One key is to better educate federal employees on how valuable their benefits are as compared to the private sector. Image: Andrey_Popov/Shutterstock.com
Each and every federal agency spends a considerable portion of their budget, recruiting, hiring and training its staff. The Government is always talking about employee retention, but what have they actually done to prevent employees from leaving federal service? Very little.
Some agencies such as the Securities and Exchange Commission and the Office of the Comptroller provide special pay for employee retention under 5 CFR 575.309 which provides compensation for certain skilled employees. In 2023, the TSA is attempting to give their employees an increase in salary due to the high turnover which is approximately 15-20% at various airports across the county.
During the COVID-19 pandemic, many agencies utilized a telework policy. Post pandemic, agencies are working hard to retain their telework policy which employees want and it has helped with employee retention. However, the telework policy does not apply to many feds such as Postal Service and VA Hospital employees, who cannot work from home.
So, what should the government do for their employees? The key is to educate them on how valuable their benefits are as compared to the private sector. Federal employees have many wonderful benefits and I want to address my top three favorites.
The first is the Federal Employee Health Benefit (FEHB). Employees can choose from a myriad of plans and the federal government pays a large share of the premium. But it is important that employees understand the mechanics of their plan such as coverage, deductibles, co-payments, and maximum out of pocket expenditures. In the private sector, you typically do not have the opportunity to select from as many different plans that the government provides its employees.
The second benefit that is so important is life insurance. The government provides the Federal Employee Group Life Insurance (FEGLI) for their employees and they can take advantage of this benefit without filling out a health questionnaire or taking a physical exam. Life insurance is important because it provides a safety net for beneficiaries to pay for any outstanding debt. In the private sector, eligibility for most life insurance requires a detailed medical history, a physical exam and laboratory testing.
The third benefit is the Thrift Saving Plan (TSP). It is a retirement plan that provides a 5% government match. Employees need to be educated that if they invest during their federal careers, they have the potential of becoming a TSP millionaire. Few are proactively educating their staff on this important benefit. More often, agencies bring in financial vendors during their annual conferences who are trying to motivate employees to move their TSP to their company or purchase annuities.
Education is the most important factor for employee retention, the agencies would do well to bring in FEHB or TSP experts to educate employees and show them how important their benefits are compared to the private sector.
Abraham Grungold is a retired federal employee with 36 years of federal service, and through his company AG Financial Services he helps federal employees with their TSP and federal retirement planning and decisions. Mr. Grungold has written over 50 articles regarding the TSP and FERS retirement and been a guest on several podcasts with the Federal News Radio and Government Executive Magazine.
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