To Increase Diversity, You Need to Understand the Challenges of Veterans Transitioning to the Civilian Workforce

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The armed forces are among the most highly regarded institutions in our country, and especially as we approach Veterans Day, November 11, I am sure we can all appreciate the contribution of those serving in the military.

However, a return to civilian life comes with significant challenges, and in the post-9/11 era, around half of veterans say they found this readjustment difficult. Today, I therefore want to focus on this issue and help us consider veterans’ unique requirements as they look to enter the regular workforce.

Currently, some 200,000 people leave the US military every year to return to civilian life, making this a significant group of job seekers. The transition can be a significant challenge but is not as well understood as you might think. As it has been said :

“While it is recognized that the armed forces change the identities of civilians when they become soldiers, less is known about what happens when soldiers become civilians.”

What we can say with certainty is that 8.8 million veterans were in employment in the US in 2022, accounting for 5.8% of the overall labor force. However, the labor force participation rate for veterans was notably lower than for nonveterans (47.9% vs. 64.7%), suggesting that veterans do experience significant difficulties in finding work.

In recognition of this, the Veterans’ Employment and Training Service (VETS) was established back in 1981 as a new agency of the Department of Labor, originally to help Vietnam era veterans find employment. Today, VETS continues to offer veterans valuable assistance through various initiatives such as the Transition Assistance Program (TAP).

Even with this support, however, the challenges of transitioning to civilian life are considerable, and because of this, I would like to highlight three key areas to consider. In doing this, my aim is to help organizations ensure that veterans are included as part of an effective diversity recruiting strategy.

1. Entering employment is one of the biggest reintegration challenges.

Actually, 55% of veterans identified it as the most difficult challenge they faced; and this seems to especially be the case for historically underrepresented groups. For example, in January 2022, official BLS data indicated that the unemployment rate for Black veterans (7.1%) was about double the overall rate for veterans (3.5%). What’s more, women veterans faced a particularly high unemployment rate (higher than veteran men and civilian women).

In general, veterans tend to be associated with various stereotypes, both positive and negative, that can affect their employment trajectory and may even be a source of employment discrimination. Clearly, this needs to be addressed.

In one approach, a large study from the Oregon Institute of Occupational Health Sciences found that a targeted training program (Veteran Supportive Supervisor Training) was able to improve supervisor attitudes toward veteran employees. This could presumably be extended to recruiters.

Additionally, there is some evidence that targeted employment programs can benefit veterans more than standard employment services in terms of both employment status and earnings—which also brings us to my second key point.

2. Not all employers understand veterans or have targeted programs.

While many veterans are successful in finding work, National Veterans Homeless Support (NVHS) reports that underemployment is a significant problem, meaning that their skills are underused and they end up earning less than they could.

This can partly be due to a lack of formal credentials underpinning their skills gained in military service, but also, some employers do not consider military experience as work experience. In fact, more than half of veterans (55%) feel that recruiters fail to properly understand their experience or qualifications.

In support of this, recent scholarly research has found a general lack of understanding of veterans and their military experience among civilian employers. To compound this problem, many organizations simply overlook veterans . This situation is changing and they are increasingly included in diversity recruitment initiatives, but as with any underrepresented group, such efforts will fail without a proper understanding of the particular challenges they face.

For example, many veterans may never have had to write cover letters or a resume before, so they will benefit from workshops to familiarize them with civilian hiring processes. This can also help them better understand and explain the skills they gained in the military, and how these can benefit employers. Along these lines, it is interesting to note that almost all participants (90%) in the TAP have used the program to help with writing cover letters and a resume.

Encouragingly, some large employers, including JPMorgan Chase and Ernst & Young, have initiated targeted programs for veterans as part of their recruitment and DEI strategies. And in a notable move, the chemical company Dow launched a Military Degree Equivalency program in 2020, recognizing military experience at grade E-6 or higher as equivalent to a bachelor’s degree.

3. Veterans face health issues that can be unfairly stigmatized.

It’s well recognized that military service can have negative health consequences, including mental health issues due to distressing or traumatic experiences, as well as physical injuries. Typically , around half of veterans face chronic physical conditions, while one third experience mental health problems. Employers should understand and make allowance for this, rather than letting it become a source of discrimination .

One significant study concluded that many employers are poorly prepared to hire and retain veterans with disabilities, and may make various negative assumptions about them. Other interesting research found that veterans with disabilities often hold back from requesting reasonable accommodations at work, but feel more comfortable to do so when they perceive that the organization has a strong culture of inclusion.

More importantly, we should first recognize that including veterans brings considerable benefits, since 59% of employers have reported that they perform better compared with their non veteran peers.

While veterans do have some welcome support available to help them transition into civilian work, the statistics show these programs are not fully effective, and many organizations neglect or overlook the contribution they could make. One recent academic study of workplace integration of veterans summed up the current situation bluntly:

“Organizations need to move beyond paying lip service to hiring veteran workers and focus on their actual integration and inclusion.”

Since we have seen evidence dismantling the bias and demonstrating that veterans can become high-performing employees when they enter civilian life, I would encourage you to make sure your organization joins those leading the way in helping them realize their potential.

JOIN US IN THE COMMENTS: Does your organization already have targeted programs in place for veterans? What benefits have you seen from them? As always, we would value your thoughts, comments, and insights in this important area.