Quite often, corporate firms may not even need to look any further for human resource solutions to augment their business processes and operations. On several occasions, we’ve recommended neighboring cities, provinces/states and regions within the same country to corporate firms to migrate their business processes and operations. Onshoring typically works best for companies whose operations are very stringent on maintaining uniformity in communication, cultural relations within the perspective of business processes, same/similar time zones, strict government regulations on the composition of employees of the company and overall unexpected increased operations costs for nearshoring/outsourcing to other hubs. Companies that are typically best suited for onshoring include local non-profits, government backed/nationalized corporations and social services focused companies.
Given that several countries do not have a wholly standardized national/federal codified set of protocols and policies on human resources, different regions/states/provinces may have different remuneration policies. For example, whilst the federally mandated minimum wage in the United States for 2019 is $7.25, most states have minimum wage stipulations that exceed or are less than this federally designated minimum. For example, Washington D.C. mandates a minimum wage of $14 per hour effective July 2019 whilst Georgia permits corporations not subject to the Fair Labor Standards Act to pay the state mandated minimum wage of $5.15. Differentials in minimum wages across a country permits corporations experiencing unfavorable conditions in one state to migrate to the more favorable states to appropriate their favorable laws and regulations.