As we celebrate Veterans’ Day across the country, I thought it fitting to look at what credit unions can do—not just say—to honor our nation’s veterans and how embracing the veteran community can benefit credit unions.
Hiring veterans
Veterans are loyal. Once hired, they tend to stay and advance. LinkedIn’s Veteran Opportunity Report found that veterans remain with the companies that hire them 8.3% longer than nonveterans. The same report also found that veterans are 39% more likely to be promoted to leadership roles within their first three years of employment. Better retention and career advancement lower backfill costs and save time, effort, and resources for employers.
Once in the door, veterans also bring a wealth of soft skills to your organization. In a survey conducted by the Society for Human Resources Management, HR leaders report that veterans outperform civilian peers by 68% on work ethic, 61% on teamwork, and 58% on leadership.
Hiring certain qualified veterans may also qualify you for the Work Opportunity Tax Credit (WOTC). The WOTC lets employers claim a federal tax credit, generally up to 40% of first-year qualified wages, with maximums depending on the veteran category (e.g., long-term unemployed veterans with service-connected disabilities). The WOTC has been around since 1996 and has been extended multiple times—most recently in 2021. It is set to expire on December 31, 2025, unless Congress passes new legislation to extend or make it permanent. To take advantage of the WOTC before it expires, the employee must begin work by that date.
Where to Look. Veterans are out there, and they’re looking for work. To access this talent pool, partner with organizations and programs like Wounded Warrior Project’s Warriors to Work, Hiring Our Heroes, the Department of Defense SkillBridge, and the Department of Labor’s Veterans’ Employment and Training Service. If you’re near a military installation, reach out to its Transition Assistance Program office. Post openings on veteran-focused job boards like VetJobs.org and Military.com to access their talent portals. Making these connections doesn’t just help you find qualified candidates—it gives you direct access to a network you might not otherwise reach.
Servicing veterans
Deposits. Banking with veterans isn’t just a way of showing support; it’s also good for business. Veterans represent a stable, recurring cash flow. The US Department of Veterans Affairs’ (VA) FY2024 Annual Benefit Report shows that just shy of six million veterans receive disability compensation, and over 500,000 survivors receive service-connected death benefits. Together, they total $163 billion a year in tax-free monthly payments. Even during government shutdowns, VA disability compensation payments have historically been uninterrupted. That’s steady, reliable deposits on your books, every month.
Lending. In FY2024, the VA guaranteed over 400,000 residential mortgage loans totaling over $150 billion. 28.4% of those loans were refinanced loans, meaning that over seven in ten loans were for new purchases. VA loans generate interest and fee income and help build long-term relationships with veterans and their families.
Veteran-owned businesses. According to a recent US Census Bureau Annual Business Survey, over 300,000 veteran-owned businesses employed roughly 3.25 million people and generated a total of $922 billion in revenue. This presents an opportunity on two fronts: lending to established veteran-owned businesses and lending to new, entrepreneurial veterans starting their own.
Honor with action
So, how do we honor our veterans? Saying “Thank you for your service” and making a Veterans Day social media post are fine gestures, but actions speak louder than words. Recruit, hire, train, and promote them. Build lasting financial relationships with them and their families. Create opportunities for our veterans, and they will create opportunities for you.
