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USA Today Story on Federal Workers’ Pay Stirs Controversy
HireStrategy
By Chris Owen
March 17, 2010
 

USA Today reported last week that federal workers earn higher average salaries than private-sector workers in more than eight out of 10 occupations. The story touched off quite a ruckus.

The newspaper, using Bureau of Labor Statistics data reported that for 216 jobs for which there were both public and private sector pay data, 180 of those positions had higher average salaries in the federal government.

The USA Today story prompted Republican lawmakers to request information on federal workers earning more than $100,000 per year.

A Federal Pay Freeze?

Newly-elected Sen. Scott Brown (R-Massachusetts) pushed the idea of a federal pay freeze during his successful campaign, arguing the move would help rein in government spending.

"I recognize that our federal workers do important work," he said at a January campaign event. "But it's not right that lesser-paid private-sector workers suffering through a recession have to pay for expensive government salaries."

Incensed by the USA Today story, Rep. Joe Barton (R-Texas) demanded that federal agencies report to him on how many of their employees make $100,000 or more, and whether those numbers have increased in recent years.

$100,000 Threshold “Arbitrary”

Matt Biggs, legislative director of the International Federation of Professional and Technical Engineers, called Rep. Barton's $100,000 threshold "arbitrary," adding, "that number is more about grabbing press headlines and not so much based on rhyme or reason."

And noting that Rep. Barton's chief of staff and deputy chief of staff each are paid more than $120,000 a year and that Congress has an 18 percent approval rating, Darryl Perkinson, president of the Federal Managers Association, said. "I think the civil service is maybe not the best-loved area, but we're a little more respected than the Congress.

Peter R. Orszag, director of the government’s Office of Management and Budget (OMB) also took issue with the USA Today story: Orszag defended federal salaries, saying comparisons between private and public sector paychecks are "misleading."

Pay Comparisons “Misleading”

"The federal workforce is more highly educated than the private workforce. Roughly a third of the private workforce has a college degree, for example, while well over 50 percent of the federal workforce does."

Federal workers also have been on the job longer, and "as people gain more experience, pay tends to increase," Orszag said.

Federal workers unions are using similar lines of defense to discredit the USA Today story, arguing that federal salaries are often higher than private-sector wages because government workers are more highly skilled and specialized.

The Obama administration considered freezing federal worker salaries in the 2011 federal budget, but ultimately dropped the idea. Instead Obama asked for a 2 percent pay increase for federal workers.

Forbes Calls for 10 Percent Pay Cut

Two weeks ago, Forbes magazine called for a 10 percent pay cut for federal workers, calling it “the only way to get serious about the deficit.”

“Total compensation for a federal worker--cash earnings plus fringe benefits--now averages twice that of the private sector. So cutting cash earnings by 10 percent across the board seems not only reasonable, but justified,” Forbes said.

Chris Edwards, a CATO Institute scholar who has long argued that federal salaries are too high and has called for a salary freeze, says it is time to clarify federal pay data and statistics.

"To get to the bottom of the 'pay gap' mystery, Congress should hire an independent human resources consulting firm to dig into the official methodology and propose a more accurate way to compare federal and private worker compensation," Edwards says.

Chris Owen is HireStrategy’s Chief Operating Officer. HireStrategy provides contract staffing services, direct hire search, and executive search solutions in the technology, finance & accounting, sales & marketing, human resources and administrative professions. HireStrategy, an Inc. 5000 company, is ranked by The Washington Business Journal as the top staffing firm in the Washington DC region, and recognized by Washingtonian Magazine as one of Washington's "Great Places to Work."

 
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