Defense contractors are running into a hiring puzzle that didn’t exist a decade ago. Generation Z is entering the workforce with different expectations around growth, technology, and purpose, and firms that support the Pentagon and NASA cannot simply out-pay commercial tech companies for the same talent. Margarita Howard, sole owner, CEO, and president of HX5, has spent the past several years reshaping how her company recruits and keeps young engineers and scientists.

HX5, a Florida-based, service-disabled veteran and women-owned defense contractor, operates across 34 states and 90 government sites with more than 1,000 employees. The company provides STEM-focused federal support services to NASA and the Department of Defense, work that demands security clearances most private employers never require.

Howard said she is “excited about Gen Z” and has worked to meet the generation partway on scheduling and workplace tools, while never loosening the clearance requirements that define government contracting.

Adjusting Without Cutting Corners

Research from Johns Hopkins University estimates Gen Z will make up roughly 30 percent of the workforce by 2030. A World Economic Forum survey found that 38 percent of Gen Z workers expect to leave their jobs within a year, a jump of four percentage points from the prior year. Those numbers worry an industry where onboarding a cleared employee can take months.

HX5 has responded with hybrid scheduling where the work allows it and updated internal messaging and project tools meant to feel familiar to a generation raised on instant communication. Margarita Howard still prioritizes candidates who already carry NASA or Department of Defense experience, arguing that background translates faster than skills learned purely in the commercial sector.

Retention Beyond the Trend

Despite Gen Z’s reputation for job hopping, HX5 points to employees who have stayed more than 15 years, a track record built well before the company marked its 20th anniversary in 2024. Margarita Howard credits the mission itself, not just workplace perks, for keeping people at HX5 long after they could have moved on for a bigger paycheck elsewhere. Refer to this article, for related information.

Find more information about HX5 on https://www.finsmes.com/2026/01/margarita-howard-on-how-hx5s-defense-origins-launched-its-expansion-into-nasa-contracting.html