A shrinking military provides opportunity for growth companies
August 12, 2022
How a downsized military will provide a unique opportunity for growth company leaders to add qualified, capable, and cost-effective resources to their employee base
August 12, 2022
Apologies for the delay publishing this month’s VET; I recently took some vacation time with my family. The good news is that this gave me plenty of time to keep up with current events and consider this month’s VET topic – all while sitting on the beach.
One story I’ve been following is the recruiting challenges faced by our military and the concurrent decision to reduce troop strength. If you haven’t been keeping tabs, here’s a brief summary:
- Through April of this year, the Army and the Navy – the two largest service branches – fell well short of their recruiting goals
- In that same month, the U.S. Department of Defense 2023 budget proposal included a request that Congress cut approximately 25,000 positions from the military
- Though a mixture of billet elimination (the equivalent of eliminating new job postings) and reduction of existing positions, this means that approximately 5K to 10K soldiers will transition out of the military in the coming months
Why is this happening? In short, the military is facing the same recruiting challenges that many of you face every day in your own companies:
- Despite the recent two consecutive quarters of negative GDP growth, the talent market remains difficult. As of last month, the unemployment rate had returned to its pre-pandemic level of only 3.5%.
- At the same time, the labor market participation rate remains low, hovering at 62% since the beginning of 2022.
- As a result, companies are competing aggressively for talent, enabling candidates to be selective. Eligible military recruits have choice as well: despite the recruiting shortfall in both the Army and the Navy, the Air Force, Marines and Space Force were able to achieve their recruiting goals.
Although this dynamic is worrisome at a macro level, given existing (Ukraine) and emerging (China-Taiwan) global conflicts, the drawdown provides growth company leaders with an opportunity. With 10,000 troops scheduled to leave their service in the coming months, a highly qualified group of individuals will be looking for positions. So how can growth companies access this talent?
Many of these soldiers, sailors, Marines, and airman will use the DOD’s Skillbridge program to facilitate their transition. For those unfamiliar, the Skillbridge internship program provides companies with a FREE resource for up to six months. This means SIX MONTHS of free candidate evaluation with no commitment for a full-time offer.
More important than cost, however, is the quality of this candidate pool, which in my estimation is very high. Think about the open roles in your company in the context of the list of characteristics exhibited by vets I’ve highlighted in previous editions of the VET:
- A commitment to diversity (July)
- A deep understanding of the importance of culture (May)
- Creative thinking (January)
- Cyber capabilities (April)
I’d also add one more characteristic that ALL veterans exhibit: Leadership. I’ve alluded to this in several VETs but it’s something I should highlight in EVERY edition. Veterans, regardless of their tenure in the military, come with leadership capabilities that far exceed those of most of the general population. They are taught to be servant leaders, and they have real world experience leading teams in difficult situations.
In summary, the next few months will provide a unique opportunity for growth company leaders to add qualified, capable, and cost-effective resources to their employee base. As always, the Summit Partners Veterans Community stands ready to help.
Charlie Mike*
Dave & the Summit Partners Veterans Community
Veteran Engagement Team Reads & Resources (R&R)
- Pentagon budget aims to shrink the military by thousands – MilitaryTimes
- Military Recruitment Woes Endanger National Security – Bloomberg
- Why Hire Veterans? – Recruit Military
- Hardwired for Success: 5 Reasons to Hire Veterans – Techpoint
- Veteran Employment Advisory Council Members Share Their Reasons for Recruiting Military Talent – Hiring Our Heroes
August Book of the Month
Shoe Dog – Phil Knight
Fresh out of business school after serving in the US Army, Phil Knight borrowed fifty dollars from his father and launched a company with one simple mission: import high-quality, low-cost running shoes from Japan. Selling the shoes from the trunk of his car in 1963, Knight grossed $8,000 that first year. Today, Nike’s annual sales top $30 billion. In Shoe Dog, Nike founder and board chairman Phil Knight “offers a rare and revealing look at the notoriously media-shy man behind the swoosh,” illuminating his company’s early days as an intrepid start-up and its evolution into one of the world’s most iconic, game-changing, and profitable brands.
Veterans Community Website
We are pleased to announce the launch of the Summit Partners Veterans Community website. Included are past issues of the VET as well as resources for BOTH leaders of growth companies looking to hire veterans and transitioning veterans. On the note of the latter, please feel free to forward the link to any transitioning veterans you know or meet.
About the Author
