Compensation, Culture and Contracts: The Realities of the DoD's Blended Workforce

Abstract

The Obama Administration March 2009 mandate that the federal government rebuild its organic acquisition workforce, coupled with the recent repeal of the National Security Personnel System (NSPS), opens the curtain for a fresh look at Department of Defense (DoD) human capital management practices, particularly for employees in critical acquisition positions. Common perceptions hold that the DoD, given its relatively weak ability to provide economic rewards, sacrifices much of its best talent to private-sector employers. Driven in large part by this revolving door phenomenon, the DoD's acquisition workforce now consists of a rich blend of military, civilian, and contractor personnel, who deliver many basic acquisition competencies. This study synthesizes three quantitative analyses of compensation packages available to military, civilian and contractor personnel, with qualitative research on the less-tangible incentives offered in each sector, to explore the DoD's competitive position in the recruitment and retention of high-caliber acquisition professionals. It finds that, although high-performing DoD civilians are at slight financial disadvantage, they can be motivated to stay in organizations in which a positive, mission-focused ethos prevails.