To my understanding, the DoD simply cannot match the private sector in salary and freedom of work. Why would talented, college educated individuals with a highly sought after talent pass up a starting six figure salary working 9 to 5 for O1 pay and a more demanding/stressful work environment in the DoD?
Regardless, the Navy (I can only speak to the Navy) cyber community isn't expanding fast enough. At the Academy everyone is required to take two semesters of cyber. They push for more and more Computer Science, Information Technology, and Cyber Security majors. They've began building a multi-million dollar academic building specifically for the Cyber department (no other single department has its own building). This is all well and good, but when they only allow 1% of every graduating class to enter Cyber Command, it shows there's a difference between what the DoD wants to do/is doing and what they are actually doing.
The DOD has many great work/life programs that easily rival that of any company. NAVSEA has a lot of civilians who 100% telework, on top of their flex schedules, regular days off (four day work weeks), four hours sick leave accured every pay period, and up to eight (8) hours leave accrured every pay period.