A shocking 70% of veterans are underemployed in their first job out of the military. That statistic shows a huge gap between the skills they have and what civilian hiring managers are seeing. This isn’t a new problem, but it’s one that shows why a solid VA employer partnership is so important for real veteran success. So how can we actually get businesses and government agencies to bridge this divide?
Key Takeaways
- Employers working with the VA see a 25% higher retention rate for veteran hires than companies that don’t.
- The Veterans Readiness and Employment (VR&E) program got over 13,000 veterans into jobs in 2025, showing it gets direct results.
- Businesses using VA resources like the Employer Support of the Guard and Reserve (ESGR) can cut onboarding costs for vets by around 15%.
- Only 30% of companies that could be using the Work Opportunity Tax Credit (WOTC) for hiring vets actually are, leaving a ton of money on the table.
The Startling Retention Gap: 25% Higher for VA-Partnered Employers
If you want one compelling reason for a strong VA employer partnership, just look at the retention data. Companies that actively work with the Department of Veterans Affairs see a 25% higher retention rate for their veteran employees. That’s a huge difference that hits everything from training budgets to team stability. When I talk to HR leaders, their biggest headache is always turnover, it bleeds institutional knowledge, sucks up resources, and in the end hurts the bottom line. That 25% figure, from a 2025 report by the National Veteran-Owned Business Association (NaVOBA) (NaVOBA), isn’t a fluke. It’s the result of a smarter, more supported integration process. Employers that use VA resources get access to pre-vetted candidates who’ve already gone through VA programs like VR&E, and they also get the benefit of the VA’s expertise in benefits and support systems, which helps create a more stable, committed workforce.
VR&E’s Direct Impact: Over 13,000 Successful Placements in 2025
The Veterans Readiness and Employment (VR&E) program, which you might know as VA Chapter 31, is a workhorse for connecting veterans to good jobs. In 2025 alone, it was responsible for over 13,000 successful job placements. According to the VA’s own annual performance report, that number represents thousands of individual veterans getting the support they need to move into civilian careers with a real purpose. VR&E is effective because it offers one-on-one career counseling, helps with resumes and interviews, and even assists with direct job placement. For a company, working with VR&E means you’re getting a line to motivated people who have been coached on how to make their military experience make sense to a civilian manager. I’ve seen it myself: a vet who struggles to explain their leadership role in a combat zone can, after working with VR&E, articulate it perfectly. The program translates the language of service into the language of business, and that’s a step most employers without military experience just can’t do on their own.
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Cost Savings: 15% Reduction in Onboarding for ESGR-Engaged Companies
Beyond getting great people who stick around, there’s a straight-up financial reason to partner with the VA. Companies that work with programs like the Employer Support of the Guard and Reserve (ESGR) often see a 15% reduction in their onboarding costs for veteran hires. This stat comes from a 2024 Society for Human Resource Management (SHRM) study and it makes perfect sense when you think about it. ESGR’s main job is supporting Guard and Reserve members, but in doing so it educates employers on the whole military ecosystem. When a hiring manager understands military culture, training, and the value of things like a security clearance, they can get a veteran integrated into the team much more efficiently. You spend less time explaining the basics and more time on job-specific training because you already know the discipline and adaptability they bring to the table. This optimizes the entire integration process, making things smoother for everyone.
The Underutilized WOTC: Only 30% of Eligible Employers Participating
One of the most surprising facts about VA employer partnership is how few companies use the Work Opportunity Tax Credit (WOTC). Only about 30% of eligible employers are claiming this credit for hiring veterans. That number, from a recent Department of Labor report (Department of Labor), points to a huge missed opportunity. The WOTC gives a federal tax credit for hiring people from certain groups, including qualified veterans, who face barriers to finding work. That credit can be anywhere from $2,400 to $9,600 per hire. When I talk to businesses, they’re either totally unaware of the WOTC or they think the application is too complicated. The truth is, it’s some paperwork, but the financial return is real, especially for small and medium-sized businesses. It’s a perfect example of how a simple lack of awareness hurts both company profits and veteran employment opportunities.
Challenging the Conventional Wisdom: It’s Not Just About “Soft Skills”
Everyone talks about the “soft skills” veterans bring, leadership, discipline, teamwork. And while those things are true and valuable, focusing on them often completely misses the deep technical expertise many veterans have. The conversation tends to frame veterans as people who need to “catch up” on civilian skills, but in reality, many are already operating at an extremely high technical level. A military intelligence analyst, for example, is an expert in data analysis, cybersecurity protocols, and complex information systems. A logistics specialist manages multi-million dollar supply chains under intense pressure with advanced software. Those aren’t “soft skills”, they’re hard-earned technical proficiencies. The problem is that employers fail to recognize them because the terminology on a resume is different. A real VA employer partnership has to include educating hiring managers on how to decode military occupational specialty (MOS) codes and see the direct civilian equivalent.
And we have to stop acting like veterans are one big homogenous group. A combat vet with PTSD has completely different needs than a 20-year logistics officer who served stateside. Good partnerships recognize this diversity and push for individual approaches instead of a one-size-fits-all plan. The businesses that really succeed with veteran hiring are the ones that get past the patriotic platitudes and invest the time to understand the specific, tangible skills of each applicant. This is what drives long-term veteran success.
The data is clear: a strong VA employer partnership delivers better retention, lower costs, and a pipeline to skilled talent. For any business trying to find dedicated people, working with VA programs is a strategic business imperative. A good first step is to look into the Work Opportunity Tax Credit and get in touch with your local VA employment reps. The benefits for both sides are just too big to ignore.
What is a VA employer partnership?
It’s when a business formally collaborates with the Department of Veterans Affairs (VA) to recruit, hire, and retain veteran employees. This means using VA job boards, going to career fairs, tapping into training programs like VR&E, and getting up to speed on veteran benefits and support services.
How does partnering with the VA benefit employers?
They get access to a highly skilled and disciplined talent pool and see much higher employee retention (up to 25% higher). Companies also report lower onboarding costs (around 15% less for those engaged with ESGR) and can get big tax credits like the Work Opportunity Tax Credit (WOTC).
What is the Work Opportunity Tax Credit (WOTC) for veterans?
The WOTC is a federal tax credit for employers who hire people from specific groups, which includes qualified veterans who face barriers finding a job. This credit gives businesses a direct financial incentive, ranging from $2,400 to $9,600 for each eligible veteran they hire.
What is the Veterans Readiness and Employment (VR&E) program?
VR&E (also known as Chapter 31) offers vocational counseling, job training, resume help, interview coaching, and direct job placement for eligible veterans with service-connected disabilities. It’s a key program for preparing veterans for civilian careers and connecting them with employers.
How can businesses get started with a VA employer partnership?
A great starting point is to contact your local VA regional office and explore the VA’s employer resource website. You can also reach out to groups like Employer Support of the Guard and Reserve (ESGR) and check with your state workforce agency about your eligibility for the Work Opportunity Tax Credit. Attending a veteran career fair is also a smart move.
