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Comparison of Existing Local Jobs Grant Program Payments to Alternative Average Wage Local Jobs Grant Pa ments for four Companies that Received Local Jobs Grants Average Existing Proposed Jobs Grant # of Jobs Grant Payment Amount Using Difference Average Employees Payment Average Wage and in Payment Percent Company Wage Level Amount Average # of Em to ees Amounts* Difference* OcuCue $68,045 10 $54,999.99 $63,333.33 $8,333* 15%* INEOS $75,767 47 $297,000.00 $350,000.00 $531000* 18%* NetBoss $99,781 40 $267,999.98 $281,166.67 $13,167* 5%* Boston 26 Barricade $45,982 1 $126,000.00 $133,333.33 $7,333* 6%* TOTALS NA 123 $745 999.97 $827,833.33 $81,833* 1)%* *The difference would be $0 (0%) for companies that meet or exceed their protected empioyment and wages nsAeu ui their jobs grant agreements. This is due to the payment cap established at time of jobs grant approval. Company Feedback Since the August 15, 2017 BCC meeting, county staff reached out to existing jobs grant companies to obtain feedback on the proposed new methodology. Based on those outreach efforts, the following conclusions were drawn: 1. Current methodology is overly complicated for applicants. a. Tracking individual jobs becomes complicated because of the potential for a high employee turnover rate (especially for new companies). The high employee turnover rate is related to a limited available talent pool in the area/region that can result in hiring people new to a particular industry that are not the right fit and leave on their own or are later terminated. Also, for new start-ups, some new employees may leave after they realize the commitment level involved with a start-up company. b. There are wage changes for employees after a probationary period. Under the current jobs payment methodology, those jobs might not initially qualify for a local jobs grant payment but under the proposed methodology their rising wages could be captured by wage averaging. 2. The proposed jobs grant tracking and payment computation methodology simplifies things for applicants. a. Eliminates need for detailed tracking spreadsheet. b. Easier to understand and follow. c. Less time to review. The county received feedback that the proposed payment computation methodology is much better than the old payment computation methodology. Also, the county received some feedback that was not related to the jobs grant payment computation methodology. That feedback included the need for more help in finding good qualified employees beyond using existing methods such as 4 P157