When an individual is on the verge of deciding on a career path, what is the very first question that comes into his mind? Right, before looking for any particular company or profile the question arises is – What to choose between Private Sector Jobs or the Public Sector? And to decide between these two is quite a tough task. As if the lavish work style in the top IT giants like Google, Amazon, Microsoft, etc. attracts young minds then the prestige offered by Government bodies like UPSC, SSC, etc. fascinates even working professionals. Although, both Private and Public sector jobs have their own merits and demerits so it depends on you to make an informed decision.
As per the reports, around 3% of employees of the total workforce is from the Government Sector whereas 3 – 4% of employees are working in the formal private sector (Both sectors are competing almost evenly with each other!). Now, what you have to do is analyze all the aspects such as pay scale, work-life, career growth, etc. of both the sectors (Government or Private) to make a smart choice. Here, in this article, we will let you know all the details & difference between Private Sector and the Public Sector Jobs.
Private Sector
Who doesn’t want a better working environment, a fast-paced work style, and quick career growth? (Yes, higher pay too!) And, the jobs in the private sector offer you all these opportunities along with many other features too. There are various IT giants in the private sector such as Google, Amazon, Oracle, etc that offer a maximum number of career opportunities. Private sector companies generally hire candidates based on their recruitment process which consists of several rounds (aptitude, technical skills, managerial skills, etc). Although jobs in the private sector do not guarantee job security however if you have enough potential you can have high career growth in a shorter time. Let’s take a look at the advantages and disadvantages of Private sector jobs.
Advantages
- Money is the biggest reason why people prefer private-sector jobs. Along with the higher salary, you also get regular appraisals and promotions based on your performance.
- In the private sector, your career growth is related to your performance. If you are dedicated to your work with having adequate skills, you can be promoted to a higher level even in a shorter span.
- Unlike Government jobs, here the recruitment process does not last for months. In private-sector jobs, the recruitment process is of a few weeks or even a few days!
- The jobs in the private sector offer you various learning opportunities. Also, apart from your specific domain, you can gain exposure to other functional areas of the company as well.
Disadvantages
- Private sector jobs are comparatively more unstable. There are various conditions such as your degrading performance, recession, and many others due to which you may be terminated from your job.
- In private-sector jobs, the promotions or appraisals awarded are based on the work performance and skills of the employees. And this generates high competition among the employees.
- Again, the workload in private sector jobs is quite high due to the existence of short-term goals with deadlines. However, it depends on the efficiency of an individual as well.
- In private-sector jobs, you may have a decent salary currently but the condition will not be the same after retirement. However, in the last few years, many private companies have started to provide monetary benefits to their employees after retirement.
Also Read: How to Get a Job in Product Based Companies?
Public Sector
Every year, a large number of engineering graduates sit for prestigious government exams such as UPSC, SSC, RBI, etc. For many years, Public sector jobs are the most sought-after career option for candidates and in the last few years, the Government is offering various career opportunities for tech graduates in various public sectors such as DRDO, ISRO, etc. Even many working professionals quit their well-doing job in the private sector to get into a government job. However, there are various reasons behind it such as job stability, no hassle at work, and many others. But there is one thing that everyone must keep in mind the recruitment process for government jobs is quite lengthy. You have to go through various levels of written tests followed by the interview and medical examination that almost take 8-10 months or even a year. Let’s take a look at the advantages and disadvantages of Government sector jobs.
Advantages
- In government sector jobs, job security is one of the primary reasons why people prefer to come here. Here, the employees are not fired from their jobs until and unless there is some major issue such as forged documents, corruption charges, etc.
- When you reach a certain level of rank or position in a Government job, it rewards you with respect and honor in society. (It is something money can’t buy!)
- However, you have to carry out your work responsibilities in the Government sector jobs also but the work pressure is comparatively lesser here. Mostly, the workload in the Government sector jobs is distributed uniformly.
- Although the private sector also offers various additional benefits such as reimbursements, outings, incentives, etc still the Government sector jobs have the upper hand in this parameter. There are various benefits such as residence, travel allowances, medical facilities, etc provided by Government organizations.
Disadvantages
- The Public sector provides a decent amount of salary for certain posts but still, it is comparatively lower than the private sector. Also, you don’t get an appraisal or reward for your better performance.
- In Public sector jobs, your promotions will be based on how long you have worked for the organization. If you are performing better or have good records still you have to wait for a certain period to get promoted.
- The recruitment process for Public sector jobs is quite time-consuming as it lasts for several months (for years as well, in some cases). Also due to limited vacancies, there is very tough competition among the candidates.
- As the Public Sector usually works on long-term goals and they don’t have short deadlines, it creates a lazy work environment among the employees. Also, there no one talks about new ideas & innovations. (except Research Sector and related organizations)
Key Differences Between Public and Private Sector
| Comparison Parameter | Public Sector | Private Sector |
|---|---|---|
| Definition | This is the type of enterprise, which is owned, controlled, and managed by government bodies | This is the type of business, which is owned by an individual or group of individuals |
| Purpose | The primary motive or purpose is not to earn profits but establish a good economy within the country or state | The primary motive or purpose is to earn profit and achieve success for the company they own |
| Stability | The stability in the public sector is measured on the basis of merit and not threatened by production, progress, output, or revenue | The stability in the private sector is measured on the basis of the merit of the individual and the output they provide for their organization |
| Benefits Offered | Secured jobs, allowance, perquisites, numerous benefits after retirement, etc. | High salary, incentives, bonuses, amazing working environment, etc. |
| Areas Covered | Mining, Police, Army, Manufacturing, Transport, Telecommunication, Banking, Agriculture, Insurance, Education, Airforce, Navy, etc | Information Technology, Financial Sectors, Construction, Pharmaceuticals, Transport, Education, mining corporations, etc |
Conclusion
After discussing both the job sectors what we have concluded is that each job sector has its own aspects and you will face ups and downs in both sectors. So you have to keep all the points in consideration such as what type of job you want, what are your career aspirations, etc. before finalizing your decision. At last, whichever profession you will choose, be confident about that and do your best!
FAQs on Difference Between Public and Private Sector in IT
What is the difference between Public and Private Sector?
The main difference between private and public sector its ownership i.e. the private sector is being managed by an individual whereas the public sector is being managed by the government bodies.
What is an example of a Public Sector?
Public Sector include the public goods and services that includes government services such as education, transportation, health care, etc. Besides this, the working employees are being appointed by the government itself.
What is the role of Public Sector?
The aim of public sector is to offer goods & services including economic development. They offer support and protection to their lower section society. Besides this, public sector includes both central & state government bodies.
