[seanhenry]

Is this money well spent?









Deloitte will retain its 1,153 employees in the state, according to a news release from Malloy's office. The positions range from entry level to high-level executive jobs, according to the statement.
Under the agreement, $9 million will be awarded if the 1,153 jobs are retained and 200 jobs are created by the end of 2013. According to the governor's office, $2.5 million will be awarded if the company retains the 1,353 jobs and creates 150 by the end of 2018. If the company retains 1,353 jobs and creates 300 in that same period, $5.5 million will be awarded

[wavehunter007]

...another example of how Connecticut has to bribe companies to stay in the state - lol.

Like other examples, eventually the company moves out of Connecticut anyway.

[Stylo]

Is the money a loan that has to be paid back, or are they literally throwing money at them?

[Mike 75]

How about making CT friendly to all businesses, big and small?

[seanhenry]

Taxpayers have to purchase jobs for their state. I dunno, maybe this is a common thing.
How much are taxpayers paying per job on this deal? Would it be 1353 jobs/ $9million=

[willow wind]

Stylo, Looks like they are just throwing money at them. It's a series of grants.


Deloitte nabs $16M “First Five,” deal to add CT jobs | HartfordBusiness.com

[Comp625]

These taxpayer-funded grants are the lesser of two evils.

Without these financial incentives, companies would automatically move to other states, leaving Connecticut in a worse-off economic position due to high unemployment while decreasing Connecticut's Gross State Product. It would then take time for affected employees to find other jobs and/or move away to a different state.

The "hazy glass half full" look is that if, one day, CT's economy tanks (more so than it has presently), the cost of living up in CT would eventually normalize after many years of being in a super recession.

[nep321]

I used to work at Deloitte. What a horrible place to work. 70 hrs per week for half of the year. It was terrible. Thank god I'm out of there by choice.

[bobtn]

Originally Posted by seanhenry

Is this money well spent?









Deloitte will retain its 1,153 employees in the state, according to a news release from Malloy's office. The positions range from entry level to high-level executive jobs, according to the statement.
Under the agreement, $9 million will be awarded if the 1,153 jobs are retained and 200 jobs are created by the end of 2013.

$7k per job is not unreasonable. And unlike UBS, at least Malloy is not rewarding them for downsizing. Perhaps the Economic Development gang took a remedial math class.

[belleislerunner]

It's a smart ploy by Deloitte to get two years of free funding from the state and into partner's pockets.

They get $9 million if they hire 200 people by 2013. Deloitte hires that many every year around Sept 1. So divide $9 million by 200 and you get $45,000/employee. So Deloitte can pay new hires roughly 55K, while 45K is subsidized by the taxpayers. Net cost to partners of 10k/employee.

Deloitte would be required to hire these 100-200 new hires regardless (i.e. they need them to service their clients due to burnout attrition) - but at least they get them for free for two years. Smart McKinsey style management thinking at the expense of the Housatonic CC taxpayer.