How Small and Medium-Sized Businesses Can Attract Federal Employees

Introduction

The current administration’s  Fork in the Road initiative has led to a wave of federal employee resignations and was quickly followed by layoffs and Reduction in Forces (RIFS). Whatever your position on the measures employed by the current administration, these developments create a unique opportunity for small and medium-sized businesses (SMBs) to attract skilled professionals.  Many of these workers are used to benefits including health care and pension plans, and job security—so how can smaller businesses compete with the large corporations in attracting these professionals?

The good news: Many federal government employees value work-life balance, purpose-driven work, and career growth—factors that SMBs can use to their advantage. This article explores actionable strategies for attracting transitioning federal employees, even without corporate-sized budgets.

Understand What Federal Employees Value in a Job

Beyond competitive salaries, many federal employees prioritize factors such as work-life balance, job security, and a strong workplace culture. A report by the Partnership for Public Service highlights that federal workers often seek:

  • Meaningful work that in a clear way benefits society and delivers a public good. This includes clear goals and recognition of the work needed to achieve those goals.
  • Opportunities for professional development and career growth.
  • A collaborative work environment including coaching and mentoring and opportunities for innovation in effectively reaching goals.
  • Effective Leadership with strong communication with employees.
  • Work-Life Balance

SMB Strategies to Address Federal Employee Job Values

1. Highlight Company Culture and Purpose

Many federal employees work in mission-driven roles and value jobs with a purpose for the public good. SMBs can attract them by emphasizing:

  • Community impact
  • A close-knit, collaborative work environment
  • Opportunities to make meaningful contributions

SMB Strategy:

  • Showcase employee testimonials on company culture.
  • Highlight the company’s contributions to public good and how the goods or services benefit real people.
  • Offer volunteer or social impact programs as part of employment.

Example: A 2022 Gallup survey found that 42% of workers would take a lower-paying job if it meant working for a company with a strong mission.

2. Highlight Opportunities for Career Growth

Federal employees often have a clear structure for career progression but career progression is step-wise and top positions are reserved for political appointees.  SMBs can offer faster and more flexible career growth.

SMB Strategy:

  • Clearly define career paths within the company.
  • Offer cross-training opportunities to expand employees’ skills.
  • Consider mentorship programs to guide transitioning workers in the private sector.

Example: According to Clear Company, employees who see a clear path to advancement are more likely to stay at a company. Retention is 34% higher if employees have a clear opportunity for professional development. Employees age 18-34 consider upward mobility and opportunities to learn new skills as top considerations when considering a job offer.

3. Demonstrate Effective Leadership

Federal employees transitioning to the private sector often cite effective leadership and transparent communication as key factors influencing their job satisfaction. Employees who trust leadership and feel heard are more engaged, more productive, and more likely to stay in their roles (FEVSR). This presents an opportunity for small and medium-sized businesses (SMBs) to differentiate themselves in recruitment efforts by demonstrating a commitment to open communication, strong leadership, and employee inclusion.

SMB Strategy:

  • Use Job Descriptions to Showcase Strong Leadership
    • Highlight collaborative leadership styles and open-door policies in job postings.
    • Include quotes or testimonials from current employees about company culture and leadership transparency.
    • Avoid generic leadership buzzwords—be specific about how leadership supports employees (e.g., town halls, mentorship programs, or direct manager involvement).
  • Incorporate Leadership Values in the Hiring Process
    • During interviews, clearly communicate leadership expectations and how decision-making happens within the company.
    • Offer candidates a chance to speak directly with leadership to see firsthand the accessibility and transparency of the company’s culture.
    • Frame leadership as a key differentiator—emphasizing that SMBs often provide more direct access to decision-makers compared to larger corporations.
  • Leverage Employee Testimonies to Build Trust
    • Feature leadership stories in recruitment materials—e.g., how the company listens to employees and acts on feedback.
    • Share real examples of employee-driven initiatives that resulted from leadership engagement.
    • Use social media, career pages, and job postings to showcase company values through leadership success stories.

Example: A study from the Partnership for Public Service found that federal employees are more likely to accept a job offer from an employer that emphasizes leadership transparency and two-way communication in the hiring process. SMBs that demonstrate this commitment early on—through job postings, interviews, and onboarding—will stand out from competitors.

4. Offer Flexible Work Arrangements

Many federal employees are accustomed to hybrid or remote work, particularly after the pandemic.

SMB Strategy:

  • Offer remote or hybrid options when possible.
  • Consider a four-day workweek or flexible scheduling to make positions more attractive.
  • Highlight work-life balance in job postings to stand out against large corporations focused on rigid structures.

Example: The Office of Personnel Management (OPM) reports that over 60% of eligible federal employees worked remotely or teleworked at least part-time in 2023.

5. Address Compensation Beyond Salary

If matching corporate salaries is unrealistic, SMBs can compensate in other ways, such as:

  • Performance-based bonuses
  • Profit-sharing programs
  • Student loan assistance
  • Wellness benefits (gym memberships, mental health support, etc.)

SMB Strategy:

  • Highlight total compensation in job descriptions (not just base salary).
  • Offer personalized benefits that fit employees’ needs.

Example: A 2023 report by Glassdoor found that 57% of job seekers prioritize benefits over salary when choosing between job offers.

6. Address the Emotional Impact of Unexpected Career Transitions

Many federal employees who viewed their careers and public service as long-term are now facing unexpected departures due to recent policy changes, such as the “Fork in the Road” initiative. This sudden shift can lead to feelings of uncertainty, loss, and anxiety as they navigate unplanned career transitions.

SMB Strategy:

  • Acknowledge the Emotional Challenges: Recognize that transitioning employees may be experiencing a range of emotions due to the abrupt change in their career paths.
  • Provide Supportive Onboarding: Develop onboarding programs that not only introduce job responsibilities but also offer support resources, such as peer support groups or mentoring to help new hires adjust.
  • Foster Open Communication: Create an environment where employees feel comfortable expressing their ideas, concerns and needs during the transition period.
  • Offer Career Counseling: Provide access to career development resources to help employees envision a new trajectory within your organization, alleviating some of the uncertainty they may feel.

Conclusion: Make Your SMB Stand Out

Transitioning federal employees bring valuable skills and experience, but many won’t automatically flock to large corporations if SMBs can offer flexibility, purpose, and growth opportunities. By focusing on culture, benefits, career development, structured onboarding, and hiring incentives, smaller employers can successfully attract these talented and mission driven professionals.

Written by Lisa J Meier

Image generated by ChatGPT

Resources:

Gallup: State of the Global Workplace 2022

Glassdoor: Top 20 Employee Benefits and Perks

Harvard Business School: A Better Way to Develop and Retain Top Talent

Office of Personnel Management (OPM): Fork in the Road Initiative

Office of Personnel Management (OPM): Federal Employee Viewpoint Survey Results

Partnership for Public Service, Best Places to Work in the Federal Government

Scroll to Top