CENTRAL LUZON STATE UNIVERSITY

COLLEGE OF BUSINESS AND ACCOUNTANCY

MNGT 3211: THESIS 1

Public Vs Private Sector Employment: Analyzing Graduating Students’ Early

Career Preferences and Key Influencing Factors

Abilino, Nor Saimah G.

Balboa, Christian Vher David

Palarca, Kim Ann

Sucuano, John Paul R.

Talosig, Joshua R.

HRDM 3
Via Shane Santiago

Adviser

2
 TABLE OF CONTENTS

Title Page i

Table of Contents

ii

Rationale

Scope and Coverage of the Research Study

Significance of the Research Study

General Objectives

Specific Objectives

CONCEPTUAL FRAMEWORK

REVIEW ARTICLE

METHODOLOGY

RESEARCH DESIGN

RESEARCH INSTRUMENT

ANALYTICAL TECHNIQUES

SAMPLING TECHNIQUE

DATA GATHERING PROCEDURES

3
4
 Rationale

One of the most important decisions people make during their lifetime is

choosing their career. However, many individuals experience difficulty in making

such decisions, and changes in the worlds of work in the twenty-first century have

only increased the complexity involved in exploring career alternatives and choices

Gati et al., 2020). Similarly, Koçak et al. (2021) emphasize that careers are a reality of

life that need to be considered as multi-dimensional in today’s modern societies.

Choosing a career is a complex process that coincides with high school and university

ages, creating psycho-social stress.

Building on this, the students need to pick between employment in the public

or private sector, which is influenced by personal, social, financial, and economic

motivational factors. In the Philippines, public sectors are often known to provide

security and benefits in work rather than private sectors or properties (Santos, 2023).

A JobStreet survey found that 77% of Filipinos aim to work in the public sector since

it can provide more stability, competitive salaries and benefits, and a life-work

balance. This statistic shows that government employees enjoy stronger benefits

compared to private ones.

Among the factors influencing the students' career preference, job security is

one of the main reasons why fresh graduates choose to work in the public sector. In

the Philippines, government employees are more likely to stay in their jobs because of

benefits such as the GSIS pension scheme and other benefits (Santos, 2023).

Additionally, family influence and social status are considered factors for graduates

on why to choose public sectors due to many persuasions of the public. Government

jobs are considered to have high prestige in society, which strengthens their selection

(Cruz et al., 2023). Moreover, the study of Koçak et al. (2021) found that truly, a

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family's influence and support, students’ work, and academic satisfaction are

positively significant in terms of the career process and happiness. It was understood

that the career reality should be considered with a holistic view that includes family,

school, and work experience. However, despite this preference for public sector

employment, those who value most the high salaries, career growth, and performance-

based reward tend to work in the private sector as stated by Becachi (2019).

Moreover, the lack of career guidance in this generation is one of the major

struggles they are facing. The majority of the fresh graduates do not have enough

knowledge and understanding when it comes to opportunities being offered by private

sectors in the country. In the Philippines, the private sector generates 93% of the GDP

and employs more than 92% of the workforce, so it is important for the two sectors to

work together to address the skills gap and create job opportunities (Philippine News

Agency, 2024). Furthermore, even though several studies have been done in

identifying influencing factors in career selection of public and private sectors, they

have all been specific to different countries where there are geographical, socio-

demographic, and cultural differences. Specifically, there is still a gap in

understanding how these aspects and factors manifest in the social and economic

contexts of the Philippines. Additionally, this study also identifies a gap in the career

decision-making of the graduating students, as well as the lack of awareness and

understanding of the opportunities offered in the public and private sectors. Therefore,

the study will focus on determining the employment sector preferences of Central

Luzon State University (CLSU) graduating students and identify the determining

factor of their decision between employment in the public and private sectors.

Moreover, it will investigate whether students' work preferences are significantly

influenced by their socioeconomic position (father's and mother's occupations, family

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income, and type of family) and demographic profiles (age, gender, course, and

scholarship status).

Scope and Coverage of the Research Study

The purpose of this study is to examine the employment sector preferences of

Central Luzon State University (CLSU) graduating students and identify the

determining factor of their decision between employment in the public and private

sectors. Moreover, the study will investigate whether students' work preferences are

significantly influenced by their socioeconomic position (father's and mother's

occupations, family income, and type of family) and demographic profiles (age,

gender, course, and scholarship status). College of Agriculture, College of Arts and

Social Sciences, College of Business and Accountancy, College of Education, College

of Engineering, College of Fisheries, College of Home Science and Industry, College

of Veterinary Science, and College of Education will all be the focus of the study.

Furthermore, bonafied CLSU students will be included in the study; students from

other universities will be excluded. Employer viewpoints and an examination of

industry workforce demand will not be included in the study. Lastly, the study's

findings can serve as a foundation for future research and career counseling initiatives

aimed at assisting students in making well-informed career decisions, and

understanding the different preferences and perceptions of both sectors can assist

employers in developing strategies to attract top talent.

Significance of the Research Study

For Graduating Students: The study will help students to be well-informed in terms

of career decisions by analyzing the difference between the public and private sectors.

Also, it will clarify the misconceptions in both sectors and align students' career

choices to personal goals, skills, and expectations.

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For Educational Institutions & Career Guidance Programs: The findings will

assist university and career counselors in utilizing better and more effective career

guidance.

For Employers in Both Sectors: Understanding the different preferences and

perceptions of both sectors can help employers to make ways to attract top talents.

For Policymakers & Workforce Development Agencies: The findings of this study

will serve as a reference for policymakers in the construction of employment policies

in alignment with the needs and expectations of the graduating students.

General Objectives

To analyze the early career preferences of graduating students between the

private and government sectors employment and examine the key factors influencing

their choices.

Specific Objectives

1. To determine the socio-demographic profile of the respondents, including:

1.1 Age

1.2 Gender

1.3 Course

1.4 Scholarship Status

2. To identify the socio-economic status of the respondent, in terms of the following:

2.1 Occupation of father (Unskilled/Semi-skilled, Business, Public/Private

Service)

2.2 Occupation of mother (Unskilled/Semi-skilled, Business, Public/Private

Service)

2.3 Type of family (Nuclear, Extended).

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 2. 4 Family Income (At least 219,140 and above, Between 131,484 to 219,140,

Between 76,669 to 131,484, Between 43,828 to 76,669, Between 21,194 to

43,828, Between 9,520 to 21,194, and Less than 10,957).

3. To analyze the employment sector preferences (public vs. private) of graduating

students.

4. To identify and analyze the key factors influencing graduating students’ choice

between government and private sector employment.

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 CONCEPTUAL FRAMEWORK

Figure 1.1 Conceptual Framework of the Public Vs Private Sector Employment: Analyzing

Graduating Students’ Early Career Preferences And Key Influencing Factors

This conceptual framework shows the relationship between key variables that influence the

student career preferences. The framework identifies three independent variables: socio-demographic

profile, socio-economic profile, and influencing factors, whereas the dependent variable is the

student career preferences between the public and private sectors.

The framework hypothesizes that the independent variables shape students’ career

preferences. This study identifies a gap in the career decision-making of the graduating students, as

well as the lack of awareness and understanding of the opportunities offered in the public and private

sectors. This study will use a descriptive quantitative design and binary logistic regression analysis,

where this study collects data through purposive sampling and structured questionnaires. With this

approach, the research identifies the relationship within the data. In conclusion, this framework

explores the factors that influence the student preferences, and aims to inform students of the

difference between the public and private sector to guide them on choosing where to work.

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 REVIEW ARTICLE

Career decision-making is a key notion in vocational psychology. At the core of career

decision making is the process of compiling a list of promising alternatives, confirming which are

suitable to the individual, and, after comparing them, identifying the best one. (Gati & Kulcsár,

2021) This process is most applicable when graduating students' initial career preferences,

particularly in the difference between public and private sector. Observing the manner in which

students proceed with their career decisions clarifies what moves them to choose specific paths under

the influences of job stability, remuneration, work-life balance, and values. This review addresses the

distinguishing attributes of career decision-making with reference to the process of selecting a career

and its influence on students contemplating options between the public and private sectors. Xin, L.,

Tang, F., Li, M., & Zhou, W. (2020) explore how being proactive influences students' confidence in

career decision-making, especially when they clearly understand what career success means to them.

The study found that the proactive student tends to be more confident and have a clearer vision in

career success, which also boosts their confidence even more.

The private sector is the opposite of the public sector, as stated by the Investopedia Team

(2024), it is run by individuals and companies that are in profit, and it's not controlled by the state. It

encompasses all for gaining profit and it was not operated by the government. As stated by the Staff

Writer (2015), the public sector is a government-controlled or funded, where its main focus is to

serve the public's interest rather than generating profit. This kind of organization is more strict on

following regulations and policies, ensuring transparency and accountability to the public.

Additionally, these organizations provide essential services, such as infrastructure, education, and

public safety, and benefit society as a whole. In relation to the study as per the Johnson, D. S. (2020)

study, the public sector has a higher public service motivation, values job security, and prioritizes the

work-life balance, but the private sector has shown greater organizational commitment and high

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effort than the public sector. Also, this study supports Appleby's (1945) doctrine, which believes

that government employees are fundamentally different due to the public sector's unique

characteristics, such as its accountability, transparency, and political nature. Moreover, Lekić, N.,

Vapa–Tankosić, J., Rajaković–Mijailović, J., & Lekić, S. (2019) show that job satisfaction, high

wages, promotion, and job security that the public sector offers increased employee satisfaction,

which attracts and retains employment.

The following subtopics and literature are related to the main study, providing concepts that

will help develop this study.

Socio Economic Status

A study conducted by Woo and Teng (2019) found that family income was statistically

significant and negatively related to the likelihood of choosing a government job. Respondents with

a monthly family income above RM5,000 were 0.562 times less likely to choose government jobs

compared to those with a monthly family income at or below RM5,000. The marginal effects showed

that respondents with a monthly family income above RM5,000 have a 6.7% lower probability of

choosing government jobs compared to respondents with a monthly family income at or below

RM5,000. The results support the notion that people from lower income backgrounds are more likely

to work for the government.

Family and Peer Influence

Based on William, Agboola, and Eibhakemen's (2020) study in Nigeria, they found that there

was a major influence of peer groups on the career choice of the students were positively associated

with public services through the use of the descriptive statistics of mean, standard deviation, and

correlation statistic.

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 Family and peer have a significant impact on students’ career choices, including their interest

in working in the government or private sector. Family has a significant influence on a student’s

career decisions. Parents, in particular, play a key role in providing guidance and direction to their

children regarding their dream jobs (Getachew & Defar, 2023). In instance, parents often encourage

their children to take a specific course or pursue a particular career, which may affect their decision

whether to work in the government or in a private company. In addition, the family’s living situation

can also affect a student’s dreams. Those from poor families often have limited career aspirations,

while those from wealthy and highly educated families may feel pressured to pursue prestigious

careers.”

Prestige

According to the result of the study by Holum et al. (2024), the majority of the respondents

(94%) preferred to work in the private sector rather than in the public sector, with only 6%.

Respondents who considered the public sector have a more positive view of the sector, emphasising

job security and social responsibility as motivators. However, the study also found that prestige

contributes significantly to students' preference for the private sector and the differences in

preferences between Norwegian and Polish students. Therefore, the findings indicate a general

tendency for students in both countries to favor private sector employment, driven by perceptions of

career prestige.

Financial Security

According to Al-asqah (2018), the attitudes of the students toward private sector employment

can be influenced by the financial and social security achieved through private work study. Similarly,

the study of Abdullah Sani (2020) showed that financial benefit significantly impacts job preferences

among undergraduate business students. Meanwhile, Van de Walle et al. (2015) stated that public

sector wages are generally lower than those of the private sector in most Central and Eastern

13
European countries, indicating that perceived financial stability and the desire for a high salary

associated with the private sector can attract employees.

Work Diversity

According to Suhi SS, Oyshi FJ, Al Mamun MA, Jahan N, Shohel TA, Rahman MA, et al.

(2021), the influencing factors in career selection at Khulna University revealed that work diversity

plays a crucial role in choosing their career, and it was significantly associated with private jobs.

Diversity in the workplace is an important factor affecting students’ career choices, especially

between working in the government or private sector. Workplace diversity refers to various aspects

such as gender, race, age, and ability, which help create an inclusive environment that is

representative of the wider society. In government, there are programs to provide equal opportunities

to underrepresented groups. in instance, women are more likely to be in public jobs, accounting for

47% of government employees worldwide, compared to 39% in the private sector. There is also a

smaller gender pay gap in government and more women hold senior positions (ILOSTAT, 2023).

Furthermore, there is greater racial representation in some public jobs such as healthcare, where the

number of minorities is higher than the national average (ONS, 2019). Diversity in government is not

just about numbers. There are also programs to facilitate inclusion and access for all. For example,

the Canadian government has committed to hiring 5,000 new employees with disabilities by 2025

and has mentorship programs such as Mentorship Plus to support workers from diverse backgrounds

(Government of Canada, 2021). These programs help to create equal opportunities for all.

Family Preference

According to Suhi SS, Oyshi FJ, Al Mamun MA, Jahan N, Shohel TA, Rahman MA, et al.

(2021), the study entitled Public vs. private job dilemma: Influencing factors in career selection for

university graduates, the findings suggest that family preferences were positively associated with

public services.

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Job Security

Ajani and Oyekola (2019) reveal that Nigerians prefer public-sector jobs to private-sector

jobs. Most respondents choose their employment in the public sector based on influencing factors

such as job security, economic benefit, societal value, and negative perspective on the other form of

employment as the main reason for choosing the public sector. Similar with indicated by the study of

Becachi T. (2019), his study shows that some people who value more the job security, benefits and

the sense of helping each other tend to work in the public sector.

Working Environment

Boateng (2019) discovered that Chinese accounting students prefer working in the public

sector rather than the private sector. The results are supported by the fact that the public sector offers

job characteristics that the respondents are looking for, such as a better pension plan, a flexible

working environment, and good terms of service.

Moreso, Hensatra and McGwan (2016) conducted an exploratory analysis on the graduade

student career motivation and expectations with the purpose to study the factors that motivates the

millennials to pursue a career in public service while taking a sample size of 107 graduate students.

Their study showed that due to exposure to discriminatory treatment and the employment

experiences cited by some of the students, they were motivated to seek for public sector

employment.

Salary

Germany by Wust and Simic (2017) their research demonstrated that the differences in career

development preferences between German and Croatian students where they found that the most

important factors that affects the German students job preferences are high income, a safe job and

contact to others, while for Croatian students the most important aspects were stimulating tasks and

working conditions. For Croatians, the value of a work in society is much greater than Germans.

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 Dolly, Arora, and Rawal (2014) executed a research to assess the degree of job satisfaction of

the employees of Public and the Private sector. The findings indicated that the employees of public

sector are more satisfied due to organizational culture, salary package, less stress and time schedule

for working hours compared with private sector employee. While according to Becachi T. (2019)

those who value most the high salaries, career growth, and performance based reward tend to work in

the private sector.

Gap in Research

Based on the literature many research has looked into the factors that influence graduate

students' early career preferences in choosing between the public and private sectors, with a focus on

socio-demographic and economic aspects and other factors such as Family and Peer Influence,

prestige, financial security, work diversity, job security, and working environment in various

countries, there is still a gap in understanding how these preferences manifest in different social and

economic contexts. For instance, Suhi et al. (2021) study found that career goals are often influenced

by certain socio-demographic and cultural aspects. Hence, this cross-sectional study was designed to

investigate the career choices of university students in Bangladesh and to identify their determinants.

Although studies have been done in identifying influencing factors in career selection of public and

private sectors, they have all been specific to different countries where there are geographical, socio-

demographic, and cultural differences. Specifically, there has been little research into how these

factors affect graduating students in the Philippines, so it is critical to investigate if the same aspects

and factors that influence graduating students' career preferences in earlier studies also influence

Filipino graduating students. Moreover, this study also identifies a gap in the career decision-making

of the graduating students, as well as the lack of awareness and understanding of the opportunities

offered in the public and private sectors.

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 METHODOLOGY

This chapter presents the subject under study. It discussed the sampling design, research

instrument, and procedures for gathering data. To achieve the study’s objective of analyzing the

graduating students’ early career preference at CLSU and determining the key factors influencing

their choice between public or private sector employment, a structured approach was employed.

Through quantitative research design and statistical analysis, this study is envisioned to give a deeper

and wider understanding of how and what factors influence the career decisions of students. The

following sections outline the methods used to ensure the reliability and validity of the gathered data.

RESEARCH DESIGN

To achieve the purpose of the study, the researchers will use quantitative research, employing

a descriptive research design that seeks to explore various factors influencing students’ preferences

and provides a comprehensive overview of the current situation. Moreover, it provides statistical

insight into the strength of the factors affecting their decisions.

RESEARCH INSTRUMENT

To collect primary data for the study, a questionnaire will be used as the research instrument.

The data required for the study will be collected through a questionnaire prepared by the researchers

and designed mainly using binary logistic regression analysis. The highest is interpreted as 10, and

the lowest is interpreted as 1.

The questionnaire will be divided into two (2) parts with corresponding questions. The first

part will aim to identify the socio-demographic profile and socio-economic status of the participants

of the study. The second part will focus on assessing the factors influencing the Graduating Students’

Early Career Preference.

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ANALYTICAL TECHNIQUES

To describe and summarize all the data gathered on the specific objective, the researchers

utilized descriptive statistics in Part I. Using descriptive analysis, the researchers analyzed the

distribution of the profile in terms of socio-demographic and socio-economic status. This will be

computed through the use of the formula:

P=F/N (100)

Where:

P= Percentage

F= Frequency

N= Total number of populations

Frequency or measure of the number of occurrences of a specific score in a given set of data.

To determine the factors affecting job preference and the proportion of graduating students

who prefer to work either in the private or public sector, a binary logistic regression analysis was

performed in Part II. This statistical method was chosen because it is particularly useful for

predicting the probability of a binary outcome based on one or more predictor variables. By applying

this regression, we aimed to identify significant predictors and understand their effects on the

dependent variable, thereby providing insights into the underlying relationships within the data.

SAMPLING TECHNIQUE

In this study, the researchers will employ a nonprobability sampling using Purposive

sampling. It is a collection of sampling approaches with distinctive characteristics, such as subjective

judgment playing a part in sample selection.

DATA GATHERING PROCEDURES

For the data gathering procedure, the data gathering will start as soon as the research proposal

and associated instruments are finalized and approved together with the approval letter. The

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questionnaire developed by the researchers should receive approval, and before data collection, the

validity of the self-administered questionnaire will be thoroughly assessed to ensure that it

effectively measures the intended variables. The questionnaire will be conducted face-to-face with a

letter of information and consent. Respondents’ participation will be entirely voluntary and ensure

confidentiality of information.

After conducting the study, all the data will be gathered and decoded. The data will be

analyzed using Microsoft Excel to organize the collected data. For the primary analysis, the

researcher will analyze the data using statistical methods.

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public-service/diversity-inclusion-public-service/employment-equity-annual-reports/

employment-equity-public-service-canada-2020-2021.html

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