Private companies can offer more in terms of incentives and alternative benefits than the public sector can, said Joe Rosse, associate professor of management at the University of Colorado business school. Private companies also can offer a less-rigid working environment, he said. I know of very few opportunities in the public sector that don't have a heavily regulated environment. In the private sector, employees find more of a range of environments, from big corporations on down to start-up companies, he said. Karen Jorgensen, a compensation consultant for the public sector, said the private sector also offers the chance to move ahead faster.
People move quickly.
In the public sector people stay in a job for a long time. In the future, however, the public sector is going to have to fight harder with the private sector for good workers, Herman said, as private-sector salaries continue to rise and competition for solid employees increases. That probably will mean higher pay for people on the public payroll, he said. The private sector is able to focus more on pay for performance because those businesses are motivated by profit, Herman said. Indeed, as the needs of local governments change, so must their compensation plans, said the International City and County Management Association's Moulder.