Government and public administration organizations benefit from the lowest turnover rates across all sectors at 9.8%, a testament to the traditionally comprehensive benefits packages that have been a cornerstone of public sector employment. With average salaries of $62,000 and replacement costs of 40% of salary ($24,800 per departure), government entities have built their talent attraction and retention strategy around a total compensation approach that emphasizes benefits, job security, and public service mission.

However, government organizations face mounting pressure on multiple fronts. Budget constraints increasingly force difficult choices about benefits spending. The pension crisis has led many jurisdictions to shift from defined benefit to defined contribution plans. And younger workers — who may be less attracted to traditional government benefits structures — are harder to recruit into public service when private sector employers offer competitive salaries and increasingly strong benefits.

For quasi-governmental organizations, special districts, public authorities, and government contractors, the benefits challenge is particularly acute. These organizations often need to match government-level benefits to recruit from the same talent pool, but without the pension systems and negotiating power of larger government entities. A PEO or benefits partnership can help these organizations access competitive benefits packages while managing costs and compliance.