$2 Million Handout For Staffing Company

An announcement today by the Indiana Economic Development Corporation should have every staffing company in Indiana fuming. The IEDC is awarding $2 million in tax credits and $60,000 in training grants to Princeton One, which is among dozens of staffing companies already doing business in Indiana. A press release from the IEDC reads:

PrincetonOne, a global executive recruiting firm, announced today that it is expanding its Indiana operations, creating more than 200 new high-paying jobs.

The company, one of the 10 largest recruitment firms in the nation, made the announcement from its newly renovated offices in the Century Building on south Pennsylvania Avenue.

“This is one more step on the long uphill climb toward a stronger and more diversified economy,” said Governor Daniels.

PrincetonOne provides a fully integrated menu of assessment, recruitment, retention, staffing, training and organizational development services from its 15 offices in the United States, three in Europe and one office in Asia. Headquartered in Skillman, N.J., PrincetonOne’s U.S. offices placed about 2,700 people in 2006 alone.

"The workforce in Indiana, particularly in Indianapolis, is a very well-educated and skilled workforce," said Dave Campeas, PrincetonOne’s chief executive. "In fact, were able to find some of the most qualified people in our business right here in Indianapolis."

The Indiana Economic Development Corporation offered the company $2 million in tax credits and $60,000 in training grants to bring the new $35-an-hour jobs to Indiana.

“PrincetonOne is another great example of a successful company that could have expanded anywhere in the country, but they chose to make a significant investment and create hundreds of new, high-paying jobs right here in Indianapolis,” said Mayor Bart Peterson.

“This expansion says a great deal about PrincetonOne’s commitment to our city and shows the continued strength of our surging economy.”

The $3.9 million expansion included consolidating the company’s Greenwood and near-Carmel locations with the Indianapolis office.

“PrincetonOne’s decision to invest in Indiana is another example of the growing confidence in our economy,” said Nathan Feltman, Indiana Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation. “With our highly educated workforce and competitive business climate, businesses around the globe are choosing Indiana as a place to grow.”

So what makes PrincetonOne more special than all the other staffing companies? Why would a state ever award incentives to a staffing company? Is there anyone over there at the IEDC who has any common sense? What a joke! I can't believe anyone would be so stupid as to put out a press release bragging about this. There is absolutely no bottom line benefit to the state's economy in handing out tax subsidies to staffing companies.

It would be interesting to find out who the major investors are in this company. For $10,000 a job, we should be told a hell of a lot more about this company than the IEDC shared in its press release. The company's website sheds no light on its ownership, or the company's history for that matter. The press release provided this small bit of information about the out-of-state company:

Headquartered in Skillman, N.J., PrincetonOne provides its clients with a cohesive strategy for recruiting, retention, staffing assessment, training and organizational development. With 30 years of experience, PrincetonOne has earned annual revenue of more than $30 million by delivering unified recruitment solutions and measurable results for more than 600 clients around the world.

If anyone knows more about the company, please share with us.