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