The defense and intelligence sectors remain locked in a battle for talent, with the cleared talent shortage at key levels as we approach mid-2025. Nearly 80% of government contractors and federal agencies say the struggle to fill security clearance roles remains severe, compared to 67% in 2013, according to the latest study by the Intelligence and National Security Alliance (INSA).
According to the Bureau of Labor Statistics, the demand for cleared individuals has increased by 15% over the past three years. This demand is increasing three times faster than talent, which has been rising at only 5% per year. This growing disparity has increased the average time to hire for top secret/SCI positions to 163 days, a 22% increase since 2022, resulting in manifest operational impacts across the national security enterprise.
The Demand for Security-Cleared Candidates
With demand outpacing supply at all clearance levels, cleared professionals remain in high demand in today’s job market. According to the Defense Counterintelligence and Security Agency (DCSA), the total number of cleared individuals is around 4.2 million, and active job requisitions for cleared roles have increased by 37% in the last year and a half.
This disparity has led to fierce competition, as security cleared candidates typically receive multiple offers within weeks of starting their job search. Salary premiums for cleared positions are now, on average, 24% higher than those for their non-cleared equivalents, with some specialized technical roles receiving premiums of up to 42%.
The most dire scarcity is in cybersecurity, software development, systems engineering, and clearance-locked artificial intelligence positions, which often require a Top Secret/Secret Clearance (TS/SCI) polygraph.
Firms competing for this scarce resource need comprehensive strategies that address the immediate hiring challenge while also building a talent pipeline for the future. Companies that don’t change how they attract and retain employees face long-term problems, contract performance issues, and lost business in their pursuit of new business opportunities.
Five Strategic Approaches To Address The Cleared Talent Shortage
1. Refine Your Pay Structure
Traditional pay scales are often inadequate in the high-skill, high-demand cleared space. Progressive companies are using creative forms of compensation that go beyond base salary raises. A report from Cleared Jobs Network shows that 63% of cleared workers list the total compensation package as their most important factor when deciding to pursue a new opportunity.
Implement role-specific compensation plans, including retention bonuses based on contract life, clearance level differentials, and premium pay for special skills. According to the security clearance careers poll, companies with focused retention plans report 31% less turnover with their cleared personnel.
You’ll also want to consider non-monetary benefits highlighted to cleared professionals, such as flexible work conditions that support the need for periodic polygraph tests and reinvestigations and do not count against paid time off.
2. Build up Internal Clearance Pipelines
Instead of pursuing pre-cleared talent, leading companies are looking to sponsor candidates to help them navigate the clearance process. Although this long-term approach requires an upfront investment, it taps into a much wider talent base and fosters a higher degree of loyalty. The National Security Innovation Network has found that 87% of employees they sponsor for their initial clearance stay with their sponsoring agency for 3 years or longer, far above typical retention rates.
Develop targeted early career programs for highly qualified candidates from universities that have established STEM, intelligence studies, or national security programs. Develop relationships with transactional military personnel through direct or recruitment programs, as they often have clearances or completed background investigation records on file, which speeds up the process. On average, candidates with prior military service are processed 35% faster, based on DCSA data.
3.Use Technology to Improve Efficiency in Screening
The cleared talent shortage means your organization needs to optimize its screening and hiring process. These enhanced AI-driven ATS solutions, with specialized clearance verification and eligibility assessment modules, can lower first-level review time by 68% (from 10 hours), based on research conducted by the Government Contracting Recruitment Association.
Utilize digital tools to perform secure checks for clearance, polygraph, and special access eligibility information without revealing sensitive data. Leverage automated prescreening tools that can assess technical skills as clearance verification simultaneously goes on. Organizations using these technologies report a decrease in the average time to hire, 41-53 days, without compromising the quality of sensitive positions.
4. Develop Individual Retention Programs
Replacing cleared professionals can cost more than 250% of their annual salary, considering lost productivity, program knowledge, and investment in clearance. With cleared talent becoming increasingly difficult to find, retention is as vital as recruitment. According to industry research, professional-class talent often leaves due to concerns about compensation, learning opportunities, and advancement prospects.
Develop clear job-family career paths that combine the technical aspects of the job with a working knowledge of existing programs and contracts. Initiate mentorship programs that match new, cleared employees with veterans who can help them navigate the specificities of classified work settings. Facilities with a formalized mentorship program have 28% higher retention levels among cleared staff than those that do not.
5. Develop Specialty-Recruiting Relationships
You won’t usually get the expertise you need when you work with generalist staffing firms to successfully find, assess, and recruit for cleared roles. Based on the National Industry Security Program Operating Manual (NISPOM) implementation survey, cleared talent specialists help companies hire cleared talent 43% more quickly than other workforce sources do.
Build relationships with targeted companies that maintain unfair advantage-loaded, constantly updated lists of active, clearable job candidates. These companies should be familiar with the ins and outs of clearance portability from one contract to another and from one agency to another. These partners can also provide insights into what’s happening in the marketplace, such as salary trends, new skill needs, and agency-specific hiring habits.
Cleared recruitment partners that help clear internal teams from having to do the heavy lifting of sourcing cleared candidates. In contrast, internal recruiters and HR can focus on evaluating and onboarding candidates.
Winding Up
The cleared talent shortage is expected to continue as a significant hurdle for federal contractors in 2025. To stay ahead of the competition, companies must update their federal contractor recruiting strategies, becoming more assertive in talent acquisition, employee development, and process improvement. And by doing so, their ability to respond to the unique demands of the federal contracting world is greatly enhanced.
FAQs
1) What is a clear talent shortage?
A. A clear talent shortage is qualified individuals who already have their clearance and can work in certain roles for the government.
2) Why are the candidates with the security clearance in such high demand?
A.Candidates with security clearance are used for jobs requiring access to classified or sensitive information crucial to national security.
3) How do organizations retain security-cleared candidates?
A. Organizations retain security-cleared candidates by paying well, simplifying their processes, and offering career advancement opportunities.
4) What sectors are most affected by the cleared talent shortage?
A. The cybersecurity, defense, and intelligence fields are especially affected because they depend on cleared personnel.