FEDS AND CONTRACTORS AT RISK FOR LOSING TALENT OVER SHUTDOWN, NEW MARKET COMPETITION

Talented workers with special skills always have options.  Sitting at home not getting paid is not an option they need to endure, especially if there are readily available alternatives.  As the partial-shutdown stretches on, the risk of a brain drain from both the ranks of federal and contractor employees increases.  Younger feds aren’t wedded to the idea that they have to stay in government for some number of years to get their retirement.  They’re more mobile as a group then their older counterparts.  Plus, many want to be seen as actively contributing.  Contributing to high score on Grand Theft Auto IV doesn’t count.  Contractors workers feel the same way, and their retirement packages tend to be more portable.  Add to this competition in specific markets – like Amazon’s move to suburban Washington – and a scenario where government agencies lose experienced, talented workers becomes much more possible.  Contractors have a slight edge here in that they can shift workers to overhead accounts, at least for some time, and can offer other incentives.  Companies need to think broadly about this, too, because it’s no longer the case that a worker will jump from contractor to contractor.  Talented workers can, and will, jump right out of the federal space entirely if they perceive other segments to be both more meaningful and reliable.  This isn’t an issue companies can ignore, even though it can be an expensive one when revenues are down.  Maintaining a talented, experienced, and well-known workforce is key to having an edge now and when government agencies do re-open.