What Are the Benefits of Hiring Veterans?

Instructor: Ian Lord

Ian has an MBA and is a real estate investor, former health professions educator, and Air Force veteran.

As a group, veterans demonstrate many behaviors that can be beneficial to a company, while also bringing a valuable set of experiences. Additionally, the government offers a number of tax benefits for companies that hire veterans under certain circumstances.

Benefits of Hiring Veterans

Tom owns a small local chain of hardware stores. Business has been great and he's looking to expand his operations. He expects he will have to hire at least 20 new employees this year. It has come to his attention from his accountant that he might benefit financially by hiring veterans of the armed forces. Let's go over with Tom some of the benefits of seeking talent from the pool of veterans in the United States.

Employee Behavior

There are a number of compelling reasons to hire veterans. Service members have experience complying with directions and getting the job done, while at the same time they are capable of proposing and implementing solutions to an unusual challenge. Many positions in the military require a security clearance, which means that many of these potential hires have been through a thorough background check that exceeds the scope of what employers normally conduct. The habits that come with military service tend to complement the desires and needs of employers, which has the effect of reducing employee turnover.

Model employee habits are typically second nature to military veterans. Veterans are already used to following expectations regarding being to work on time, being prepared, and being respectful to others. The military tends to place a tremendous amount of responsibility on people at a young age. A 23-year-old veteran may have been responsible for the performance and well-being of other service members and personally responsible for millions of dollars' worth of equipment. The phrase ''That's not in my job description'' doesn't apply to veterans, as military situations require even the most specialized of jobs to pick up the slack and take on additional roles to accomplish the mission.

From a diversity perspective, veterans come well prepared to work with a wide variety of people. A veteran may have been stationed overseas or deployed to a combat zone. Even if a veteran only served stateside, that individual has experience in working side by side with people of all kinds of racial, religious, and other sociological backgrounds from all over the country.

Tax Credits

In some cases, hiring a veteran might allow Tom to save thousands of dollars in taxes each year. Many veterans experience a period of unemployment during the transition from military to civilian life. The Work Opportunity Tax Credit provides up to $5,600 in tax breaks for each qualified veteran hire. The company gets to deduct 40% of the first wages up to a maximum amount that's based on how long the veteran was unemployed.

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