government contractor vs government employment
DESCRIPTION
This webinar looks at the preferences of the security-cleared professional. The pros and cons of being a government contractor or government employee. The issue of insourcing and the motivations behind cleared government contractors career decisions.TRANSCRIPT
Cleared Workers’ Preference: Government Contractor or Government Employee?
The effects of the differences on your hiring efforts
Your Host Evan Lesser
Founder and Managing Director ClearanceJobs.com
Webinar Length 30 minutes for webinar
10 minutes for Q&A (optional)
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Motivations of cleared gov contractors
How many considering switch to gov employee
Problems in being a gov contractor
Motivations of cleared gov employees
Best / worst gov agencies to work for
How many considering switch to gov contractor
Insourcing role
Survey responses
Conclusion
59% 41% Prefer being a government contractor
Prefer being a government employee
Which type of employment do you prefer, working as a government employee or a government contractor?
What are the main reasons you prefer to be employed as a government contractor?
Higher salary and compensation
Prefer contractor benefits
More flexibility
Better upward career mobility
More challenging work
#1
#2
#3
#4
#5
What are the main reasons you prefer to be employed as a government contractor?
Higher salary and compensation #1
Salary and compensation
Gov Contractor
• Based on performance • No salary cap • No salary freeze • Avg cleared compensation in 2011 ($98,221)
Gov Employee
• Based on tenure • Caps set by pay scales • Current salary freeze • Avg cleared compensation in 2011 ($83,577)
What are the main reasons you prefer to be employed as a government contractor?
#2
Differences in benefits
Gov Contractor
• Usually no caps on overtime • Many employers pay for education / degrees • Personal days off
Gov Employee
• Cap on overtime • Most agencies will not pay for education / degrees • No personal days off
Prefer contractor benefits
What are the main reasons you prefer to be employed as a government contractor?
#3
Differences in workplace flexibility
Gov Contractor
• Can utilize creative thinking • Faster, easier to obtain new tools for work
Gov Employee
• Structured, mandated way of doing things • Long time to obtain new tools for work
More flexibility
Time-to-hire is a strong selling point for being a government contractor
105 Days
Avg length of time it took to hire a new gov employee in last year
45 Days
OPM suggested goal for agencies to hire a new gov employee
Note: Insourced candidates appear to be on a “fast track” when getting hired
Working on cutting-edge technology is a strong selling point for being a government contractor
Reported problems with being a federal contractor are less tangible in nature
“I’m treated like a second class citizen.” “If there are any
nights, weekends, or over time needed, they hit up their
contractors first.” “The government employees leave early at
holidays while the contractors are required to stay – even though we
do the same job.”
“I do the same job as a civil servant, but I’m
held to a higher standard.”
“I’ve got a clearance, but I’m not allowed to have a
phone or email address like the gov employees have.”
Are you presently considering switching from being a government contractor to a government employee?
6%
40% 54% Yes
No
Maybe
Note: 30% of gov contractors “extremely concerned” about contract loss due to funding - 2011 ClearanceJobs Salary Survey
What are the main reasons you prefer employment as a government employee?
Better job security
Better /easier upward career mobility
Better benefits
Sense of pride in government service
More challenging work
#1
#2
#3
#4
#5
What are the main reasons you prefer employment as a government employee?
#2
Differences in career mobility
Gov Contractor
• Has three bosses (contractor boss, gov boss, subcontractor boss)
• No guarantee of upward mobility
Gov Employee
• Gov boss only • Structured promotional ladder
Better /easier upward career mobility
Best Large Agencies
1 Nuclear Regulatory Commission
2 Government Accountability Office
3 FDIC
4 Smithsonian Institution
5 NASA
6 Social Security Administration
7 Department of State
8 General Services Administration
9 Department of Justice
10 Intelligence Community
Survey of 32 large federal agencies
Administered by the Partnership for Public Service in 2010
Factors include - Employee satisfaction
- Skills vs. mission match
- Compensation
- Work/life balance
- Leadership effectiveness
Intelligence Agencies - Ranks 10th out of 31
- Down 2.6% from 2009
Department of the Navy - Ranks 15th out of 31
- Up 3.1% from 2009
Department of the Army - Ranks 16th out of 31
- Up 1.7% from 2009
All Department of Defense - Ranks 17th out of 31
- Up 2.8% from 2009
Department of the Air Force - Ranks 18th out of 31
- Up 1.9% from 2009
Department of Homeland Security - Ranks 28th out of 31
- Up 4.3% from 2009
To Consider: Agencies that require clearance not ranked at the top. Why?
Are you presently considering switching from being a government employee to a government contractor?
27%
44%
29%
Yes
No
Maybe
Gov plans to bring contractor jobs “in-house” picking up steam - Reports from HR about losing staff to
insourcing (“poaching”)
- Pentagon added 17,000 new employees, claims $900m in savings via insourcing in 2010
- Not all insourced jobs are “inherently governmental”
• CBP replacing 1,200 IT contractors through 2012
- Are your employees potential targets?
Former defense Secretary Robert Gates in 2009
called for the elimination of 33,000 service-support
contractors by 2015.
“For IT people, job security is equal being either a contractor or employee, so I prefer
contractor.”
“Government contractors are more disposable, and are treated as such. If you want to fully focus on your work, being a gov employee allows you
to leave worries about security behind and better focus on the job at hand.”
“I used to be a federal employee. Now as a
contractor, I really don’t like the job uncertainty.”
Gov employees stagnate from complacency, whereas contractors
must remain informed of cutting edge technology to remain highly valued.”
“I’d like to be a gov employee to get the
benefits. But as a contractor, I can get
promoted anytime if a position opens up and I work hard enough.”
“Military retirement benefits can be taken away. I want to
plan my own retirement.”
1. Tough economy = workers looking for job security
2. Contractors not adverse to changing to be gov employees
3. Insourcing will likely increase despite dubious cost savings
4. Understanding the following can help you attract and retain cleared workers
- Career motivations of gov contractors and gov employees
- Pros and cons of employment as gov contractor and gov employee • Salary, wages, and compensation
• Promotions and wage increases
• Benefits
• Time-to-hire
• Workplace technology
• Job satisfaction
Incorporate positive “selling points” of being a contractor in hiring messages - Play to top motivating factors
Identify employees at risk to be insourced or leave to gov - Educate them about differences being gov
employee versus gov contractor
- Inform them what happens in event of contract loss / funding loss