Socially oriented contracting and public employees’ job satisfaction: evidence from the federal small disadvantaged business program

While contracting out is often viewed as having negative consequences for public employees, less attention has been paid to the positive outcomes certain types of contracting may have for them. In particular, recent scholarship proposes that contracting out may improve employees’ work attitudes when it emphasizes pro-social factors in the process. Using the case of the federal Small Disadvantaged Business (SDB) contracting program—which emphasizes diversity and equity in procurement—this study examines whether contracting programs that promote social outcomes are associated with public employees’ job satisfaction. Drawing from research on sector differences, person-organization fit, and representative bureaucracy, we hypothesize a positive association between SDB contracting efforts and job satisfaction, with employees from underrepresented backgrounds experiencing a more pronounced increase. Linking U.S. federal government contracting data to the Federal Employee Viewpoint Survey (FEVS), our analyses provide support for the hypotheses. The implications of these findings for government contracting and public human resource management are discussed.