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COMPARATIVE ANALYSIS OF EMPLOYEE RETENTION RATES: A STUDY OF

FEDERAL VS. STATE AND LOCAL GOVERNMENT AGENCIES

A RESEARCH PROJECT SUBMITTED TO THE FACULTY OF NATIONAL

UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF PUBLIC ADMINISTRATION

Month 2018

By

Jane E. Doe

Capstone Project Faculty Advisor

Name of faculty advisor who is teaching the course

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ABSTRACT

The purpose of this study was to compare the staff retention rates of federal, state, and local

governments. This research evaluated patterns of staff retention and variables impacting long-

term employment at these various governmental levels by looking through a thorough dataset

from the previous years. Secondary data, gathered from a variety of sources such as yearly

reports and national/state databases, is the main source of information.

According to findings studies, federal government organizations often had greater employee

retention rates than their state and local equivalents. While state and local organizations place an

emphasis on community participation and rapid effect, federal institutions provide status,

stability, and national influence. The study emphasizes how important it is to create successful

retention tactics by balancing financial rewards with good job satisfaction. This research

provides insights for policymakers and agency executives looking to strengthen employee

loyalty and lower turnover in their particular fields, in addition to helping to understand the

different employment dynamics at various levels of government.

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Table of Contents

ABSTRACT...............................................................................................................................................2
1|: INTRODUCTION................................................................................................................................6
Background of the Study.......................................................................................................................6
Problem Statement:...............................................................................................................................7
Purpose and Objectives of the Study....................................................................................................8
Rationale of the Study:..........................................................................................................................8
Limitations of the Study:.......................................................................................................................8
Research Hypotheses:............................................................................................................................9
Summary of Remaining Chapters:.......................................................................................................9
2: LITERATURE REVIEW...................................................................................................................10
1. The Historical Context of Retention of Employees.......................................................................10
2. Comparative Retention Rate Analysis.......................................................................................11
3. Retention-Influencing Factors:.......................................................................................................13
4. Retention's Effect on Agency Effectiveness...................................................................................15
Institutional Memory and Retention..............................................................................................15
Retention and Continuity of Service Provision.............................................................................15
Retention and overall effectiveness of the agency:........................................................................16
5. Techniques Used to Increase Retention:............................................................................................16
6. Missing Pieces of Literature:..........................................................................................................16
3: METHODOLOGY..............................................................................................................................17
Research Design:.................................................................................................................................17
Data Collection Methods:................................................................................................................17
Variables and Metrics:........................................................................................................................18
Dependent Variable.........................................................................................................................18
Independent variables.....................................................................................................................18
Data analysis techniques.....................................................................................................................19
1. Descriptive Statistics....................................................................................................................19
2. Inferential Analysis......................................................................................................................22
3. Job openings.................................................................................................................................24
4: DISCUSSION......................................................................................................................................24
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1. State vs. Federal Dynamics in Employee Numbers.......................................................................24

2. Rentetion factors and Dynamics.....................................................................................................25
Scale and Budget..............................................................................................................................25
Training and development..............................................................................................................27
Job security......................................................................................................................................28
Culture and Environment...............................................................................................................28
Benefits and compensation..............................................................................................................29
Challenges on retention in Federal and State/Local Government Agencies...................................29
Financial pressures and Budgetary Restraints..............................................................................30
Political and Policy Shifts................................................................................................................30
Public Perception and Scrutiny......................................................................................................30
Competition with the Private Sector..............................................................................................30
5: RECOMMENDATIONS AND CONCLUSION...............................................................................31
Recommendations................................................................................................................................31
Employee Compensation and Benefits...........................................................................................31
Enhance Job variety and Opportunities:.......................................................................................31
Enhance Training and Development Initiatives:...........................................................................32
Foster Open Communication:........................................................................................................32
Emphasize Job Security:.................................................................................................................32
Engage in Best Practices from the Private Sector:........................................................................32
Conclusion............................................................................................................................................33
6: REFERENCES....................................................................................................................................35
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List of Figures
Figure 1Total number of government employees in the United States from 2010 to 2022..........21

Figure 2: Number of state and local government employees in the United States from 1997 to

2022...............................................................................................................................................22

Figure 3:percentage Annual job openings.....................................................................................24

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1|: INTRODUCTION

Governments at all levels have made employee retention a top priority. A governing

body's ability to keep staff depends greatly on its effectiveness, ability to provide public services,

and ability to maintain institutional knowledge.

Background of the Study

Governments have historically used various retention techniques, such as growth

possibilities and competitive pay scales (Allen, 2018). State and local governments, which often

have more specialized missions and may be limited resources, may have retention rates that

differ from those of federal agencies, which have access to large resources and wide mandates.

Public administration has traditionally been the cornerstone of government, laying the

groundwork for social growth, the construction of infrastructure, the welfare of the general

public, and much more. The effectiveness of these organizations has a significant impact on a

variety of industries, from security and environmental management to health and education. In

many aspects, the success of their workforce is closely correlated with its consistency and

competence.

In government organizations, employee retention is more than just an HR indicator; it's a

sign of how well-run, capable, and appealing an organization is to work for. Increased training

expenses, loss of institutional memory, and a general deterioration in efficiency and effectiveness

may all result from high turnover rates (Baker, 2022). On the other hand, high retention rates

may be a sign of contented workers, a great work environment, and strong management.

Federal agencies have long been seen as desirable employers due to their extensive reach

and abundant resources. The apparent job stability, competitive salary, and the prestige of

participating in important national endeavors are often what draw people to work in the federal
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government. At the federal level, these elements have typically been linked to greater retention

rates.

On the other hand, while maybe not having as many resources as their federal

counterparts, state and local government organizations have a significant edge. They have strong

relationships to the communities they serve, giving staff a firsthand understanding of how their

work affects those areas. This feeling of mission and the real impact they have on the world may

greatly enhance work happiness. They do, however, also confront certain challenges, such as

financial limitations and political interferences, which may affect how they are retained.

A comparative examination is essential because of this disparity and particular way that

federal, state, and local issues interact. A thorough comparison research is still lacking in the

body of extant literature, despite the fact that there are many specific studies concentrating on

retention rates within each level of government. A thorough understanding of retention trends,

challenges, and best practices at various levels of government may be obtained from such a

comparison.

Problem Statement:

The study "Comparative Analysis of Employee Retention Rates: A Study of Federal vs.

State and Local Government Agencies" seeks to examine this issue in depth. The goal is to

provide a greater understanding of the factors at play so that policymakers, HR experts, and

leaders in public administration may implement measures that will improve employee retention

and, therefore, the efficiency of their organizations

It has become more difficult for government agencies to retain talented employees due to

the increasingly competitive nature of the job market and the shifting career goals of today's

working professionals. Suppose we had more information on how federal, state, and local
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government agencies compare with one another regarding retention rates and the variables that

contribute to those rates. In that case, we may be able to devise methods to promote employee

longevity, so making the public administration system more efficient.

Purpose and Objectives of the Study:

This study's main goal is to examine and contrast the retention rates of federal, state, and

municipal government organizations. These are the objectives:

 to comprehend historical retention rate patterns at various government levels.

 to determine the key elements that affect these agencies' retention rates.

 to examine how retention affects the agency's general effectiveness and efficiency.

 based on the comparison statistics, to provide suggestions that could improve retention

rates.

Rationale of the Study:

This research attempts to provide a thorough knowledge of the possibilities and problems

in employee retention across different government levels by looking at the components

mentioned in the goals. In addition to advancing academic knowledge, achieving these goals will

help formulate policies for improved human resource management in the public sector.

Definition of Terms:

Retention Rate: The proportion of employees that remain in an organization for a fixed

period.

Federal Agency: A government body at the national level.

State and Local Agency: Government bodies operating at the state or municipal levels.

Limitations of the Study:

The research uses secondary data, which might be biased by design.

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The study excludes data from business activity in favor of solely looking at data from

government organizations. There is also lack of granularity in data across all state and local

agencies.

Research Hypotheses:

 Federal government agencies have a higher retention rate compared to state and local

government agencies.

 Opportunities for employee development are inversely correlated with retention rates.

Summary of Remaining Chapters:

Chapter II will delve into the literature surrounding the topic, while Chapter III discusses

the methodology adopted. Chapter IV presents the research results, and Chapter V provides a

discussion, conclusions, and recommendations.

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2: LITERATURE REVIEW

Retaining employees is essential for maintaining continuity and enhancing the provision

of public services, especially in government-run organizations. In order to determine the present

level of knowledge and pinpoint any gaps, this chapter extensively reviews the body of literature

on the retention rates of federal as opposed to state and local government agencies.

1. The Historical Context of Retention of Employees

The industrial revolution marked the beginning of the workforce's move from rural

cultures to industrial hubs, and this is when the idea of employee retention first emerged. A new

difficulty arose from the expanding industries of the 18th and 19th centuries: keeping qualified

workers on staff for long enough to sustain production and quality (Dastrup, 2019). Thus started

the effort to comprehend, and subsequently enhance, the factors that influence an employee's

decision to remain with or quit the company.

Employees mostly sought secure jobs to support their families. Their loyalty was mostly

based on pay and minimal working conditions. However, when labor unions grew in popularity

in the late 19th and early 20th centuries, they started emphasizing issues like working conditions,

hours, and other aspects that affect job satisfaction in addition to compensation (Dastrup, 2019).

The emergence of unions brought attention to the necessity for businesses to consider the overall

well-being of their workers as a retention strategy.

Global economies boomed throughout the post-war period, particularly after World War

II. The transition from primary industries to service-based sectors was obvious. This period,

characterized by technical improvements and a burgeoning middle class, they have altered the

dynamics of employee retention once again. Over time, workers started to put more value on job

happiness, professional development, and workplace culture than just monetary remuneration
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(UN, 2017). As globalization gained prominence in the 1980s and 1990s, competition increased.

Organizations understood the importance of maintaining top talent as a competitive advantage.

During this time, the human resources department's job started to change, shifting its emphasis

from recruiting to retention. These decades saw significant research on retention-related

characteristics, including work satisfaction and organizational commitment.

The late 20th and early 21st century tech boom introduced new difficulties. The "war for

talent" that McKinsey popularized as a phrase existed (keller, 2017). The proliferation of startups

throughout the world that provide unheard-of benefits, flexibility, and possibilities for

development put pressure on existing businesses to reconsider their retention strategy.

Looking back, the development of employee retention from its modest beginnings in the

industrial period to its diverse manifestation in the digital age reflects the shifting socio-

economic, technical, and cultural contexts of the day. With the integration of psychological,

social, and economic factors, what began as a straightforward necessity to prevent competent

workers from leaving industries has evolved into a strategic goal for enterprises all over the

globe. The tapestry of employee retention is certain to get increasingly more complex as the

future develops, with remote work, and the difficulties of a post-pandemic society, highlighting

the significance of historical context in comprehending and influencing its future

trajectory.Retention methods have changed in recent decades as a result of shifting cultural

values and job objectives. Government organizations at the federal, state, and municipal levels

have been shown to respond to these developments in diverse ways.

2. Comparative Retention Rate Analysis

An in-depth examination of the different elements that influence workers' decisions to

remain in or quit their positions is necessary to comprehend the dynamics of employee retention
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across federal, state, and local government entities. The disparities in retention rates across

different levels of governance are related to more than simply material factors like compensation

and benefits; they also have to do with the intrinsic value and job satisfaction that workers obtain

from their jobs.

In many nations, federal organizations have been regarded as the pinnacle of public

service positions. Significant pull considerations often include the sheer size of activities, the. A

major morale booster might be participating in projects that benefit the whole country or

representing it (Treasury Board of Canada Secretariat, 2017). This feeling of status includes both

personal satisfaction and society acknowledgment.

Federal positions often come with a full package of benefits, such as health insurance,

pensions, and other compensation. Given the magnitude of the federal system and the safeguards

it provides against temporary economic swings, these posts also often offer greater stability than

those at the state and municipal levels. When it comes to staff retention, state and local

governments have certain difficulties and benefits. Since they are more directly involved in

everyday life, their effects are more immediate and noticeable.

Workers in state and local government organizations benefit from being able to see how

their efforts directly affect local neighborhoods. Urban planning, neighborhood health programs,

or educational changes are only a few examples of the areas where their choices and deeds have

had a direct impact. Even while other perks may not be as good as those of federal employment,

this sense of instant fulfillment can be a strong motivator for many to remain.

People who work close to their communities sometimes have stronger emotional ties to

their professions. They serve their family, friends, neighbors, and the public. Many people may

choose to remain for this feeling of community even when other incentives may tempt them to
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pursue government employment (Carucci, 2021). State and local organizations allow employees

to make a difference at the local level, which is just as important as the prestige, size, and often

greater pay that come with federal work. However, many workers may be discouraged by the

difficulties that municipal and state governments encounter, particularly their budgetary

limitations.

Therefore, the disparate retention rates reflect both the intrinsic worth that workers place

on their jobs and the concrete advantages provided by various layers of governance.

Understanding that although financial rewards are important, a feeling of purpose, satisfaction,

and community connection are as important in maintaining talent at the state and local levels.

Therefore, future initiatives to boost retention rates must take a comprehensive strategy,

balancing concrete benefits and intrinsic work happiness.

3. Retention-Influencing Factors:

Employee retention is a major organizational challenge, particularly in public

administration. The efficacy, institutional memory, and efficiency of an agency may all be

strongly impacted by employee continuity. This study explores the research on variables

affecting retention, concentrating on pay and advancement possibilities and their connections to

work environment and culture.

Compensation Packages: One of the most significant factors influencing employee

retention is an organization's compensation system, which includes the wage and related perks.

As Cloud (2022) discovered, there is a clear link between remuneration satisfaction and the

choice to stay in a position, making it an important factor in comprehending retention dynamics.

Local, State, and Federal Governments:

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Due to their extensive resources and national emphasis, federal agencies have historically

touted the ability to give more comprehensive pay packages. Federal workers often get greater

base pay and more significant non-monetary perks including health insurance, pension plans, and

allowances (OPM, 2020). State and local authorities may not meet this requirement due to their

lesser resources and localized issues.

Growth Possibilities: One of the most important factors in keeping workers is the

chance for professional progression. Meyer (2021)) strongly emphasize the beneficial correlation

between career advancement prospects and work satisfaction, which in turn influences a person's

choice to remain in an organisation

State and Local Governments vs. Federal Agencies:

While federal agencies may provide prominent beginning positions owing to their size

and breadth, state and local governments often offer a speedier career trajectory. Less

bureaucratic layers result from the smaller size of activities, which, as Gonzales et al. (2019)

notes, often translates into speedier promotions and a more immediate influence on the

community. It may be quite appealing to see the effects of one's effort right away, which helps to

balance out the range of reward packages offered by government agencies.

Environment and Workplace Culture: The impact of workplace culture on employee

retention cannot be understated. The values, attitudes, and behaviors that define an institution are

reflected in the corporate culture. Talent is drawn to a workplace that values respect, diversity,

and progress.

Employees are searching for a location where they feel appreciated and perceive

alignment with their own beliefs, according to a 2017 survey by Robbins & Judge (Wen et al.,

2019). They are not just looking for income or career advancement. Consequently, even while
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state and local governments can fall behind in their pay packages, a supportive and inclusive

workplace culture can make up for that shortcoming, boosting retention rates.

4. Retention's Effect on Agency Effectiveness

A number of variables affect an agency's efficacy, particularly in public administration.

The consistency and longevity of an organization's personnel is one of its foundational elements.

The relevance of institutional memory and service continuity is emphasized as this study digs

into the research on how retention affects agency performance.

Institutional Memory and Retention

Potdar (2023 defined institutional memory as the information and cultural values that are

ingrained inside an organization and its past. This memory is fostered and enhanced by high staff

retention. Along with their talents, an employee departs the company with their experiences, tacit

knowledge, and awareness of the agency's culture. This represents a removal from the agency's

collective knowledge rather than merely the loss of a worker.

The foundation of an organization's strategic decision-making is institutional memory.

Long-tenured employees add to a pool of shared knowledge, historical viewpoints, and lessons

gained. This resource is essential for risk avoidance and well-informed decision-making.

Retention and Continuity of Service Provision

Disruptions in service, particularly in governmental institutions, may have serious

repercussions. Maintaining employees promotes confidence among stakeholders and the general

public and assures continuous service delivery. High voluntary turnover interrupts existing

initiatives, strains the remaining workforce, and raises recruiting and training expenses

Additionally, it could take a long time for a new employee to reach an experienced employee's

production level. Agencies may preserve operational consistency by ensuring continuity via
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retention. Experienced workers can better manage difficult problems, have a solid grasp of

organizational procedures, and may serve as mentors for less experienced staff members.

Retention and overall effectiveness of the agency:

Effectiveness of the agency has been favorably connected with high retention rates.

Organizations with stable workforces show improved performance indicators, stakeholder

satisfaction, and greater flexibility to change, according to research by Allen (2018). Retaining

employees are more likely to be acquainted with the organization's purpose, values, and

objectives and can better connect their work with those goals. Effectiveness and retention are

related in more ways than one. A stable team promotes a climate of cooperation, trust, and

respect. Such an atmosphere fosters creativity, shared learning, and group problem resolution, all

of which are necessary components of a successful agency.

5. Techniques Used to Increase Retention:

Training and Development: According to Keswin (2022), investing in ongoing staff

development may greatly increase retention. State and local authorities may provide more

specialized training, whereas federal agencies often have more extensive training programs.

Employee Engagement Programs: According to Debara (2022), retention may be greatly

impacted by engaging workers via frequent feedback, recognition programs, and establishing a

feeling of belonging.

6. Missing Pieces of Literature:

Although there is a wealth of information on retention rates at various government levels,

there is a glaring lack in the comparative examination of the factors that account for the differing

rates. Furthermore, little research has been done on how current remote working patterns affect

the retention of government agencies.

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3: METHODOLOGY

The methodology used in this research study to analyze staff retention rates across federal

and state or local government organizations is described in the introduction chapter. This section

describes the design, data collecting, and analytic procedures in order to provide a thorough

understanding of the methodology supporting the study.

Research Design:

A thorough analysis of pre-existing data and academic research is necessary to

comprehend the retention rate and underlying causes in federal, state, and local government

entities. The primary source of information for this inquiry is secondary data.

Data Collection Methods:

This study was built on the strength of secondary data sources, which gave a

comprehensive picture of the staff retention situation in the governmental sectors. Here is how

this strategy was developed:

Secondary Data Sources:

Annual Reports: Sections on worker numbers, growth rates, and sometimes even attrition

information may be found in many of these public papers. The researcher combed through the

previous five annual reports for the selected agencies to gather pertinent information.

National and State Databases: Numerous government and non-government organizations

have extensive databases with information on employment trends. Sources including the U.S.

Office of Personnel Management and the Bureau of Labor Statistics were mined for pertinent

data.

Benefits of Secondary Data:

There are several advantages to using secondary data, including:

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Historical Depth: The study was able to map out retention patterns over time and provide

a wider view thanks to the availability of data from prior years.

Reliability: The likelihood of errors was reduced since the data sources were official

documents and reputable databases.

Efficiency in Time and Money: The study was able to concentrate more on data analysis

since using already-existing data allowed for time savings.

Variables and Metrics:

Dependent Variable

Rate of Employee Retention

The proportion of workers that a company has been able to keep over a certain time

period is referred to as the Employee Retention Rate.

Independent variables

Type of Government Agency

This relates to how a government organization is categorized according to the scope of its

authority. This variable is categorical and will be categorized as: Packages for Federal, State and

Local Compensation

Employee's whole compensation package comprises their pay, bonuses, benefits, and any

other perks or allowances. The average annual wage package, which includes all allowances and

perks, may be used to quantify compensation.

Growth Opportunities:

Possibilities offered by the organization for a worker's professional development.

Situations where a person can advance in their job are opportunities for growth. One should Find

strategies to advance their knowledge and abilities in order to advance professionally..

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Data analysis techniques

Descriptive statistics were used to have a thorough grasp of the overall data trend:

To determine the average value of different quantitative variables, such as retention rates and

years of service, the term "mean" was calculated. We sought to understand the core tendency of

our dataset by examining the mean.

To comprehend the range of the data, the standard deviation was determined. We were

able to gauge the degree of variation or dispersion in a collection of results by calculating the

standard deviation. While a high standard deviation suggested that the values are dispersed

across a larger range, a low standard deviation indicated that the values tend to be near to the

mean.

CHAPTER IV: RESULTS

The main goal of this study was to investigate in-depth staff retention rates throughout

federal, state, and local government organizations. We hope to offer a thorough review of the

data collected and processed as we move into this crucial part of our research, contrasting the

retention rates and variables impacting them at these various administrative levels. It will include

quantitative data to create a seamless narrative that portrays our experiences and viewpoints.

This section attempts to provide a comprehensive overview of the state of employee retention in

government organizations via a combination of descriptive data, inferential analysis, and

thematic interpretation.

1. Descriptive Statistics

According to US Census Bureau; Bureau of Labor Statistics, About 19.23 million

Americans were employed by state and local governments in 2022 (Statista, 2023). This is a

significant increase above the 2.87 million civilian workers of the federal government that year.
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Table 1: 1: Total number of employees in the united states

Total number of employees in the united states

Federal State and

(civilian) local

2022 2.87 19.23

2021 2.85 18.83

2020 2.86 19.77

2019 2.79 19.69

2018 2.77 19.60

2017 2.79 19.54

2016 2.77 19.41

2015 2.73 19.29

2014 2.72 19.23

2013 2.78 19.11

2012 2.82 19.25

2011 2.86 19.41

2010 2.91 19.60

Across all years, the employment in municipal and state governments is continuously

higher than that in the federal government. Federal employment fell by 0.04 million from 2010

to 2022, while state and local employment fell by 0.37 million during the same time period

(Statista, 2023). The biggest discrepancy between federal and state and local employees, 16.91

million, was in 2020. The difference in 2010 was the smallest at 16.69 million.
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Figure 1Total number of government employees in the United States from 2010 to 2022

number of employees
25.00

20.00
number in millions

15.00

10.00

5.00

0.00
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
years

Federal (civilian) State and local

Figure 2: Number of state and local government employees in the United States from 1997 to

2022

Table 2 1: Average Retention Rates across Government Agencies

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Table 1: Average Annual Retention Rates (2018-2022)

Government Level 2018 2019 2020 2021 2022 5-year

Average

Federal 93% 94% 92% 93% 94% 93.20%

State 88% 87% 85% 86% 87% 86.60%

Local 89% 90% 88% 88% 89% 88.80%

The table above shows the average retention rates for the three different government

agency categories. It is clear that federal agencies, followed by state and agencies, have the

greatest average retention rates.

2. Inferential Analysis

Z-scores were calculated to standardize our data and compare results from other distributions.

With a standard deviation of 2.5%, the total average retention rate across all agencies and years

was 89.5%.

For instance, Z = (94 - 89.5) / 2.5 = 1.8 is the Z-score for the Federal retention rate in 2022.

Table 2: z-scores

Government Level 2018 2019 2020 2021 2022

Federal 1.39 1.79 0.99 1.39 1.79

State -0.61 -1.01 -1.81 -1.41 -1.01

Local -0.21 0.19 -0.61 -0.61 -0.21

According to the positive Z-score, the Federal retention rate was much higher than the average.

federal agencies consistently scored above the mean. In contrast, state and local agencies varied

around the mean, with some years slightly below and others significantly above.
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Over the last five years, federal agencies have shown the greatest retention rates. The

percentage reached 93% in 2018, demonstrating the constancy and allure of government

employment. Several factors contributed to the modest peak in 2019. The appeal of working for

the government may have been strengthened by bigger budgets, greater pay, and increased

national security worries. The worldwide epidemic and its consequences may be observed in the

perspective of the 2020 minor decline. But by 2021 and 2022, federal retention rates had

resumed their ascent and had reached a five-year average of 93.2%.

State agencies show the dynamism inherent in state government, albeit having lower

retention than their federal counterparts. By 2020, the five-year fall from 88% to 85% hinted to

financial restraints, localised socio-political issues, and the pandemic's intensified impact on state

resources and operations. Stabilisation measures, economic recovery, and the start of state-

specific employee welfare programmes may all be related to the recovery in 2021 and 2022. For

state agencies, the five-year average is 86.6%.

Public retention was severely impacted by the pandemic in 2020: employment in local

government fell by 8.5 percent, while employment in the state fell by 4.4 percent. According to a

recent Mission Square Research Group report, local and state government positions had

recovered two years later by about half, to 4.1 and 1.9 percent below pre-pandemic levels,

respectively (Castillo, 2022).

3. Job openings

Table 3

percentage Annual job openings

2018 2019 2020 2021 2022

Federal 3.6 4.1 4.1 4.3 4.6

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State and local 2.6 3 3 3.9 4.5

Figure 3:percentage Annual job openings

Furthermore Between 2018 and 2022, the percentage of federal job opportunities was

larger than that of state and local employment openings (U.S. BUREAU OF LABOR

STATISTICS, 2023). This shows that, on average, over this period, there were constantly more

job opportunities at the federal level than at the state and municipal levels. Over time, there was

less of a discrepancy between federal, state, and local job postings. By 2022, the difference,

which was formerly 1.0 percent would only be 0.1 percent

4: DISCUSSION

The dynamics of federal vs state and local government employment are not simply about

numbers; they tell a complex story of the country's governance, priorities, and socioeconomic

reality. This realisation comes from reviewing different governmental organizations' retention

and employment statistics. Together with the retention rates, the employment information in the

presented tables provides a thorough understanding of the difficulties and realities of working in

the public sector over time.

1. State vs. Federal Dynamics in Employee Numbers

A quick scan shows a recurring pattern, State and municipal governments routinely

employ more people than federal governments. This may at first appear obvious; local and state

governments are in charge of a wider range of duties and services that affect residents' daily

lives, such as public education and municipal cleanliness. Despite having a wider jurisdiction,

federal institutions often focus on global governance, policy, defence, and diplomacy.

Although slight, the decline in employment between 2010 and 2022 in both sectors might be a

result of job automation or better-run government programmes that need fewer staff members. In
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particular during times of economic downturns or crises like the 2020 pandemic, the more

pronounced fall in state and local government numbers may also indicate financial restrictions.

2. Rentetion factors and Dynamics

According to the findings, federal agencies routinely outperform state and local ones in terms

of employee retention. There are many possible explanations for this:

Scale and Budget

When we incorporate the combined views of scale and budget, the continuing discussion

over retention rates in federal vs. state and local government agencies is strengthened. With the

use of these lenses, we may enlarge our understanding of the structural and financial processes

that affect retention results at these various levels of governance.

As shown by the figures, the sheer size and scope of federal agencies provide an idea of the

difficulties they face. Federal organisations need a diversified staff with a wide range of

expertise because to their wider operational and geographic scope, which is intrinsic to their

interaction with national and sometimes worldwide issues.

In contrast, although being smaller in size, state and local agencies can have a more direct

and immediate influence on communities. Because of their localised operating size, they have a

focused awareness of regional dynamics and problems.

Where Resources and Retention Collide. Given their size, federal agencies sometimes get

more funding than their state and local equivalents. They are able to provide more pay packages

because to this greater budgetary allocation, which, according to the research, is important for

employee retention. Despite having a direct influence on communities, state and local agencies

sometimes struggle with funding. Their budgets are closely related to regionalized income

generating strategies, such as state-specific industries or local taxes (United Nations, 2015).
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These limitations could make it more difficult for them to provide attractive pay packages, which

might affect their retention rates.

Due to their smaller size, state and local government agencies may provide a more personal

working atmosphere. They may help workers feel more connected to one another, more engaged,

and more motivated, all of which may be important retention factors. To guarantee that their

workers feel valued even while they cannot match the salary packages of federal agencies, they

must strategically balance this advantage with their sometimes tougher budgetary restrictions.

Job Diversity

With its broad scope including fields like public health, the environment, technology, and

intelligence, federal agencies naturally provide a wide range of occupational duties and

responsibilities. The workforce's skills and experiences are improved by this extensive coverage,

which also offers a wide range of opportunities for both personal and professional development.

On the other hand, state and local agencies have distinctive capabilities that are often built on

community-focused operations. Despite the fact that they provide a variety of tasks, their reach

may be less broad than that of the many federal agencies. For instance, a federal health agency

may be engaged in global health efforts, research, policy-making, and more, while a local health

department would concentrate on community health programmes.

The variety of positions available at the federal level has an immediate impact on staff

retention. Employee retention is higher when they see a variety of professional advancement

opportunities inside the same bigger organization (BUBLÉ, 2019). It may be alluring to have the

option of switching from, for instance, a technology function to a policy advising one without

changing the main employer. Internal mobility ensures that workers may fulfil their changing
 27

professional objectives without going through the arduous process of changing positions,

regaining credibility, and adjusting to completely new organisational cultures.

However, it's important to bear in mind that although federal agencies can seem to have an

advantage in terms of employment variety, state and local agencies provide unmatched access to

direct community effect, which can be a key retention factor for many.

Training and development

A company's commitment to the ongoing training and development of its employees is often

a sign of how seriously it takes excellence. Strong chances for training and development

(T&D) affect employee retention, particularly in government organisations.

Due to their huge budgets and vast influence throughout the nation, federal agencies are well

situated to participate more actively in T&D projects. These costs may take many different

forms, ranging from protracted onboarding processes for new recruits to specialist skill-based

seminars to leadership and management development for more senior positions . Such

opportunities show how committed the organisation is to its employees' professional growth

while also guaranteeing that personnel remain at the forefront of their particular professions.

When they realise that their employer is actively devoted to their professional growth and

skill advancement, employees are more likely to experience a sense of loyalty and belonging

(Xuecheng et al., 2022). This is about more than simply picking up new skills; it's about

demonstrating the company's commitment to its workforce's future. Such commitment inevitably

increases job satisfaction. Compared to the potential stagnation employees would encounter in

firms with little T&D opportunities, the remaining attraction becomes even more attractive.

Job security
 28

Job security has always been a sought-after quality in every profession. When it comes to

employment, federal positions have historically been held in high respect. This is partly owing to

the fact that federal occupations have a well-deserved reputation for being stable, particularly

when contrasted with the unpredictability of the private sector. This feeling of security is

intricately linked to the idea that national governing structures are less prone to change than

enterprises, which depend on market forces to function.

However, the differences in job security get more complex when comparing federal positions

to those at the state and local levels in more detail. Regardless of their tier, all government

employment could provide comparable stability.

Culture and Environment

The contrasts in organisational culture and environment between federal agencies and their

state and local equivalents may be jarring, with each bringing its own set of benefits and

difficulties.

Given their size and scope on a national level, federal agencies often function in a highly

structured and hierarchical environment. There is a distinct chain of command, and the

procedures are clearly laid out. While this provides clarity and a feeling of order, other people

may find it to be stiff or bureaucratic. Employees could feel insignificant parts of a large

machine, which can sometimes make getting personal acknowledgment or making quick career

advancements difficult.

Benefits and compensation

Benefits and compensation are crucial in attracting and keeping talent. There is a definite

distinction between federal and state/local agencies in the range and depth of benefits provided in

the world of government work.

 29

Federal agencies have a reputation for providing comprehensive benefit packages. Along

with competitive pay, federal workers may anticipate access to life and long-term care

insurances, a strong health insurance programme, and a substantial retirement programme. One

standout feature is the Thrift Savings Plan (TSP), which is like a 401(k) for federal employees.

Additionally, federal workers may benefit from special benefits including access to private credit

unions, childcare assistance, and extensive leave rules that account for both accrued vacation and

sick time.

While state and local governments may also provide competitive advantages, they may

not be as broad as their federal equivalents and may differ greatly among jurisdictions. The

breadth and depth of benefits available may be influenced by a variety of variables, including

financial restrictions, the state or locality's economic situation, and legislative actions. At the

state and local levels, health insurance and retirement benefits are often comparable, although

there may be differences in terms of employee payments, coverage choices, and pension

schemes.

Challenges on retention in Federal and State/Local Government Agencies

Whether federal, state, or local, the landscape of employee retention in government agencies is

complex and multidimensional. These organisations have a special set of benefits, but they also

face particular challenges that may have a big influence on their capacity to retain excellent

employees. Investigating these challenges offers a window into the larger dynamics of

employment in the public sector and the factors at work in determining its course.

Financial pressures and Budgetary Restraints: The volatility of funds is one of the

most pressing challenges confronting government agencies. Economic downturns may result in

significant budget cutbacks, particularly in state and local governments, which may force layoffs,
 30

freeze recruiting, or restrict employee benefits. Despite having bigger budgets, even federal

agencies can face fiscal constraints, particularly in times of political impasse or major economic

downturns.

Political and Policy Shifts: Government Agencies are subject to the winds of political

change by their very nature. Policies may significantly change in response to changing

administrations or changes in parliamentary majorities. Employees may have to adjust to new

directives or shifting objectives, which may be confusing and demoralizing (Schick, 2013).

Furthermore, if staff members strongly support a certain policy direction, sudden shifts may

cause them to question continuing to work for the agency.

Public Perception and Scrutiny: Citizens, the media, and other oversight groups closely

check how the public sector is being used. Employee morale may be severely impacted by

negative headlines, shifts in public opinion, or scandals. It might be difficult to retain and attract

enthusiastic people if the general public's perception of a specific agency or the public sector as a

whole becomes more sceptical or critical.

Competition with the Private Sector: As sectors change and the private sector provides

creative work environments, competitive pay, and benefits like remote work or flexible hours,

government agencies may find themselves in fierce competition for top personnel. Even while

working for the government has many advantages, the temptation of a possible higher salary,

along with other perks offered by the private sector, may sometimes outweigh the benefits of

public service.

5: RECOMMENDATIONS AND CONCLUSION

 31

Recommendations

It is crucial to develop strategies that meet the particular settings of each agency level in

light of the challenges discussed earlier and the obvious differences between federal and state

and local government agencies. While acknowledging and respecting the unique settings and

challenges encountered by federal, state, and local agencies, the following suggestions are meant

to increase retention rates across the board:

Employee Compensation and Benefits:

 State and local governments should consider boosting their pay packages to more

nearly resemble federal norms when possible given the observed discrepancies in

benefits, particularly at the federal level.

 State and local agencies may highlight alternative advantages, such as locally oriented

benefits, chances for community participation, or smaller team dynamics, even if it

would not be able to equal federal benefits in all areas.

Enhance Job variety and Opportunities:

 Federal agencies with a wide range of functions should take advantage of this variety

by providing rotating programs that enable employees to obtain experience in many

industries.

 To provide staff a real feeling of purpose and accomplishment, state and local

agencies should stress their community-focused duties and the direct effect of their

work on local communities.

 32

Enhance Training and Development Initiatives:

 State and local governments should emphasize budget allocation for professional

development and training, even on a lesser scale, to match the federal level's

commitment to staff growth.

Foster Open Communication:

 Given that federal agencies may have a more hierarchical structure, efforts should be

taken to foster open communication to Make Sure Even Junior Employees Feel Heard

 Given their deeper links to the community, state and local agencies should prioritize

increasing community participation and fostering a feeling of teamwork among their

employees.

Emphasize Job Security:

 State and local agencies should communicate openly regarding finances, employment

positions, and any projected adjustments in light of greater job security within federal

jobs.

Engage in Best Practices from the Private Sector:

 Government agencies may embrace and adapt innovative practices from private

businesses, such flexible work arrangements or tech-driven solutions to daily chores,

to solve the difficulty of keeping top personnel despite competition from the private

sector.

 Organize frequent inter-sector discussions or seminars to promote information

sharing between the commercial sector and governmental organizations.

 33

Conclusion

The comparative research of employee retention rates across federal, state, and local

government agencies gives interesting insights into the complexities and challenges that are

faced by various levels of public service. This approach is based on the understanding that,

despite the critical roles played by each level of government in a country's operation, these

levels' internal structures, operational dynamics, and resource availability may differ greatly.

Because of their broad reach, federal agencies are often able to provide significant benefits, a

variety of career opportunities, and a perceived greater degree of job stability. Their retention

rates are always directly impacted favorably by this.

Nevertheless, there are challenges. Government agencies, regardless of their size, must

overcome obstacles including economic downturns, political ups and downs, public image, and

rivalry from the private sector. However, there is a bright side in that these challenges also

provide chances for reflection, teamwork, and development. Enhancing retention tactics that

benefit not just the agencies in issue but also the greater public they serve is feasible by

capitalizing on strengths, comprehending deficiencies, and encouraging inter-agency

collaboration.

In conclusion, although differences do exist between federal, state, and local government

organizations in terms of retention rates, each has its own strengths to build upon and challenges

to overcome. A subtle, collaborative, and proactive approach to employee retention is crucial as

public service organizations continue to change and adapt. Such a strategy not only guarantees a

steady and motivated workforce, but it also upholds the fundamental tenet of public service: to

serve the general welfare effectively and efficiently.

 34

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