The numbers tell a compelling story at HX5, a Fort Walton Beach, Florida-based government contractor specializing in supporting critical NASA and Department of Defense missions. The company has over 1,000 staff members across 34 states and 90 government locations. More impressive than this growth is that many team members have stayed with the company for over a decade.
“Many of them have been with us 10 years or so, and we just have a highly dedicated, and experienced workforce,” says Margarita Howard, HX5’s sole owner and CEO/president. This longevity proves particularly noteworthy in an industry where contract changes and program transitions often lead to staff turnover.
Margarita Howard’s Blueprint for Building Lasting Teams
Margarita Howard, a service-disabled veteran, takes a strategic approach to retention. “For example, we were very selective of people that we chose for our management team. And really, I could not be more proud of the team that we have,” she explains. This selective hiring process reflects her understanding that success in government contracting requires more than technical expertise. It demands dedication to mission support and public service.
The company’s retention strategy starts with the understanding that not every candidate fits the unique demands of a small to mid-sized government contractor. While large corporations might attract professionals seeking a different environment, HX5 focuses on recruiting individuals who thrive in an atmosphere where their contributions directly impact the company’s success. This thoughtful take on cultural alignment, prioritizing candidates who value the flexibility and reach of a specialized firm, has proven essential to building lasting professional relationships.
HX5’s retention success stems from its early investment in building the right infrastructure and environment. The company has always prioritized implementing professional systems and processes over spending on luxuries.
“Right from the beginning, we invested heavily upfront in purchasing and implementing a specialized accounting system developed for government service contracting firms, a system we knew the government was very familiar with and that would provide us the necessary accounting tools to pass government billing audits and gain government approval for use in the performance of our government contracts. This is what we used to bill the government,” Margarita Howard explains.
“So, that was also very attractive to large businesses, that we were very small at the time and that we already had this government accounting system in place that those large businesses had.” This foundation created stability and professional growth opportunities for employees.
The dedication to building strong teams extends throughout the organization. Howard says, “I’m very proud to say that that’s an area that we always stayed very involved in. It wasn’t until we got larger that we actually had to start to turn some of that over, and have our program managers take the lead in hiring people to support the various contracts we have, interviewing candidates face to face, and making sure that they meet all the qualifications.With our corporate staff especially for management positions, to this day, company leadership remains involved in the hiring process.”
According to Howard, it’s paying off. She says, “Once we were ready to turn it over to our management staff to do the hiring, they looked for the same kind of people.” This consistent talent selection and development method creates a self-reinforcing culture of excellence.
How HX5 Converts Experience Into Contract Wins
The company’s retention practices connect directly to its success in securing and maintaining major government contracts. Its experienced teams understand the complex requirements of government contracting, where attention to detail and compliance prove critical.
“Government contracting is laden with rules, regulations, and compliance requirements that can be daunting to new business owners,” Margarita Howard says. “Businesses must invest in educating themselves about these regulations and ensure strict adherence to them.”
Employee retention plays a crucial role in maintaining these high standards. “It’s important that a company’s records are impeccable when working with the government due to the compliance reporting and audits that companies have to agree to in order to perform on government contracts,” says Howard.
Many government agencies prioritize contractors with proven track records of previous performance. Early on, HX5 pursued subcontracting opportunities that allowed the company to gain valuable experience and references and invested in certifications and system infrastructure relevant to the industry.
“We are always looking to build our relationships with the government and other prime contractors within the government contracting community. We attend industry events, networking functions, and government-sponsored outreach programs as they allow us to establish new connections and stay informed about upcoming opportunities within the sectors we operate and support. The information that we learn through these activities often is important to the proposal writing process,” says Margarita Howard.
“Being able to write winning proposals is an absolute necessity to be able to secure work as a government contractor. Developing winning proposals that accurately show the company’s capabilities, solution approach, and value proposition in a compelling and compliant manner requires very strong technical and cost expertise combined with effective proposal writing skills. Small startup companies oftentimes will not have that skill set or ability.
“We invested heavily early on in a professional proposal team that consisted of very experienced proposal managers and writers who had years of experience in working with subject matter experts, developing comprehensive and persuasive proposals. This was another investment the company made upfront in order to be highly competitive from the beginning.”
A well-structured retention strategy goes beyond simply keeping employees — it builds a foundation of expertise and trust that drives HX5’s success. Under Margarita Howard’s leadership, HX5 has cultivated a team equipped to meet the unique challenges of government contracting, reflecting a dedication to long-term growth and resilience. This focus on retention strengthens HX5’s competitive edge and positions the company as a reliable partner in critical missions for federal agencies, making HX5 a standout in its industry.
