Government Contractor vs Government Employment

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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.

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Government Contractor vs Government Employment

  1. 1. Cleared Workers’ Preference:Government Contractor orGovernment Employee?The effects of the differences on your hiring efforts
  2. 2. Your Host Get Help  Evan Lesser  ClearanceJobs.com Founder and Managing Director Customer Support ClearanceJobs.com support@clearancejobs.com  Next WebinarsWebinar Length  The Cleared Network 101: First Steps into Social Recruiting of  30 minutes for webinar Cleared Professionals  10 minutes for Q&A (optional) September 22nd, 2:00pm EST  Create Your Own Webinar  Your group, your date, your time, your subject matter
  3. 3.  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
  4. 4.  Which type of employment do you prefer, working as a government employee or a government contractor? Prefer being a Prefer being a 59% government 41% government contractor employee
  5. 5.  What are the main reasons you prefer to be employed as a government contractor? #1 Higher salary and compensation #2 Prefer contractor benefits #3 More flexibility #4 Better upward career mobility #5 More challenging work
  6. 6.  What are the main reasons you prefer to be employed as a government contractor? #1 Higher salary and compensation Salary and compensation Gov • Based on performance Contractor • No salary cap • No salary freeze • Avg cleared compensation in 2011 ($98,221) Gov • Based on tenure Employee • Caps set by pay scales • Current salary freeze • Avg cleared compensation in 2011 ($83,577)
  7. 7.  What are the main reasons you prefer to be employed as a government contractor? #2 Prefer contractor benefits Differences in benefits Gov • Usually no caps on overtime Contractor • Many employers pay for education / degrees • Personal days off Gov • Cap on overtime Employee • Most agencies will not pay for education / degrees • No personal days off
  8. 8.  What are the main reasons you prefer to be employed as a government contractor? #3 More flexibility Differences in workplace flexibility Gov • Can utilize creative thinking Contractor • Faster, easier to obtain new tools for work Gov • Structured, mandated way of doing things Employee • Long time to obtain new tools for work
  9. 9.  Time-to-hire is a strong selling point for being a government contractor Avg length of time it 105 took to hire a new gov Days employee in last year OPM suggested goal 45 for agencies to hire a Days new gov employee Note: Insourced candidates appear to be on a “fast track” when getting hired
  10. 10.  Working on cutting-edge technology is a strong selling point for being a government contractor
  11. 11.  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“I do the same job as a contractors first.” “The government civil servant, but I’m employees leave early at held to a higher holidays while the standard.” contractors are required to stay – even though we “I’ve got a clearance, but do the same job.” I’m not allowed to have a phone or email address like the gov employees have.”
  12. 12.  Are you presently considering switching from being a government contractor to a government employee? 6% 54% 40% Yes No Maybe Note: 30% of gov contractors “extremely concerned” about contract loss due to funding - 2011 ClearanceJobs Salary Survey
  13. 13.  What are the main reasons you prefer employment as a government employee? #1 Better job security #2 Better /easier upward career mobility #3 Better benefits #4 Sense of pride in government service #5 More challenging work
  14. 14.  What are the main reasons you prefer employment as a government employee? #2 Better /easier upward career mobility Differences in career mobility Gov • Has three bosses (contractor boss, gov boss, Contractor subcontractor boss) • No guarantee of upward mobility Gov • Gov boss only Employee • Structured promotional ladder
  15. 15. Best Large Agencies 1 Nuclear Regulatory Commission  Survey of 32 large federal agencies 2 Government Accountability Office  Administered by the Partnership for Public Service in 2010 3 FDIC  Factors include 4 Smithsonian Institution - Employee satisfaction 5 NASA - Skills vs. mission match 6 Social Security Administration - Compensation - Work/life balance 7 Department of State - Leadership effectiveness 8 General Services Administration 9 Department of Justice10 Intelligence Community
  16. 16.  Intelligence Agencies  Department of the Air Force - Ranks 10th out of 31 - Ranks 18th out of 31 - Down 2.6% from 2009 - Up 1.9% from 2009 Department of the Navy  Department of Homeland Security - Ranks 15th out of 31 - Ranks 28th out of 31 - Up 3.1% from 2009 - Up 4.3% from 2009 Department of the Army - Ranks 16th out of 31 - Up 1.7% from 2009 All Department of Defense To Consider: Agencies that require clearance not ranked at the top. Why? - Ranks 17th out of 31 - Up 2.8% from 2009
  17. 17.  Are you presently considering switching from being a government employee to a government contractor? 29% 27% Yes No 44% Maybe
  18. 18. Former defense Secretary Robert Gates in 2009 Gov plans to bring contractor jobs called for the elimination of 33,000 service-support “in-house” picking up steam contractors by 2015. - 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?
  19. 19. “For IT people, job “I’d like to be a govsecurity is equal being “I used to be a federal employee to get theeither a contractor or employee. Now as a benefits. But as a employee, so I prefer contractor, I really don’t contractor, I can get contractor.” like the job uncertainty.” promoted anytime if a position opens up and I work hard enough.” “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 Gov employees stagnate from better focus on the job at hand.” complacency, whereas contractors must remain informed of cutting edge technology to remain highly valued.” “Military retirement benefits can be taken away. I want to plan my own retirement.”
  20. 20. 1. Tough economy = workers looking for job security2. Contractors not adverse to changing to be gov employees3. Insourcing will likely increase despite dubious cost savings4. 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
  21. 21.  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

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