SHRM CEO Testifies on Defense Sector Hiring at Senate Hearing

Retaining and reskilling military service members and recently separated veterans can be solutions to the recruitment and hiring challenges faced by the civilian defense sector, said SHRM President and Chief Executive Officer Johnny C. Taylor, Jr., SHRM-SCP.

Testifying Feb. 28 before the U.S. Senate Armed Services Committee in Washington, D.C., Taylor said, “This is an area where the Department of Defense [DOD] can greatly benefit: By retraining and retaining the officers and enlisted personnel who leave the military and are having difficulty finding work in the private sector. If the DOD were better able to retain this talent—their existing workforce—it would help immensely.”

The purpose of the hearing was to receive testimony on topics including evolving workforce dynamics, the challenges for talent acquisition and retention of civilian workers at the DOD and in the broader defense industry, and how the Pentagon can adapt hiring and retention policies to deal with those challenges.

Committee Chairman Sen. Jack Reed, D-R.I., emphasized the need for an adequate supply of skilled and trained workers in the defense industrial base. Workforce challenges include widespread competition for talent among federal agencies and between the federal government and the private sector.

Reed said that changing generational demographics—more Millennial and Generation Z workers entering the workforce and more Baby Boomers exiting—and the need for new talent management practices for the younger generations could be behind the DOD’s recruiting and retention hardships.

Sen. Roger Wicker, R-Miss., ranking member of the committee, said that the DOD needs to be able to hire the best people quickly and pay them what they are worth.

“Hiring takes too long, pay is inadequate and underperforming workers are difficult to terminate,” he said. “People get shuffled around to various offices to get them out of the way, and good employees leave to look for better recognition for their hard work.”

The status quo is unacceptable, Wicker said: “Public shipyards struggle to attract skilled trades workers, hospitals can’t hire enough doctors and nurses, and cyberprofessionals leave in droves to join other agencies or the private sector.”

Reed said that the employee retention problem is related to people manager retention.

Taylor responded that there is a known difficulty in keeping people in middle management. “That’s partly because we assume that just because someone is a great mechanic, they will be a great manager of mechanics,” he said. “We don’t invest in training how to be a great people manager. Then everyone is unhappy, no one wins and that has led to a retention problem. Employers must invest in people management.”

Reed also asked about the opportunity to transition military service members to enter the civilian defense workforce.

Taylor said that the DOD should double down on transition programs at the point that service members are preparing to leave the military. He suggested that the department provide separating service members with the training needed to translate their skills for civilian workforce jobs.

Wicker asked about managing underperformance in the public sector.

“In the private sector, we talk about ‘pay for performance,’ ” Taylor said. “Part of the ‘sell’ for government work is job security. That’s a downside. With job security, there’s no incentive for people to work harder, and it’s more difficult to attract the best talent if there is no pay-for-performance differential.”  

Sen. Jacky Rosen, D-Nev., asked about the science, technology, engineering and mathematics (STEM) skills gap.

“This is a pre-K through [grade] 12 problem,” Taylor said. “It’s a pipelining problem. Employers are committed to the idea of solving STEM worker challenges, but the solution must start a lot earlier.”

Some companies are visiting high schools and even middle schools to ensure kids are being educated and mentored in STEM skills, with the goal of potentially employing them years later, Taylor said.

Taylor added that the DOD and defense contractors should consider an employment branding refresh. He noted that only 46 percent of U.S. workers have considered the DOD as a potential employer, while about 94 percent have considered Google as a potential employer.

“The primary reason cited was a lack of knowledge about the DOD’s culture or employer brand,” he said. “Most civilian workers in the DOD choose to work there because they get to do innovative things and care about the mission of securing our nation. But these key factors are rarely promoted as part of the DOD civilian workforce’s mission. We need to sell that this is an opportunity.”

Building a positive reputation as an employer involves not only offering competitive salaries and benefits but also fostering a positive work culture and actively engaging with young people through internships, mentorship programs or volunteering opportunities.

Leveraging employee testimonials is another best practice. Showcasing the positive experiences of current employees in technical roles can provide valuable insights and help potential candidates connect with the organization’s culture and the types of projects they could be involved in.

“As we navigate the rapidly changing landscape, addressing talent shortages, fostering a positive workplace culture and leveraging emerging technologies are the keys to building a future of work,” Taylor told the committee. “The evolving workplace landscape presents many challenges and opportunities, and the private and public sectors, including the Department of Defense, are no exception.”

He outlined several areas where efforts can be made to attract, retain and empower these workers, including:

• Adopting skills-based hiring. Prioritizing the skills and qualifications necessary for the role—irrespective of traditional education and experience prerequisites—unveils untapped talent pools, he said.
• Placing employee engagement at the forefront and addressing concerns such as compensation, work/life balance and career development opportunities.
• Using apprenticeship programs, particularly for in-demand skills.
• Modernizing talent management by employing data-driven strategies and harnessing technology to enhance efficiency.
• Offering training and development opportunities to equip managers with the skills to coach, mentor and support their teams effectively.
• Upskilling and reskilling the workforce.
• Embracing artificial intelligence responsibly and focusing on human-machine collaboration. “Acknowledge the value of human intelligence and synergize it with AI to enhance performance and innovation,” Taylor said.

Additional witnesses at the hearing included Simon H. Johnson, professor of entrepreneurship at the Massachusetts Institute of Technology's Sloan School of Management in Cambridge, Mass., and Julie A. Lockwood, director of business modernization at the Institute for Defense Analyses in Alexandria, Va.