Nearly every defense contractor in the country is chasing the same small pool of cleared STEM workers, and the numbers explain why. National Defense Magazine found that 82 percent of companies in the defense industrial base have trouble locating qualified STEM candidates, while ManpowerGroup’s 2024 research put the broader figure at 71 percent of U.S. employers struggling to fill skilled roles. For Margarita Howard, CEO and sole owner of HX5, that shortage shapes nearly every hiring decision her company makes.
HX5, a Florida-based, service-disabled veteran and women-owned defense contractor, employs more than 1,000 people across 34 states and 90 government locations, delivering STEM-focused support to NASA and the Department of Defense. Candidates need both technical skill and the ability to pass a security clearance, a combination that narrows the applicant pool considerably before Gen Z’s expectations even enter the picture.
Competing With Commercial Pay
Technology companies can offer higher salaries and looser schedules, so Margarita Howard has focused HX5’s pitch on the kind of work younger applicants rarely find elsewhere. She has pointed to hybrid scheduling, updated internal communication tools, and mission-driven programs supporting NASA and defense agencies as ways to stand out without matching Silicon Valley compensation dollar for dollar.
Howard still prefers hiring people who already carry NASA or Department of Defense experience, noting that background is “very different from experience gained working in the commercial world.” That preference narrows the pool further but, in her view, produces employees who ramp up faster on classified or highly regulated programs.
A Long-Term Bet on Loyalty
The approach appears to be working on retention, if not always on speed of hiring. Some HX5 employees have stayed with the company 15 years, well beyond the tenure typical in the broader technology sector. With Gen Z now representing a growing share of the workforce, Margarita Howard is betting that mission and stability will outweigh the appeal of a flashier employer. Read this article for additional information.
Learn more about HX5 on https://www.finsmes.com/2026/01/margarita-howard-on-how-hx5s-defense-origins-launched-its-expansion-into-nasa-contracting.html
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