Many employers chasing Gen Z talent have loosened hiring standards. HX5 has taken a different route. Margarita Howard, the defense contractor’s sole owner, CEO, and president, says prior work with federal agencies remains the strongest credential a candidate can bring.

“We prefer to hire experienced individuals, so we look for people that have worked with, or supported, NASA or the Department of Defense, as this experience is always very helpful,” she said. She added that this kind of background “is very different from experience gained working in the commercial world.”

A Highly Educated Workforce

Most HX5 employees hold college degrees, according to Howard, and members of the management team frequently have advanced degrees. She noted that women make up the majority of that leadership group, describing them as “all very experienced in their respective areas.”

The company, a service-disabled veteran and women-owned business, employs more than 1,000 people across 34 states and 90 government locations. It provides STEM support services to NASA and the Department of Defense.

Hiring Against a Thin Talent Pool

Prioritizing experience makes recruiting harder. National Defense Magazine reported that 82% of companies in the defense industrial base struggle to find qualified STEM workers. ManpowerGroup’s 2024 research found that 71% of U.S. employers have trouble finding skilled talent.

Some HX5 roles call for a rare mix of technical knowledge, clearance eligibility, and specialized expertise. Candidates who meet all three requirements are scarce, and commercial technology companies compete for many of the same people with higher pay and quicker start dates.

Security clearances add another layer. The review process can take months or years, so a candidate who already holds a clearance from previous federal work is especially valuable to a contractor like HX5. That reality helps explain why Margarita Howard leans so heavily on government experience.

Margarita Howard has not abandoned efforts to appeal to younger professionals. The company has introduced hybrid work where possible and modernized its communication tools. Experience, however, still carries the most weight when HX5 decides whom to bring aboard. Read this article for more information.

Learn more about Margarita Howard on https://homebusinessmag.com/success-stories-lifestyles/defense-contractors-margarita-howard-adapts-gen-z-amid-competition-stem-talent/

Since 2021, HX5 has brought on eight transitioning service members through the Hiring Our Heroes Corporate Fellowship Program, keeping a steady pace of two fellows every year. The consistency sets HX5 apart from companies that participate only when hiring needs spike.

CEO Margarita Howard, herself a service-disabled Air Force veteran, has made fellowship participation a fixture of how HX5 approaches workforce planning. Rather than treating the program as a recruiting tool used only occasionally, Howard treats it as an ongoing commitment tied to the company’s mission and culture.

A Manageable Scale for a Growing Contractor

HX5 employs approximately 1,000 people across defense and aerospace contracts, a size that makes two fellows annually a fitting commitment. Large contractors with dedicated military recruiting teams can absorb dozens of fellows each year, but smaller firms like HX5 must weigh fellowship participation against integration capacity and day to day operational needs.

The Corporate Fellowship Program operates under the Department of Defense’s SkillBridge initiative, allowing active duty service members to spend their final 180 days in the military working with civilian employers. Fellows split their time between four days of hands on work with the host company and one day of professional development training, all while continuing to draw military pay and benefits.

A Structured Pathway, Not a Gesture

Howard’s approach reflects a belief that veteran hiring works best as a structured pathway rather than a one time gesture. Margarita Howard has said her own military background shaped this outlook, giving her insight into what transitioning service members need beyond a job offer.

HX5’s contract work in advanced weapons research, sensor system reviews, and modeling and simulation for defense and space programs gives fellows exposure to tasks that often overlap with what they did in uniform, easing the shift from service member to contractor. See related link for additional information.

More about Margarita Howard on https://about.me/margaritahoward

Federal rules governing government contractors leave more room for delay than many small businesses realize. The Small Business Administration encourages new contractors to maintain compliant accounting systems, but it does not require any specific software. Formal adequacy standards come from federal acquisition regulations, which apply only to certain contract types, leaving many small firms to start simple and grow into more rigorous systems over time.

Margarita Howard, who founded HX5 in 2004, chose not to take that slower path. She purchased a government-approved accounting system almost immediately, well before the company had won its first major award.

Built For Federal Standards

The system Margarita Howard selected was already familiar to federal auditors and to large prime contractors, the two groups whose trust HX5 needed most in its earliest years. “It was more important for us that we invest in things like a high-end accounting system that was built and developed specifically for companies who work with the government, and was government reviewed and approved,” she said.

Implementing a system like this requires more than a purchase. It demands training, process changes, and ongoing expertise that many small businesses lack in their first years. Margarita Howard has acknowledged the cost was real, but she has also pointed to a clear return on it.

“This is what we used to bill the government,” Howard said. “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, which those large businesses had.”

That early compliance work became a foundation for everything HX5 built afterward. The company now employs more than 1,000 people across more than 20 states, operates as both a prime contractor and subcontractor, and has been recognized as Prime Subcontractor of the Year, outcomes Howard connects directly back to a decision most new contractors postpone. Visit this page for more information.

Learn more about HX5 on https://ritzherald.com/ceo-margarita-howards-background-shapes-hx5-approach-to-veteran-employment/

The defense contracting sector is grappling with a workforce shift unlike any it has faced before. As Generation Z those born between 1997 and 2012 enters the job market in growing numbers, companies relying on security-cleared STEM professionals must rethink how they attract and retain talent. Few industry figures have addressed this challenge as deliberately as Margarita Howard, sole owner, CEO, and president of HX5, a service-disabled veteran and women-owned defense contractor headquartered in Florida.

A Company Built on Specialized Work

HX5 operates across 34 states and 90 government locations, employing more than 1,000 people who provide STEM-focused support services to NASA and the Department of Defense. That scale means Howard must continuously fill highly specialized roles requiring rare combinations of technical expertise, government agency experience, and willingness to complete lengthy security clearance processes.

Security clearance timelines put defense contractors at a structural disadvantage against commercial technology companies, which can hire qualified engineers quickly and often at higher salaries. The World Economic Forum found that 38% of Gen Z workers said they were likely to leave their jobs within a year. Howard has not ignored that statistic. Magarita Howard has worked to reshape HX5’s tools and culture to address what this generation wants while holding firm on the mission-driven standards that government work demands.

Adapting Without Compromising

Howard has introduced hybrid work models where security protocols allow it and modernized internal communications with instant messaging platforms and interactive project management tools. She is clear that flexibility has limits in her industry: security standards are non-negotiable and the deliberate pace of government contracting does not bend to expectations shaped by commercial software firms. Her pitch to prospective hires emphasizes the genuine excitement of supporting NASA programs and Department of Defense operations. Howard regularly tells recruits they should get up energized by the specific program they are supporting. That message, paired with meaningful modernization, has produced results. Some HX5 employees have stayed with the company for 15 years, a notable achievement in any generation. Refer to this article, for related information.

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

Many government contractors starting out in the competitive federal market focus on looking the part: premium office space in the D.C. area, polished lobbies, high-end conference rooms. Margarita Howard rejected that logic when she founded HX5 in 2004. Her investment priorities went to operational systems specifically, a government-approved accounting platform purpose-built for contractors who work with federal agencies.

Prioritizing What Partners Actually Need

The calculus behind Margarita Howard’s choice had everything to do with what large prime contractors and government agencies actually look for in a teaming partner. Impressive offices do not pass billing audits. They do not demonstrate familiarity with government procurement documentation or compliance requirements. A government-reviewed accounting system does. “It was more important for us that we invest in things like a high-end accounting system that was built and developed specifically for companies who work with the government, and was government reviewed and approved,” Howard explained.

The investment paid dividends quickly. Large businesses evaluating HX5 as a potential subcontractor discovered that despite the company’s small size, it already operated with the same billing infrastructure those large firms used. That consistency eliminated a common objection to working with newer, smaller contractors. “That was one aspect that made HX5 very attractive to large businesses who were looking to partner with small businesses to meet their small business goals,” Howard noted, describing how the accounting investment worked as an indirect business development tool.

A Risk That Paid Off

Howard acknowledged the decision carried genuine risk. The SBA recommends investments like this to small contractors, but provides no guarantee they will generate returns. “It was a risk that we took and it highly paid off,” she said. For Margarita Howard and HX5, that risk produced a company now employing more than 1,000 professionals across 34 states and 90 government locations, supporting NASA, the Army, Navy, Air Force, and the General Services Administration. See related link for more information.

More about Howard on https://m.doyoubuzz.com/margarita-howard