From looking at that it might be silly to even look at locating in places such as the UK or Germany who have such high labor costs, but there are many benefits that come from paying that little extra on labor. The main thing being Corporate Social Responsibility (CSR). According to the Financial Times, CSR is a ‘business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders.’ This...
From looking at that it might be silly to even look at locating in places such as the UK or Germany who have such high labor costs, but there are many benefits that come from paying that little extra on labor. The main thing being Corporate Social Responsibility (CSR). According to the Financial Times, CSR is a ‘business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders.’ This includes compliance with human rights and employment law. If a business is seen to act by CSR, they are likely to see higher levels of demand and backing from stakeholders as it is seen as a good thing to do; it can differentiate you from your competitors and even give your business some extra added value.
The final elements to do with labor are to do with skill pools. Many areas have high concentrations of specialized workers. This is where people with a certain set of skills all seem to gather to do their job. These nearby groups of people allow for lower recruitment costs as a round of applicants are ready and waiting in the nearby area. This will be explained further in the next section.
