Research for compensation

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February 1, 2001
The Military Health System (MHS) is charged with maintaining a healthy active duty force, attending to the sick and wounded in time of conflict, and successfully competing for and treating patients within the peacetime benefit mission. The military must attract and retain high-quality health care professionals. These issues are particularly important for military health care professionals because they are costly to access and train, and they have skills that are readily interchangeable to the private sector. The Department of Defense (DOD) is competing against private sector employees who are offering accession bonuses, flexible work schedules, portable retirement plans, continuing educational opportunities, employee-tailored benefits, and competitive salaries. The TRICARE Management Agency (TMA) asked the Center for Naval Analyses (CNA) to conduct a study to examine appropriate compensation, special pays and bonuses for military health care professionals. Our analysis showed that the current military-civilian health professional pay gap varies widely-from 3 to 63 percent, depending on specialty and years in service.
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February 1, 2001
The Military Health System (MHS) is charged with maintaining a healthy active duty force, attending to the sick and wounded in time of conflict, and sucessfully competing for and treating patients within peacetime benefit mission. The military must attract and retain high-quality health care professionals. These issues are particularly important for military health care professionals because they are costly to access and train, and they have skills that are readily interchangeable to the private sector. The TRICARE Management Agency (TMA) asked the Center for Naval Analyses (CNA) to study appropriate compensation, special pays, and bonuses for military health care professionals. CNA conducted a comparative analysis of current compensation (cash and benefits) between Army and Air Force physicians and private-sector physicians. Our analysis shows that the current military-civilian physician pay gap varies widely depending on specialty and years in service.
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September 1, 2000
One of the biggest issues of concern to military personnel is the military "pay gap". Many are troubled by the possibility that the level of military pay has declined significantly relative to that of civilian wages. A common concern is that a civilian-military wage differential will quickly lead to retention and recruiting problems for the military. Furthermore, many in the Navy believe that the differentials are more prevalent in some ratings than in others-specifically, that the highly technical ratings are having the largest retention and recruiting problems as a result of relatively high civilian pay. Given these concerns, the objective of this study is to examine the correlation between manning shortfalls in various Navy enlisted ratings and the relative earnings of enlisted personnel in these occupations. We also examine differences in military compensation from one rating to another and compare these differentials with those in the civilian sector. In addition, we examine the relationship between military compensation and the propensity to reenlist, using our mew measure of occupation-specific relative military compensation. This analysis yields estimates of the responsiveness of reenlistment rates to changes in relative pay, which can be used to estimate the change in compensation necessary to achieve manning level targets on a rating-by-rating basis.
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September 1, 2000
The Assistant Deputy Chief of Naval Operations, Manpower and Personnel (N1B) requested that CNA analyze the Navy's compensation system in view of current recruiting and manning shortfalls and anticipated future changes in the Navy's workforce. This study will help the Navy implement an effective, market-based compensation system that will give it the ability to attract, retain, and motivate a high-quality workforce in a competitive, dynamic labor market. The intent is to take a strategic look at Navy compensation policy and practices. The starting point is to consider what the Navy wants to accomplish with its compensation system. What goals, in terms of managing human resources, can be met through compensation policies and practices? We consider human resources management system approaches, as well as approaches suggested by economics literature, and arrive at a succinct set of strategic goals.
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August 1, 2000
The Navy Surgeon General has asked CNA to evaluate physicians' job satisfaction and retention within the existing climate to determine if major issues exist. The scope of the study was expanded to include a comparative analysis of compensation for Navy physicians continuing a military career versus leaving for a private-sector track. We find that a substantial current compensation gap exists between military and private-sector physicians, particularly at the end of the 7-year career point, and the disparity in total compensation varies widely by medical specialty. Our finds show, however, that as Navy physicians accrue more military service, it becomes more lucrative for them to complete 20 years, retire, and then pursue a private career. This information memorandum documents the results of these compensation comparisons.
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