Republic of the Philippines

Bohol Island State University

Main Campus
Tagbilaran City, Bohol

Vision: A premier Science and Technology university for the formation of world class and virtuous human resource for sustainable
development in Bohol and the Country.
Mission: BISU is committed to provide quality higher education in the arts and sciences, as well as in the professional and
technological fields; undertake research and development and extension services for the sustainable development of Bohol and the
country.

COLLEGE OF ADVANCED STUDIES

Doctorand: GILBEYS D. TANGCAWAN
Course: Doctor of Philosophy in Technology Management (PhD.TM)
Topic: Public and Private Sector Workforce
Semester – AY: Second Semester – AY. 2021-2022
Subject: Personnel Management (TM 625)
Professor: JEAN F. NEBREA, Ph.D.

Public and Private Sector Workforce

Learning Element:

Gone are the days, when only the Public Sector was prevalent
in the economy. At present, many countries have adopted the
policy of privatization, through which Private Sector is also
gaining importance. For the progress and development of any
country, both the sectors must go hand in hand as only one sector
cannot lead the country in the path of success. The private
sector comprises of business which is owned, managed and
controlled by individuals.

On the contrary, public sector comprises of various business

enterprises owned and managed by Government. Such organizations
are either fully or partly owned by the center or state and come
under the separate ministry. Some of the public sector
organizations are set up by a special act of Parliament.
 Comparison Chart

The primary difference between public sector jobs and

private sector employment is that government employees in public
sector positions focus on providing services to their community.
Private sector jobs are intended to produce a profit by selling
products and services to people in the community.

Definition of Public Sector

The sector, which is engaged in the activities of providing
government goods and services to the general public is Public
Sector. The enterprises, agencies, and bodies are fully owned,
controlled and run by the Government whether it is central
government, statement government or a local government.

Definition of Private Sector

The segment of a national economy that is owned, controlled

and managed by private individuals or enterprises is known as
Private Sector. The private sector companies are divided on the
basis of sizes like small & medium enterprises and large
enterprises which are either privately or publicly
traded organizations. They can be created in two ways, i.e.
either by the formation of a new enterprise or by the
privatization of any Public Sector Enterprise.

Business entities of the private sector are generally

established with the sole objective of making profit and building
brand reputation. They provide quality services to the community
to win the trust and goodwill from people to survive in the long
run and compete with the enemies. These enterprises also have to
follow the government law and order. It is the largest sector in
terms of employees.

Although in private sector performance is the basic

criterion for job stability, i.e. if you perform well you will
get promoted and if you won’t, you will be terminated.
What are the main differences between government and private
sector job:

PUBLIC SECTOR PRIVATE SECTOR

BENEFITS Provide Alternatively,
comprehensive people working in
benefits than jobs the private sector
in the private may not have similar
sector but benefits benefits unless they
vary for each work for large
company corporations.

These packages However, small

include excellent businesses may still
healthcare plans, offer employees time
good retirement off, paid holidays
plans, consistent and healthcare
raises, vacation
time, sick leave,
paid holidays
JOB SECURITY Government jobs However, private
often provide more companies may
job security than change. They may go
jobs in private out of business,
sector. The close or merge with
government will other companies,
always exist, so potentially
there will always be eliminating or
government jobs and changing positions.
a need for people
who can do them.
Salary vary for all Jobs in private
SALARY jobs across the sector often provide
government and sector often provide
 private sector jobs. more opportunities
However, government for salary
jobs often pay less increases, such as
than in the private annual raises or
sector. specially determined
merit-based
Government jobs increases.
often have slow
growth rates, rarely
provide merit
increases and only
provide raises in
standardized
increments.

Both types of jobs may provide with

options to achieve a healthy work-life
balance. However, individual jobs may
vary in allowing for flexible work hours
FLEXIBILITY or telecommuting.

For example, some government jobs may

require you to work in an office, but
there are others you may do from home.

JOB SATISFACTION Job satisfaction is However, some people

subjective. For find job
example, some may satisfaction from
find job the possibilities
satisfaction from and creative
the security and benefits of working
benefits of working in the private
for the government. sector.
Government jobs and
private jobs
typically both offer It is important to
time off for note government jobs
TIME OFF employees. pay employees when
they close for
However, government holidays, but
job often offers private jobs may
more time off. not.
Government job close
for all government
holidays and they
 may also close for
additional state and
local government
holidays.
LEVEL OF AGENCY Government jobs and
private sector allow
employees different
levels of personal
agency. While
private sector jobs
may allow you to
accomplish task
quickly without
approval, the same
may not apply to
government jobs.

Government job often

involve lengthy and However, private
often complicated jobs often include a
approval processes, variety of tasks and
which can make it more opportunities
difficult for you to to be creative.
get things done.

Government positions
often complicated
hierarchies, rules
and regulations.
These jobs often
involve repetitive
tasks.
RETIREMENT PLANS The two sectors offer retirement plans
but of different computations.

They may vary on the length or term of

service to the job and its processes may
involve many requirements to accomplish
Pros for working in government
Government workers enjoy a number of benefits as part of their
work.

Retirement
Most government jobs include an impressive pension or retirement
package, designed to ensure you receive a livable income, similar
to what you earned in your last years of service, for the
remainder of your life. As pensions and this type of employer-
sponsored retirement decrease in the private sector, this is one
of the primary benefits of government work.

Insurance
While employed in the public sector, you'll benefit from full
health insurance coverage, with potentially zero personal costs.
Depending on the branch of government for which you work, you may
qualify for continuing benefits for you and your immediate family
after you retire, which is an enormous perk and can save you a
substantial amount of money on healthcare costs, both during and
after your government service.

Stability
Government jobs are traditionally very stable. Once hired—in most
cases—you'll enjoy substantial job safety and security from
layoffs and unexpected downsizing. Most people who work in the
public sector enjoy long careers or choose when to leave their
positions rather than facing the volatility of layoffs and
turnover that can be common in the private sector.

Fair pay
The government pay scale is highly transparent. Every employee
receives a set salary or wage based on their years of service and
education level. There are no salary negotiations and no concerns
over hiring manager biases impacting how much or how little a new
government employee makes.
Work-life balance
Government work is often very consistent. Employees are expected
to work hard on their tasks during their assigned hours, but
there's very little overtime work for most roles, and the
expectation is once you've clocked out, you should be spending
time with your family or on personal pursuits and not working.
Service-minded peers
For the most part, the people you work with will share a similar
service-focused mindset. One of the reasons most government
employees choose to work for the government rather than for a
private business is because they want to serve their community,
which helps align personal and professional goals across the
organization.

Meaningful work
For the most part, the work you'll do as a government employee
supports maintaining the local, state or national community. Many
government workers enjoy participating in a career that not only
effectively uses their education and skills but also contributes
to the greater good.
Broad job range
At all levels of government, there's a broad range of job
availability. No matter what education, skills or training you
have, you can likely find a position that appropriately uses your
qualifications and abilities. The government employs people with
little to no formal education and people with post-doctoral
degrees.
Professional development
Once hired, the government has an interest in keeping you within
the organization. Most government employees have the option to
engage in extensive and well-planned career development training
to help them advance within the government.
Cons for working in government
While many people enjoy the benefits of working for the
government, it's important to consider the few disadvantages that
might not fit with any career desires before committing to the
role:
Lack of growth
One potential downside to a government position is the lack of
job growth for some specific occupations as compared to the
private sector. Based on the way the government is organized and
the way labor is divided, some roles won't have the same
opportunities as they might if they worked for a private company.
Lawyers, for example, don't have partner-equivalent positions in
the government as they do in the private sector.

Limited compensation
Similar to the job growth, earning potential is limited compared
to the private sector for many government positions, particularly
those that require extensive education and experience. Since all
government employees earn pre-determined, step-based salaries or
wages, there's no opportunity to negotiate or receive bonus
compensation.

Bureaucracy
The government is a highly regulated and procedure-driven
organization. As such, it can take much longer to achieve goals
or affect change in some roles than it does in the private
sector. The slow-moving bureaucracy of the government can impact
some employees' job satisfaction.

Slow to change
Related to bureaucracy, making small and large organizational
changes is often time-consuming. Most ideas must go through
several layers of conversation and assessment before you can
begin the process of making the change, which can impact the
efficacy of your work, depending on your role in the government.

Seniority over ability

The government is a hierarchical organization. In some cases,
promotions and opportunities go to those who have served longest
and not necessarily to those best equipped or qualified person
for the role. Focus on seniority over capability can frustrate
new governmental employees unused to this type of hierarchical
organization.
Hiring process
The hiring process for government jobs is often very lengthy. An
initial group of hiring managers reviews all the applications and
determines which are the best before sending the documents to the
actual hiring agency. Then, candidates can expect several rounds
of interviews before finally receiving a job offer.

Political impact
Not every government role is impacted by the election cycle, but
many are. Positions that work closely with elected officials can
expect to see continuous turnover in leadership as the public
votes elected officials in and out of their roles. Constant
changes in leadership can make completing long-term projects more
time-consuming than working under a consistent manager or
supervisor.

Pros and Cons in Private Sector:

Private sector jobs have their pros and cons. Impressive salary
packages, faster promotions and the opportunity to be on the
cutting edge in your field of work are some advantages of private
sector jobs. If you don’t mind long hours of work, meeting
challenging deadlines and working in a competitive fast-paced
environment, then a job in the private sector may be right for
you. It is important, though, to be well-informed of both the
advantages and disadvantages before making a career decision.

The Salary Factor

Salaries paid to employees in the private sector are one of the
major attractors for job seekers.

Advancement Opportunities
Jobs in the private sector provide more growth opportunities.
Time taken for salary increment approvals and to reach the upper
hierarchy is less in private sector jobs than in the public
sector. Power to make decisions vests with the organization
itself in private sectors unlike public sectors where decisions
need to be made in accordance with federal or state regulations.
This could be a reason for the private sector job benefit.
Moreover, private sectors are more flexible in allowing employees
to move to more interesting roles within the company.

Cutting-Edge Projects
Private sector jobs, especially in the technology domain, offer
opportunities for employees to be part of more innovative
projects with cutting-edge infrastructure. Since private sector
businesses are more focused on generating profits, they are more
open to business structures that facilitate this objective. They
have lesser bureaucratic protocols, which makes obtaining funding
approval for new projects and corresponding infrastructure
easier.

Instability
A disadvantage of private sector jobs is the insecurity inherent
to the sector. Failure to acquire project financing, company
acquisitions or low business performance all can act against an
employee.

Intense Job Competition and Lesser Job Perks

Job-associated perks outside salary are lesser in private sector
jobs when compared to government jobs despite impressive
insurance and retirement plans offered by some private companies.
In addition, competition is intense for private sector jobs,
which puts job seekers with little formal education at a
disadvantage in the private sector.

Conclusion

Personnel management in a public sector runs in a governmental

setting, and that is why it is also known as government
administration. On the contrary, the personnel management in
private administration is a business process, hence considered as
business administration. Both of them play a crucial role in
contributing towards the development of the society in different
ways. Moreover, the measurement of performance, progress and
results thereof, can be done using different methods.