Underemployment, Compensation Dissatisfaction, Job Turnover, and Salary Change: How Are Post-9/11 Veterans Doing Three Years after Leaving the US Military?

Post-9/11 veterans transitioning from the service face significant risks of underemployment, with many leaving their jobs within their first year of employment. Underemployment is associated with well-being challenges for veterans, and job turnover is costly to employers. Based on two waves of data from a large longitudinal dataset of transitioning veterans three years post-discharge, this study investigates their perceptions of underemployment and compensation dissatisfaction alongside job turnover. The study also explored how salary changes are related to these perceptions and examined whether salary and perceptions are moderated by job turnover. Of the 1,972 veterans in the analytical sample, 55% did not perceive underemployment or compensation dissatisfaction, yet nearly 10% reported both challenges. Key findings indicate that veterans experiencing underemployment and compensation dissatisfaction are more likely to seek better opportunities elsewhere, leading to substantial salary increases after leaving their initial jobs. Further, those reporting underemployment and dissatisfaction were substantiated as those reporting these challenges had significantly lower salaries. This validates the notion that underemployment prompts veterans to seek alternative employment, underlining the importance of effective pre-separation military transition programs with robust employment components. Enhancing pre-separation military transition programs with effective employment components and tailored support strategies could assist veterans. Policy recommendations include evaluating transition programs for effectiveness and ensuring sustained support beyond the transition period to facilitate successful employment outcomes.