Contract administrators have long been crucial players in the government contracting industry. However, a growing concern is bubbling beneath the surface—a significant portion of the government contract administration workforce is on the cusp of retirement, and there aren't enough successors to fill their shoes.
To gain deeper insight into this situation, let's look at how this shortage is playing out within the industry, as well as proactive solutions to counter it.
The "silver tsunami," a demographic shift in the workplace caused by a large cohort of baby boomers reaching retirement age, is the primary cause behind the talent gap. These experienced professionals possess decades of accumulated knowledge and expertise, which are challenging to replicate quickly.
The talent shortage is evident when considering the quantity of contract administration positions compared to the number of likely candidates in the market.
At the time this article was written, there were roughly 12,500 contractor admin jobs listed across major job boards such as the NCMA, Indeed, and ZipRecruiter, even when factoring in a 20% overlap between the sites. This conservative figure is already nearly half of the total members for the NCMA, the largest membership organization in the industry, leading us to believe that there is a substantial disparity in the market that will become increasingly apparent.
This talent shortage isn't just a matter of numbers but of expertise and institutional knowledge. Contract administration requires a nuanced understanding of regulations, contract compliance management, and negotiation skills, and losing experienced personnel without adequate replacements jeopardizes the smooth functioning of government contracts, potentially leading to inefficiencies, delays, and missed opportunities.
To get ahead of the pending shortage, organizations can focus on these areas to meet the future demand of the industry.
To attract top talent to government contract administration roles, agencies need proactive recruitment strategies that align with candidates' needs and preferences. This involves providing mentorship (internal or external), establishing clear systems and processes, fostering a feedback-oriented culture, being open to change, ensuring alignment between internal divisions, and offering a clear path for advancement. Above all, clearly articulating why your organization is different is paramount to both attracting and retaining.
Investing in training and professional development programs is critical for equipping both new hires and existing staff with the knowledge and skills needed to excel in the industry. What is pivotal is building an environment that enables existing staff to strive while creating a culture to attract future new hires. Key training initiatives could include: contract principles, subcontract and teaming, the art of effective upward communication, leadership and cross-functional mastery, and negotiation techniques.
Harnessing technology is crucial for modernizing administrative processes, boosting efficiency, and ensuring worker satisfaction. In a survey of administrators at prime federal contractors, "investing in better software tools" emerged as the top factor in employee retention. When every other department has a budget for technology to improve efficiency, why should contracts be any different? This role is burdened with manual processes that consume valuable time. Enabling administrators to use technology for routine tasks frees them to focus on high-impact activities, which is essential for maintaining a healthy business.
In the face of this impending talent shortage, proactive measures are essential to safeguard the integrity and efficiency of government contracting processes. By investing in recruitment, training, and technological innovation, we can prepare for a new generation of contract administration professionals.
Learn more about how GovPort contractor management software can help you create a more productive and retainable workforce.
