Federal contractors are broadly falling short of government-set hiring targets for military personnel, a new analysis reveals. This finding indicates a widespread failure among companies that receive federal funds to adequately employ veterans, despite legal obligations.
The VETS-4212 report, required annually from covered federal contractors under the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA), measures the number of protected veterans employed and newly hired. Many contractors realize their protected veteran count is low as the September 30th filing deadline approaches, often because veteran sourcing is treated as a yearly task rather than an ongoing effort.
The national hiring benchmark for veterans, effective July 30, 2025, is 5.1%. Contractors frequently miss this target, particularly in the "new hires" category, which reflects veterans brought in during the reporting period. This means that a contractor's veteran employment numbers must genuinely increase through new hires, rather than just retaining existing veteran staff.
To address this shortfall, contractors are advised to encourage current employees who are veterans to self-identify, as some may not have previously done so. This voluntary self-identification can boost the protected veteran count without new hires. However, it is crucial that this process remains voluntary and compliant with anti-discrimination laws, as VEVRAA emphasizes outreach and good-faith effort rather than preferential hiring that excludes non-veterans.
This issue is part of a broader pattern of federal contractors struggling with diversity goals. For instance, white men continue to dominate executive ranks, holding 59% of these positions in 2020, even while making up only 34% of other jobs. Federal contractors are obligated not only to avoid discrimination but also to actively open doors for women, people of color, people with disabilities, and veterans, often through affirmative action plans and audits by the Labor Department.
