The Business Case for Hiring Veterans Amidst Federal Job Cuts
As a wave of federal job cuts sweeps across the nation, many veterans – who are already navigating the complex transition from military to civilian life – now face an additional layer of uncertainty.
The federal government is the single largest employer of veterans in this country. Although veterans comprise less than 6% of the nation’s civilian workforce, they represent 28% of federal employees.
In March, the newly established Department of Government Efficiency announced sweeping job cuts across the federal workforce – including roughly 80,000 positions at the Department of Veterans Affairs. While these layoffs disproportionately impact veterans who have continued their service through federal employment, the private sector is faced with an enormous opportunity.
For businesses seeking high-performing, purpose-driven professionals, now is the time to tap into the veteran talent pool. The business case is clear: veterans are uniquely equipped to lead, innovate, and thrive in today’s fast-paced, complex work environments.
Why Veterans Are Valuable Assets to the Private Sector
From managing teams in combat zones to making split-second decisions with real-life consequences, veterans are forged in environments where failure is not an option. This real-world experience builds adaptable, mission-driven leaders who thrive in complex, fast-paced environments.
What sets today’s veteran talent pool apart is its depth and readiness. Many of these individuals who have returned to the job market aren’t just transitioning from active duty – they're also experienced federal professionals with advanced degrees, security clearances, and a proven track record in civilian roles. They’ve managed budgets, led cross-functional teams, and operated within highly regulated environments.
For the private sector, this moment represents a unique opportunity to hire talent that’s not only battle-tested but also boardroom-ready. These veterans are positioned to make an immediate and lasting impact.
Industries That Can Benefit the Most from Hiring Veterans
Veterans bring a highly versatile skill set that spans a broad range of industries, making them adaptable and valuable employees in almost any sector.
Industries such as finance, tech, logistics, healthcare, security, and operations can leverage veterans’ extensive training and real-world experience allow them to seamlessly transition into civilian roles, often with minimal additional training. By tapping into this wealth of expertise, businesses not only gain dedicated and skilled employees but also contribute to creating a more inclusive workforce that values the unique contributions of veterans.
The Long-Term Business Benefits of Hiring Veterans
Hiring veterans is a smart investment with both short- and long-term benefits. Companies that prioritize veteran recruitment and retention often experience lower turnover and higher employee engagement. General Electric, for example, reported a 7% lower attrition rate among veteran employees compared with non-veterans over the past decade – a testmeant to the loyalty and staying power veteranse bring to the workplace.
Veterans’ mission-first mindset and ability to thrive in structured, value-driven environments can help organizations reduce hiring costs and minimize time spent on training. However, the recent migration for many from the federal workforce into the private sector isn’t just a career shift – it's deeply personal.
Many veterans have expressed feelings of betrayal and skepticism towards the public sector that once symbolized stability and purpose. This sentiment underscores a pivotal moment: the private sector has a unique opportunity to engage this talent pool, offering roles that value their dedication and expertise.
By fostering veteran-inclusive cultures, businesses build stronger teams, improve employee satisfaction, and make a smart, strategic investment in their workforce.
Hiring Incentives and Financial Benefits for Employers
Beyond talent and drive, veterans also bring tangible financial value to employers.
The Work Opportunity Tax Credit (WOTC) is a federal tax credit for employers who hire individuals from target groups facing barriers to employment, including veterans. Despite their skills, veterans, particularly those with service-connected disabilities, often experience higher unemployment rates. Through WOTC, companies can receive up to $9,600 per qualified veteran hired.
According to the Internal Revenue Service’s website, this tax credit remains untouched by DOGE and is available to employers until the end of the year.
Why Hiring Veterans Is a Win-Win
In the face of widespread federal layoffs, the private sector has a unique opportunity to step up – and benefit in the process. Hiring veterans is a smart, strategic move that delivers measurable returns. From unmatched leadership and adaptability to financial incentives and long-term workforce stability, veterans bring value that goes far beyond the resume.
Now more than ever, the business case for hiring veterans is clear: it’s a powerful way to build resilient, innovative teams that drive lasting success.
You can learn more about the displaced veteran workforce at American Veterans Group’s VetSuccess: Serving the Displaced Federal Workforce” virtual panel event on May 20, 1:00-2:00 pm ET.
