These are uncertain times in defense contracting. Whether sequestration happens or not, it seems the defense industry is primed for serious changes, and some serious belt tightening. The current climate is challenging for both managers and employees, government workers and contractors.

Perhaps the only thing prompting more speculation than sequestration is the presidential election. Presidential hopeful Mitt Romney is putting strong emphasis on his private sector credentials. An op-ed in the Wall Street Journal last week outlined Romney’s business lessons learned while running Bain Capital. They offered some insight into his management style and view of success, a perspective not at all unique to the private sector.

Romney emphasized the individual, but also the importance of building a talented team and a good plan. He also noted the success of ‘empowering people,’ offering a specific example of how performance-based bonuses helped put one Bain Capital company on track.

Performance-based pay is far more common in the private sector, but has failed in the government setting. Attempts at pay-for-performance within government have occurred since the late 1970s, but no initiative has lasted. The U.S. Army attempted a performance-based model for a time, with a system called the National Security Personnel System. After six years, poor feedback and struggles convincing management to adopt the new rating system, it was repealed.

While government employees may benefit from performance based bonuses on occasion they rarely represent a significant amount or portion of overall pay. Employees receive step increases based on time-in-service, and percentage-based raises subject to congressional authorization.

Pay-for-performance seems to be dead in the government, just as other workplace benefits seem to be on the rise for both government and private sector employees. Flexible schedules and telework can be strong motivators – especially if you’re like this employee and telecommute from Hawaii to your office in Kansas. Less tangible benefits such as company culture and interesting work can motivate employees.

As the defense industry faces major shifts, I imagine a greater number of both employees and managers will be exploring what truly motivates, and what keeps quality workers on the job. Faced with uncertainty, will employees work to the same standard, or hold off on risk-taking proposals or initiatives? Is money really the key to getting better performance, and if so, can anyone ever shift government culture to embrace such a model? It seems there are still more questions than answers – from what motivates employees to whether or not the defense industry will have to trim $500 billion…to who the next president will be.

In the meantime, what’s your biggest workplace motivation – cash, schedule, a great boss, or sense of duty?

Lindy Kyzer is the editor of ClearanceJobs.com. She loves cybersecurity, social media, and the U.S. military. Have a conference, tip, or story idea to share? Email editor@clearancejobs.com.

Related News

Lindy Kyzer is the director of content at ClearanceJobs.com. Have a conference, tip, or story idea to share? Email lindy.kyzer@clearancejobs.com. Interested in writing for ClearanceJobs.com? Learn more here.. @LindyKyzer