Lessons on employee loyalty from the government sector
Despite the prestige of private companies, more and more Filipinos are looking to serve the government. A JobStreet survey we conducted showed that 77% out of 16,425 participants aspire to work in the public sector. This is regardless of the industry's ongoing issues and hot topics.
In the JobStreet portal, there were about 170,000 applicants in 12,000 government job openings recorded last March 2019. This passion for public service has prompted our partnership with the Civil Service Commission (CSC) to develop a more exclusive job portal that keeps track of all opportunities in the government, which you can check out here.
Thus, the government sector is becoming more and more attractive for candidates due to its improved benefits and now, the newly-mandated salary increase signed by President Duterte has made this "attraction" even stronger.
Let’s begin with the demographics: the LOA country report has shown that Gen Z (18-23 years old) prefers to work in the government and accounting industries for three key reasons: stability, competitive salary/benefits, and work-life balance. There are more female candidates who are leaning towards the government sector to work in. This, among other industries such as tourism, hospitality, and healthcare.
With that being said, the government industry has quite proven itself to be a stable industry not just for its long-term employees, but for budding professionals as well. So what makes employees want to stay loyal in serving the public sector? And what can the private sector learn to keep in touch with these factors?
JobStreet’s LOA Data Lab has shown that there is a thin gap between the government sector and the total Philippine market when it comes to getting that financial security. The government industry has a 79.5% rating, which lies closely with the total PH market with exactly 79.0%.
77.7% of government employees are also likely to stay in their jobs once their role becomes permanent. In contrast, the government industry in itself provides more stability than the private sector. The obvious reason for this being that while private companies might encounter lay-offs and downsizing, opportunities from the government are ceaseless. The government is always in need of more people to work for them.
With the right employee performance, private companies must give guarantee to their employees that they will find job security after their probationary period. This could be agreed through a contract with consent of both parties.
Salary & Compensation
Whichever industry, the salary is what entices a candidate to apply to a certain job. In the government industry, this is the top key driver of attraction for employees.
People usually assume that working for the government means you don’t get paid enough. But thanks to the Salary Standardization Law first signed and mandated in 2016, the public sector was able to compete with non-government bodies by increasing salary rate by as much as 70% of the market median for all salary grades. Government employees also get to enjoy bonus and monthly allowances on the side.
Most recently, President Duterte has a signed a new version of the SSL. This entails that all government workers can expect a salary-increase in four tranches every January from 2020 until 2023.
In comparison to the private sector, chances of getting a salary raise is very rare. When an employee asks for it, it may not even be granted to them. Unless, of course, they receive a promotion. So, these laws can be a factor as to why people flock to the government to serve as it provides them with constant financial stability.
Aside from the mandatory government benefits like SSS, PAG-IBIG, and PhilHealth, 93% of candidates from the public sector are seeking to have insurance coverage. This doesn’t sit too far with the total PH market with 92.9% of candidates wanting insurance.
Some private companies offer insurance to their employees that’s usually effective after their sixth month, while others don’t. It is evident that it has become an important factor for candidates. Therefore, companies must understand employee welfare and develop a partnership with a reputable insurance company.
Lack of growth in the workplace is one of the major reasons why employees quit their jobs. For many employees, the opportunity to level up from their position is a big deal for their career growth.
About 77.4% of candidates within the government sector have expressed interest in being promoted. This is a bit higher than what the total PH market wants with just about 76.8%.
Because its aim is to serve the public, the government also provides in-house and external training programs for its employees, which are even honored if you were to do a lateral transfer to another department. The LOA data suggests that more people from the total PH market are seeking to be trained internally, while more government candidates want to undergo outside training.
This willingness to learn is more prevalent among younger candidates with little experience. The government provides training from some of the best leaders that they can offer. Some private firms, on the other hand, invest in two-week to one-month paid training sessions, which are sometimes informal. Without the right mentor and dedication to train, this leads to employees not being ready enough to take on the real job.
More employees in the government industry are also seeking overseas opportunities than the total Filipino market, although they don't rank it as a "must" based on the survey. According to the LOA Data Lab, 52.4% of government candidates would like to have the chance to be trained abroad. Other foreign-related ventures also rate higher in the government sector such as foreign language training and overseas employment.
This could be a big advantage for private companies, especially for multi-national firms. Companies must stretch their capabilities in providing their employees with the best of training for their own growth. And because employees get excited about the idea of traveling, make it a reward to send them abroad to attend trainings or conferences for all their hard work.
Perhaps one of the most attractive drivers of the government industry is that it provides the work-life balance that most employees are looking for.
In the LOA data, 85.6% of government candidates want to get paid for their overtime work. Meanwhile, it is also easier to get work-life balance in the government as they follow public holidays.
In times of calamity, oftentimes it is the government who suspends work immediately. For the private sector, it’s business as usual.
Some private companies, particularly in the BPO industry, do not offer overtime pay. There’s also compulsory work during holidays and are sometimes operating even on weekends. This is one of the main reasons why they leave their companies so soon. Because when their job starts to get in the way of other aspects of their life, it becomes unhealthy and eventually pushes them to leave.
Additional benefits allow employees to still enjoy their life outside of work. And for government employees nearing retirement, being able to benefit from their job till the end can do wonders to their lives. 84.6% of government candidates need retirement benefits. Oddly enough, less of them need medical insurance with about 82%, in comparison to the 84.6% of the total PH market seeking for it.
More people from the government would also be delighted to extend their benefits to their families. Child education sponsorship rates higher in the public sector with 57.4% than the 52.3% from total PH market.
Providing extra benefits to your employees can help boost their morale and motivation to keep working. Companies in the private sector must honor these by giving them perks such as shopping discounts, gym membership, or mobile plans.
While both sectors have their own enjoyable perks and benefits, the government sees long-term plans like loans, pensions, retirement, etc. Hence why people choose to be loyal in the said sector. So, if private companies were to honor the future of their employees, they might see a similar effect.
Maintaining employee loyalty is no easy task. As a recruiter, your current workforce must inspire your employees to continue building their own career with motivation.
With the emerging industries, employee loyalty is becoming more and more complex. How can you actually make an employee stay? JobStreet’s Law of Attraction allows employers to find the best talents with the help of LOA’s Data Lab. This brand new JobStreet portal provides hirers with data-driven analysis of in-demand drivers of attractions across different industries.
If you’d like to explore JobStreet’s LOA portal, click here.