Keeping Talent: Strategies for Retaining Valued Federal Employees

Federal agencies spend enormous amounts of time, energy, and resources to hire and train staff, but often fail to address another crucial aspect of human capital: Retaining those currently employed.

With the recently enacted government pay freeze and a hiring moratorium under consideration, retaining federal employees is more critical than ever. As government workers seek other opportunities or consider early retirement, some agencies may soon find they are unable to fill key positions.

Federal sector attrition can mean loss of specialized knowledge and experience; demoralization of co-workers left behind; and considerable challenges for managers who must replace employees and reorganize work. Retaining federal employees not only addresses these concerns, but also helps agencies avoid the steep costs to replace those employees, ranging from 50% to 200% of each individual’s salary.

A joint study by Booz Allen Hamilton and the Partnership for Public Service, “Keeping Talent: Strategies for Retaining Valued Federal Employees,” clarifies retention issues and provides guidance for managers and HR professionals about how to keep qualified talent. The January 2011 report examines why employees choose to stay with an agency and which retention techniques and tools may be most effective.

Although attrition rates of federal employees appear to be much lower than those of the private sector, they vary from agency to agency and depend on occupation, geography, and other factors. A previous study of attrition conducted by Booz Allen and the Partnership for Public Service identified three categories of employees at highest risk of attrition: New hires, potential retirees, and those in mission-critical jobs. In pockets of some agencies, turnover has escalated.

“Keeping Talent” uses information obtained from discussions, focus groups, and surveys involving managers and HR professionals at five agencies. This data reveals that retention rates are also an important bellwether of organizational health: High turnover may reveal other workplace problems.

The joint study suggests agencies should closely examine and understand who is leaving and how the work environment contributed to their decision, and should develop retention strategies that make valued employees want to stay. In retaining federal employees, agencies must address emerging issues such as hiring freezes. Managers and HR personnel must also collaborate to improve workplace environments with options such as better recruiting, employee training, or improved advancement opportunities.

When agency leaders understand who is leaving and why and attempt to create productive workplaces, the study concludes, all will benefit.

Vice President Dave Mader, Senior Executive Advisor Ron Sanders, Associate Drew Lopez, Senior Consultants Angela Peat, Mahreen Rashid, and Sabina Shrestha comprised the Booz Allen team who contributed to this study.