads,
evidence from other states and regions shows that these programs result in the recruitment of small numbers
of workers and that there may be challenges recruiting skilled trades workers. Given the need for workers in
Hampton Roads, no single initiative can fully address the skilled trades talent gap. Therefore, solving this talent
gap will require a combination of initiatives targeting recruiting practices, training, wages, benefits, career paths,
wraparound services, worker retention, and potential incentives for out-of-state talent attraction.
Several trends driving the current and projected skilled worker talent gap in Hampton Roads emerged from
the research:
■
Emergence of the offshore wind industry over the coming years due to the Coastal Virginia Offshore Wind
Project
■
Increasing competitiveness in wages from other sectors and industries, especially retail, hospitality, and
trucking
■
Decreasing competitiveness of wages., locked-in labor rates for military contracts, and reduced flexibility
for hiring policy and practice at larger maritime employers, including citizenship and drug testing
requirements
■
Decreasing numbers of high school and community college graduates entering the skilled trades
■
High attrition in skilled trades jobs like welders, electricians, and machinists
■
Declining number of transitioning military personnel in the region
The region is currently making strides to help fill these gaps; one example is the U.S. Economic Development
Administration’s (EDA) $11 million award in 2022 to the Hampton Roads Workforce Council to build a regional
talent pipeline focused on the blue economy, clean energy, and related cybersecurity.2
The literature makes it clear that domestic migration and promotion of domestic migration to attract workers
is both complicated and challenging. Some themes from our literature review are noted below:
■
Research shows that education level impacts migration likelihood; workers without a college education are
less likely to relocate.3
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 1
■
There is nationwide demand for skilled workers. Scholars have identified this as a shortage driven by
retirements of working populations and the movement toward degree attainment in recent decades rather
than career and technical pathways.4
■
Competition for workers is strong. Employers across the country are increasing wages for both skilled and
unskilled work in areas like retail and hospitality, which may make it even harder to incentivize migration for
skilled labor.
■
Housing, familial connections, and other factors play a key role in decisions about domestic migration.5
In addition to these challenges, our volume of knowledge about the success of current domestic migration
initiatives is scant. The reviewed incentive programs had limited data available to indicate the number of
workers they had attracted, the length of those workers’ tenure in both the jobs they were recruited for, and the
state to which they moved. Those that had data showed success recruiting small numbers of on-site workers
(typically around 50 and no more than 100). Thus, although it appears that promoting domestic migration could
be a valuable solution for a small set of workers, it is unlikely to make a meaningful dent in the more significant
problem underlying this study: the dwindling skilled trades workforce in the shipbuilding, ship repair, and
offshore wind industries.
However, if policy makers are interested in moving forward with an out-of-state talent attraction incentive
program, the literature review and case studies contained in this brief highlight program-design insights to
consider.
■
Strong financial incentives improve the cost-benefit analysis around domestic migration, making them a
valuable tool to drive relocation.6 However, domestic migration also involves high nonmonetary costs. It is
therefore critical to couple financial incentives with support and services that improve information access
and reduce friction and costs of relocation.
■
Most initiatives were accompanied by extensive marketing campaigns to drive publicity and favorably
showcase the city or region, highlighting lower costs and benefits of relocation.
■
Family ties and social networks are key drivers of domestic migration;7 benchmarked programs were most
successful in relocating workers who already had ties to the region.
■
Incentive programs are most effective when regionally developed, structured in a way that drives employer
engagement, and administered with incentives spread over time to support retention.
Out-of-state talent attraction incentives could effectively address a small portion of the skilled trades — worker
talent gap for the maritime and offshore wind industries in Hampton Roads. The case studies provide relevant
lessons and considerations for Hampton Roads. If the region develops a program, designers must consider the
type of skilled worker in demand, the dynamics of the regional employers, and the current economic landscape.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 2
Notes
1
Virginia General Assembly, Budget Amendments - HB30 (Conference Report): Item 125 #9C. Virginia Legislative Information System, 2022
https://budget.lis.virginia.gov/item/2022/2/HB30/Chapter/1/125/.
2
U.S. Economic Development Administration (EDA) Public Affairs Department, Press Release: U.S. Department of Commerce Invests $11
Million to Boost Blue Economy and Clean Energy Workforce Training Program in Hampton Roads Region through American Rescue Plan Good Jobs
Challenge, U.S. Economic Development Administration, August 3, 2022
https://eda.gov/news/press-releases/2022/08/03/Hampton-Roads-Workforce-Council.htm; HRWC, 2022).
3
John Bound and Harry J. Holzer, “Demand Shifts, Population Adjustments, and Labor Market Outcomes During the 1980s,” Journal of Labor
Economics 18, no. 1 (January 2000): 20–54, https://doi.org/10.1086/209949; Raven Molloy and Christopher Smith, “U.S. Internal Migration:
Recent Patterns and Outstanding Puzzles” (paper presentation, Federal Reserve Bank of Boston conference, Boston, MA, October 4–5,
2019); Ofer Malamud and Abigail Wozniak, “The Impact of College on Migration: Evidence from the Vietnam Generation,” Journal of Human
Resources 47, no. 4 (2021): 913–50, https://doi.org/10.1353/jhr.2012.0031; Ning Jia, Raven Molloy, Christopher Smith, and Abigail Wozniak,
The Economics of Internal Migration: Advances and Policy Questions: Finance and Economics Discussion Series 2022-003, Board of Governors of
the Federal Reserve System, 2022
https://doi.org/10.17016/FEDS.2022.003.
4
Lisa Soricone, Breaking Ground: A First Look at American High School Skills Trade Education, Jobs for the Future, 2020
https://jfforg-prod-new.s3.amazonaws.com/media/documents/Breaking_Ground_Final_report_08-06-20-Updated.pdf.
Jia et al., Economics.
5
Jia et al., Economics.
6
Ibid.
7
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 3
Background & Context
Core Questions and Methods
The General Assembly of the Commonwealth of Virginia, Item 125 R of Chapter 2 of the 2022 Acts of Assembly,
Special Session I (the 2022–24 Biennial Budget), assigned a study on Offshore Wind and Maritime Talent
Attraction to the Virginia Economic Development Partnership Authority (VEDP). 1
This line item directed VEDP
… to evaluate strategies to attract skilled out-of-state talent to fill maritime jobs in Hampton Roads to support the
shipbuilding, ship repair, and offshore wind industries. In conducting the study, the Authority shall assess talent
attraction programs operated in other states and review their recruiting strategies, incentives offered for relocation,
and the overall programmatic effectiveness. The report shall contain both legislative and funding recommendations
concerning implementation strategies focused on specifically targeted out-of-state populations, including transitioning
military personnel, trade-school graduates, and other wind-industry related skillsets, specific incentives that would
attract such talent, and potential costs to effectively administer such a program.2
This qualitative report, developed from August to October 2022, outlines potential talent attraction strategies
for the Hampton Roads region. The research team collected data through desk research on more than 40 talent
attraction programs in other states and countries. We prioritized 14 of these programs for deeper analysis
based on their relevance to Hampton Roads. Our research was informed in consultation with existing industry
reports on the region and other publicly available sources, including literature on domestic migration drivers.
Additionally, to better understand the current and projected future needs of Hampton Roads and to gauge
the applicability of the case studies to the region, we conducted semi-structured interviews with members
of various local stakeholder groups, including regional and industry associations, workforce development
organizations, regional maritime industry companies, and with current skilled trades workers. Respondents were
identified through snowball sampling; we conducted 15 interviews with members of 11 organizations and three
workers — an electrician and two welders.
This report closes with recommendations and suggested next steps. The emergent recommendations include
possible program design and financial considerations. As noted above, the report’s primary focus is on the
viability of and potential strategies for recruiting out-of-state populations for high-demand skilled trades
jobs in the maritime and offshore wind sectors in Hampton Roads. However, potential ideas for recruitment
and retention of local workers also emerged from the research and interviews and are included in the
recommendations.
An out-of-state talent attraction program is not a strong solution to address the issue of worker shortages in
Hampton Roads because of the complexity of the skilled worker gap and challenges associated with domestic
migration. The case studies show that domestic migration programs result in a small number of workers
relocating; there is very little data on success. However, if the Commonwealth implements a domestic migration
incentive policy or program, success will require a combination of activities, including recruiting, training, wages,
benefits, wraparound services, and worker retention alongside potential incentives.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 5
Domestic Migration Literature Review and Trends
A recent literature review by the Federal Reserve Board examined the economics of internal migration in the
U.S.3 This review found that domestic migration is a topic of increasing attention among scholars due to the
decline in internal migration over the last three decades. Scholars are exploring reasons for this decline and
its impact on economic disparities across geographies.4
Work is a primary driver for changing states, and it is generally thought that individuals migrate when expected
net benefits exceed costs. Much of the literature identifies migration costs as high and describes costs as both
monetary, such as moving costs, and nonmonetary, such as earnings forgone due to the time it takes to move
and psychological adjustment costs for individuals and families due to changes in environment.5 Similarly, the
benefits or returns of migration may be both monetary (e.g., immediate and potential increased earnings) and
nonmonetary (e.g., a desirable location or familial connections).6 The role that wages and cost of living play in
migration varies by study, but recent work suggests that both of these factors significantly impact the decision
to migrate.7
Previous studies have revealed various factors that hinder migration and others that drive its success. For
example, the bulk of the decline in domestic migration over the last two decades can be attributed to a decline
in work-related migration.8 On the other hand, migration can be promoted by personal or societal economic
shock or natural disasters.9
The research also identifies specific demographic characteristics that make relocation more or less likely.
College-educated workers are more likely than to migrate those without college education, and migration is
more common among younger workers than among older workers.10 Homeowners are less likely than renters
to relocate.11
Existing literature also sheds light on what works to motivate interstate movement. Migration is more likely
when information about an area, including the actual costs and benefits of relocation, is available to potential
workers. Thus, making targeted efforts to educate potential workers, enabling visits, and developing easily
accessible public information can all promote migration to a region.12 Family ties in the location of origin can
hinder mobility; similarly, the presence of family ties and social networks play an important role in migrants’
relocation decisions.13 Migration is more likely when workers who have ties to the region through family and
friends are targeted.14
Workers are more likely to migrate when given supports, including assistance finding housing, financial support
for housing, access to affordable housing, and the ability to benefit from local services and amenities.15
Our qualitative interviews with key stakeholders in the Hampton Roads region reflected and validated the
research findings from the literature.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 6
Maritime and Offshore Wind Industries
Within Hampton Roads
The Hampton Roads region comprises 17 localities with a
population of 1.8 million, making it the second-largest region in
the Commonwealth of Virginia after Northern Virginia.16
The regional economy is primarily driven by defense spending,
but logistics, distribution, and tourism also make significant
contributions.17
The maritime industry is among the region’s most prominent.
Natural harbors and rivers in Hampton Roads are recognized as
prime locations for commerce, trades, and shipbuilding; it is home to The Port of Virginia, the third-busiest port on the
East Coast of the United States, which provides connections to over 200 countries around the world. Additionally, a
large private shipbuilding and ship repair industry serves military and commercial clients in the region.
Some of the largest regional maritime entities include:
■
Naval Station Norfolk: The world’s largest Navy base; supports the operations of the U.S. Atlantic Fleet and
is the Department of Defense’s largest supply center
■
Norfolk Naval Shipyard: The U.S. Navy’s oldest shipyard, credited with being the birthplace of naval technology;
also the largest and most multifaceted industrial facility owned by the U.S. Navy
■
HII: The largest military shipbuilding company in the U.S. Newport News Shipbuilding is one of the divisions
within HII and is the largest industrial employer in Virginia, the sole designer, builder, and refueler of U.S. Navy
aircraft carriers; one of only two providers of U.S. Navy submarines
In addition to the highlighted maritime industry, meaningful growth is also anticipated in the offshore wind industry
due to Dominion Energy’s Coastal Virginia Offshore Wind (CVOW) project.18 CVOW, currently under development off
Virginia Beach’s coast, is the largest offshore wind project in the U.S. Once completed, it is expected to create an
estimated 1,100 jobs in Hampton Roads.19 Moreover, the project is committed to using local workers, hiring and
retaining veterans, and employing workers from historically economically disadvantaged communities.20
Additionally, Siemens Gamesa Renewable Energy announced it will locate the nation’s first offshore wind turbine
blade facility in Portsmouth, Virginia, to support the CVOW project.21 This will create over 300 new jobs in Hampton
Roads.22 (It is worth noting here that multiple states along the Eastern Seaboard have plans to develop offshore
wind farms, all of which will require manufacturing supply chain centers.)
The Hampton Roads Workforce Council projects a hiring demand of over 18,000 maritime workers over the next
five years.23 By the time the East Coast offshore wind industry reaches its anticipated capacity in 2026, it will have
added an estimated 5,200 direct and indirect jobs to Virginia’s economy, almost all of which will be located in
Hampton Roads.24 Both the maritime and offshore wind industries will need skilled trades workers, changing the
trajectory of in-demand skills in the region.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 7
The Skilled Trades Workforce
Occupational Makeup
Currently, occupations defined in this report as the skilled maritime workforce in Hampton Roads account for
approximately 41,700 workers, or 5% of the region’s total workforce.25 According to employers and local industry
associations, the skilled trades talent gap primarily includes roles that are key to supporting the shipbuilding
and ship repair industries as well as the burgeoning offshore wind industry. These roles include construction
laborers, electricians, welders, pipefitters, machinists, and general metal and plastic workers. Based on
employment projections from Hampton Roads maritime employers, the need for these skilled workers is
projected to be in the thousands; Newport News Shipbuilding, mentioned above, currently projects a need to hire
approximately 3,000 skilled trades workers, while many of the smaller shipbuilding and ship repair companies
are projecting to hire between 20 and 200 skilled trades workers.
Currently, Hampton Roads residents account for approximately 88% of the maritime industry workforce (about
36,750 workers) identified in this study; the remaining 12% (about 5,000 workers) are nonresidents of the region.
The Retiring Workforce Population and Military Personnel
In conjunction with the demand for a skilled maritime workforce, job growth and annual job openings are
expected to remain relatively constant over the next five years (-0.7% and 10%, respectively) with nearly 25% of
the current maritime industry workforce (approximately 10,350 workers) is estimated to retire within 10 years.26
The military is a significant driver of the economy in Hampton Roads because the region is home to several
military bases. Starting in 1969 (when the first data became available), uniformed military personnel in Hampton
Roads represented over 25% (or about 270,000) of all workers in Hampton Roads. Since then, the share of direct
military employment in Hampton Roads has steadily declined, making up only about 7.5% (or 81,000) of workers
in 2017.27 From 2003 to 2017, federal civilian employment increased by about 11,000 workers.28 These
employment shifts in Hampton Roads reflect the national experience; across the U.S., uniformed military
employment has decreased as employment in the defense contracting industry has increased.
Race, Ethnicity, and Education
Relative to national averages, the Hampton Roads region has a larger Black population (31% vs. 14% nationally)
and a smaller Latinx population (7% vs. 19% nationally). There are more females than males in the region by
nearly 3.5%.29 These regional demographics are noteworthy given the makeup of workers within the maritime
industry, which skews heavily male relative to the region’s population. In the maritime industry in Hampton
Roads, 94% of the workforce is male and 62% is white.30
Typically, the entry-level education of the workforce within the regional maritime industry is a high school
diploma or equivalent. Workers in the region with high school equivalence have lower unemployment rates
and higher wages than those without. The high school graduation rate is 93%, which is in line with the
Commonwealth broadly, indicating that high school education is not a significant barrier to talent attraction
in the skilled trades.31
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 8
Current and Projected Industry Pressures
The skilled trades worker talent gap in the maritime industry in Hampton Roads is fueled by demand, an aging
workforce, and other factors detailed below.
1. Emergence of the Offshore Wind Industry: As the offshore wind industry emerges in the region, it is expected
to intensify the talent shortage, especially during the building phase slated to start at the end of 2023 and
last approximately five years. According to the Business Network for Offshore Wind, the industry is expected
to offer wages that are higher than the regional average, along with robust benefits and cutting-edge job
skills and certifications. These offerings will likely draw workforce away from existing employers, including
incumbent shipbuilding and ship repair companies.32
2. Increased Competitiveness in Wages from Other Local Employers: Beyond competition within the maritime
industry, the region is seeing an emergence of other industries contending for local talent within Hampton
Roads. The retail, hospitality, and trucking industries provide competitive pay, easier and more flexible
work environments, and more evident job growth opportunities. For example, the average entry-level pay
for the maritime industry (e.g., construction laborers, welders, pipefitters) is $13.90/hour, and the average
experienced-level pay is $29.90/hour. Similar entry-level retail positions (e.g., cashiers, warehouse personnel)
offer an average of $23.50/hour.33 This reality contributes to attrition rates in maritime jobs.
3. Locked-In Labor Rates and Less Flexibility at Larger Maritime Employers: Larger maritime employers in the
region, particularly those with government contracts, feel more acutely all the workforce challenges we have
discussed. This is because they have more stringent requirements for their workforce, including citizenship
and drug testing, that decrease their pool of potential new hires. Increasing wages is difficult due to long-term
contracts with the Department of Defense, which often have locked-in labor rates. Additionally, their working
conditions may be less flexible than those of smaller employers (e.g., requirements to work any shift, inability
to take personal calls during work hours).
4. Lower Workforce Entry Into and Retention in Skilled Trades: Workforce entry into the skilled trades is lower
than it has been over the last decade.34 This is driven partly by lower wages but is compounded by the
shipyards’ challenging and often less flexible working conditions. Young high school graduates are directed
to four-year college degrees as the path to income stability and dissuaded from pursuing a career in the
skilled trades. At the same time, higher retirement and attrition rates, particularly among welders, electricians,
and machinists, are driving high workforce turnover.
5. Declining Numbers of Transitioning Military Personnel: Transitioning military personnel have historically been
a source of the skilled labor workforce in Hampton Roads. However, there has been a steady decline over the
past 20–30 years, with those leaving the military increasingly opting to return home after their assignments.35
Programs like the Department of Defense’s SkillBridge can be valuable in helping transitioning military
personnel get training and placement with regional employers.36 SkillBridge is for active-duty military in their
last six months of service. They can choose a corporate partner to work for upon approval from their unit
commander. The military continues to pay them. The program offers mutual benefit in that a service member
gets training and the opportunity to explore working in a civilian role at a company, and corporate partners
get access to a trained military workforce at no cost. At the end of the program and the completion of the
service member’s active duty, participants can transition to a full-time role should the company offer one.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 9
Key Stakeholder Perspectives
Several regional stakeholders play a role in attracting and retaining skilled trades workers. While maritime industry
employers and workers are most directly involved, regional and industry associations, workforce development
agencies, government entities, the emerging offshore wind industry, and other tangential industries are all impacted
by the region’s current and projected talent gap.37 The research team conducted interviews with key regional
stakeholders to investigate macro trends related to the skilled worker talent gap within the specific context of the
Hampton Roads region and to ensure that assessed benchmarked programs from other states were considered
appropriately given their relevance and applicability to Hampton Roads.
Additionally, if the General Assembly decides to move forward with a talent attraction program, it will help to
understand the perspective of various stakeholders and the roles they will need to play in implementing potential
strategies to attract out-of-state talent.
Notable insights from the interviews are captured below. See Appendix III: Interviewed Individuals & Companies
Represented for a list of those interviewed.
Stakeholder Group I: Regional and Industry Associations
Key insights
Regional and industry associations have a vested interest in strengthening the health of Hampton Roads and
growing business in the maritime and offshore wind industries. They continue to see companies across the region
struggle to attract and retain talent but have yet to see any significant successes in attracting out-of-state talent.
According to respondents, the region can do more to attract, train, and retain local and in-state talent, particularly
through early intervention methods (starting with middle and high school), demonstrating clear career paths in the
skilled trades, and showcasing skilled trades roles as high value and high earning. Some noted that it is significantly
more expensive to attract and relocate out-of-state talent than to pay to reskill or upskill local talent. They recognize
that quality training is an integral part of talent attraction and retention and emphasize the need for the creation of
effective training programs that are coupled with support systems for workers as they get trained. They identified
child care, transportation, and housing challenges as acute pain points for workers, particularly at the entry level.
Generally, respondents believe that talent attraction problems felt in the region are not unique to Hampton Roads and
are common in ports and shipyards across the country. They also recognize that companies in Hampton Roads that
service Department of Defense contracts face heightened challenges than others in this regard due to the increased
requirements for incoming workers (citizenship, drug testing, etc.) and lower wage flexibility connected to long-term
military contracts.
Respondents reported seeing evidence that wages drive talent attraction in the skilled trades, particularly in the ship
repair space, and increases in wages are in some cases able to address talent challenges, which they consider the
responsibility of employers. They broadly see the entry of offshore wind in the area as a positive for the region’s
economic development and recognize that the wind industry will have some talent overlap along with unique needs.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 10
They believe wind companies will be attracting a larger workforce to the region that could transition to supporting the
maritime industry after the intensive build phase of the windfarms.
Stakeholder Group II: Workforce Development Agencies
Key insights
Workforce development agencies in Hampton Roads are interested in the overall health of the workforce and talent
pipeline across industries. Designing and delivering training programs to help prepare workers for employment is
critical to maintaining the talent pipeline and upskilling potential workers in the skilled trades.
Respondents from this group see a significant need for development of the skilled trades workforce in the region.
They have been conducting research to understand current and future projected talent needs so they can help ensure
workforce readiness. They have valuable insights into the workforce’s needs, particularly regarding support and
wraparound services, given their proximity to the workers they train. They identified the primary challenges of
Hampton Roads workers as child care, transportation costs, and affordable housing near training and job sites. These
pain points are even stronger for workers coming from out of state because they are less likely to have local
community and support structures to help address these challenges.
Respondents believe that a key factor driving higher-than-usual attrition rates among skilled workers in the maritime
industry is wage stagnation from certain employers. They connect this issue to an increased demand for commercial
driver’s license (CDL) certifications and to an increasing number of workers veering away from the skilled trades for
sectors like retail or hospitality, where they can earn comparable wages while enjoying easier and more flexible
working environments.
Respondents recognize that while their training programs help build critical hard and soft skills for workers, the reality
of working conditions in the shipyards is not always something that workers are prepared for. Though longer training
programs tend to prepare workers better in this regard, employers are pushing for more accelerated training to get
talent working immediately. This, too, may have an effect on retention.
The workforce development respondents we spoke to reported that their organizations focus on training local talent.
This is likely due to their typical funding models. To qualify for community college financial aid programs, workers
must typically live in Virginia. This reality makes it hard for workforce development agencies to train workers from
outside the state. Respondents also reported a focus on helping to place transitioning military workers in permanent
full-time roles as they exit.
Stakeholder Group III: Maritime and Offshore Wind Employers
Key insights
The research team interviewed four regional employers; these companies rely on skilled workers to deliver on
contracts and grow their businesses. Increased attrition and lower workforce entry create challenges for these
employers, particularly the larger ones with long-term government contracts. Employers are experiencing challenges
recruiting and retaining local talent.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 11
Some employers, particularly the larger ones, have implemented efforts to recruit talent from out of state,
mainly through partnerships with trade schools or community colleges in neighboring states. They have had
some success but are not sufficiently addressing the scope of current needs. They have also seen companies
from other states try to recruit their employees.
Many employers have started offering signing bonuses to new skilled workers, which has helped attract more
talent. Moreover, as employers have increased wages to the $25–30/hour range, they have found it much
easier to attract and retain talent. This is generally easier with short-term (1–2 year) contracts, which ensure
that employers are charging their buyers at a level commensurate with what they need to pay their workers.
Employers with long-term contracts may have less flexibility if they do not have labor wage escalation clauses
in their contracts. Smaller employers or ones who do not have long-term contracts also have to ensure that
their hiring aligns with immediate contracts; managing this balance is difficult.
Employers generally do not struggle to find skilled workers for short-term assignments. Leased labor workers
are plentiful; they are happy to come to the Hampton Roads region for a few months, primarily driven by
higher wages and better benefits than they can get in their local areas. These workers typically receive
housing and a per diem, so it can be lucrative for them to take on short-term contracts that do not require
them to uproot and relocate their families. Given the higher costs, employers generally prefer to cap short-term
labor at 10–20% of their workforce.
Most smaller employers reported a need for 10–30 welders and structural fitters at the time they were
interviewed, which they can largely address through leased labor or by offering slight wage increases.
Larger employers reported needs for skilled workers in the thousands.
Benefits and wraparound services are also important. Employers believe that more child care options,
increased affordable housing nearby (within three miles of) the shipyards, and better public transportation
options would make it easier for skilled workers to stay in the workforce.
Additionally, higher investment in workforce development drives employee productivity and retention.
Employers believe that promoting the trades as viable career paths earlier in schools (starting K–12) and
bringing parents along to showcase the trajectory and earning potential is important to grow the workforce.
Attrition has been a big challenge. At the same time that many older workers are retiring, others are leaving
to pursue commercial driving or retail work. Employers see up to 30% attrition within the first year for new
skilled trades hires.
As offshore wind grows in the region, employers within that space will need to hire. Offshore wind will have more
flexibility in hiring workers — they will be able to hire foreign nationals and will not have government-mandated
drug testing. They will, however, need to train and certify workers; even experienced skilled trades workers will
require a GWO (Global Wind Organization) certification before they can begin working. The offshore wind
companies have committed to creating jobs and driving employment within Virginia, focusing more on local talent.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 12
Stakeholder Group IV: Skilled Trades Workers
Key insights
Skilled trade workers in demand in the maritime industry in Hampton Roads include construction workers,
electricians, welders, pipefitters, machinists, and general metal and plastic workers. The roles in highest demand
within the region are welders, electricians, structural fitters and pipefitters, and other metal workers.
Conversations with workers reinforced many themes that emerged from other stakeholder groups and yielded
some additional insights.
None of the three workers interviewed are originally from Hampton Roads; military service or family in the region
initially brought them to the area. They stated that it would have been unlikely for them to have moved to the
area otherwise.
Workers indicated that features of the area such as the lower cost of living relative to urban centers on the East
Coast and the local community were important considerations in staying in the area. Additionally, for workers
who had been in the military, having a community of veterans in the region and at work also drove them to stay.
The workers highlighted the value of support and wraparound services, particularly during training and
transition. In addition to housing and transportation support, they mentioned that additional support around the
job placement process and integration into the community would have been helpful. They noted that the quality
of training for occupations like welding was strong technically, but wished the training gave them a better sense
of how to navigate the system once they were employed.
For workers whose entire career had been in the military, support in transitioning from military to civilian life was
extremely beneficial. Workers cited programs like SkillBridge, mentioned above, as being particularly valuable in
giving them exposure to an employer and facilitating their transition. They also indicated that additional support
around job applications, résumé writing, and integration into employer environments that differed in schedule
and structure from the military would be of value.
Workers also spoke about the importance of financial remuneration in their decision to join their employers. They
indicated that they would likely leave their employer if they saw roles with similar or higher wages in other sectors.
Finally, the workers expressed a lack of clarity around their career trajectories. They did not know when their
next promotion would be, what opportunities would exist for them over time, or how to position themselves for
those opportunities. This created frustration, and they noted that it might make them more likely to leave for
other opportunities.
Across these stakeholder groups, we heard similar themes. Many of the themes relating to domestic migration
are also backed up by research findings.
■
The skilled trades worker talent gap is meaningful in the region but is felt differently by employers of different
sizes and needs.
■
Attracting skilled trades workers to the region is important, but so are efforts to hire locally and reduce
turnover and attrition.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 13
■
Increasing wages can help, and short-term leased labor is not difficult to find, indicating that higher
compensation and benefits do drive talent attraction.
■
Child care, transportation, and affordable housing challenges are significant pain points for workers and
those in training.
Family and social networks in the area make it more likely that out-of-state talent will come, stay, and thrive in
Hampton Roads.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 14
Out-of-State
Talent attraction Incentive
Program Case Studies
Case Studies from Global Talent Attraction
Incentive Programs
The research team benchmarked over 40 global programs for this analysis (see Appendix I: Global Case Studies
Evaluated). Of those, 14 were shortlisted for deeper research based on their relevance and applicability to
Hampton Roads. The map below shows the 14 programs studied most closely.
1. Alaska 5. Life Works 9. Revitalize 12. New
Permanent Here Talent Relocating
Fund Dividend Arkansas Attraction Worker Grant
Alaska 6. Shift South Program Vermont
2. Tuition & Mississippi Virginia 13. Educational
Training 7. Remote 10. Ascend Opportunity
Tax Credit Shoals WestVirginia Tax Credit
Canada Alabama West Virginia Maine
3. Choose 8. Savannah 11. Talent 14. M.O.S.T. Nova
Topeka Technology Attraction Scotia
Kansas Workforce Program Canada
4. Tulsa Remote Incentive Scholarship
Oklahoma Georgia Ohio
Prioritized Programs
Programs were prioritized based on two key factors: (1) target worker type, specifically domestic and on-site
workers; (2) program design, funding, and administration, specifically those programs implemented by
governments, public sector organizations, and public-private partnerships.
1. Target Worker Type
■
Programs that focused on domestic workers and did not rely on international migrant labor or visa
incentives were most relevant to the levers that the Commonwealth of Virginia can pull, particularly
given the citizenship requirements for skilled trades workers employed by companies with Department
of Defense contracts.
■
Prioritization was given to programs that targeted on-site rather than remote workers, specifically those
in the skilled trades. Eight of the 14 shortlisted programs targeted on-site workers. However, assessments
were conducted on six programs that targeted only remote workers because they offered information
about incentive design or structure, funding, or program administration.
2. Design, Funding, and Administration
■
Prioritization was given to programs implemented in a state, province, or region by governments, public
sector organizations, or public-private partnerships rather than those run solely by individual employers.
None of the benchmarked programs are solely employer funded.
■
Programs launched before 2021 were prioritized to reference information on program outcomes. Four more
recent programs were included on the shortlist because of their relevance to skilled trades workers. It is also
worth noting that outcomes data is inconsistent across programs. While some programs have published
information on program targets; number of applicants, awardees, and people relocated; impact on income
tax, sales tax, and property tax; job creation; local GDP; average worker salary; and more, other programs
have only released information on a subset of these items or none at all.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 16
Summary of Benchmarked Case Studies
The 14 selected case studies were further assessed based on five factors. The factors are outlined below,
along with a summary of each program’s assessment. Detailed information, including links to the 14 program
websites, can be found in Appendix II: Case Study Deep Dives. The section below outlines details that emerged
on the following:
1. Target Worker Type: The assessed programs were already filtered for on-site workers, but the sample
includes some programs focused on remote workers, given other program relevancies to Hampton Roads.
2. Incentives Offered: This includes specific program incentives and offerings to program participants.
3. Program Requirements: This outlines any key program requirements relating to worker age, location, program
dates, or other program regulations.
4. Program Effectiveness: This highlights key program outcomes such as the total number of awardees,
awarded dollars, and any reported information on the program’s economic development impact.
5. Funding and Administration: This identifies which entity or entities funded and/or administered the program,
including marketing, program launch and selection, program operations, and program maintenance.
Table I provides an overview of the 14 focus programs.
Table 1
Benchmarked Program Overview
Program Target Worker Type Incentive Value and Structure Funding Launch Date
Savannah Remote tech workers $2,000 Local Economic 2020
Technology Cash reimbursement for Development
Workforce relocation expenses Authority
Incentive
Shift South Remote workers $6,100 Regional Public 2020
Cash reimbursement for relocation Private Economic
expenses + monthly cash stipend Development
for the first year Partnership
Talent A On-site and $10,000 Local Public Charity 2018
ttraction remote workers Monthly grant toward repayment
Program in STEAM of student loan debt. Dollars are
Scholarship equally split monthly for one year
Text
Tulsa Remote Remote workers $10,000 Local Family 2018
Cash reimbursement for relocation Foundation
expenses + monthly cash stipend
for first year + co-working space
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 17
Program Target Worker Type Incentive Value and Structure Funding Launch Date
Choose On-site and remote $10,000 - $15,000 Partnership between 2019
Topeka workers Cash grant for rental costs or the County and
home purchase expenses City; 50% funded by
employers
Life Works Remote tech/STEM $10,000 Local Corporate 2020
Here workers Monthly cash stipend for first Family Foundation
year + mountain bike + cultural
memberships Dollars are equally
split monthly for one year
Ascend Remote workers $2,000 + $10,000 + $2,500 Local Family 2021
West Monthly cash stipend for first year Foundation
Virginia + bonus at end of second year +
mortgage assistance for all
applicants + recreational benefits
and co-working space
Remote Remote workers $10,000 Local Economic 2019
Shoals 25% upfront for relocation costs; Development
25% after 6 months; 50% at the Authority and
end of the first year Chamber of
Commerce
Educational On-site and $25,000 State Government 2008
Opportunity remote workers $2,500 annual reimbursement of
Tax Credit student loan repayments through
refundable state tax credit
New Relocating On-site workers in $7,500 State Government 2021
Worker Grant short-staffed industries Cash reimbursement for relocation
expenses including moving costs,
lease or closing costs, first month rent
Alaska On-site and $3,850 State Government 1976
Permanent remote workers Expected payout for 2022; amount
Fund Dividend varies each year (was $1,114 in 2021)
Talent On-site workers in $48,000 Regional 2019
Attraction targeted, hard-to-fill $12,000 annually in student loan Commission
Program occupations repayment reimbursements
M.O.S.T. On-site skilled $2,700 Provincial 2022
Nova Scotia trades workers Provincial tax rebate on the first Government
$50,000 of income earned through
work in eligible skilled trades
Tuition and On-site skilled $5,000 Federal Government 2020
Training trades workers Tax credit for up to 50% of any training,
Tax Credit certification, or licensing courses or
exams from certified institutions
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 18
Insights from Case Studies
Most talent attraction programs intend to stimulate economic development in a city, region, or state. Historically,
incentives have been offered to attract corporations to a given area; the programs we examine here focus instead
on attracting workers. The reviewed programs were designed to generate value through local economic stimulus,
property taxes, sales taxes, and local income taxes, as well as to address talent attrition or talent gaps in key areas.
As the research we highlight in the literature review section indicates, increasing economic value for a migrant in
the destination area through cash incentives, housing incentives, income tax rebates or exemptions, student loan
repayment reimbursements, or other benefits can effectively incentivize migration.
Across the case studies, insights emerged that drive considerations for Hampton Roads.
1. Worker Type
Most talent attraction incentive programs did not target on-site skilled workers. Most programs were
designed to target more mobile workers, which often meant remote workers, technology workers, and other
more educated and mobile worker groups as indicated in the research. Additionally, many programs were
intentionally designed to ensure local jobs were not lost to incoming talent, so they specifically focused on
remote or self-employed workers. The programs in Vermont, Nova Scotia Topeka, and Virginia are the most
relevant to Hampton Roads in targeting on-site workers, skilled trades workers, and other hourly wage workers.
■
Virginia’s Talent Attraction Program (TAP) focuses on workers in high-demand/hard-to-fill roles in the
Tobacco Region of Virginia. The TAP program provides for student loan repayment reimbursement, which is
likely less applicable to the skilled trades workers we are targeting in Hampton Roads because they may not
have student loans.
■
Vermont’s New Relocating Worker Grant also targets workers in high-demand roles, including skilled trades
workers. The program provides workers with a cash grant of up to $7,500 for relocation expenses.
■
The M.O.S.T. Nova Scotia program specifically targets skilled trades workers with an income tax rebate at
the provincial level. The expected average value of this incentive is $2,700 CAD, but because the program
will be implemented for the first time for the 2022 tax year, there is no available data on program
implementation or efficacy. Moreover, this program applies to all skilled trades workers in the province and
does not require that workers relocate to Nova Scotia to reap the award. Its intent is to attract and retain
younger people in the skilled trades, given that older workers are retiring.
■
Choose Topeka has two sleeves: one targeting remote workers and the other focused on on-site workers.
For this latter sleeve, if a worker moves to Topeka for a full-time position with a qualified local employer and
rents or purchases a home in the county, they are given a stipend of $10,000 (rental) or $15,000 (home
purchase).
2. Program Scale
Most benchmarked programs are still in their early stages or are being run as pilots and, on average, target
only 10–100 on-site workers per year. The number of workers that programs focused on out-of-state
relocation have targeted and successfully attracted are generally in the double digits, or at maximum in the
hundreds, and the cost of attracting these workers has been significant. It is unclear whether these workers
will stay long-term, given that most programs were launched within the last five years and have not published
any retention data.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 19
None of the larger-scale programs we examined seek to relocate talent; instead, they focus on awarding all
those in an industry or state.
■
M.O.S.T Nova Scotia will offer a provincial tax rebate on the first $50,000 of income earned through work in
eligible skilled trades; it will apply to all skilled workers (approximately 7,500) in the province and will not
require relocation.
■
Similarly, the Alaska Permanent Dividend Fund, which provides an annual tax grant to Alaskans, applies to
all Alaska residents and does not focus on relocating talent.
■
Maine’s Educational Opportunity Tax Credit provides reimbursement for student loan repayments for any
worker with a bachelor’s or associate degree from a U.S. school who is a Maine resident and works in Maine.
Of the programs focused on talent attraction and relocating workers, Tulsa Remote is the largest, with 1,700
workers accepted into the program and relocated to Tulsa, Oklahoma. However, this program targets only
remote workers. None of the programs targeting on-site workers have relocated more than around 100
workers to date.
3. Incentives Offered
Programs vary in the amount and structure of the incentive they provide. Many were set up to deploy the
incentive over a year or longer and combine some upfront relocation cost coverage with monthly stipends.
Spreading benefits over one to two years may help ensure worker retention. Mississippi’s Shift South, Tulsa
Remote, Life Works Here in Arkansas, Ascend West Virginia, and Alabama’s Remote Shoals program all
provide monthly payments. Ascend West Virginia offers an additional $2,000 stipend at the end of the second
year to incentivize retention.
Programs offered various combinations of cash grants for relocation, monthly cash stipends, rental or home
purchase rebates, income tax rebates, and student debt repayment reimbursements. As noted above, student
debt repayment reimbursement may be less applicable for skilled trades workers in Hampton Roads, but
the other types of incentives could all be applicable. Generally, workers prefer some upfront payment versus
simply an income tax rebate, but both put more money into workers’ hands.
While the essential benefit offered is most often a cash incentive or financial benefit, almost all programs
include a host of wraparound services that the literature review indicates are critical in helping workers
successfully relocate to and integrate into the new area. Programs offer support in areas including
assistance with searching for housing, finding employment for partners/spouses or other family members,
and access to events to help integrate workers into the local social scene. Almost all programs offered
some level of support in these areas. Additionally, networking events (Tulsa Remote, Ascend West Virginia),
free use of co-working spaces for remote workers (Tulsa Remote, Ascend West Virginia), and other cultural,
outdoor, and recreational benefits (Ascend West Virginia, Life Works Here) were also common to help
incoming workers connect to the area and community.
4. Program Costs and Benefits
It is still early in the lifespan of many of these talent attraction incentive programs, and limited public data is
available on the effectiveness of certain programs. Where results are available, states claim to see significant
value generated in local GDP; income, sales, and property tax revenue; and local job creation.
■
Tulsa Remote estimates that for every dollar spent on the program, just under $14 was generated in local
income taxes and that the program generated $62 million in new labor income to the local economy.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 20
■
Choose Topeka reports generating over $3 million in economic impact.
■
Remote Shoals projects a $6 million increase in GDP related to the program.
■
Vermont reports that its New Relocating Worker grants generated $17 million for the state economy and
$1 million in tax revenue.
Most of the programs we reviewed have been renewed or extended, but a few have been shut down, mainly
due to funding running out. Program costs ranged from $2,000 to more than $20,000 per worker, not
including program operating and administrative expenses.
Most initiatives were accompanied by large marketing campaigns to spread the word and showcase the city
or region favorably. Highlighted campaign elements included low cost of living, cultural events, and access to
outdoor activities.
Programs found that they were most successful in relocating workers who already had ties to the region
(e.g., grew up, went to school, had family or friends nearby). This finding is backed by research, which shows
that family and social network presence are significant drivers of domestic migration.
5. Program Funding and Administration
Regarding funding and administration, it is worth noting that few programs were implemented at the
state level; rather, they operate within a specific city, county, or region. Programs implemented at the state
level generally focused on income tax rebates or student debt repayment, such as Maine’s Educational
Opportunity Tax Credit and M.O.S.T. Nova Scotia. Vermont’s New Relocating Worker Grant is the only example
of a state-administered and state-funded relocation program targeting skilled workers that offered cash benefits.
The majority of programs — those that did not operate at the state level — rarely received any government
funding. Instead, they were more likely to be funded by local foundations, nonprofits, or local economic
development organizations:
■
Virginia’s TAP is funded by the Virginia Tobacco Region Revitalization Commission.
■
Alabama’s Remote Shoals is funded by the Shoals Economic Development Authority and the local Chamber
of Commerce.
■
Ascend West Virginia is funded through a $25M gift from former Intuit CEO Brad Smith, with private
companies like Rocket Mortgage contributing to the mortgage assistance benefit.
■
Northwest Arkansas’ Life Works Here is funded by the Walton Family Foundation.
■
Savannah’s Technology Workforce Incentive program is funded by the Savannah Economic Development
Authority.
■
Mississippi’s Shift South is funded by Natchez, a regional public-private economic development partnership.
■
Ohio’s Talent Attraction Program Scholarship is funded by the Hamilton Community Foundation,
a public charity.
■
Tulsa Remote is funded by The George Kaiser Family Foundation.
■
Choose Topeka is funded by the Joint Economic Development Organization (JEDO), a partnership between
Shawnee County and the City of Topeka. The employer pays the stipend for on-site employees upfront and
is reimbursed by the city for 50% at the end of the first year if the worker is still employed.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 21
Featured Case Study:
New Relocating Worker Grant Program, Vermont
Vermont’s New Relocating Worker Grant is the only
example of a state-administered and state-funded
relocation program targeting on-site workers, including
skilled workers. As such, a closer look at this program
is warranted.
Since 2018, Vermont has run three programs
focused on attracting out-of-state talent to Vermont.
The first program was the Remote Worker Grant
Program, which was aimed at drawing remote
workers to Vermont. The second program, Stay to
Stay Weekends, funded exploratory vacations to help
vacationers learn what it would be like to move to
Vermont and connected them with employers, realtors,
community leaders, entrepreneurs, and potential
neighbors throughout a weekend. The third program,
the New Relocating Worker Grant Program that we will
discuss below, targeted workers in a list of short-staffed industries to move to the state. All three programs have
now ended, and all funds have been allocated.
The program launched in 2021 and was funded and administered by the state’s Agency of Commerce and
Community Development. Workers had to relocate to Vermont after July 1, 2021, and find full-time employment
in Vermont in a role deemed in high demand. Vermont updated the list of qualifying occupations quarterly and
included skilled workers such as carpenters and construction workers, as well as other high-demand roles
such as teachers, child care workers, home health aides, and service and hospitality workers like bartenders
and cashiers. (A full list of qualifying roles can be found at Short Term Occupational Projections: 2020–2022
Occupations with the Most Openings). Employers had to demonstrate that they were unable to fill the job from
the pool of applicants inside the state and ensure that the employee received a minimum of $13.39/hour, the
Vermont living wage.
New workers received a $7,500 award structured as reimbursement for expenses, which included moving costs,
closing costs or lease deposits, and first month rent payments.
Across all three of its talent attraction programs, Vermont has spent almost $2 million to attract 435 new
workers and their families to the state. Most of these grants (over 300) went to remote workers, but around
100 were for on-site workers in short-staffed industries. Most grantees had some previous exposure to
Vermont through a vacation, family living in the area, or having previously lived there.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 22
The legislature commissioned a study indicating that the grants generated $17 million for the economy and over
$1 million in tax revenue. However, these figures have been called into question by the state auditor. One major
structural shortcoming of the program was that applicants were only eligible to apply once they had moved to
Vermont and established residency. Because applicants had to move without knowing if they would receive
grant funds, the grants were likely not the direct driver of the move.
The Think Vermont website and campaign accompanied the grant programs and served as a key source of
information about the programs and the hub for all program applications. The website showcased the quality
of life, community, and access to the outdoors in Vermont, as well as resources for those interested in learning
more about the state and connecting with residents.
In June 2022, Vermont approved new legislation allocating an additional $3 million of funding for a new
relocation program. Details of this program and the type of worker it will target have not yet been announced.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 23
Recommendations
Recommendations
It is clear from this research that no single initiative can fully address the skilled trades talent gap in Hampton
Roads. Given the complexity of the demographic, economic, and social factors driving the talent gap, solving
this problem will require a combination of initiatives targeting recruiting practices, training, wages, benefits,
career paths, wraparound services, and worker retention alongside potential incentives for out-of-state talent
attraction.
Although out-of-state talent attraction incentives could effectively address a small portion of the skilled trades
worker talent gap for the maritime and offshore wind industries in Hampton Roads, the insights gleaned from
the research and analysis conducted indicate several potential challenges that could arise should that pathway
be pursued.
Given the nationwide demand for skilled trades workers, incentive programs targeted toward those workers
might be less successful than programs targeting other types of workers.
In addition, literature on the topic suggests that skilled trades workers and other workers without college
degrees tend to be less mobile and stay in the areas where they received training. Therefore, they may be less
driven by these incentives than other more highly paid and educated workers.38 Most skilled trades workers
today are also older, making them less likely than younger workers to move.39
Moreover, given that most benchmarked case studies are relatively recent, no retention data is available to
indicate how long those workers will stay in Virginia, nor whether they will remain in the roles they were brought
to the state to fill.
Finally, other programs have targeted and therefore only have seen success with small numbers of workers
(typically 50–100), which is far fewer than will be required to meet the anticipated need in Hampton Roads.
Nonetheless, if the Commonwealth enacts an incentive program, we recommend a regionally designed,
funded, and administered program in line with the best practice recommendations outlined in the table below
in (1) program eligibility, (2) types of incentives offered, (3) incentive structure, (4) program funding and
administration, and (5) program marketing and communication.
Table II highlights recommendations for each element of program design based on this research. The findings
indicate that an incentive program alone is unlikely to make a significant dent in the talent gap that currently
exists, but it could be one of myriad solutions that the region pursues.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 25
Table 2
Program Considerations and Recommendations
Consideration Recommendations
Program Eligibility ■
Program should target both experienced skilled workers as well as those who have not
yet been trained in the trades but are ready to commit to working in the skilled trades in
the region for a three-year period. Skilled workers and other community college graduates
tend to stay in the area where they received training, so capturing workers before they have
been trained, incentivizing them to relocate, and then training them and placing them in
jobs will likely be effective.
■
Consider offering certain incentives to worker segments at high risk of turnover or attrition
to mitigate the risk of resentment and frustration with the existing workforce.
Incentives Offered ■
Financial incentives are powerful and a key driver for skilled workers in this sector. Direct
cash payments and state income tax relief are both appealing, but workers prefer cash grants.
■
A cash grant needs to be large enough to provide for a meaningful upfront payment to
support relocation as well as for a sufficient balance to be spread over time to incentivize
retention, so a total incentive cash payment on the order of $10,000 would be necessary
for effectiveness in this context.
■
In addition to cash payments, wraparound services and support will be important to
implement. Key services should include housing search assistance, employment support
for family members, and community connection events and activities.
Incentive Structure ■
Given the high turnover rate of skilled workers in their first year and data from Hampton
Roads employers that shows workers who stay in roles beyond three to five years have
markedly lower attrition, incentives should be structured in a way that provides an
upfront cash payment to offset relocation expenses ($2,500) with the balance of $7,500
paid in installments over a three-year period ($2,500 per year paid monthly). These figures
are indicative based on the $10,000 range suggested for an overall incentive cash grant.
Program Funding ■
Program is likely to be most successful if funded and administered regionally, given the
and Administration region’s specific needs and the necessity of involving and engaging local stakeholders.
■
To drive employer engagement, it would be most effective if the employer pays the
incentive upfront and is reimbursed a significant share (e.g. 50%) after the third year
if the worker is still employed at the firm. This would also ensure that employers have
a strong incentive to integrate these workers, create favorable working conditions, and
build appealing career paths to retain talent.
■
Before committing significant capital and resources to a large-scale, nationwide program, try
implementing a small pilot targeting up to 100 workers.
Program Marketing ■
Program will need to be accompanied by targeted marketing and PR campaigns to
and Communication reach this talent base, especially for categories of workers where there is high demand.
Moreover, research indicates that more information about an area and the costs and
benefits associated with a move can be a driver of migration. The target audience is high
schools, community colleges, and trades schools across the country.
■
Specifically targeting regions hit by economic hardship or natural disasters could drive
significant migration. U.S. territories — such as Puerto Rico, where workers face both of
these challenges — meet the citizenship requirements for many roles and are not widely
targeted, so they could be fertile ground for successful campaigns.
■
Also target populations that are historically underrepresented in the skilled trades,
including women, people of color, and refugees.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 26
Short-term financial incentives can undoubtedly be a key driver in influencing domestic migration, but for
workers to be set up for success, a broader set of initiatives and services are necessary. These include higher
wages as well as more benefits and wraparound services skilled workers commonly need, including child care,
affordable housing, and transportation. Investing in wraparound services can be powerful in helping ensure
skilled workers enter and stay in the workforce. This will support both the local labor force as well as out-of-
state workers. Child care support, better transportation/parking, and affordable housing options close to job
sites are of most value.
Targeting populations that have not historically entered the skilled trades or are otherwise underrepresented
(both in-state and out-of-state) is also good practice. These may include women, people of color, and refugee
populations.
Regarding military retention in Hampton Roads and attracting transitioning military from other states, programs
like the Department of Defense’s SkillBridge are highly valuable. Ensuring all local employers are SkillBridge
partners and actively promoting openings to SkillBridge candidates is important, as is creating an effective
training and onboarding experience for military workers. Offering additional support to active-duty military
transitioning to civilian life (e.g., résumé writing, coaching on how to translate and transfer their military
experience) could also be valuable.
Finally, although the scope of this study is on out-of-state talent attraction, other initiatives are critical to driving
local talent attraction and reducing existing workforce attrition to decrease the talent gap. Further analysis
should be conducted by the Virginia Office of Education Economics (VOEE) or another entity.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 27
References
References
Bates, Michael. “Dominion Energy, Trade Unions Partner on Coastal Virginia Offshore Wind Project.”
North American Windpower, September 17, 2021.
https://nawindpower.com/dominion-energy-trade-unions-partner-on-coastal-virginia-offshore-wind-project.
Bound, John, and Harry J. Holzer. “Demand Shifts, Population Adjustments, and Labor Market Outcomes
During the 1980s.” Journal of Labor Economics 18, no. 1 (January 2000): 20–54.
https://doi.org/10.1086/209949.
Cooke, Thomas J. “It Is NOT Just the Economy: Declining Migration and the Rise of Secular Rootedness.”
Population, Space, and Place 17, no. 3 (2011): 193–203.
https://doi.org/10.1002/psp.670.
Cooke, Thomas J. “Internal Migration in Decline.” The Professional Geographer 65, no. 4 (2013): 664–75.
https://doi.org/10.1080/00330124.2012.724343.
Coulson, N. Edward and Lynn M. Fisher. “Housing Tenure and Labor Market Impacts: The Search Goes On.”
Journal of Urban Economics 65, no. 3 (2009): 252–64.
DOD SkillBridge. U.S. Department of Defense, April 22, 2022.
https://skillbridge.osd.mil/.
Dominion Energy. “Jobs for Today and Tomorrow.” Coastal Virginia Offshore Wind. 2022.
https://coastalvawind.com/.
Dragas Center for Economic Analysis and Policy. The State of the Region: Hampton Roads 2017.
Strome College of Business, Old Dominion University, 2017.
https://ceapodu.com/wp-content/uploads/2017/10/SOR-2017-Final-Report.pdf.
Dragas Center for Economic Analysis and Policy. The State of the Region: Hampton Roads 2021.
Strome College of Business, Old Dominion University, 2021.
https://ceapodu.com/wp-content/uploads/2021/10/SOR2021-Final-1052021.pdf.
ESOP Advisors and Hampton Roads Workforce Council. Maritime Industrial Base Ecosystem (MIBE)
Rapid Workforce Gap Assessment. 2020.
https://drive.google.com/file/d/190xqvn7u718jinAye8Uh_5d3xDefl-VM/view.
Frey, William. “The Great American Migration Slowdown: Regional and Metropolitan Dimensions.”
Brookings Reports (December 2009): 1–26.
https://www.brookings.edu/research/the-great-american-migration-slowdown-regional-and-metropolitan-
dimensions/.
Gaubert, Cecile, Patrick Kline, Damian Vergara, and Danny Yagan. “Trends in U.S. Spatial Inequality:
Concentrating Affluence and a Democratization of Poverty.” AEA Papers and Proceedings 111 (May 2021): 520–25.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 29
Gemici, Ahu. “Family Migration and Labor Market Outcomes.” PhD diss., University of Pennsylvania, 2007.
ProQuest (AAI3271753).
https://repository.upenn.edu/dissertations/AAI3271753.
Grootendorst, Greg, Katherine Rainone, Katie Cullipher, Robert McNab, and Timothy Komarek. 2022–2027
Comprehensive Economic Development Strategy (CEDS) for Hampton Roads. Hampton Roads Planning District
Commission (HRPDC) and Old Dominion University’s Dragas Center for Economic Analysis and Policy, 2022.
https://www.hrpdcva.gov/uploads/docs/CEDS_2022_draft_for_review.pdf.
Gurney, Kaile. Press Release: Global leadership grows: Siemens Gamesa solidifies offshore presence in the U.S.
with a Virginia blade facility. Siemens Gamesa Renewable Energy, October 25, 2021.
https://www.siemensgamesa.com/en-int/-/media/siemensgamesa/downloads/en/newsroom/2021/10/
siemens-gamesa-offshore-blade-facility-virginia-usa-en.pdf.
Hagerman, George. East Coast Offshore Wind Industry and Technician Occupation Projections.
Southeast Maritime and Transportation Center, 2015.
https://www.maritime-technology.org/file/Documents/white%20papers/East%20Coast%20Offshore%20
Wind%20Industry%20and%20Technician%20Occupation%20Projections.pdf.
Hampton Roads Planning District Commission (HRPDC). HRPDC Benchmarking 2021: Demographics. 2021.
https://www.hrpdcva.gov/uploads/docs/08%20Benchmarking%20-%20Demographics.pdf.
Jia, Ning, Raven Molloy, Christopher Smith, and Abigail Wozniak. The Economics of Internal Migration:
Advances and Policy Questions. Finance and Economics Discussion Series 2022-003. Board of Governors
of the Federal Reserve System, 2022.
https://doi.org/10.17016/FEDS.2022.003.
Kennan, John and James R. Walker. “Modeling Individual Migration Decisions.” In The International Handbook
of Economics and Migration, edited by Amelie F. Constant and Klaus F. Zimmerman, 39–54. Edward Elgar
Publishing, 2013.
Lightcast. Occupation Data Pull: Construction Trades Workers (47-2000) and Metal Workers and Plastic
Workers (51-4000) occupations in Hampton Roads Region (2022.3 – QCEW Employees, Non-QCEW Employees,
and Self-Employed) [Data set]. 2022.
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Report-092820.pdf.
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Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 30
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Perspectives 25, no. 3 (2011): 173–96.
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in Twenty-First Century America. Boston, MA, October 4–5, 2019.
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Economic Growth, edited by Jay Shambaugh and Ryan Nunn, 11–42. The Hamilton Project, September 2018.
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Commerce Invests $11 Million to Boost Blue Economy and Clean Energy Workforce Training Program in Hampton Roads
Region through American Rescue Plan Good Jobs Challenge. U.S. Economic Development Administration, August 3, 2022.
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Information System, 2022.
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Vogelsong, Sarah. “Siemens Gamesa chooses Virginia for offshore wind turbine blade factory.” Virginia Mercury,
October 25, 2021.
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factory/.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 31
Appendix I
Global Case Studies
Evaluated
Appendix I: Global Case Studies Evaluated
1. 218 Relocate | Minnesota 24. Maine Smart Buy Program | Maine
2. Alaska Permanent Fund Dividend | Alaska 25. M.O.S.T. Nova Scotia | Canada
3. Ascend West Virginia | West Virginia 26. Move to Michigan | Michigan
4. Bristol Ports | UK 27. Movers and Shakas | Hawaii
5. Buying into Baltimore | Maryland 28. New Relocating Worker Grant | Vermont
6. Free Lot Program | Iowa 29. Regione Calabria | Italy
7. Choose Noblesville | Indiana 30. Remote Shoals | Alabama
8. Choose Topeka | Kansas 31. Re: New Haven | Connecticut
9. Costa Rica Income Tax Incentives | Costa Rica 32. Revitalize Talent Attraction Program | Virginia
10. Cyprus Income Tax Incentives | Cyprus 33. Savannah Technology Workforce Incentive |
Georgia
11. Distinguished Talent Visa | Australia
34. Shift South | Mississippi
12. Educational Opportunity Tax Credit | Maine
35. Special Incentives for Overseas Talent | China
13. Enterprise Ireland | Ireland
36. Startup Chile | Chile
14. Employment Pass | Singapore
37. Talent Attraction Program Scholarship | Ohio
15. Explore Muncie | Indiana
38. Tech.Pass | Singapore
16. Federal Skilled Trades Program
Express Entry | Canada 39. Tech Visa Program | France
17. Geek Move | Tennessee 40. Tuition & Training Tax Credit | Canada
18. Get to Know Newton | Iowa 41. Tulsa Remote | Oklahoma
19. Global Talent Visa | UK 42. UAE Income Tax Incentive | United Arab
Emirates
20. Greater ROC Remote | New York
43. Vogtle Nuclear Power Plant | Georgia
21. Harmony Home | Minnesota
44. Work from Purdue | Indiana
22. Land in Lincoln | Kansas
23. Life Works Here | Arkansas
Highlighted programs were benchmarked in detail. For details, reference Appendix II: Case Study
Deep Dives
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 33
Appendix II
Case Study Deep Dives
Appendix II: Case Study Deep Dives
The following pages capture additional detail on the 14 case studies reviewed for this analysis.
CASE STUDY 1
Savannah Technology Workforce Incentive
Program Location
Savannah, Georgia
Target Worker Type
Remote workers in the technology space
Incentives Offered
Relocation reimbursement of up to $2,000
Program Requirements
■
Minimum three years of work experience; must be remote or self-employed (not eligible if
locally employed)
■
Must relocate and purchase property or sign a one-year minimum lease
■
Must have resided in the county for 30+ days and have a Georgia license and Chatham County
address to apply
Program Launch Year
2020
Program Targets and Outcomes
■
Began in June 2020; cap of 50 per year
■
As of May 2021, 72 people had moved and 32 more had applied
Program Funding and Administration
Funded and administered by the Savannah Economic Development Authority (SEDA)
Program Website
https://seda.org/resources-and-data/incentives-database/creative-incentive/
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 35
CASE STUDY 2
Shift South
Program Location
Natchez and Adams County, Mississippi
Target Worker Type
Remote workers only
Incentives Offered
■
Relocation reimbursement of up to $2,500
■
$300 monthly stipend for first year
Program Requirements
■
Must be employed by an employer outside the Natchez region
■
Must establish residency in the city and purchase a home valued at no less than $150,000
■
Maintain ownership and residency for no less than one year
Program Launch Year
2020
Program Targets and Outcomes
■
30 slots available in first year; first awards granted in Feb 2021
■
Led to population increase of 23 and to increases in property and sales taxes in Natchez
■
Expect a 12–18-month period for the economic value of the awardee to the region to equal
the incentive paid.
Program Funding and Administration
Launched and managed by Natchez, a public-private economic development partnership for the region
Program Website
https://natchezinc.com/images/uploads/ShiftSouth-Application.pdf
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 36
CASE STUDY 3
Talent Attraction Program Scholarship
Program Location
Hamilton, Ohio
Target Worker Type
Both on-site and remote workers with a focus on Science, Technology, Engineering, Arts, and Mathematics
(STEAM) graduates
Incentives Offered
■
$300 per month for repayment of student loan debt
■
Maximum award of $10,000 per person
Program Requirements
■
Must have graduated from a program in a STEAM field within the last seven years
■
Not currently living in Hamilton and must relocate to the city
■
Local employment or a full-time remote position
Program Launch Year
2020
Program Targets and Outcomes
No available public data
Program Funding and Administration
Funded and run by the Hamilton Community Foundation, a public charity
Program Website
https://www.hamiltonfoundation.org/scholarships/scholarships-for-recent-college-graduates-tap-scholarship/
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 37
CASE STUDY 4
Tulsa Remote
Program Location
Tulsa, Oklahoma
Target Worker Type
Remote workers only
Incentives Offered
■
Up to $10,000, split between relocation support and monthly stipend with the balance of the payment at end
of first year
■
Free desk space at a local co-working center
■
Workshops and networking events
Program Requirements:
■
Not currently living in Oklahoma and must relocate to the Tulsa area
■
Self-employment or full-time remote employment outside of Oklahoma (not eligible if locally employed)
■
Multiple people in household can apply and qualify
Program Launch Year
2018
Program Targets and Outcomes
■
Received 10,000 applications in the first 90 days
■
1,700 people accepted and relocated
■
For every $1 spent on the program, nearly $14 was generated in local labor income (average income of
$104,000)
■
For every two household members brought, one new local job was created
■
$62 million contributed in new labor income to local economy in 2021
Program Funding and Administration
Funded by the George Kaiser Family Foundation
Program Website
https://tulsaremote.com/
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 38
CASE STUDY 5
Choose Topeka
Program Location
Topeka, Kansas
Target Worker Type
Both on-site and remote workers
Incentives Offered
■
Local workers are eligible for a stipend of $10,000 for a home rental or $15,000 for a home purchase
in their first year
■
Remote workers are eligible for a stipend of $5,000 for a home rental or $10,000 for a home purchase
in their first year
Program Requirements
■
Local workers must move to Topeka for a full-time position with a qualified local employer and rent
or purchase a home within Shawnee County
■
Remote workers (only one individual per household can apply) must move to Topeka with a full-time
remote position outside the county and rent or purchase a home within Shawnee County
Program Launch Year
2019
Program Targets and Outcomes
■
40% of people working in Topeka do not live there; the program intends to bring more talent, diversity,
and vibrancy into the city
■
Will select up to 60 candidates a year
■
Received 60,000 applications by July 2022
■
The first wave brought 40 people
■
Relocated workers have an average income of $80,000/year
■
Generated $3.2 million in economic impact
Program Funding and Administration
■
Funded by the Joint Economic Development Organization (JEDO), a partnership between Shawnee County
and the City of Topeka
■
For local workers, the employer pays the incentive upfront and is reimbursed 50% after a year if the worker
is still employed
Program Website
https://choosetopeka.com/
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 39
CASE STUDY 6
Life Works Here
Program Location
Northwest Arkansas
Target Worker Type
Remote workers in STEAM
Incentives Offered
■
$10,000 paid out over the first year
■
Free mountain or road bike
■
Free annual membership to local arts or cultural institute
Program Requirements
■
Must relocate to Arkansas within six months of being accepted into the program
■
Must remain in Northwest Arkansas for at least one year
Program Launch Year
2020
Program Targets and Outcomes
■
Began in November 2020 and closed in 2021
■
66,000 applicants and 100 recipients in 2020
■
65% of applicants had no connection to Northwest Arkansas
■
100 recipients brought 89 trailing partners and children
Program Funding and Administration
■
Funded by the Walton Family Foundation
■
Administered by the Northwest Arkansas Council
Program Website
https://findingnwa.com/incentive/
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 40
CASE STUDY 7
Ascend West Virginia
Program Location
Morgantown, Lewisburg, and Shepherdstown, West Virginia
Target Worker Type
Remote workers only
Incentives Offered
■
$10,000 for relocation expenses over the first year
■
$2,000 bonus at the end of year two
■
One year of free recreational activities
■
Free networking events
■
Free co-working space
■
All applicants are eligible for $2,500 in mortgage assistance if they move to the state and purchase
a home, whether or not they are accepted into the program
Program Requirements
Evidence of full-time remote or self-employment outside West Virginia
Program Launch Year
2021
Program Targets and Outcomes
■
Began in Morgantown and is adding new cities each year across the state
■
Estimated total value of incentives is $20,000
■
7,500 applicants by September 2, 2021
■
53 recipients in the first year to Morgantown; 33 to Lewisburg in its first year
■
1,000 remote-working members projected over five years
■
Attracted workers from 18 states; 85% are not native to West Virginia
■
Average annual salary for a recipient is $126,000
Program Funding and Administration
■
Funded by a $25 million gift from former Intuit CEO Brad D. Smith
■
$2,500 mortgage assistance funded by Rocket Mortgage
■
Partnership between the West Virginia Department of Tourism, WVU, and the Brad and Alys Smith
Outdoor Economic Development Collaborative
Program Website:
https://ascendwv.com/
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 41
CASE STUDY 8
Remote Shoals
Program Location
The Shoals, Alabama
Target Worker Type
Remote workers only
Incentives Offered
$10,000 cash incentive in four allotments: 25% upfront for relocation costs, 25% after six months, and the
remaining 50% at the end of the first year
Program Requirements
■
Minimum annual income of $52,000
■
Must relocate to The Shoals within six months
■
Evidence of full-time remote or self-employment outside Colbert and Lauderdale Counties
Program Launch Year
2019
Program Targets and Outcomes
■
To increase sales tax revenues and the local labor workforce
■
10 spots in the first year; now increased to 50 to keep up with demand
■
Projects $6M increase in GDP
Program Funding and Administration
Funded by the Shoals Economic Development Authority and the local Chamber of Commerce
Program Website
https://remoteshoals.com/
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 42
CASE STUDY 9
Educational Opportunity Tax Credit
Program Location
Maine
Target Worker Type
Both on-site and remote workers who are college graduates
Incentives Offered
■
$2,500 annual reimbursement of student loan repayments through refundable state tax credit, up to $25,000
lifetime value
■
If the credit is more than state taxes owed, balance is given in cash
Program Requirements
■
Any worker with a bachelor’s or associate’s degree
■
Program requirements vary by graduation year and type of degree
■
For recent graduates (2016+), they must:
■
Be a Maine resident for the tax year
■
Work in Maine (includes on-site, remote, and self-employed workers)
■
Have a bachelor’s or associate’s degree from an accredited U.S. school or a graduate degree from a Maine
school
Program Launch Year
2008
Program Targets and Outcomes
■
When initially launched, open only to those who graduated from a school in Maine, but it has been expanded
since to include any U.S. school
■
About 13,000 Maine residents qualify for the program each year
■
Program simplification and expanded reach in 2022 mean that up to 40,000 Maine residents may now qualify
Program Funding and Administration
State-government funded and administered
Program Website
https://www.liveandworkinmaine.com/opportunity-maine/
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 43
CASE STUDY 10
New Relocating Worker Grant
Program Location
Vermont
Target Worker Type
On-site workers in short-staffed industries
Incentives Offered
$7,500 reimbursement for expenses, including moving costs, closing costs, lease deposits, and first month’s rent
Program Requirements
■
Must have moved to the state after July 1, 2021
■
Must find full-time work in Vermont
■
Must work in high-demand roles (https://thinkvermont.com/wp-content/uploads/2021/08/Short-Term-
Occupational-Projections.pdf) including cashiers, bartenders, home health aides, laborers, landscapers,
carpenters, farmers, construction, child care, and more
■
Must be paid a minimum of $13.39/hr (Vermont living wage)
■
Limited to one grant per household
■
Employers must be able to show they could not fill the job from applicants inside the state within a reasonable period
Program Launch Year
2021
Program Targets and Outcomes
■
Vermont has a significant worker shortage, with three jobs open for every person looking for work
■
The state has run three separate relocation incentive programs since 2018, awarding nearly $2 million to attract
new residents to the state
■
Across the three programs, 435 new workers and their families have moved to the state
■
The New Relocating Worker Grant was the third program; the first, which focused on remote workers, awarded
over 300 grants, and the second was an exploratory vacation program
■
New legislation in June 2022 approved $3 million of funding for a fourth relocation program
■
The legislature commissioned a study that showed half of grant recipients said the incentive they received was
not an important part of their decision to relocate; however, others who were considering multiple locations said
it was a factor
■
The same study indicated that the grants generated $17 million for the economy and $1 million in tax revenue,
but findings were questioned by a state auditor
Program Funding and Administration
State-government funded and administered
Program Website
https://thinkvermont.com/relocation-incentives/
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 44
CASE STUDY 11
Alaska Permanent Fund Dividend
Program Location
Alaska
Target Worker Type
Both on-site and remote workers
Incentives Offered
■
Annual Permanent Fund Dividend payout: amount varies each year, but is expected to be $3,284 per recipient
in 2022 (highest ever)
■
2021 dividend was $1,114
Program Requirements
■
Must have been a resident of Alaska for the entire previous calendar year
■
Cannot have been sentenced or incarcerated as part of a felony conviction in the previous year
■
Every member of a family is eligible to receive payment, including children
Program Launch Year
1976
Program Targets and Outcomes
■
Dividends paid each year based on the fund’s performance
■
Not explicitly focused on attracting out-of-state talent, but that has been a by-product of the program
■
Anecdotal evidence that it helps incentivize skilled trade workers, particularly in the oil and gas industry, and
military veterans to go to or stay in the state
Program Funding and Administration
■
The Alaska Permanent Fund Corporation, a quasi-independent state entity, manages the fund’s investments
■
The State Department of Revenue is responsible for implementing the program
Program Website
https://pfd.alaska.gov/
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 45
CASE STUDY 12
Revitalize Talent Attraction Program
Program Location
40 localities in Southern and Southwestern Virginia
Target Worker Type
On-site workers in targeted, hard-to-fill occupations
Incentives Offered:
Provides up to $12,000 annually in student loan repayment reimbursements for up to two years for a maximum
benefit of $48,000 per person
Program Requirements
■
Must be a recent college graduate (between December 2020 and December 2022)
■
Must commit to work for 24 months in one of the following hard-to-fill occupations: public school teacher
in science, math, technology/computer science, or career and technical education (grades 6–12); speech
language pathologist; physical or occupational therapist; industrial or electrical engineer; information
security, network, or computer systems analyst
■
Must demonstrate civic engagement by volunteering with local nonprofits or the government for at least 50
hours a year
Program Launch Year
2019
Program Targets and Outcomes
■
To encourage recent graduates to live in the Tobacco Region and work in targeted, hard-to-fill occupations
■
In 2022, 104 applications were received, and 77 were awarded loan repayment reimbursement
■
2022 cost was $1.4 million
■
Since 2019, 299 people have received awards
Program Funding and Administration
● Funded and coordinated by the Virginia Tobacco Region Revitalization Commission
Program Website
https://www.revitalizeva.org/grant-loan-program/student-loan-repayment/
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 46
CASE STUDY 13
M.O.S.T. Nova Scotia
Program Location
Nova Scotia, Canada
Target Worker Type
On-site workers in the skilled trades
Incentives Offered
■
Provincial tax rebate on the first $50,000 of income earned through work in eligible skilled trades
■
Average rebate amount expected to be $2,700
Program Requirements
■
Must be under 30 years of age
■
Must be employed in one of the skilled trades in demand in the province (https://novascotia.ca/budget/
docs/Tax-measures-More-Opportunity-for-Skilled-Trades.pdf)
Program Launch Year
2022
Program Targets and Outcomes
■
Expected to apply to 7,500 workers
■
To attract and retain more young people in the skilled trades because many older workers are retiring
■
Will be implemented for the first time for the 2022 tax year
■
Budget included $750,000 for skilled trades recruiting in school programs, including promotion efforts to
double the number of students in the programs and provide them with more supplies and resources
■
Nova Scotia also launched a promotional campaign to recruit skilled trades and healthcare workers from
other provinces alongside this rebate
Program Funding and Administration
Provincial-government funded and administered
Program Website
https://novascotia.ca/budget/docs/Tax-measures-More-Opportunity-for-Skilled-Trades.pdf
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 47
CASE STUDY 14
Tuition and Training Tax Credit
Program Location
Canada
Target Worker Type
Any workers that pay for training, including on-site skilled trades workers
Incentives Offered
■
Tax credit increases by $250 each year a worker files taxes and can go to a maximum of $5,000
■
50% of tuition costs can be claimed
Program Requirements
■
Must be between 26 and 65 years of age
■
Training must be from a certified institution
■
Fees must be greater than $100
■
Licensing exam fees may be eligible for the tuition tax credit if they exceed $250
Program Launch Year
2020
Program Targets and Outcomes
■
To support training for workers across Canada; in particular, vocational training programs
■
Canada concurrently introduced a federal labor mobility tax deduction for skilled trades workers to get a tax
deduction of up to $4,000 for travel costs if their work site is more than 80 km from their place of residence
(will be effective as of tax year 2022)
Program Funding and Administration
Federal-government funded and administered
Program Website
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-training-credit.html
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 48
Appendix III
Interviewed Companies &
Individuals
Appendix III: Interviewed Individuals and
Companies Represented
The following organizations and individuals are acknowledged for their time and contribution to this
research and analysis.
A particular thanks to the Hampton Roads Workforce Council for facilitating interviews with the skilled
trades workers.
Business Network for Offshore Wind | Workforce Development & HSE Director
Colonna’s Shipyard | President and CEO
Dominion Energy | Corporate Public Policy, Senior Advisor for Policy and External Affairs
Fairlead Integrated | President
Hampton Roads Alliance | CEO
Hampton Roads Community College Workforce Cooperative | CEO
Hampton Roads Workforce Council | CEO, Chief Innovation Officer
Kemper Consulting | Consultant
Newport News Shipbuilding | Head of Government Relations. Head of Trade Recruiting
Virginia Maritime Association | VP of Industry and Government Affairs, Executive Director
Virginia Ship Repair Association | President
Skilled Trades Workers | Electrician, Welder, Welder
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 50
Notes
1
Virginia General Assembly, Budget Amendments - HB30 (Conference Report): Item 125 #9C. Virginia Legislative Information System, 2022,
https://budget.lis.virginia.gov/item/2022/2/HB30/Chapter/1/125/.
Ibid.
2
3
Ning Jia, Raven Molloy, Christopher Smith, and Abigail Wozniak, The Economics of Internal Migration: Advances and Policy Questions:
Finance and Economics Discussion Series 2022-003, Board of Governors of the Federal Reserve System, 2022, https://doi.org/10.17016/
FEDS.2022.003.
4
Ibid.; Cecile Gaubert, Patrick Kline, Damian Vergara, and Danny Yagan, “Trends in U.S. Spatial Inequality: Concentrating Affluence and a
Democratization of Poverty,” AEA Papers and Proceedings 111 (May 2021): 520–25; Ryan Nunn, Janna Parsons, and Jay Shambaugh, “The
Geography of Prosperity,” in Place-Based Policies for Shared Economic Growth, ed. Jay Shambaugh and Ryan Nunn. (The Hamilton Project,
September 2018), 11–42.; Raven Molloy, Abigail Perry, and Christopher Smith, “Internal Migration in the United States,” Journal of Economic
Perspectives 25, no. 3 (2011): 173–96, https://doi.org/10.1257/jep.25.3.173.; Thomas J. Cooke, “It Is NOT Just the Economy: Declining
Migration and the Rise of Secular Rootedness,” Population, Space, and Place 17, no. 3 (2011): 193–203, https://doi.org/10.1002/psp.670;
Thomas J. Cooke, “Internal Migration in Decline,” The Professional Geographer 65, no. 4 (2013): 664–75, https://doi.org/10.1080/00330124.2
012.724343; William Frey, “The Great American Migration Slowdown: Regional and Metropolitan Dimensions,” Brookings Reports (December
2009): 1–26, https://www.brookings.edu/research/the-great-american-migration-slowdown-regional-and-metropolitan-dimensions/.
5
Jia et al., Economics; Ofer Malamud and Abigail Wozniak, “The Impact of College on Migration: Evidence from the Vietnam Generation,”
Journal of Human Resources 47, no. 4 (2021): 913–50, https://doi.org/10.1353/jhr.2012.0031.
6
Jia et al., Economics; John Kennan and James R. Walker, “Modeling Individual Migration Decisions,” In The International Handbook of
Economics and Migration, ed. Amelie F. Constant and Klaus F. Zimmerman, (Edward Elgar Publishing, 2013), 39–54.
Jia et al., Economics; Kennan and Walker, “Modeling.”
7
Jia et al., Economics.
8
Ibid.
9
Jia et al., Economics; John Bound and Harry J. Holzer, “Demand Shifts, Population Adjustments, and Labor Market Outcomes During the
10
1980s,” Journal of Labor Economics 18, no. 1 (January 2000): 20–54, https://doi.org/10.1086/209949; Raven Molloy and Christopher Smith,
“U.S. Internal Migration: Recent Patterns and Outstanding Puzzles” (paper presentation, Federal Reserve Bank of Boston conference,
Boston, MA, October 4–5, 2019); Jia et al., Economics.
Jia et al., Economics.; Molloy, Perry, and Smith, “Internal Migration”; N. Edward Coulson and Lynn M. Fisher, “Housing Tenure and Labor
11
Market Impacts: The Search Goes On,” Journal of Urban Economics 65, no. 3 (2009): 252–64.
12
Jia et al., Economics.
13
Ibid.
Ibid.; Ahu Gemici. “Family Migration and Labor Market Outcomes,” (PhD diss., University of Pennsylvania, 2007), https://repository.upenn.
14
edu/dissertations/AAI3271753/.
15
Jia et al., Economics.
Marine Corps Community Services, “Hampton Roads: Local Area Information,” U.S. Marine Corps, 2022. https://hamptonroads.usmc-mccs.
16
org/about/local-area-information.
Greg Grootendorst et al., 2022–2027 Comprehensive Economic Development Strategy (CEDS) for Hampton Roads (HRPDC and Old Dominion
17
University’s Dragas Center for Economic Analysis and Policy, 2022), https://www.hrpdcva.gov/uploads/docs/CEDS_2022_draft_for_review.pdf.
18
Dominion Energy, “Jobs for Today and Tomorrow,” Coastal Virginia Offshore Wind, 2022, https://coastalvawind.com/.
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 51
Notes
Michael Bates, “Dominion Energy, Trade Unions Partner on Coastal Virginia Offshore Wind Project,” North American Windpower, September
19
17, 2021, https://nawindpower.com/dominion-energy-trade-unions-partner-on-coastal-virginia-offshore-wind-project; George Hagerman, East
Coast Offshore Wind Industry and Technician Occupation Projections. (Southeast Maritime and Transportation Center, 2015),
https://www.maritime-technology.org/file/Documents/white%20papers/East%20Coast%20Offshore%20Wind%20Industry%20and%20
Technician%20Occupation%20Projections.pdf.
20
Bates, “Dominion Energy.”
Kaile Gurney, Press Release: Global leadership grows: Siemens Gamesa solidifies offshore presence in the U.S. with a Virginia blade facility,
21
Siemens Gamesa Renewable Energy, October 25, 2021, https://www.siemensgamesa.com/en-int/-/media/siemensgamesa/downloads/en/
newsroom/2021/10/siemens-gamesa-offshore-blade-facility-virginia-usa-en.pdf; Sarah Vogelsong, “Siemens Gamesa chooses Virginia for
offshore wind turbine blade factory,” Virginia Mercury, October 25, 2021, https://www.virginiamercury.com/2021/10/25/siemens-gamesa-
chooses-virginia-for-offshore-wind-turbine-blade-factory/.
Gurney, Press Release; Vogelsong, “Siemens Gamesa.”
22
ESOP Advisors & Hampton Roads Workforce Council, Maritime Industrial Base Ecosystem (MIBE) Rapid Workforce Gap Assessment, 2020,
23
https://drive.google.com/file/d/190xqvn7u718jinAye8Uh_5d3xDefl-VM/view.
Mangum Economics, Potential Impact of the Offshore Wind Energy Industry Development on Hampton Roads and Virginia, 2020,
24
https://hamptonroadsalliance.com/wp-content/uploads/2020/09/Offshore-Wind-Economic-Impact-Report-092820.pdf.
Lightcast, Occupation Data Pull: Construction Trades Workers (47-2000) and Metal Workers and Plastic Workers (51-4000) Occupations in
25
Hampton Roads Region (2022.3 – QCEW Employees, Non-QCEW Employees, and Self-Employed) [Data set], 2022, https://lightcast.io/.
Ibid.
26
Dragas Center for Economic Analysis and Policy, The State of the Region: Hampton Roads 2021, Strome College of Business, Old Dominion
27
University, 2021, https://ceapodu.com/wp-content/uploads/2021/10/SOR2021-Final-1052021.pdf; Grootendorst et al., Hampton Roads.
Dragas Center for Economic Analysis and Policy, Hampton Roads 2021; Grootendorst et al., Hampton Roads.
28
Grootendorst et al., Hampton Roads; Hampton Roads Planning District Commission (HRPDC), HRPDC Benchmarking 2021: Demographics,
29
2021, https://www.hrpdcva.gov/uploads/docs/08%20Benchmarking%20-%20Demographics.pdf; Strome College of Business, 2015 State
of the Commonwealth Report, Virginia Chamber Foundation, 2015. https://ceapodu.com/wp-content/uploads/2016/04/2015-State-of-the-
Commonwealth-Report.pdf.
30
Lightcast, Occupation Data Pull.
Grootendorst et al., Hampton Roads; HRPDC, Demographics.
31
Mangum Economics, Potential Impact.
32
Lightcast, Occupation Data Pull.
33
Ibid.
34
Greg Grootendorst et al., Hampton Roads; HRPDC, Demographics.
35
DOD SkillBridge, Department of Defense, April 22, 2022, https://skillbridge.osd.mil/; Dragas Center for Economic Analysis and Policy,
36
The State of the Region: Hampton Roads 2017, Strome College of Business, Old Dominion University, 2017, https://ceapodu.com/wp-content/
uploads/2017/10/SOR-2017-Final-Report.pdf.
Grootendorst et al., Hampton Roads.
37
Jia et al., Economics; Lisa Soricone, Breaking Ground: A First Look at American High School Skills Trade Education, Jobs for the Future, 2020.
38
Jia et al., Economics.
39
Hampton Roads Maritime Industry Out-of-State Talent Attraction Strategies | 2022 52
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