Employee Engagement, Rewards, and Retention in U.S. Federal Government
This paper investigates two dimensions of employee engagement among U.S. federal government workers using secondary data from the 2018 Federal Employees Viewpoint Survey (FEVS). The first research question examines whether rewarding creativity and innovation is associated with longer employee tenure; the second asks whether satisfaction with senior leaders' policies and practices correlates with work-unit output quality. Drawing on Herzberg's Two-Factor Theory and a body of empirical literature on rewards, leadership, and retention, the study applies chi-square and Spearman Rho analyses to a sample of nearly 600,000 federal employees. Findings confirm statistically significant associations for both questions, offering actionable insights for federal human resource managers seeking to attract younger workers and improve organizational performance.
- Introduction and Background: Federal engagement gap and study rationale
- Literature Review: Herzberg's theory and empirical rewards research
- Research Methods and Data: 2018 FEVS dataset and analytic approach
- Variables and Hypotheses: Operationalization of RQ1 and RQ2 variables
- Results: Chi-square and Spearman Rho findings
- Discussion and Limitations: Interpretation and generalizability concerns
- Conclusion: Policy implications for federal HR management
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What makes this paper effective
- The paper anchors its analysis in a large, nationally representative dataset (nearly 600,000 respondents), lending its findings exceptional statistical power and credibility.
- The dual-question structure is disciplined: each research question has a matched hypothesis, appropriate statistical test, and dedicated results section, making the logic easy to follow.
- The literature review effectively bridges theoretical grounding (Herzberg's Two-Factor Theory) with empirical comparisons, allowing the discussion section to situate findings within existing scholarship rather than treating them in isolation.
Key academic technique demonstrated
The paper demonstrates the pairing of non-parametric statistical tests to variable type: the chi-square test of independence for two categorical variables (RQ1) and the Spearman Rho correlation for two ordinal variables (RQ2). Explicitly justifying these methodological choices — rather than defaulting to a single technique — shows graduate-level awareness of measurement scales and the assumptions underlying each test.
Structure breakdown
The paper follows a conventional quantitative research structure: an introduction establishing practical significance, a two-part literature review (theoretical then empirical), a methods section covering data source, sample demographics, variable operationalization, and analytic techniques, followed by a results section presenting tables with interpretive narrative, a discussion that connects findings back to the literature, and a brief conclusion with policy implications. This clear scaffolding ensures each section serves a distinct purpose without redundancy.
Introduction and Background
Research has shown that effective employee engagement and a positive work environment significantly contribute to improved customer outcomes and high performance (Deloitte Inc., 2021). A study by the Corporate Leadership Council (as cited in Deloitte Inc., 2021) found that less engaged employees were 22 percent less productive than their highly engaged peers, and that a unit increase in employee engagement in an organization increased the customer satisfaction index by 12 percent (Deloitte Inc., 2021).
Studies have also found a strong positive association between employee engagement and retention. According to Deloitte Inc. (2021), high levels of engagement increased an employee's likelihood of staying with an organization by 40 percent. The Society of Human Resource Management (SHRM) holds that retention management remains a crucial factor for organizations even in a tight job market (SHRM, 2008). First, employee turnover costs an organization money, time, and other resources. Available estimates indicate that on average, turnover-related costs impose a burden of between 50 and 60 percent of an employee's annual salary in replacement expenses and accrued paid time off (SHRM, 2008). At the same time, turnover affects employee morale, reducing sales growth and a firm's bottom line (SHRM, 2008). Thus, it remains crucial that organizations attract and retain top talent through high levels of employee engagement.
Unfortunately, compared to the private sector, the federal government underperforms in ensuring high levels of employee engagement or offering a positive employee experience. The 2020 report on the Best Places to Work in the Federal Government showed that the private sector significantly outperformed the federal government in training opportunities, recognition of high performance, and effective use of talents (Deloitte Inc., 2021). Seventy-eight percent of private sector employees felt that their talents were used well, compared to 58 percent of employees in the federal government (Deloitte Inc., 2021). Further, only 51 percent of federal government employees felt satisfied with the training and development opportunities offered at the workplace, compared to 64 percent of their counterparts in the private sector (Deloitte Inc., 2021). In the area of employee recognition, only 48 percent of federal government employees mentioned that their agencies recognized high performance, compared to 67 percent in the private sector (Deloitte Inc., 2021).
With Baby Boomers retiring from the workforce, it is prudent that federal agencies take steps to attract and retain younger employees to remain effective in their missions. In 2017, young people under 30 made up less than 6 percent of the total government workforce, compared to 21 percent in the private sector (Deloitte Inc., 2017). Employees under 30 still account for the highest attrition rates in the federal government — figures from 2021 indicate an attrition rate of 8.5 percent among this group, relative to the government-wide attrition rate of 6.1 percent reported that year (Partnership for Public Service, 2021). Importantly, data also shows that compared to older age groups, employees under 30 pay more attention to policies that foster employee engagement at the workplace (Partnership for Public Service, 2021). Improved employee engagement therefore provides an invaluable opportunity for the federal government to attract and retain younger employees.
This study seeks to identify ways by which the government could increase employee engagement, focusing on two aspects of employee management: rewards for creativity and innovation, and the policies and practices of senior leaders. The findings are intended to inform government policies and human resource practices. The research questions are as follows:
RQ1: Is there a significant relationship between the rewarding of creativity and innovation and employees' length of service in the federal government?
RQ2: Is there a significant relationship between the level of satisfaction with the policies and practices of senior leaders and the overall quality of work done by the employee's work unit?
References
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