If actions by the federal government create a mass exodus by employees formerly employed there, what will that mean to private sector employers?
It seems likely that many businesses looking for new hires may soon have applicants with former work experience in the federal government. These would likely be from any number of agencies, as recent presidential actions indicate there will be job reductions across many departments. These new applicants will likely reflect applicants everywhere, and there will surely be a wide variety of education, experience, skill levels, and work ethic among them.
Hiring managers want to know…
Will their skills transfer? Will they be accepting of training if their government job duties do not translate to the private sector? Will they be of an elevated average age? Will they drive up the number of work from home and hybrid positions? Will they bring specialized knowledge and useful training? Will they mix well with the private employer culture? What kind of wages and benefits will they require?
The answers to these questions will likely be studied and reported by economists and social scientists for years to come. Early predictions seem to bode well for employers in government contracting, as there will likely be numerous employees with public policy and government procurement experience coming into the job market. Some predict downward wage pressure as the volume of available workers increases, especially in areas surrounding Washington, D.C.
Employers looking to hire from this newly available pool of applicants will need to attract and retain quality workers with strong benefits, like health insurance and 401(K) retirement plans. Administrative payroll duties will need to meet the demands of multistate banking and taxes. Workers’ compensation coverage will need to expand to cover new workers, reflecting increases in compensation volume, potential changes in work classification, and accurately reflect any new states of operation.
Partnering with a professional employer organization enables hiring managers to focus and performance, and gives them access to the tools they need for better team building. A PEO assumes the responsibility for employees hired by the business and adds them to a much larger group. This enables employers access to the latest payroll and human resources information systems. It allows for access to large group benefits that are nationwide and turnkey for health, life, disability, dental and vision insurance. Workers’ compensation is frequently provided on a master policy from the PEO for real time premium billing, claims processing, and prompt production of certificates of coverage when needed. Offering a 401(k) retirement plan is easy with a PEO, with lower costs reflecting large scale employer volume.
Learn how to grow your team efficiently by evaluating how a PEO can help.
Learn more about the services of a PEO with an independent agent to represent the unique interests of business owners. Samantha Bond Richman, President and founder of Sam Bond Benefit Group, has been advising employers on the merits of using PEO services for 34 years. Independently representing the client company, we strive to find just the right fit from many PEO partnerships. For more information, contact Sam today or call (877) 426-6320.
