CIOZone.com - Professional Network for CIOs and IT Professionals

In recent years, federal agencies have become more generous in doling out bonuses to recruit and retain top notch workers. In 2008 alone, 37 federal agencies laid out more than $284 million to more than 39,000 workers for recruitment, retention and relocation bonuses.

Now, the Fed is becoming more selective about spending for the 3Rs as it looks to cut costs and trim the deficit. In a Feb. 3 memorandum by Office of Personnel Management Director John Berry said the federal government is planning to “develop additional guidance and tools to help agencies write stronger justifications for 3Rs authorizations.” Even with greater scrutiny planned for the allotment of such bonuses, Berry notes that he remains “concerned about the continued growth in 3Rs payments given recent labor market conditions.” Between 2007 and 2008, the total number of incentives paid rose by more than 21% while total bonuses extended increased by more than 37%.

While this could be a good move to prevent wasteful spending, it could also create big problems as the Fed faces an impending brain drain of Baby Boomer IT workers who are inching closer to retirement. Federal workers are eligible to retire at age 55. As of 2008, 55% of federal workers were between the ages of 45 and 64 compared to 36% of private-sector workers, according to a recent blog in The New York Times by Nancy Folbre, an economics professor at the University of Massachusetts.

In ‘Uncle Sam’s Brain Drain’, a seminal article written on the topic in 2002 by former Computerworld writer Gary A. Anthes, the National Academy of Public Administration (NAPA) estimated at the time that more than half of federal IT workers would become eligible to retire by 2012 and that the federal government would need to hire an additional 45,000 IT workers by then.

Granted, two recessions over the past decade and weak overall returns in retirement programs are leading a growing number of IT and other types of workers to extend their careers both in the public and private sectors. But as a dwindling percentage of younger Americans pursue careers in IT, federal officials could be shooting themselves in the foot if they don’t continue to offer richer pay packages and bonus incentives for the best and brightest IT workers to remain or join the public sector.

Comments (4)

	1. 03-09-2010 19:07
	Given that the Feds are trying to lure talent to help with such initiatives as cloud-based services, which are already in high demand in the private sector, the 3Rs will become even more critical to landing and keeping the talent that is needed. Registered

Mel Duvall

	2. 03-09-2010 21:26
	Good point, Mel. As an aside, it'll also be interesting to see how Microsoft's new cloud service resonates with the feds. Registered

This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

	3. 03-13-2010 00:32
	I believe that I just heard of another study recently that stated that federal workers in general are not getting paid more then private sector employees. While this may be troubling to some this in itself could be a big factor in recruiting as when I was coming out of college going to work for a government department was mainly done by people with high ideals or with existing financial nest eggs.     -sean Registered

This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

	4. 03-13-2010 09:08
	Public sector wages have historically trailed those in the private sector, including those for IT professionals. But you're right, Sean, that this represents another hurdle for attracting and retaining federal IT workers. Registered

This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Only registered users can write comments.
Please login or register.