Relocation assistance helps with labor shortage
In order to help Hazelwood businesses attract employees, the Missouri city has started an incentivized relocation assistance program.
After beginning in his position as assistant city manager in June 2022, David Leezer heard from local employers about labor shortage issues across all industries. Then, last year, at a Missouri Economic Development Financing Association presentation, one of the presenters was Missouri One Start, which provides workforce training for the state. MOS had just launched a new program that offsets relocation costs for employers.
Hazelwood is one of the cities in Missouri with its own economic development sales tax, so Leezer spoke with the municipality’s legal counsel to see if it would be possible to team up with Missouri One Start and match its incentive money through that fund. After numerous conversations, it was decided that Hazelwood would offer a matching incentive program for employers who qualified for Missouri One Start relocation assistance.
For any non-Missouri resident who relocates in order to work at a Hazelwood company, Missouri One Start will offer approved companies up to $3,500.
If the individual is not a Missouri resident and begins remote work within the corporate limits of a Hazelwood company, the business still qualifies for the assistance. In order to qualify, the remote worker must be considered to be located at a Hazelwood facility, receive direction and control from the Hazelwood location and be on the facility’s payroll. One hundred percent of the employee’s income must come from the state of Missouri.
Once the city receives proof that the employer has received funds through the program, it will then match the amount given so that employers have the possibility of receiving a combined total of up to $7,000. That requirement can include proof of reimbursement from Missouri One Start, the name of relocated employee, the date when employee started, the relocated employee’s former address and the relocated employee’s new Missouri address.
As a bonus incentive, if the non-Missouri resident then purchases a home in Hazelwood, the city will give the employee as much money as the match that was given to the company – up to $3,500. The match does not apply for employees renting a home in Hazelwood.
“It’s our way of trying to help our companies get labor to offset their shortage problem,” Leezer explained. “I look at it as it’s my job to help the company so we’re very flexible with the program.”
In order to qualify for the Missouri One Start relocation assistance program, a company must apply and meet certain criteria. For instance, it cannot be a nonprofit and it cannot be a retail business.
After requesting the relocation assistance benefit, the business also must submit a letter to the city stating they will be seeking assistance through Missouri One Start. This letter must include the business’ name, address or future Hazelwood address, the number of employees who needed the assistance, the amount of relocation assistance funds requested and received, and the estimated start dates for relocated employees.
Once approved with the Missouri One Start program, the company is automatically approved for city benefits as well.
“If they’re approved for Missouri One Start, they’re approved by us,” Leezer affirmed. “They do most of the vetting for us.”
The program kicked off in January. Leezer is focused on spreading word about its availability to potentially eligible companies and on working with Missouri One Start to promote the program.
There has been some interest in the program. The greatest hurdle currently, he said, seems to be getting the companies to go to the Missouri One Start website and fill out the application.
Currently, the plan is to give it 18 months and then revisit the program to see what is working, what has not worked, how it has been promoted and what needs to be changed.
“No one else does this in the state of Missouri,” Leezer noted. “It won’t change the world, but it will make an impact on Hazelwood industries.”
The city of Hazelwood, Mo., has teamed up with Missouri One Start in a relocation assistance program to attract employees to the city. Hazelwood companies can receive up to $3,500 from Missouri One Start for any non-Missouri resident who relocates to work at a Hazelwood company as well as a matching amount from the city. (Photo provided by the city of Hazelwood, Mo.) 
If an employee qualifies for the relocation assistance program and purchases a home in the city of Hazelwood, the employee can also receive a matching incentive equal to the amount the company receives through the program This helps bring in new residents as well as help fill the labor shortage. (Photo provided by the city of Hazelwood, Mo.) 
Remote workers can also qualify a company for the relocation assistance as long as they are on a Hazelwood company’s payroll, have a new permanent Missouri address and 100% of the employee’s income comes from the state of Missouri. (Photo provided by the city of Hazelwood, Mo.) The program has certain qualifications a business must meet. For example, retail businesses and nonprofits do not qualify. The business must then apply online for the program through Missouri One Start. Then they send a letter to the city stating they are seeking assistance through the program. (Photo provided by the city of Hazelwood, Mo.)
