Beyond the Paycheck: Competing for Military Talent if You Can’t Compete on Pay

Written by: Jericho Urmenita, Market Intel & Sourcing, Orion Talent

What does it take to hire a military veteran today? For many employers, the conversation starts and ends with compensation. But as pay scales for military members continue to rise, small businesses face an even greater challenge: how to stay competitive when they cannot simply outspend larger employers.

As of April 2025, military pay has increased across the board. A Marine Corps captain (O-3) with four years of service now earns $85,348 in base pay, and by eight years, that figure grows to $93,934. For officers stationed in higher-cost areas such as San Diego, Basic Allowance for Housing (BAH) adds another $50,940 per year, bringing total compensation to more than $135,000, with over a third of that sum untaxed. Even junior enlisted technicians with four years of service, are exiting the military with effective hourly pay near $21 per hour before factoring in specialized skills.

These increases reflect broader trends in the civilian market. Skilled technicians and early-career leaders are in demand, and that competition extends to military talent. Our placement data shows a steady rise in total compensation for separating service members, with the average package for enlisted technicians increasing from roughly $52,000 to nearly $80,000 in just five years.

For small employers, this shift can feel like an uphill battle. But pay alone is rarely the reason veterans join, or stay with, a company.

The key to competing is understanding what matters most to military talent and how smaller employers can stand out where it counts.

1. Lead with Values That Matter

Veterans thrive in environments where values are lived, not just listed. They spent their military careers serving organizations built on honor, teamwork, and accountability. When evaluating civilian employers, they look for that same sense of purpose. A clearly defined mission and visible leadership commitment to integrity, quality, and safety go a long way. But those values must be authentic. Veterans will research your company, talk to current employees, and look for consistency between what you say and what you do.

2. Show the Path Forward

In the military, every service member knows what is required to advance. Time in service, evaluations, and training milestones create a transparent path for career growth. Veterans carry that mindset with them. They are goal-oriented, driven, and eager to prove themselves, and they want to see where this effort will lead.

A skills-based hiring approach reinforces that same transparency. By evaluating candidates on demonstrated skills and potential rather than only titles or years of experience, small employers can open more doors for qualified veterans who may not fit a traditional civilian job description. This approach also creates a clearer framework for growth once hired, showing employees exactly how learning new skills translates to advancement and higher earning potential.

Even if you cannot meet a candidate’s initial salary expectations, a well-defined plan for development and progression can make a powerful impression.

3. Invest in Training and Mentorship

In the military, there is a school for everything, from driving a vehicle to leading a team in combat. Veterans are accustomed to structured learning and value employers who invest in their development. A strong onboarding process, defined training plans, and mentorship opportunities can make a significant difference in hiring success. These efforts do not have to be formal programs. Often, it is the promise of a mentor who will help them learn the ropes that convinces a veteran to say yes to an offer.

4. Build a Veteran Community

Veterans are naturally drawn to other veterans. Knowing that others have successfully transitioned into your organization provides confidence and trust. Identify who on your team has served and make them visible in your hiring process. If possible, include a veteran on your interview panel. This signals authenticity and helps new hires see themselves in your culture.

5. Compete with Clarity, Not Complexity

Many small employers assume they cannot compete for military talent because they lack big budgets or national brand recognition. In reality, clarity and communication often matter more than compensation. Be upfront about salary ranges, growth potential, and expectations. A transparent, efficient hiring process can set you apart from large organizations with slower, less personal systems.

The Takeaway? Compete Where You Can Win

Pay will always play a role in the hiring decision, but it is not the only factor, and it is not the one where small businesses must lose. Veterans are looking for employers who share their values, provide clear direction, and invest in their growth. These are areas where small companies can excel.

Hiring military talent is not about matching paychecks; it is about matching purpose. The employers who understand that will continue to attract the best of those who have served.

Ready to connect with qualified military talent?

Check out Muster to see how Orion is helping small businesses build lasting relationships with veterans and create future-ready workforces.

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