Different workplaces attract different individuals according to the needs, wants, and desires of the job seekers (Aslan, Alinçe, Araza, & Dural, 2010). The different motivations and influences affecting people’s career choices are based on several factors and personal considerations. This paper analyzes the various factors that influence job candidates to either decide to pursue their careers in the public or the private sector. To understand this phenomenon, the researcher will analyze prior knowledge relating to the public or private sector life of workers and motivations behind the reasons for choosing their respective careers.
Categorical review of studies from diverse nationalities and states across the globe will do justice to analyzing the research problem. The differences that will emerge will then be discussed concerning the differences in motivation between the job candidates. In effect, research results will be of utmost importance to job seekers to judicially make a sound judgment before starting their careers in either sector.
Background Information
An individual choice for a career path is sophisticated and necessitates much deliberation (Aslan et al., 2010). More so after graduation, one has to be relatively confident that the decision made is the right choice for the industry to work. It has often been a concern of many graduates to get jobs and later leave such employment due to one reason or the other. As such, a career move should be well calculated, and prudently decided to seek employment in either sector.
Most public sector jobs relate to the mandatory provision of goods and services to citizens by the state (Olatunji, Olawumi, & Ogunsemi, 2016). Either consumer pays for these goods and services, or they may be offered freely by the government. The private sector, on the other hand, engages in business at own accord and deal with willing and paying clients (Hatfield, 2015).
In as much as the private sector does the same activity as the government, a resounding difference emerges in the mode of operation and targets the target consumers between the two industries.
Anandari and Nuryakin (2019) also confirmed that, in the public sector, goods and services are provided by the government as an obligatory undertaking to the society. The state can offer products and services for free, but the private sector is a commercial enterprise (Colonnelli, Teso, & Prem, 2017). The disparity in intention draws different caliber of individuals to either work in the public or private sector.
Problem Statement
Studies have concentrated on the contrasts between the two areas; public and private employment. Conflicts arise when individuals are at a loss on which career to pursue. Working in either the public or private sector is lucrative. However, personal motivation and drive and a combination of economic and political factors inform on the eventual decision. The problem statement of this research states; what factors influence candidates to choose to work in the public or the private sector?
Specific objectives of the study are;
- To investigate whether job satisfaction influences candidates’ career choices?
- To determine if political and economic environment affects individuals choice of a career field?
- To determine the psychological factors that influence individuals’ career choices.
Purpose of the Study
The purpose of this study was to precisely decipher the factors that influence choice in public or private jobs. The researcher undertakes an in-depth literature review to understand the factors that motivate individuals to either choose a career path in the public or the private sector. Therefore, the research analyses the impact of job satisfaction, economic and political factors, and individual’s psychological factors and the extent of their influence on one’s career choice.
The rationale for the Study
The main reason behind the researcher’s motivation to undertake this research study is to guide job seekers in their choice of workplace. The researcher is passionate about making prudential choices. Therefore, careful evaluation of the factors influencing career choices has to be explicitly analyzed in relation to the context of the research question.
The research is of importance to graduates and working professionals as well. Through the findings, discussion, conclusion, and recommendations of this study, individuals and employment stakeholders get certain information about the job market. A clear distinction has been elaborated to outline the factors that push individuals to work in the public or the private sector.
Conceptual Framework
Figure 1-1: Conceptual Framework showing of Factors Influencing Choice in Public-Private Sector Careers
Job Satisfaction
Job Security
Public sector employment is considered relatively more secure than private-sector work (Stojanova & Blašková 2014). Previous studies have found that more risk-averse individuals tend to choose public sector employment. However, based on empirical results from this study, the roles might not be as strong among all individuals as suggested by previous findings (Ritz, Neumann, & Vandenabeele, 2016; Long, Yusof, Kowang, & Heng 2014 ; Li, Wu, & Wu, 2008; Dohmen & Falk, 2010; Hariss, 2018). They found that risk preference applies only to those with high education levels.
Among individuals with high school or college degrees, risk aversion has a strong relationship with the choice of working in the public sector. The results may explain why individuals tend to choose the public sector over the private sector, despite relatively low government salaries. Having managed to secure employment in the government sector, most low-level individuals strive not to get fired. Some partake advance classes to supplement job security.
Career Growth
Ongoing changes to board review information incorporate self-revealed information and theoretical betting inquiries on how and when to advance in one’s career. Ritz, Neumann, & Vandenabeele (2016) tried the speculation of whether ambitious individuals decide to work in occupations with low prospects for career growth. Utilizing the German Socio-Economic Board of 2004, they found that the public segment has lower acquiring hazard than its private part partner. People who are risk-averse pick occupations with a high probability of career growth. The analysts reasoned that the higher a person’s professional ambitions and career growth, the higher the likelihood of working in employments with higher compensation in promotions.
Pay Scale
Public servants have a relatively lower pay rate than those working in the private area (Wargadinata, 2010). Government wages may actuate awful practices, for example, poor work exertion and low efficiency. The contributing factor to the harmful work practices is due to the motivation and morale that comes with sufficient pay (Ritz, et al. 2016). The private sector is deemed to pay better on the same job activities and job grades.
Since there are noteworthy contrasts in the pay rates between open and private businesses, we need to answer why people keep on working or look for work in the public sector. The noteworthy compensation hole is an essential subject of concern (Olatunji, et al., 2016 ; Adamchick and Bedi, 2000; Anton and de Bustillo, 2015). Nonetheless, restricted research exists about the reasons why people, especially in America, public service regardless of their low compensations.
Politics and Economy
Political Appointments
There is a crop of individuals who engage in politics for the pecks that come with holding the legislative seat. Such individuals might want to show gratitude to their supporters in the form of government employment. In areas where this is rampantly practiced, most job seekers opt to try luck in the private sector as the public sector will be flooded with political appointees in favor of the politicians’ supporters.
Another aspect is the social factor where candidates choose the same career as their peers, parents, or guardians. In research conducted by (Olatunji et al., 2016), he found that even among the sub-sample of new high school graduates, parents’ employment in the public sector affected the individuals’ choice of profession. This exciting finding indicates that there is an intergenerational transfer of jobs among public sector employees and was confirmed in a study in Italy (Olatunji et al., 2016). However, we cannot conclude that such job transfers are caused by nepotism or other reasons, such as genetically transmitted preferences, the transfer of capital, or the transfer of abilities.
Support has noteworthy genuine ramifications for determination to public work—the measure of support given to the gathering in power substitute capabilities as a determinant of enlisting choices. At long last, reliable with this negative effect on the quality of choice in the public sector, open laborers, the proof is presented proposing that support is related to a more meaningful public employment arrangement.
Recruitment Policies
There is a typical misguided judgment among the populace in the nation. Most individuals portray government openings as an uncommon event (Azizullah, Usman & Hashim, n.d). That is the reason why most people choose private employments over government placement. However, each government administration comes with its own employment policies. Both the State and Central governments provide a guarantee of employment to credible job seekers and those who merit.
In states where recruitment policies are flawed, and the rule of law about employment is not followed, most individuals chose a private profession. Moreover, the individuals not only go private, but they embrace self-employment to be independently reliant on themselves alone. Human resource policies play a more significant part in ensuring equitable availability of job opportunities to all members of society.
Prevailing Economic Standards
The economy is continually changing. This dynamism is affected by the forces of demand and supply, and the purchasing power of the people (Khan et al., 2014). When the economy is booming, most individuals opt to engage in business. The opposite is true whenever there are downsides to the economy. Individuals run back to the government.
The forces of demand and supply have a significant role to play in the economy. When so much many are in circulation, there is more demand for goods and services, which then pushes prices up. The rise in price leads to inflation and the cost of living increases up in correspondence to inflation. Less money flows into the economy. In such instances, self-employed individuals desire to have been government employees.
Psychological Factors
Risk Aversion
Research shows that most entrepreneurs are risk-takers. That being said, most candidates with an entrepreneurial spirit consider working in the private sector. With higher risks comes greater returns; therefore, individuals with a high propensity to take risks to decide to try luck in the private sector. Azizullah, Usman and Hashim (n.d) states that the public sector is suitable for risk-averse individuals.
The public sector is generally considered more secure than the private sector. The public sector is broad and envelops the organizations, endeavors, or organizations wherein the Government is the proprietor of the business by the method of a more significant shareholding in the company. Government organizations are controlled and operated by the Government. Most individuals view public service employments are seen as esteemed among most individuals. Many occupation seekers want to turn into the public sector. Stojanova and Blašková (2014) undertook a survey in 2014 that showed there were more than 2.6 million candidates for 100,000 accessible opportunities in the public sector.
Aptitude and Intelligence
Individuals’ skill set and intelligence quotient also influences candidates’ career choices. The higher the IQ and skills level, the higher the propensity of an individual to choose to pursue a career in the private sector. This is a resultant effect due to the people’s perception that the private sector remunerates individuals based on profitability accorded to the company. As such, those with high skills know that they will offer much to the private sector and, in turn, get more returns from their aptitude and ingeniousness.
Progressively, the significance of advancing employability abilities and qualities has additionally been aimed at the Higher Education segment. Indeed, the aptitude and intelligence level of the job seeker influences the workings condition one can operate in and the risk levels they can withstand. The higher the IQ, the higher the risks individuals are likely to take, and this is true also to abilities.
Review of Literature[K1]
There has been a lot of conversation about the contrasts between two significant pay segments. The general population and private sectors have striking differences, regardless of whether dependent on financial rewards or non-fiscal prizes. For the most part, the public division offers lower wage rates than its private partner, which offers superior pay. The public sector, however, has higher employer stability than working in the private sector (Li et al. 2008). The employer stability found in the public sector draws in more risk-averse individuals.
Stojanova and Blašková (2014) tried this theory by utilizing information from the Panel Study of Income Dynamics. Be that as it may, because of the absence of information in evoking singular hazard inclination, the specialists supplanted it with intermediaries, for example, ownership of a vehicle and medical coverage and smoking and drinking propensities (Khan, Khan, Kundi, Khan,
Nawaz, Khan, & Yar, 2014). Those intermediaries were, at that point, changed over into a record of hazard. Given the estimation result, the theory is valid. In any case, the intermediaries may show a person’s buying power as opposed to hazard inclinations.
Ongoing changes to board review information incorporate self-revealed information and theoretical betting inquiries as risk aversion. Ritz, et al. (2016) tried the speculation of whether hazard opposed individuals decide to work in occupations with low gaining hazards. Utilizing the German Socio-Economic Board of 2004, they found that the public segment has a lower acquisition rate than its private part partner; risk-averse individuals select occupations with low risks. The analysts reasoned that the higher a person’s readiness to face challenges, the higher the likelihood of working in employments with higher compensation.
Public and private divisions play a considerable role in the economy. The diverse experiences of workers within the two sectors, points of view, and work ethics tell a lot about the characteristics of individuals working in these industries. In most economies, the government is the most significant player in the market. The majority effect might imply that the state is the most significant employer as well, but research proves otherwise. Furthermore, the willingness of individuals to work in the public sector is dependent on a variety of factors.
Common help was invested in numerous advantages and benefits. Crisp alumni were attracted to everyday assistance since they believed they could be a piece of the state apparatus and to accomplish something useful for the country. Anyway, the wastefulness the unbending disposition of administration has added to its evil wellbeing (Khan et al, 2014). Presently the private sector is getting increasingly appealing for a youthful career candidate.
Pro-Public Sector Individuals
Among a sample of eight thousand people working in the private or public sector, almost half of the population gave data concerning a parent who has been working in the public sector. The estimation results show that the guardians’ work is measurably critical in clarifying the people’s open or private business. What’s more, people whose guardians work in the public sector have a more noteworthy propensity of working in the civil industry as well. This finding demonstrates that there is an intergenerational move of occupations among open division workers (Olatunji et al., 2016). Besides, risk-averse individuals, as estimated by the scoring technique, turns out to be factually attracted to in the public sector.
Right now, hazard inclination factors have a negative and critical impact. If the risk level increase (i.e., the individual is more risk-tolerant), at that point, it will diminish the inclination of people to work in the public sector. Critically, the job of the parent’s activity significantly affects the chance of the individual working in a similar industry. Along these lines, singular inclinations might be far less compelling.
This study examined the effects of individual risk aversion on the choice between public and private sector employment. Public sector employment is considered relatively more secure than private-sector work (Stojanova & Blašková 2014). Previous studies have found that more risk-averse individuals tend to choose public sector employment. However, based on empirical results from this study, the roles might not be as strong among all individuals as suggested by previous findings (Ritz, Neumann, & Vandenabeele, 2016; Long et al. 2014 ; Li, Wu, & Wu, 2008; Hatfield, 2015; Colonnelli, Teso & prem 2017). They found that risk preference applies only to those with high education levels.
Among individuals with high school or college degrees, risk aversion has a strong relationship with the choice of working in the public sector. The results may explain why individuals tend to choose the public sector over the private sector, despite relatively low government salaries. Even among the sub-sample of new high school graduates, parents’ employment in the public sector affected the individuals’ choice of profession. This exciting finding indicates that there is an intergenerational transfer of jobs among public sector employees and was confirmed in a study in Italy (Olatunji et al., 2016). However, we cannot conclude that such job transfers are caused by nepotism or other reasons, such as genetically transmitted preferences, the transfer of capital, or the transfer of abilities.
Pro-Private Sector Career Candidates
Public-Private Partnerships (PPP) speaks to harmony between state possession and privatization. Stojanova and Blaskova (2016) guaranteed that PPPs ought to be viewed as a feasible option in contrast to privatization and socialization since they give the chance to change the institutional milieu without the ensuing loss of government impact. It has been broadly recognized as an undeniably significant vehicle to convey open framework advancement and public administration.
Public-private associations are quickly developing. It is a method for securing a development foundation that places private suppliers straightforwardly into the specific circumstance of administration conveyance to general society. Moreover, public-private initiatives are where venture financing rests chiefly with the private area. The basis is to join the assets of the general population and individual segments, in the journey for increasingly productive assistance arrangement (Murata, 2014). Kneebone and Holmes, (2015)., Azizullah, Usman, & Hashim, (n.d) and Li et al. (2008) noticed that the United Kingdom (UK) had been perceived as the most dynamic market in the World for this association.
The private sector is such a territory that is liberated from the directions and control of the legislature. It has its recipe, claim target, specific technique, and different objectives to achieve. Corporate, organization, undertakings, business houses are utilized as the provisions of the private sector. In the wake of confronting numerous snags, it has substantiated itself as a substantial supporting hand for the lift up of the national economy.
The requirement for private division advancement is fundamentally felt to lessen the poverty amongst society and improve the living conditions and the personal satisfaction of the individuals. The private sector is viewed as an improving instrument to enhance human life. Presently the World is open for better financial development. The fundamental motivation of practically all nations is to increase money related dissolvability and to defeat the weight of dependence from other countries.
The public sector manages such situations by confronting tremendous difficulty. Private sectors rise to help and advance the economy. From that point forward, the private sector works to guarantee the development of the nation. Private businesses are doing such works that are not done effectively somewhat by the public segments. Today the individual parts are connecting with themselves in social jobs, for example, medicinal services, instruction, and loaning credit.
Proof from across Europe demonstrates that the UK is an inconsistency right now.
While a few nations, including the Netherlands and Belgium, have seen an ascent in the independent work rate, this has not been a piece of a vast generally ascend business altogether. Different nations that have encountered an expansion in employments have not seen development in independent work on a comparable scale to the UK (Colonnelli, Teso & Prem. 2017). In Germany, for instance, work has ascended by over 1.6 million individuals (Hatfield, 2015). However, Hatfield (2015) continues to state that this has been entirely determined by the production of worker jobs, and between the subsequent quarter of 2010 and the second quarter of 2014, the quantity of German independently employed laborers fell.
Methodology[K2]
The preceding discusses the method deployed to understand the research question. Methods of data collection, data analysis, and synthesis, as well as methodological assumptions, are discussed. To be precise, this has utilized the qualitative research approach. The choice of the research method is definitely on the nature of the research problem. The main objective of the research was to investigate the factors that influence candidates’ job choice to either work in the public sector or the private sector.
Primary data collection was the most preferred mode of data collection by the researcher. Structured questionnaires and selective, purposeful interviews were conducted to bring more insight to analyze the research problem. Data from one hundred potential job seekers were collected and analyzed to infer results to the general population.
Moreover, another one hundred participants from the respective sectors, fifty from each industry, were also interviewed and given questionnaires to feel. By so doing, the researcher felt that such is ample data to infer study results. The credibility of the findings is guaranteed by insight sought from those already working and those yet to start working.
The target groups for the study were one hundred students in their final years of education, fifty working individuals from the public sector, fifty individuals from the private sector, and another one hundred individuals yet to be employed. A comprehensive analysis of responses from the various categories of individuals gives more profound insight to the research problem. The students are selected so that they offer their prospects, workers to provide an idea on their work experiences and job seekers to inform on what factors motivate them to seek employment in the various sectors they send their job applications.
Data Analysis
Table 1.1 Response Rate
Data Group
Target Population
Response Rate
Percentage
Final Years Students
100
86
86%
Public Sector Workers
50
44
88%
Private Sector Workers
50
36
72%
Job Seekers
100
92
92%
Total
300
258
86%
An 86% response rate is quantitative enough to derive judgments and infer results to the general population. The different variables affecting the research problem were split and questions designed to suit the individual sub-elements of every factor. For instance, 72% of the entire studied population agreed that job security is a significant consideration in their job choices. 82% of the 36 private professionals who responded and agreed to conduct an interview session reported that career growth was a great motivator for their decision to work in the private sector.
In addition to the above, 80% of individuals who agreed to be risk-takers reportedly work in the private sector. Only 20% of risk-averse individuals work in public areas, and this was not due to risk concerns but rather other societal factors that led them to choose a public career. Twenty-eight percent of the research sample agrees that political interference has a hand in candidates’ career choice.
Payscale and job security have the near same impact and interrelation towards individuals’ career choices. Almost all members of the sample population report that the wage scale is a huge contributor when deciding who to work. The public sector pays poorly but with job security. The private sector, on the other hand, has a high salary but with little or no guarantee for job security. As such, those with high aptitude and intelligence decide to give a dive to the private sector for higher returns for a short period than more protection with low salaries for a more extended period.
Data Synthesis
To analyze all conceivable relations would be significant because, for instance, independent variables give contrasting results. To see if there is a connection between the independent variable and the dependent variable of the research study, the researcher looked at individual segments of the significant factors affecting an individual choice to either work in the public or the private sector. The last sub-target of the examination was to address the inquiry on whether we can show the relationship between intelligence quotient and propensity towards excellent employability. The study revealed that individuals with high IQ are risk-takers, and therefore, most opt to seek higher returns in the private sector.
Salary is one of the most compelling motivations for individuals to dream about private occupations since they see a ton of cash being paid rather than the advantages that they can get over a more extended timeframe. Government areas may give less pay contrasted with the private segment, yet they have better benefits. Additions for government employments are standardized, while the individual area occupations are yearly or in specific organizations half-yearly as well. Login time flexible working hours in the private segment is, in reality, even more, a revile than the social security workers in the public sector enjoy. Fixed working hours that the administration area has will assist us with arranging our day as needs be, while in the private part, you may need to fill in more hours to complete the work.
Job security is an alarming inquiry to confront when you are in the private segment since the employer stability is zero. Government segment occupations are 100% secure except if you have produced archives to get the activity, which will prompt end. Growth In government employment, according to the standards, the period of retirement is 58-60 years. In this way, the development that you could expect there is less and over a more drawn out timeframe. In any case, the private part has the high ground here since development depends on your ability and work alone.
Figure 3.1 Chart Showing the Degree of Dependency between research variables and candidates career choice
Conclusion
Government work or a private activity is an extremely basic inquiry among those understudies who are almost completing their studies and are about to start another profession. Government organizations’ work opportunities are declared openly (Harris, 2018). Be that as it may, with regards to the private sector, one is expected to go to their individual workplaces. This, however, does not mean all private enterprises follow the same recruitment policy. Some, like the government, have open positing for the general population to apply.
The proceeding has talked about the distinctions in Government employments and Private occupations. The content herein is helpful to the youthful personalities of the nation to settle on a certain entry to their vocation. The back-and-forth between the administration and private area in a youthful psyche is something that can’t be won because of different contrasts in both the segments.
Most recent government occupations offered have seen a superior reaction from the general population because of the unbound activity style of the private sectors. We should discuss the significant contrasts that these activity segments have differences between an administration employment and private occupation. The ability to pull in profoundly gifted human assets is reliant on the worker enrollment process executed by associations, which assumes a significant job for their intensity available.
Regular focuses and contrasts were recognized. Interior enrollment techniques and e-enlistment in light of occupation posting on the site of the association are supported, paying little heed to the sort of association (private or open). The distinctions weight for the most part against the public sector as free establishments that utilize less autonomy to employees. The most significant number of uses is gotten through the utilization of online occupation sheets, work posting on the site of the procuring association and employment promoting in composed press.
Then again, inward enlistment is seen to bring about pulling in the most excellent applications. In like manner, numerous investigations have discovered that job satisfaction is a multi-dimensional build without anyone else, which comprise of outward occupation fulfillment and natural employment fulfillment (Azizullah, Usman, & Hashim, n.d). However, most of them like, Kneebone and Holmes (2015), Lambert (2003), have perceived that activity fulfillment is affected by an assortment of individual qualities and employment attributes.
For example, the sexual orientation, residency, age, independence, colleague’s connections, cooperation and managers, fulfillment with pay, and work assortment. Comparably, the investigations found that unpleasant work conditions adversely influence worker’s activity fulfillment, for example, Kneebone and Holmes, (2015) and Hatfield (2015). Activity fulfillment is a significant issue as colossal research has been deduced in the past time. The more mollified representatives at their employments are more joyful and the substantiation right now that when they are dealt with comparatively in the foundation.
The laborers who are treated with a difference are baffled with their occupations. As a result, those organizations are not ready to build up their effectiveness and profitability (Hatfield, 2015). According to Murata (2014) the activity fulfillment is to watch a person’s condition of-attitude or approach in regards to the idea of their work.
Recommendation
In view of the discoveries, the accompanying suggestions were made;
First, for the private and public sector associations to have sound and appropriate workers equipped for accomplishing high profitability, they should devise a formal and legitimate determination process. The sectors should further stick to the selected recruitment process without deviations. Additionally, they ought to consistently consider factors, for example, experience, instructive capability, area, and so forth, with no particle of predisposition, segregation or partiality during their choice procedure.
By so doing, job candidates will have faith in the selection process of either career industry their desire to work. There will be free and fair selection, hence job propensity to choose one’s career based on favoritism will not be present any more. In addition, both the government and private sector should do more interventions a joint endeavor to uplift the community.
However, although the current study was remarkable in terms of applying the organizational attractiveness via sector choice in the employment context, it has some limitations. The limitation is that the research has a limited scope of geographical region. A future study could include more states and universities across the globe to obtain data from a larger population and a wide range of universities.
It is helpful to analyze the overall significance of risk-taking penchant contrasted with other pioneering character qualities. Proper systems administration is significant for business visionaries to access assets, business thoughts, capital, and data as an interpersonal organization is a business instrument that assumes a tremendous job in the achievement of a business career. Colleges need to set up a connection with industry to concentrate on undergraduates’ capacities, make and create thoughts, increment aptitude, and self-assurance. Instructors also need to engage students in marketable strategy composition, and contextual analyses as applied in the real world.
As the good examples are relied upon to expand collaboration force with public-private initiatives, ideally, all participants need to improve on information and abilities to make more connections with good enterprising examples planned for an educational program.
Private and public organizations ought to set up Entrepreneurship Development Centers/Clubs that will fill in as a stage where understudies with enterprising expectations can begin communicating their goals. This program will lessen overdependence on government employment hence reduce the high rates of unemployment by given the youth a platform for self-employment.
Instructive establishments and government need to assume progressively proactive job by formulating a procedure to help the job candidates that show their aim to begin a venture, while in school and after graduation through the hatchery program. This activity will support graduates vocation yearning towards business start-ups and additionally propel graduates enterprising mentality towards independent working endeavors.
The researcher recommends that this study be applied to other countries to find out different perceptions and attitudes of job seekers that come from different cultures. Also, perceived sector characteristics could be investigated to reveal the differences between relevant sectors’ structural and functional levels. Moreover, a future study could cover if the employees find other industries attractive rather than the ones they work for, and the reasons could be investigated.
[K1]
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[K2]
– How to study the problem
– How the research will be conducted
– Methodologies to be applied
o Research approach
o Criteria
o Scope of limitations
o Reliability and validity of instruments
o