Veteran unemployment has been a longtime concern for the military and public alike, especially after the 1973 transition to an all-volunteer force. According to the Department of Labor, the overall unemployment rate of veterans since 2001 was 1.6 percent higher than those who did not serve.1 But for younger veterans the disparity was more drastic: The unemployment rate for male veterans between 18 and 24 was 8.5 percent higher than civilians of the same demographic.2 Even among veterans who find employment, approximately two-thirds report the transition as difficult and cite finding employment to be their greatest challenge.3 In an effort to help them find work, the “VOW To Hire Heroes Act of 2011” now requires all transitioning service members to attend an expanded and improved Transition Assistance Program (TAP) prior to separation.4 This policy reflects President Barack Obama’s 2011 commitment to prepare veterans for transition:
The problem is that right now, we spend months preparing our men and women for life in the military, but we spend much less time preparing them for life after they get out. So we’ll devote more time on the back end to help our veterans learn about everything from benefits to how they can translate their military training into an industry-accepted credential.5
While highly valuable, “back-end” assistance programs such as TAP are often too little and, more important, too late for service members who may have put off transition planning until mandated to do so. Critical transition requirements such as career education, networking, and financial planning must be done early and continuously. To help veterans smoothly transition into the civilian workforce and make the most of existing Department of Defense and Department of Veterans Affairs (VA) programs, officers must better educate themselves on the transition process and serve as career mentors for their subordinates.
In Marine Corps Order No. 29 (1920) Major General John Lejeune said it is vital that leaders recognize their responsibility for the welfare and development of their subordinates. Lejeune’s leadership philosophy is utilitarian since the welfare of the individual translates to increased organizational effectiveness, but he also states that leaders have a more personal responsibility to subordinates that extends beyond the needs of the organization and the subordinate’s term of service:
[The recognition of this responsibility] is especially so [vital] for the reason that so large a proportion of the men enlisting are under 21 years of age. These men are in the formative period of their lives and officers owe it to them, to their parents, and to the Nation, that when discharged from the service they should be far better men physically, mentally, and morally than they were when they enlisted.6
Unfortunately, many veterans who struggle after leaving the military and find themselves mentally unprepared for the challenge of transitioning to civilian life are the products of poor leadership. In a 2012 study, less than “one-quarter [of veterans] said their chain of command prepared them for post-separation employment.”7 Clearly, far too many officers have been failing to fulfill their responsibilities to their subordinates. As Major General Matthew Caulfield argued in 2010, military leaders are insufficiently concerned with transition assistance because they have little personal experience with the process and view it as a non-operational luxury for which they do not have time.8 One likely explanation for why officers don’t make transition education and training a priority is that transition is less of a personal concern for them than for enlisted personnel, who are 30 percent less likely than officers to serve the full 20 years or more required to receive the military’s generous defined-benefits retirement.9 Of the mere 17 percent of service members who do retire, enlisted are significantly underrepresented: Only 13 percent of enlisted retire from the military, compared to 43 percent of officers.10 While transition may not be a priority for senior officers, for the 87 percent of enlisted and 57 percent of junior officers who will eventually transition, the process is neither a luxury nor a time commitment that can be neglected. Senior officers may never need a second career, but they still have a professional obligation to familiarize themselves with the process that will determine the future of 83 percent of service members who do not retire from the military. In addition to junior officers owing the same responsibility to their subordinates, it is also in their best interest to prepare themselves for the likelihood of their own pre-retirement transition.
A Lack of Preparation
A 2014 RAND study found that service members were neither statistically disadvantaged by their military service, nor were they inherently less competitive than their civilian counterparts in terms of ability or marketable skills.11 Unfortunately, the report attributes high unemployment rates among young veterans—who are more likely to “find themselves separated from a job” than their civilian counterparts—as an “unavoidable cost of maintaining a volunteer military that relies so heavily on the services of the young” and high turnover.12 Fortunately, the relative veteran unemployment rate “declines rapidly with age and time since separation, [and . . . ] once [veterans] have found a civilian job, they are no more likely to be subsequently unemployed than are younger non-veterans.”13 Although veterans’ prospects improve over time, the transition is often emotionally and financially taxing in the short term. Therefore, the RAND study concludes that “policy should focus on reducing the amount of time it takes newly separated veterans to find a job” by preparing them for the transition.14
Rather than lack of ability or job skills, the challenge facing most transitioning veterans is simply a lack of proper preparation. A 2007 report for the VA found that transitioning veterans experienced significant difficulty in finding employment in the two years following separation because of their inability to market themselves, and their lack of a professional civilian network.15 According to the report, civilian interviewers’ strongest negative impression of veterans was not that they lacked skills, but that they “were not prepared to market themselves to the business environment—they did not seem to understand the culture and expectations; thus [they] were not career ready.”16 Additionally, the report found that most service members were unlikely to “have developed the opportunities to access quality careers through networks and mentors.”17 This is a devastating handicap when one considers that up to 80 percent of “high-quality careers are hidden opportunities that require direct channels of access.”18
Fortunately, the solution is simple: Start preparing early. While military officers can’t do much to improve market demand for transitioning veterans—as the VOW to Hire Heroes Act was intended to do—even the most junior leaders can significantly improve their subordinates’ transition by encouraging them as early as possible to save money for transition, develop career goals, and learn how to locate employment opportunities and market themselves.19
Career Mentorship
Leaders must motivate their subordinates to start planning early for transition. To impress the relevance of transition planning, leaders must honestly counsel subordinates about the realities of military and civilian careers, and the transition from one to the other. This begins with ensuring that subordinates know the percentage of those who do not serve a full military career and earn retirement. As noted, the vast majority of service members will need to prepare for transition to a civilian career since, due to the vesting period and the military’s up-or-out promotion system, only a small minority will complete a military career and receive any retirement benefits.
In an age of force shaping, leaders must honestly counsel their subordinates on their career prospects within the military and whether they are likely to promote and reach retirement or be separated for factors both in and out of their control. Even among those who do retire from the military, many begin a second career in the civilian sector, either by choice or necessity, due to the early retirement age and increasing life expectancy. Therefore, the vast majority of service members need to fully comprehend the employment opportunities and challenges they will face in the civilian sector after they separate from the military. Service members with realistic views of their futures are more likely to better prepare themselves professionally and financially, whether they stay in the service or transition out.
For the 83 percent of service members who will not serve a full 20-year military career, leadership must emphasize not only long-term financial planning for retirement, but also short-term planning for separation. The Bureau of Labor Statistics claims that in 2010 the national median time for the unemployed to secure a new job was ten weeks, and that this doubled from what it had been for over a decade before.20 Considering the previously mentioned challenges unique to transitioning veterans, it is not unreasonable to expect their job searches to last much longer. This is a significant financial strain, considering that most enlisted personnel and officers separate at the end of their initial service commitments, where low pay and few years in service means they may not have significant financial savings to cope with extended unemployment.21 While those involuntarily separated from the military may receive separation payments, those who choose to leave will walk away with nothing, unlike many of their civilian counterparts who have access to matching 401(k) or 403(b) plans. The earlier officers prepare their subordinates for the reality of the job search, the more financially prepared they will be.
Leadership must therefore make learning about transition preparation part of their continuing personal and professional military education, and encourage subordinates to do so as well. While time is limited and leaders cannot be expected to become experts, there is plenty of time to familiarize oneself with DOD and VA support programs, the job-search process, and the state of the economy and job market. Similarly, leaders need not conduct time-intensive training, but merely counsel, encourage, and facilitate the subordinate’s own efforts. Fortunately, there are numerous existing resources to help service members learn what opportunities are available, to set personal and professional goals, and to help make themselves more competitive.
Take a Course
When time permits, leaders should encourage their subordinates to attend Transition (Goals, Plans, Success) as early as possible, and should do so themselves. This foundational five-day course provides an overview of the transition process, covers how to translate military skills to the civilian sector and how to financially plan for separation, and includes a three-day workshop from the Department of Labor.22 For those unable to attend the class, or who desire additional information, a self-paced curriculum is available through Joint Knowledge Online.23 The Fleet and Family Support Center also offers classes on a number of specific topics, such as how to write resumés and how to apply for federal jobs. Additionally, leaders should recommend that subordinates start their own research, to include respected transition and business books, reputable news and business periodicals that cover current events, credible websites, and social media. These existing resources are helpful, but only if service members are given the time and encouragement to access them early enough.
Finally, leaders must emphasize the importance of professional networks within the military and especially within the civilian workforce. Networking is invaluable for learning about different career opportunities because it provides an insider’s perspective on different occupations and employers. It is probably the most powerful way to find and secure a job because it can lead to professional referrals. Officers also should focus on building and maintaining their own professional network outside the military, not only for their personal benefit, but also as a way to gain information to advise subordinates and to help them make professional connections. Unfortunately, networks—and the skills required to develop them—take time to build; fortunately, it is never too early to begin.
It has become a cliché for some leaders to encourage subordinates to stay in the service by embellishing the challenges of the civilian job market. Conversely, many others assure subordinates that they are the nation’s “best and the brightest,” and will therefore have no difficulty transitioning into a higher-paying job. While both sides may have good intentions, neither scaremongering nor building false confidence is productive. Service members must have a realistic understanding of both the challenges and opportunities outside the military. Preparing individuals to leave the service may seem counterproductive for retention, but it is an obligation all officers owe to the 83 percent of service members who will eventually transition into the civilian workforce. Furthermore, efforts to reduce the unemployment time of transitioning service members may well help recruitment by improving public perception of military service.
The best organizations retain quality people by investing in their futures, not by limiting their options. For the military, this means preparing service members not only for their current careers, but also for their follow-on occupations. According to the RAND report, there may be “little additional room for public policy to affect veteran unemployment.”24 If this is the case, progress must come from veterans themselves and officers who follow General Lejeune’s leadership guidance by taking personal responsibility for ensuring their subordinates leave the military better off than when they came.
1. U.S. Bureau of Labor Statistics, Labor Force Statistics Division, “Employment status of the civilian population 18 years and over by veteran status, period of service, and sex, not seasonally adjusted,” The Employment Situation—January 2015, Table A-5, www.bls.gov/news.release/pdf/empsit.pdf.
2. U.S. Bureau of Labor Statistics, Labor Force Statistics Division, Employment Situation of Veterans—2013, 2, www.bls.gov/news.release/pdf/vet.pdf.
3. Prudential Financial, Inc., “Veterans’ Employment Challenges: Perceptions and experiences of transitioning from military to civilian life” (Newark, NJ: Prudential, 2012), 4, www.prudential.com/documents/public/VeteransEmploymentChallenges.pdf.
4. House Committee on Veteran’s Affairs, “VOW To Hire Heroes Act of 2011: Comprehensive Legislation to End Veteran Unemployment,” www.veterans.house.gov/vow.
5. President Barack Obama, “Remarks by the President on the Administration’s Work to Prepare our Nation’s Veterans for the Workforce,” 5 August 2011, www.whitehouse.gov/the-press-office/2011/08/05/remarks-president-administrations-work-prepare-our-nations-veterans-work.
6. MajGen John Lejeune, USMC, “Marine Corps Order No. 29: Relations between Officers and Men,” 1920, www.mcu.usmc.mil/historydivision/Pages/Speeches/relationsbetweenofficersandmen.aspx.
7. Prudential, “Veterans’ Employment,” 8.
8. MajGen Matthew Caulfield, USMC (Ret.), “Help Wanted,” U.S. Naval Institute Proceedings, vol. 136, no. 8 (August 2010): 60–65.
9. Defense Business Board, “Modernizing the Military Retirement System: Report to the Secretary of Defense,” House, Military Retirement Reform: Hearing before the Subcommittee on Military Personnel of the Committee on Armed Services, 112th Congress, 1st session, 2011, 64.
10. Ibid.
11. David S. Loughran, “Why Is Veteran Unemployment So High?” (Santa Monica, CA: RAND Corporation, 2014), 25.
12. Ibid., 27.
13. Ibid., 22, 23.
14. Ibid., 25.
15. Abt Associates, Inc., “Employment Histories Report: Final Compilation Report” (Washington, DC: Department of Veterans Affairs, 2008), 35, 37.
16. Ibid., 37.
17. Ibid.
18. Ibid., 28, 37.
19. Loughran, “Veteran Unemployment,” 25.
20. Ibid., 23.
21. Roy A. Wallace, David S. Lyle, and John Z. Smith, A Framework for Restructuring the Military Retirement System (Carlisle: U.S. Army War College Press, 2013), 5.
22. U.S. Department of Defense, “Core Curriculum,” www.dodtap.mil/core_curriculum.html.
23. U.S. Department of Defense, “Virtual Curriculum,” www.dodtap.mil/virtual_curriculum.html.
24. Loughran, Veteran Unemployment, 27.