the great talent migration: are you losing your cleared engineers to the commercial tech sector?

Across the aerospace and defense industry, cleared engineers once saw long-term government programs as the pinnacle of career stability. That equation is changing and you may be seeing the effects on the team.

Today, the same AI, data science and advanced computing skills that power essential defense systems are in high demand at global tech companies. These companies are not waiting for applications. They are actively recruiting top talent from your industry, and the competition for the best people is no longer just down the road at another contractor; it’s across industries.

the new competition for cleared talent

Defense projects rely on highly specialized engineers. These professionals understand complex systems, compliance frameworks and secure environments. But those same experts are now being courted by commercial tech giants offering opportunities built on speed, autonomy and cutting-edge challenges.

Recent studies on the aerospace and defense labor market from firms like McKinsey highlight a revealing trend. Many expected laid-off tech employees to move into open defense roles, but the opposite is happening. Cleared defense engineers are leaving for commercial technology companies, drawn by their agility, culture and pace of innovation. This is not just a talent migration but a direct challenge to the defense talent pipeline.

Understanding why top performers are tempted to leave is the first step toward building a strategy to keep them. The pull from the commercial sector centers on a few key factors that align with what modern engineers want from their careers.

speed and agility in a world of red tape

Many defense programs still operate on legacy platforms and processes with multi-year approval cycles, extensive documentation and rigid workflows. In some cases, software and hardware remain outdated due to security requirements or lengthy procurement procedures. For engineers who thrive on rapid iteration and visible results, this environment can feel restrictive, as if their best ideas are being slowed or lost

By contrast, commercial tech companies move fast. Ideas are prototyped, tested and deployed in weeks, not quarters or years. Engineers want to see the impact of their work almost immediately. That feedback loop fuels innovation and reinforces motivation. According to a PwC report on the defense workforce, many specialists feel the industry's culture has been slow to adapt. They are looking for environments that reward experimentation and reduce bureaucracy.

compensation that reflects a modern workplace

While your organization may offer stability and a sense of purpose, commercial firms are offering compensation packages built for today’s workforce. They often exceed government or defense pay scales with competitive salaries, stock options, flexible work arrangements and benefits like paid sabbaticals or wellness stipends. These are no longer just perks. They are becoming standard expectations.

In 2023, member companies of the Aerospace Industries Association saw a personnel turnover of approximately 13%, well above the national average. Compensation is only part of that story. It also reflects how valued employees feel. Engineers are weighing financial rewards against bureaucratic friction and more are choosing environments that prioritize balance and growth alongside their contributions.

access to groundbreaking unclassified technology

There is a growing allure to working on globally visible technologies. Developing the next generation of autonomous vehicles or consumer-facing AI systems offers a different kind of thrill, one without the limitations of Sensitive Compartmented Information Facilities (SCIF) or other security clearance barriers. 

Commercial tech provides the freedom to collaborate, openly publish findings and discuss work with a global community. For younger engineers, this visibility matters. It helps them build a professional reputation and opens doors to new career opportunities. 

In defense, the same high-caliber work often goes unrecognized publicly due to classification. While the work itself is critical, the lack of external validation can quietly push ambitious talent toward the commercial sector, where their achievements can be shared.

To stay competitive, defense leaders need to redefine how they position the value of technical work. The goal is not to match commercial visibility, but to make purpose the differentiator. Highlighting innovation, mission outcomes and national impact can strengthen an employer brand even within a classified environment. Retention depends less on what can be shared publicly and more on how leaders communicate the meaning and progress behind every effort.

waiting for applications is a losing strategy

The assumption that security clearance keeps your engineers tied to the industry is no longer safe. Commercial tech companies see the value in your talent pool and they are not waiting for applications to come to them. According to AIA’s 2025 workforce study, outflows from A&D into tech are occurring at twice the rate of inflows from tech into A&D, underscoring how aggressively cleared talent is being drawn away.

Without meaningful career progression, even your most dedicated engineers may be open to new opportunities. A passive recruitment strategy is no longer enough. The best cleared talent isn’t looking for a job; they are being offered a better one.

A proactive defense staffing strategy means engaging professionals long before a vacancy opens, creating career paths that rival the agility of the tech sector and framing projects as opportunities for growth, not just service.

By taking a strategic, people-first approach, you can build a resilient team today and prepare for the missions of tomorrow. See the trends shaping defense staffing and gain the insights needed to move forward with confidence.