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David DeLong Writer of Workforce Issues

When finding solutions for critical talent shortages, the state you’re in matters a lot. And I don’t mean your state of mind. Giving recent keynote talks in Maine and North Carolina on “How to Close the Skills Gap” gave me a chance to interview top executives in both states. Here are four ways your geographic location affects your solutions for critical skill shortages.

Talent Needs Vary Tremendously Within Regions

While leaders in North Carolina and Maine routinely worry about talent gaps, employers in both states have very different talent needs. In Maine, for example, there are health care providers worried about recruiting doctors from out of state. Down the street, manufacturers are struggling to replace a rapidly aging and unionized workforce.

In North Carolina a highflying tech firm battles competitors over network architects and technical sales people, while the state’s hospitality industry struggles to retain waiters and housekeeping staff. No matter what part of the country you’re in, employers are worried about the talent supply. But their specific needs vary greatly. This makes the problem harder to address on a regional or statewide level.

Urban/Rural Divide Defines Talent Wars

Many states have distinct urban/rural divides that complicate solutions for skill shortages that can limit growth. The problem is particularly acute in North Carolina, which has fast-growing urban centers in Charlotte and the Research Triangle. This contrasts with its many rural counties where the largest employers can be the local school system and maybe a community hospital.

Developing skills gap solutions for employers in rural sites requires extra creativity and planning. For example, one multi-national manufacturer based in North Carolina has located its global safety team at a rural plant. That’s because the company wants to communicate to young engineers at a nearby university that they don’t have to leave town to get international experience.

Economic Growth: In My Mind I’m Going to Carolina…

Comparing Maine and North Carolina not only reveals similarities, but it also shows how two states can have different forces driving their talent shortages. North Carolina is a fast growing state, attracting young people and new industries to its urban areas. Employment in the Tar Heel state has grown almost 9% in the last 10 years. Maine’s economy, on the other hand, is not growing. Employment has declined almost 1% in the last decade. This suggests different types of challenges in the war for talent.

Executives in North Carolina are painfully aware they’re in a battle for skilled workers who have opportunities to go down the street. In contrast, employers in Maine scramble to find increasingly scarce talent that may not exist in the state. Are you in a region where the talent exists, but you have to compete for it like crazy? Or has your region slowed economically so it’s losing skilled workers? This can mean having to import talent to fill key roles. These scenarios require very different solutions.

Age Isn’t Just a State of Mind

Age distribution is another factor differentiating states. Only Florida has more residents than Maine (18%) over age 65. Of more concern is that Maine leads the nation with 30% of its residents age 45-64, that is, likely to retire in the next 20 years. (Maine’s neighbors New Hampshire and Vermont are in a virtual tie, also at 30%.) In contrast, North Carolina has 14% of its residents over age 65 and 26% age 45-64.

At the other end of the talent pipeline, North Carolina has 4% more of its population age 18-44 than Maine. In addition, in 2014, the Tar Heel state had net immigration of about 57,000 people, while Maine had less then 2,000 new residents move in. These figures paint very different pictures of how talent pools are evolving.

Implications For You?

No matter what state you’re in, pay attention to the context of your talent risks. Just because other executives are complaining about skills gaps doesn’t mean you’re speaking the same language. Types of talent shortages and relevant solutions will vary tremendously in every region.

Urban or rural settings also dictate risks and potential solutions. For example, losing a nurse manager in Charlotte is very different than losing one from a small rural community hospital. Leaders in rural settings need to be more resourceful, given the talent risks they face from retirements and unplanned turnover. One thing executives in rural Maine are discovering, for example, is that they better find a way to leverage their aging talent pool if they’re going to stay competitive.

Of course, comparing these two states also shows that other factors can vary significantly. Do you know the age distribution in your region? Are community colleges and universities in the state producing the kind of talent you’ll need? Are young people staying around or moving in after graduation? These demographic trends will have a significant impact on the nature of your skill shortages and potential solutions.