Biden aims to reduce turnover of federal contract workers

Biden aims to reduce turnover of federal contract workers

Washington — President Joe Biden signed an executive order Thursday aimed at curbing turnover of federal service contract workers by giving them first-instance when a contract changes.

Under this order, when a federal service contract is transferred from one contractor to another, employees from the previous contract who performed well must be given the opportunity to keep their jobs for the new contractor. The order covers more than two million federal contractors, who perform everything from performing building maintenance roles to operating technical equipment.

The White House said the order would reduce turnover of workers who play critical roles in supporting federal operations. It is intended to prevent disruptions and the costs of hiring and training workers to fill jobs well done by existing contractors. The department says the order also protects experienced, well-performing workers by giving them lifelong jobs for one government contract and avoiding unnecessary transfers.


Administration officials said hiring, hiring and training replacement employees could cost up to 20% of a worker’s salary, and that it would generate significant cost savings for the federal government. Officials did not immediately provide an estimate of the cost savings.

According to the White House, federal service contract workers are disproportionately women and people of color, and that the order would advance the administration’s equity goals.

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