Effective Cyber Security Career Development: Small Federal Contractors
It is a fact that small businesses, not large companies, create the overwhelming majority of jobs in this country, and many analysts are looking to find out why this is true. This is particularly true in the world of federal contracting.
For technical expertise like cyber security, no matter how hard the government tries, it has failed to recruit the required number of cyber warriors. The government is too slow and inefficient to respond to the changing needs of the market. The resulting shortage of skilled workers must be filled by contractors, large and small.
It’s a common myth that when it comes to career development, large federal contractors, just by virtue of their size, guarantee stability and career development for employees. This is not universally true, and an examination of current federal hiring patterns shows that small federal contractors pursuing defined strategies often offer better career paths and stability than their larger counterparts.
In these turbulent days with tight federal budgets, stability is becoming an important career consideration and those companies that can provide stability based on a continuous workflow will have an advantage.
Other important career considerations include compensation and benefits, growth opportunities, and a professional work environment.
One factor is emerging in this distressed market: sheer size does not guarantee employee career stability, and the opposite is often the case: Large federal contractors with large overhead and administrative burdens are cutting payrolls at a rapid pace. and the tendency to move employees to new jobs without proper credentials has sacrificed performance on key programs.
Compensation and benefits packages favor the small contractor:
It is a misconception that large federal contractors have the size and dominance that allow for better compensation and benefits packages than small contractors. Recent salary and benefits surveys show this is not true with small federal contractors who offer higher compensation and benefits than large contractors.
For example, the following table compares salaries in the Washington DC hiring district:
Average Salary for Jobs Matching Your Search (Source Indeed.com)
In USD as of September 20, 2010
“Fortune 50” in Herndon, VA 20170
$ 105,000
“Fortune 100” in Herndon, VA 20170
$ 85,000
“Fortune 500” in Herndon, VA 20170
$ 66,000
“Fortune 1000” in Herndon, VA 20170
$ 70,000
“Early Stage” in Herndon, VA 20170
$ 116,000
Average “Early Stage” salaries for jobs in Herndon, VA 20170 are 10.5-74% higher than median “Fortune 50, 100, or 500” salaries for jobs in Herndon, VA 20170. Large contractors do not pay more or have the flexibility to stretch to meet the special needs of the most qualified candidates. However, some smaller contractors have the flexibility to close quickly and efficiently.
In terms of benefits, almost all contractors offer medical benefits, paid time off, 401 (k) match (and some offer direct payments as a bonus), health and disability, and other fringe benefits. Many small contractors, because they tend to be more efficient in terms of less proportional overhead and administrative expenses, have richer copay and deductible plans.
Bank strength is not a factor / contingent hiring is:
In the past, large federal contractors touted the “strength of the bank” whereby exiting contractors were kept on staff until new contract positions were secured. This contributed to workforce stability because it tended to eliminate contract break anxiety, but increased overhead. With defense budgets cut and the problem of excessive federal deficits, large contractors have focused on contributing to the profitability of individual projects and eliminated “bank” placement costs from their overhead.
As an effective alternative to “bank-force” federal recruiting teams (including small business partners) winning large bids, the ability to acquire key personnel on a contingent basis is required. Responding to rapid response opportunities first requires the ability to attract prequalified candidates who already have knowledge and interest in the requirement.
It can be argued that small federal contractors, using modern social media and data management tools, can more quickly identify and close the best candidate for emerging jobs.
Focus on growth for employee opportunities:
Small contractors are generally seen as more innovative and agile in taking advantage of new technologies or trends. Cybersecurity requirements are an example of this. With cybersecurity rapidly changing and developing discipline in the federal market, both large and small contractors are starting out in essentially the same position. Additionally, small contractors can evaluate and adopt new cybersecurity techniques and tools more quickly than large contractors.
Stable Small Business Market:
By law, small businesses must receive 23% of federal contract dollars. However, this is not a guarantee that all small business contractors will receive contracts and marketing experience and knowledge of the client’s domain is required to obtain business.
However, marketing expertise is not limited to large companies and there are a number of successful small businesses owned and operated by seasoned federal salespeople. For a small business, marketing is the key to survival, and successful small businesses make marketing and business development the first step to success.
Growth-oriented management
It is an accepted fact that growth produces benefits, especially stable and well-paying jobs. Those who know how to grow businesses are generally entrepreneurial and marketing-oriented. Some entrepreneurs tend to repeat the model that has been successful in the past and create organic growth (not mergers and acquisitions). Organic growth creates stability when new business additions are within the small business culture.
Large companies, on the other hand, generally create growth through M&A activity and often the acquired company loses both its unique culture and existing jobs. The procurement process can be a very destabilizing process when it comes to existing jobs.
When considering organic growth, all aspects of the business are important. The basic competencies must be aligned with the areas and segments of the Federal Government that show the best future growth. Currently, the areas with the greatest potential in government contracting are found in two areas: Military Intelligence and Cybersecurity. However, in these areas, a contractor must be prepared to nurture the employee base in order to remain competitive. This requires investing in effective training programs and a culture of recognition of individual performance.
Professional development: conclusion
The federal contracting industry offers significant opportunities for those interested in pursuing a career in information technology / cybersecurity. There are many contractor companies that are active in the space, but care must be taken to meet career goals when selecting a job opportunity. There are many factors to consider and due diligence is required.
When considering a career change in the federal hiring industry, a number of factors should be considered when evaluating a potential employer:
These and other questions should be raised in the interview process by the candidate interested in building a stable and rewarding career. Consider small, growth-oriented businesses. They have a lot to offer.