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Have you ever wondered if working for the government is worthwhile? Will I be able to make as much money as many others in the private sector? These were the kinds of questions I used to ask myself in college. This is also for you if you’re currently employed in any industry and considering a career change.
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Understand their differences
Working for the government is the same as working for the public sector. In most cases, your salary is paid from a public fund that is sponsored by taxpayers. In the private sector, on the other hand, you might work for a family-owned or a publicly traded business. As a result, the company’s revenues are sufficient to meet employee salaries.
Private Sector
Perks: While in college, I began working for private corporations. In New York City, I’ve worked in the media and for a well-known publishing house. I flew around the United States, covering major events and shaking the hands of several well-known people. During the devastating 7.2 magnitude earthquake in Haiti in January 2010, I even got the opportunity to work while there in my hometown. This is merely to let you know that the flexibility was available.
Of course, it was no longer a vacation but rather a job abroad.
Income: Due to the option of shifting to new positions with greater responsibilities and based on performance, my salary increased at a nice rate.
Benefits: The majority of large companies will match your contributions to your retirement plan. Depending on the company, it might be up to 5%. I strongly advise you to contribute at least the minimal amount needed by your company. This allows you to see your money grow more quickly.
Who says no to free money?!
In addition, depending on how long you’ve been with the organization, you earn a specified number of vacation and personal days per year. Some companies will let you carry over your vacation hours to the following year, but for the most part, it’s either you use them or lose them.
Growth: You can be considered for a job based on your educational level, such as a bachelor’s degree, as long as the criteria are met. Even after many interviews, this does not guarantee employment, so don’t get too happy until then.
Why’s that?
Because you’re up against other people who are looking for the same thing. Particularly in this job market, where there are so many graduates and so few open positions.
It’s easier to update your resume and try something else after five years, or whenever you’re completely vested, which means you’ve received all of your promised benefits.
Job stability: Get ready to see lots of turn arounds when working for companies. I’ve seen people get hired, praised for a well done job then fired few weeks after. It could be for a variety of reasons, such as enraging their manager or the company failing to meet its quota and needing to downsize or hire someone to do the same job for less money – Not much you can do about it.
Public Sector
Perks: I recall being asked if I had any questions or concerns at the end of my interview, in front of five members of the hiring committee. I mentioned that there will be instances when I need to leave the office early to pick up my children because my wife will be unable to bring them to their appointments.
“That is not a problem at all,” the board stated. We all have kids, so I don’t think it’ll be a problem. “
That was one thing I didn’t have to be concerned about.
Income: Some claim that salaries in the government are negotiable. I’m not sure if this is accurate. I’ve yet to encounter someone who claims to have done so. I know we employ a pay grade system. The exact quantity of money earned for the position is determined regardless of your experience.
Starting salaries in the public sector are frequently lower than in the private sector.
Benefits: Unfortunately, they do not match contributions. I can see why, given the other perks they provide, such as the no-cost family dentistry and vision programs.
When I first started working there a few years back, many of my coworkers who had been there for more than a decade told me that the pension wasn’t what it used to be. Well, given the state of our economy, I didn’t expect much better. I hope you don’t as well-it’s better than nothing. There are no reports that it will be phased out any time soon, unlike Social Security benefits.
Growth: In the government, there isn’t much room for expansion. Technically, once you’ve been hired, you must either wait a few years to get promoted to the next wage grade or take the promotion exam when it becomes available.
I’m not bothered because it gives me more time to master new talents, devote to my side hustles and even work a part-time job.
Oh yeah! To be considered for a promotion, you need to score 90/100 or more.
Job stability: People typically leave for retirement or to work for a different agency. The only time I’ll hear about someone leaving is if they’re moving to another state. If any, and you’re a member of a union, they’ll be there to defend you if necessary. Otherwise, there’s nothing to be concerned about.
Personal Preference
Is it better to work in the private or public sector?
If you have large short-term aspirations such as buying real estate, luxury cars, and traveling for weeks, then a government job will not be suitable.
However, with a low starting salary, after you build an emergency fund for 12 months of expenses and save a portion of your check, you can find time to be more creative, start an independent business and enjoy the perks with your family. That’s if you prioritize time over money.
It all comes down to your point of view. As they say, pick your own stress.
[Disclaimer] I’m a full-time public servant with a part-time job.
Tell me, have you ever contemplated working for the government or do you already work for them? If that’s the case, how has your experience been thus far?
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