Privatizing state jobs is a good deal for all
The state of Tennessee’s strategy to partner with private sector facilities management professionals is often communicated as a bad deal for state workers. Actually, it’s to the contrary.
A state contract awarded to Jones Lang LaSalle (JLL) in 2013 to manage approximately 10 percent of state properties has just concluded its fifth year and saved more than $50 million for taxpayers, a true success story for the citizens of Tennessee.
In addition, satisfaction among state employees for their work environments and services provided by JLL is consistently more than 95 percent, a true testament to the employees doing this work day in and day out.
It is also worth emphasizing that former state employees who have transitioned to JLL today earn more than 40 percent more in pay and benefit, no small amount. JLL is annually recognized as one of the best places to work in the world, and its employees are involved in world-class training programs that boost individual career opportunities.
The success of the initial 2013 facilities management program prompted consideration for applying the strategy across all state properties. In 2017, a second request for proposal and subsequent contract was written with specific provisions to protect our state employees.
This second contract demonstrates the unwavering desire to support our workers who are providing great service to state facilities while seeking to reduce the cost of operating and maintaining approximately 100 million square feet of real estate. This support includes:
❚ Every employee who is drug free and law abiding will be offered a job by JLL.
❚ Employees who transition to JLL and maintain satisfactory perfor-
mance are not subject to layoffs during the length of the contract, which is five years plus potential extensions up to 10 years. They have no such provision in their employment with the state.
❚ Employees who transition to JLL will receive a compensation package equal to or greater than they receive from the state with comparable benefits resulting in an average of a two-percent increase initially and growth in compensation on average of five-six-percent annually.
❚ Employees will be provided with extensive professional development training to invest in their continuing performance improvement.
❚ State employees vested in the state’s retirement system will have an option to retire from state service and then begin receiving state retirement benefits while continuing work with JLL.
Every aspect of making sure the contract provides a better opportunity for our state employees was considered first and foremost as the state sought to better manage and deliver the services needed.
The misinformation being promulgated has unfortunately provided a disservice to our state employees by denying them the opportunity to see for themselves how they could benefit from this opportunity.
The nationwide trend on higher education campuses to use private professionals is decades old and now commonplace. Colleges and universities made this strategic turn many years ago because outsourcing achieves big financial savings that keep education costs and tuition as low as possible for students and their parents. And it positions schools to focus on their core mission of educating students.
Today, private and public colleges and universities across the country rely on private companies to manage and operate everything from buildings, food services, bookstores and retail, landscaping and grounds, security, athletics facilities, parking and event ticketing.
Both Cleveland State Community College and Austin Peay State University use JLL as the service provider. They’ve chosen a nationally acclaimed model that will protect employees and deliver high customer service levels, major taxpayer savings and extend the life of publicly owned facilities.
With an opportunity to provide professional development and compensation growth to our employees while saving facilities management costs, what is the objection? Is this strategy a bad deal for workers? The answer is no.
Terry Cowles is director of Customer Focused Government with the state of Tennessee.