Quality versus Quantity, every time
We took note of two surveys that released their results recently. Chief Executive Group released their 2024 Chief Executive Best & Worst States for Business survey results. Also U.S. News & World Report released their Best States Rankings.
Reading both articles, I came to find out that I am in nearly the WORST state to do business in, #41 out of 50. I then found out that I live in one of the BEST states in the country, #4 out of 50.
Since I BOTH do business AND live in Minnesota, I had to delve into this a little more to resolve my dilemma of should I stay or should I go?!?!?!?
Chief Executive’s rankings are compiled from a sole source: the opinions of CEOs and business owners in the U.S. More than 500 CEOs, with representation from every state, participated in this year’s survey, conducted in January 2024.
- S. News used health care and education as factors, in addition, the rankings consider a state’s economy; its roads, bridges, internet and other infrastructure; its public safety; its natural environment; the fiscal stability of state government; and the opportunity it affords its residents. More weight was accorded to some categories than others, based on a survey of what matters most to people. Health care and education were weighed most heavily. Then came state economies, infrastructure, and the opportunity states offer their citizens. Fiscal stability followed closely in weighting, followed by measures of crime and corrections and a state’s natural environment.
So, CEOs do not think much of Minnesota. The numbers their report references admit we are highly educated (comparatively). Have exceptionally low unemployment, #5 in Quality of Life, we are not a right to work law state, and not experiencing growing pains. All that is left is our tax rate, which is considered one of the worst in the nation, (45 out of 50) at 9.8%.
U.S. News weighed multiple factors. After Healthcare and education came the state’s economy and then many others. So, if the state’s economy is weighted that high, and we STILL came in 4th, not everyone gets worked up about the tax rate.
The fact is Minnesota is home to 16 Fortune 500 companies. More than the (14.5) average of the top 10 “Best States to Do Business In”.
It seems CEOs have not been reading the trade magazines. In trying to win over new, younger employees, forgoing quality of life for retaining taxes to pay shareholder dividends and stock buy backs may not be the best strategy.
For Millennials, “How they spend their time and who they spend it with matters to them, as it should to all of us. Help them find meaning in their work. Give them a reason, many reasons, to be proud to work for you—and they will stay working for you.” When millennials believe their work has meaning—that it is more than “just a job”—they are three times more likely to stay.
To win the hearts of Generation Z, companies and employers will need to highlight their efforts to be good global citizens. And actions speak louder than words: Companies must demonstrate their commitment to a broader set of societal challenges such as sustainability, climate change, and hunger.
Both groups are looking for Quality of Life, even more so than pay. While trying to pay less in taxes implies there is more for payroll, experience tells us that those funds are used elsewhere.
What companies do with extra cash: The choices, in broad categories, are to hold on to the cash, pay down debt, buy inventory, purchase assets, or pay dividends to owners. Workers are left NOT holding the bag.
Me, I always opt for Quality of Life. That is what we do here at PlastiCert. For years, we have been in THE highest tax bracket, yet work to improve our lives here every day. We donate to civic groups, cancer causes, children’s hospitals, local historical society, schools, and students. We provide gatherings for coworkers in the summer and winter. We grill out lunch bi-weekly all summer long.
WHY? QUALITY OF LIFE!!!!!.
Oliver Wendell Holmes, Jr., one of the most widely cited Supreme Court justices and among the most influential American judges in history wrote in one of HIS dissenting opinions, “Taxes are what we pay for civilized society.”
We are pretty civilized in Minnesota. Numerous Fortune 500 companies realize that. It also appears a sizable number of CEOs need to rethink what BUSINESS entails and means to their people. Do I agree with all legislation and taxes levied in Minnesota, no. Do I think there could be more efficiency in government and better use of tax dollars, certainly. That is all on me to voice my thoughts to legislators. Still, I think Minnesota is a great place to live AND GREAT PLACE FOR MY BUSINESS.
Looking for a place to work with the right values? Or a supplier that provides service AND looks out for its community? Give us a call.