Contractors vs. Government Employees

One of the most frequent topics of conversation that comes up in any government workspace is who has it better off:  government employees, or the contractors who support government operations?  It always makes for an interesting (and heated!) discussion, so I thought I’d look into the subject for today’s post.

I’ve personally worked for two different contractors before coming over to the government side of the house, so I feel that I’ve got some experience here.  A lot of people think that contractors are paid a much higher salary, but this isn’t always the case.  Usually, a large portion of the money that contracting companies are paid will be eaten up by overhead operating costs, if it doesn’t go directly to corporate shareholders.  Individual employee salaries are typically in line with what government employees pull in, except in the notable cases of high-level executives with stock options. 

Government employees, on the other hand, have a benefits package which rivals most corporate systems.  The Federal retirement systems, when combined with the TSP and agency match, will rarely be beaten in this age of disappearing pensions.  Even though federal employees are required to contribute to their retirement and medical benefit programs, the prices are comparable to the private sector.  Also, in the government world, step increases and structured pay scales act almost like longevity pay systems for senior employees.

For me personally, the decision to go federal was based on the range of duties that were available.  As a contractor, it seemed like my teams were always limited by the job description that was outlined in our company’s contract, and going above and beyond the scope of these duties was actually discouraged!  Even taking the initiative to empty the trash could cause a squabble, since it was someone else’s duty to clean up the workspace.  As a government employee, I’ve found that getting the job done is always the first priority, and that allows me to spend a few extra minutes at the office if necessary.

The most important thing for you as a job seeker to consider is which type of employment will work out best for your situation.  While government employment offers more long-term security, that might not be so much of a concern for a military retiree who’s seeking the flexible schedules of contracting.  On the other hand, for a mid-30s professional with a family to support, working for a contractor doesn’t offer a whole lot of stability beyond the current project.

If you’re in the fortunate position of being able to choose between a few prospective jobs, then do yourself a favor and weigh all of the benefits.  I’d love to hear your thoughts on this topic in the comments section below, but the most important thing to remember is that you’ll be able to make a contribution to the country’s mission in either role.  Good luck with your decision!