Results from the five key themes of the study
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1. Overview of A&D workforce demographic trends in the US
Demographic data plays a critical role for A&D organizations seeking to effectively manage their workforce.
847,885Global A&D Employees represented by the survey
680,287US A&D employees represented by the survey
37%Of total US employees are veterans
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Age Distribution Hiring Completed Average time required to gain security clearance Total number of employees reported 829,635 Total Hires 106,293 Security Clearance 2022 Employees 25 and under 6.0% Experienced Hires 69,947 < 5 Weeks 16% Employees 26-35 22.2% Intern Hires 28,065 6-15 Weeks 16% Employees 36-45 21.6% University Hires 8,281 16-25 Weeks 32% Employees 46-55 21.8% 26-35 Weeks 19% Employees 56 and over 28.4% > 35 Weeks 16%
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Organization size by global revenue (USD) Organization by sub-sector Allocation of revenue (USD) by subsector Organization size by global revenue (USD) % of total revenue Sub-sector %of total Sub-sector %of total More than $5 billion 34% Defense 94% Defense 42.3% $1-5 billion 31% Commercial 91% Commercial 32.4% $500-999 million 3% Space 66% Space 15.2% $100-499 million 9% Services 50% Services 10.1% $50-$99 million 6% Under $50 million 16%
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Executives by race Executives by gender Engineering by race Engineering by gender Race/Ethnicity % of total Race/Ethnicity % of total White 81.06% Women 30.44% White 69.35% Women 16.90% Black or African American 5.69% Men 69.51% Black or African American 5.25% Men 83.04% Hispanic or Latino 4.77% Non-binary 0% Hispanic or Latino 8.51% Non-binary 0% Asian 6.39% Reporting Other Gender ID 0.05% Asian 13.48% Reporting Other Gender ID 0.06% 2 or more races 1.48% 2 or more races 2.77% American Indian or Alaskan Native 0.42% American Indian or Alaskan Native 0.39% Native Hawaiian or Other Pacific Islander 0.19% Native Hawaiian or Other Pacific Islander 0.24% Employees by race Employees by gender Promotions by race Promotions by gender Race/Ethnicity % of total Race/Ethnicity % of total White 68.93% Women 25.64% White 69.74% Women 30.73% Black or African American 10.03% Men 72.74% Black or African American 7.45% Men 68.89% Hispanic or Latino 8.95 % Non-binary 0.002% Hispanic or Latino 9.52% Non-binary 0.00% Asian 9.00% Reporting Other Gender ID 1.62% Asian 10.05% Reporting Other Gender ID 0.38% 2 or more races 2.23% 2 or more races 2.50% American Indian or Alaskan Native 0.48% American Indian or Alaskan Native 0.44% Native Hawaiian or Other Pacific Islander 0.39% Native Hawaiian or Other Pacific Islander 0.31% Collecting LGBTQ+ employee data Employee headcount distribution by tenure Tenure % of total Yes 21.9% <1 Year 11.2% No, but plan to in the future 28.1% 1-4 Years 30.9% No and have no plans to in the future 50.0% 5-10 Years 18.6% 10-15 Years 12.0% 15-20 Years 9.7% 20-25 Years 6.4% 25 Years+ 11.2%
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Voluntary attrition by gender Voluntary attrition by race What quantitative information do you plan to disclose in your next human capital disclosure in your proxy statement? What qualitative information do you plan to disclose in your next human capital disclosure in your proxy statement? Attrition % of total Race/Ethnicity %of total Men 73.93% White 64.4% Diversity and Inclusion 21.9% Diversity and Inclusion 21.9% Women 26.03% Black or African American 13.1% Geographic Location 12.5% Geographic Location 9.4% Reporting Other Gender ID 0.04% Hispanic or Latino 10.6% Health and Safety 12.5% Engagement 12.5% Non-binary 0% Asian 7.9% Learning and Development 9.4% Health and Safety 15.6% 2 or more races 3.1% COVID Response 15.6% Learning and Development 15.6% American Indian or Alaskan Native 0.5% Benefits 6.3% COVID Response 15.6% Native Hawaiian or Other Pacific Islander 0.4% Union Information 12.5% Benefits 12.5% Not applicable 3.1% Union Information k 9.4% Don't wish to disclose 15.6% Not applicable 0.0% Don't wish to disclose 3.1%
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Is your organization SEC registrant? Yes 43.8% No 34.4% Unsure 21.9%
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2. Diversity, equity and inclusion (DEI)
Employers have continued to make DEI a workforce and business imperative, prioritizing inclusiveness and healthy work environments that allow diverse groups to thrive. To that end, the survey set out to understand how A&D organizations have taken tangible steps to diversify their talent and drive continuous progress regarding DEI. Click on each graphic below to learn more:
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Is diversity, equity and inclusion (DEI) included in your company's mission, vision and/or values? In what ways does your company focus on diversity, equity, and inclusion (DEI) in recruitment and retainment efforts? How strongly do you agree or disagree that your company demonstrates a commitment to celebrating and embracing different backgrounds, ideas and beliefs? Which of the following DEI initiatives does your company currently conduct? Yes 65.6% Anti-harassment training 84.38% Strongly Agree 50% Pay gap reporting 64.5% No 34.4% Employee resource groups 75.00% Agree 34.4% Customized DEI learning 54.8% Cultural Months (Black History Month, Pride Month, etc.) 68.75% Neither Agree nor Disagree 15.6% Data-driven DEI strategies measured in real-time 51.6% Company-wide responses to significant current events affecting certain groups (words from top leadership, roundtable discussions, etc.) 65.63% Disagree 0.0% Augmented intelligence in recruitment process 25.8% Attend career fairs of minority groups 65.63% Strongly Disagree 0.0% Inclusive product design, marketing, goods and services 25.8% Unconscious bias training 62.50% Others 22.6% Acknowledgment of holidays of all cultures 59.38% Initiatives addressing corporate climate 56.25% Others 9.38% How often do you measure diversity/representation metrics in your company? Does your company compare representation in leadership (director level and above) with representation throughout the rest of the company? In order to increase ethnic minority representation in your talent pool, have you begun recruiting from different universities (i.e., HBCUs)? Quarterly 62.5% Yes 71.9% Yes 68.8% Annually 18.8% No 28.1% No 31.3% Not on a regular basis 18.8%
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3. Talent shortage is real
The exodus of talent hasn’t spared A&D companies. Organizations are competing not only with each other but also with other industries as they seek to recruit employees with strong technical and digital skills to their workforce. The survey sought to determine the key drivers of attrition within the A&D industry and explore how organizations are continuing to strengthen their employee value propositions (EVP) to provide a unique and impactful employee experience to attract and retain key talent.
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Over the last 12 months, our organization's turnover has significantly increased Primary drivers of attrition Actions Needed to Address Employee Turnover Strongly Agree 21.9% Opportunity for Increased Total Pay (Base/Bonus) 78.1% Review competitiveness of compensation programs 90.6% Agree 46.9% Better Job / Career Advancement 75% Provide increased rotation/career path opportunities 68.8% Neither Agree nor Disagree 18.8% Enhanced Flexibility in Work Location/Opportunity for More Remote Work 31.3% Increase emphasis on company leadership's ability to listen and recognize employee needs 68.8% Disagree 9.4% Others 28.1% Provide opportunities for promotion/management/leadership roles 62.5% Strongly Disagree 3.1% Location of the Worksite/Workplace/Strong Work Environment 9.4% Improve learning and development opportunities 59.4% Lack of Appreciation/Engagement from Direct Supervisor/Manager 6.3% Enhanced immediate manager’s people/management skills 50% Increased Learning and Development Opportunities 6.3% Increase focus on company culture and focus 31.3% Better Overall Well-Being Programs (Financial/Physical/Emotional/Social) 6.3% Enhance flexibility/remote work for employees' need to work/travel 31.3% Quality of Leadership & Company Brand 3.1% Reduce lack of engagement from direct supervisors/managers 28.1% Improve approach to being a more diverse and inclusive employer 25% Provide opportunities for partial/fully paid leaves of absence 15.6% Enhance in-workplace perks (food/amenities) 12.5% Update healthcare programs 9.4% Provide additional support for caregiving 9.4% Focus programs on emotional wellbeing 9.4% Others 6.3% Which of the following are critical to a sustainable future of work for your organization? Implemented strategies to attract and retain talent Developing a workforce strategy and plan to ensure necessary talent and skills to match future business needs 81.3% Hiring employees from a broader geographic footprint without requiring relocation 65.6% Developing and implementing a compelling Employee Value Proposition making us an employer of choice 59.4% Other 34.4% Investing in upskilling/reskilling your workforce for evolving work and technology requirements 56.3% Having a policy to allow employees to relocate to a new location not within commuting 34.4% Reviewing how work gets done from a people/process/technology perspective 53.1% Flexibility in compensation ranges based on remote work location 31.3% Aligning our operating model and organization structure to remove friction from new ways of working 15.6% Having a policy to allow employees to work from any location on a temporary basis 25% Look at alternative staffing models (full-time/part-time/contract/outsource/gig) 6.3%
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How has your organization's employee engagement changed over the last 12 months? How has your organization's culture changed over the last 12 months? Employee engagement strategies Significantly better 0.0% Significantly better 0.0% Regular, fully virtual team sessions 53.1% Somewhat better 31.3% Somewhat better 37.5% Offering team building sessions in person once/twice a year 50% No change 28.1% No change 37.5% More frequent group sessions with advisors and peers – virtual 46.9% Somewhat worse 40.6% Somewhat worse 25.0% Regular communication that acknowledges different work models 46.9% Significantly worse 0.0% Significantly worse 0.0% More frequent 1:1 sessions with advisors and peers – virtual 43.8% Support available to line managers to increase their understanding of how to manage fully remote workers 40.6% More frequent 1:1 sessions with advisors and peers – in-person 37.5% More frequent group sessions with advisors and peers – in-person 34.4% Other 18.8% Creating specific career pathways for fully remote workers 9.4% Does your company offer any of the following to increase employee engagement? How does your company engage and support early career talent (<5 years of experience)? Access to leaders (small group sessions, roundtables, 1-on-1s, etc.) 87.5% Communities of interest (groups who meet to talk about topics of mutual interest) 62.5% Team events 87.5% Accelerated career paths for top performers 62.5% Coaching 78.1% Community outreach programs 59.4% Unique experiences (celebration of milestones, etc.) 75% Non-traditional progressions (lateral moves, creation of new roles, etc.) 59.4% Stand-up sessions 53.1% Professional networks for various underrepresented groups 56.3% Dedicated mentorship programs with senior colleagues 56.3% Unique learning opportunities 50% Reverse mentoring programs (where junior employees mentor more senior employees) 21.9% Others 18.8%
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What are all the benefits your company currently offers? Life insurance 96.9% Tuition reimbursement and/or student loan repayment 90.6% Overtime pay 90.6% Retirement accounts + matching contribution 90.6% Employee recognition programs 87.5% Professional /career development opportunities & funding 81.3% Paid parental leave 65.6% Stock options 40.6% Others 25% Childcare facilities or subsidies 21.9% Unlimited PTO 12.5%
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What percentage of your workforce are aligned to the following working modalities? How strongly do you agree that your company has successfully operationalized flexible work models? What alternative work arrangements has your company put in place for employees? Which of the following is offered to your remote workforce to increase engagement? Full Remote Telework 9% Strongly Agree 34.4% Remote working options 84.4% Software to support collaboration 78.1% Hybrid (on-site and remote) 24.03% Agree 31.3% Flexible hours 81.3% Online learning solutions 71.9% Full Time - On Sight 66.92% Neither Agree nor Disagree 28.1% Hybrid work with specific requirements for in-person days 71.9% Well-being initiatives to access from any location 68.8% Disagree 6.3% Part-time schedules 65.6% Help desk to support home workplace 65.6% Strongly Disagree 0.0% Contract work arrangements 28.1% Additional hardware items 56.3% Others 21.9% Training to enhance skills in online facilitation 53.1% We are not offering alternative arrangements 3.1% Social platforms to stay connected 43.8% Reimbursement for internet/phone expenses 18.8% Stipend to cover at home workplace set up 12.5% None of the above 9.4%
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4. Digitization and reskilling
To unlock the full potential of their workforce, organizations are helping their employees adapt to new technologies, creating individualized learning pathways that will close critical skills gaps and support employees through the transformation process. The survey asked questions to identify the digital investments that are being made by A&D organizations, both from a workforce technology and people-centric lens:
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What are your organization's top three areas of investment into reskilling? What types of learning modalities did your company utilize in 2021? Leadership 65.6% Web-based training 84.4% Engineering skills 43.8% Peer-to-peer coaching 81.3% Cyber security 43.8% Virtual instructor-led training 78.1% Data science/analytics 28.1% Job aids and FAQs 71.9% Digital skillsets 21.9% Blended learning experiences 68.8% Program management 21.9% Screengrab and how-to videos 65.6% Adaptive skillsets (critical thinking, agility, flexibility) 18.8% Microsoft tools 59.4% Manufacturing skills 18.8% Virtual system demonstrations 53.1% Artificial intelligence 6.3% Mobile learning 50% Computer skills 6.3% Micro-learning 46.9% Business acumen 3.1% Immersive platforms 37.5% Sustainability 3.1% Podcasts 34.4% Response to new automation tools 3.1% Core content push notifications 31.3% Gamification 28.1% Virtual and augmented reality 18.8% Others 12.5% QRG codes 9.4%
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What elements of workforce technology would you like to see your organization improve? Addressing increasing cyber security risks 71.9% Developing new solutions for workforce demand planning 68.8% Enhanced approach to workforce analytics and integrated dashboards 75% Expanded use of Microsoft Office 365/Teams/Other Tools for work or collaboration 78.1% Moving to a greater focus on cloud-based technology 43.8% Updating technology support model 34.4% Using technology for employee health and safety 53.1%
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5. The employee and talent outlook
The industry outlook is dependent on the ability of A&D organizations to maintain and foster a strong talent pipeline as the industry embarks on transformation efforts. As a result, the survey tried to gain a better understanding of the age and tenure distribution of today’s workforce in the industry, along with each organization’s engagement with educational institutions and the desired competencies of the next generation:
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What competencies do you currently value most from university hires? What competencies will you value most from university hires in the next 4–5 years? How does your company get involved with schools? Which of the following do you participate in? Engineering skills 78.1% Engineering skills 65.6% Internships 87.5% Internship programs 93.8% Leadership 46.9% Data science/analytics 62.5% Career fairs – university 87.5% Management leadership training programs 65.6% Computer skills 46.9% Leadership 56.3% Sponsorship of events (e.g. STEM fairs, case competitions, etc.) 71.9% New college hire rotational programs 46.9% Data science/analytics 46.9% Cyber security 46.9% Careers fairs at trade schools 56.3% Apprenticeship programs 46.9% Cyber security 40.6% Adaptive skillsets (critical thinking, agility, flexibility) 43.8% Summer programs 53.1% Cooperative education programs 43.8% Adaptive skillsets (critical thinking, agility, flexibility) 37.5% Computer skills 43.8% Career fairs - high school 43.8% Trade school/vocational programs 43.8% Digital skillsets 37.5% Digital skillsets 37.5% On-site company visits for high schoolers 40.6% None of the above 3.1% Manufacturing skills 37.5% Manufacturing skills 34.4% High school visitations 31.3% Program management 28.1% Artificial intelligence 25% Others 21.9% Business acumen 25% Program management 25% Artificial intelligence 21.9% Understanding of automation tools 25% Others 18.8% Business acumen 21.9% Understanding of automation tools 18.8% Others 12.5% Sustainability 6.3% Sustainability 9.4%
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Summary
The talent challenge facing A&D companies has been exacerbated due to pandemic-induced cutbacks and the ensuing great resignation. The 2022 A&D workforce study demonstrates that many organizations have recognized the magnitude and implications of the talent shortage, however, companies must be ready to take transformative actions to win the competition for talent and shape the A&D workforce for the future.
About this article
Authors
Raman Ram
EY Americas Aerospace & Defense Leader
Value-focused A&D leader. Transforms organizations. Turns facts and insights into practical strategies. Accelerates performance and value realization. Enjoys hiking and building home theater systems.
Steve Fuller
Partner, US People Advisory Services;
Transformational HR leader. HR technology leader. Thought leader. Outdoors enthusiast. Golfer. Philadelphia sports fan. Dad of two. Husband.
