How Employers Can Use Benefits to Better Support Veterans

Once their service is complete, many military veterans can face their toughest assignment yet as they transition from active duty to civilian life. Each year, approximately 200,000 service members embark on that journey and face challenges from finding work and adjusting to a new environment to combating daunting physical and mental health issues. In fact, around 1 in 4 veterans find adjusting to civilian workplace culture daunting.

Trading a military career, community and way of life for a civilian one can be overwhelming, even when times are good. But it can be especially stressful when employment rates are volatile and inflation comparatively remains high. The question becomes, how can employers and their human resources professionals better support the specific needs of veterans in the workforce?

Access bonus Workspan Daily Plus+ content on this subject: 

• Empowering Veteran Employees: Leveraging Government Resources

Bridging the Veteran-Civilian Divide

Today, there are approximately 18 million veterans in the U.S. (28% of whom are younger than age 50), including more than 8.6 million in the civilian workforce. However, one-third of veteran job seekers are “underemployed,” working in jobs for which they’re overqualified and are likely to be lower paid for their education and experience level.

McKinsey reported roughly 60% of active-duty service members who transition from the military each year earn less in their first year after being discharged than they did on active duty, resulting in billions of dollars of lost economic value. Further, veterans are half as likely to reach top organizational leadership roles (e.g., director or vice president) despite having nearly twice the work experience of nonveterans.

HR pros can help bridge that divide by getting a better understanding of veterans’ applicable skill sets, educating hiring managers, and being intentional with their veteran recruiting and retention strategies. Fortunately, organizations like the U.S. Department of Veterans Affairs (VA) and Department of Labor and programs such as the United Service Organizations’ Pathfinder program can help fill employer knowledge gaps and build connections to veteran job seekers.

Answering the Call for Veteran-Focused Benefits

Once onboarded, one strategy to better engage and retain veterans in the workforce is to tailor aspects of the benefits program for this group’s particular needs. For example, forming an employee resource group (ERG) focused on veterans’ challenges affords them both community and a voice within the organization.

Recognizing that 41% of veterans were found to have a potential need for mental healthcare, consider how to make your workplace a safe place for them to receive the support and help they may need to fully contribute and succeed. This could include having an employee assistance program (EAP) that has robust counseling and referral resources to give veterans a trusted place to turn for help.

Beyond health benefits, the availability of financial literacy or wellness programs and legal insurance can go a long way to smooth the transition.

In the military, housing, healthcare, food and pay were largely managed for service members. Moving to civilian life requires them to learn how to better manage their income, choose the right workplace benefits, understand financial planning and access military benefits. Financial education and counseling can be an important and appreciated asset.

Helping Address Veterans’ Distinct Legal Needs

Veterans can also benefit from legal counseling services to help with a wide range of life’s issues — from the happy moments to the more difficult ones. While veterans and their families face many of the same legal challenges that the general community does, there are some distinct issues and complexities for employed vets.

(WorldatWork’s 2024 Total Rewards Inventory of Programs & Practices research found 54% of survey participants said their organization offers legal insurance, referral or consultation services to employees as part of their financial wellness benefits.)

Here are five examples where legal benefits may prove helpful to veterans:

1. Home ownership. The VA helps veterans with buying a home or refinancing a loan. They may qualify for loans at very favorable terms to build, improve or keep their current home. A borrower with a VA-guaranteed or VA-held loan who is experiencing a financial hardship may request a loan forbearance. An attorney could help veterans access and manage the housing assistance benefits they’ve earned.
2. Debt issues. One-third of post-9/11 veterans have reported mismanaging money, such as being the victim of a money scam, bouncing checks, going over one’s credit limit and being turned over to a collection agency. Keep in mind that all debts are legal obligations, but not all debts are of equal priority. An attorney can explain the consequences of not paying each kind of debt and help set payment priorities. For those facing a lawsuit, repossession, foreclosure or even bankruptcy, an attorney can outline the options and guide the process.
3. Veterans’ benefits. Veterans may be eligible for a wide range of government benefits, from low-cost healthcare to pension programs. But applying and proving eligibility for benefits can often be a slow, tedious process. An attorney can provide counsel and representation for any administrative disputes arising out of veterans’ benefits.
4. Divorce and child support. Again, lawyers can play a key role assisting veterans going through this difficult time. State law and local procedures largely govern divorce, but some federal statutes and military regulations may also apply, depending on where affected parties file. Considerations include how to divide military retirement benefits, the continuation of healthcare coverage and the impact of chronic mental health conditions (e.g., post-traumatic stress disorder) on child custody and visitation.
5. Estate planning. While no one likes to think about death, it’s critical to spell out end-of-life wishes to make it easier on those left behind. Complications can arise from veterans’ specific types of insurance, retirement benefits or other death-related benefits. Additionally, veterans can receive military funeral honors and be buried in a national veterans’ cemetery. A burial allowance could help pay for a veteran’s funeral expenses. 

The road from active-duty military to a successful civilian life is not easy. As an employer’s HR representative, this is a great opportunity to recognize the unique skills and perspectives veterans bring to your workplace — and to reward them with a welcoming work environment, fulfilling career opportunities and personalized employee benefit programs.

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Employee Benefits
• Employee Experience
• Total Rewards