How to Attract and Retain Veteran Talent in a Post-Layoff Economy

The post-layoff economy presents both challenges and opportunities for organizations—and veterans alike. Following recent federal workforce reductions, particularly within agencies like the Department of Veterans Affairs (PBS NewsHour), tens of thousands of veteran employees are entering a volatile job market.
For private-sector employers, this is a critical moment to invest in veteran talent. Veterans bring leadership, discipline, operational efficiency, and crisis-tested decision-making, skills that are urgently needed as businesses adapt to economic uncertainty. Attracting and retaining veterans in a post-layoff economy requires thoughtful, targeted strategies beyond general veteran hiring best practices.
Tailored Strategies for Attracting Veterans Post-Layoff
Address the Psychological Impact of Layoffs in Your Messaging
Veterans affected by federal layoffs may be experiencing a loss of stability and identity. Your recruitment messaging should acknowledge that reality and clearly articulate how your organization offers not just a job, but a reliable, mission-aligned career path.
Target Outreach Based on Career Transition Patterns
Post-layoff veterans are often pivoting into new industries. Instead of blanket veteran hiring initiatives, tailor outreach efforts based on MOS-to-industry translation tools and common career transitions (e.g., logistics → supply chain; federal IT → cybersecurity; administrative → HR/project management).
Offer Interim Employment or “Bridge Roles”
Many veterans exiting federal employment are looking for immediate income while planning long-term moves. Consider offering temporary-to-permanent roles, fellowships, or project-based contracts as a soft landing that helps them transition into civilian culture and upskill.
Retention Strategies That Resonate in a Post-Layoff Economy
Be Transparent About Financial Health and Growth Plans
Layoffs can trigger deep skepticism in veterans about organizational longevity. Combat this by openly sharing your company’s financial roadmap, especially how you’re planning to grow or stabilize despite market challenges.
Create Career Mobility Pathways—Fast
Veterans are highly goal-oriented and used to defined progression structures. In a post-layoff economy, where long-term planning feels uncertain, it’s critical to provide clarity and speed.
Provide Trauma-Informed Management Training
Layoffs can trigger emotional responses rooted in past instability, including military-related stress. Equip your managers to lead veteran employees with empathy and insight.
Join the conversation and hear from leaders in the veteran employment space at American Veterans Group’s upcoming virtual panel, VetSuccess: Serving the Displaced Federal Workforce, May 20, 2025 1:00 – 2:00 pm ET.