Research for enlistment bonuses

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The Effect of Bonuses on Participation in the Navy Selective Reserve: Regression Results
May 1, 2006
In 2005, the Navy implemented changes to the Selected Reserve incentive program. The likely retention effects of these changes are not known, so we estimate the retention effect of enlistment and reenlistment bonuses to help the Navy determine the most efficient allocation of Selected Reserve Bonuses. In a companion document, CRM D0013385, we provide a discussion of how those parameters were estimated, our main findings, and the policy implications of our findings. In this memorandum, we list the full regression results.
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The Effect of Enlistment and Reenlistment Bonuses on Participation in the Navy Selected Reserve
April 1, 2006
In 2005, the Navy implemented changes to the Selected Reserve incentive program. The likely retention effects of these changes are not known, so we estimate the retention effect of enlistment and reenlistment bonuses to help the Navy determine the most efficient allocation of Selected Reserve Bonuses. Reenlistment bonus eligibility increases reenlistment rates and the share of Sailors who decide to obligate for at least a 6-year reenlistment contract. Thus, reenlistment bonus eligibility can be used to target personnel to reenlist and obligate for longer contracts. Receiving a reenlistment bonus does not significantly influence the decision to stay in the Selected Reserves; however, continuation rates among bonus recipients and nonrecipients are relatively high. Consequently, if the Navy is considering lump sum payments, we recommend it first be piloted to reenlistment bonuses. Targeted enlistment bonuses can be used to improve Selected Reserve continuation rates. For prior-service and non-prior-service enlistments, receiving a bonus increases the likelihood of completing the first 12 or 24 months of service. Further, the continuation rates of non-prior-service entrants who did not receive a bonus were similar to the rates of prior-service entrants, suggesting that an increase in the pool of non-prior-service accessions would not decrease overall manning levels.
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Level-Loading of Enlisted Accessions
September 1, 2004
Targeted enlistment bonuses in the Nuclear Field have helped achieve a more level flow of accessions into training facilities. For most ratings, the accession profile is disproportionately concentrated in the summer months. This helps the Navy aggressively recruit high school seniors, but requires a large training infrastructure to accommodate the large number of recruits in the summer. This study estimates the relationship between enlistment bonuses and the ability of the Nuclear Field to level-load accessions and calculates the cost to the Navy of level-loading other ratings. Our analysis confirms that enlistment bonuses are effective in convincing Nuclear Field recruits to ship in off-peak months. If other recruits respond to pay in the same way, the Navy could level-load other ratings with a more aggressive application of targeted bonuses. In contrast, economic conditions have a small effect on the ability to level-load accessions. Using bonuses to level-load accessions requires a large pool of high school seniors. Given constraints on time in the Delayed Entry Program, success depends on the number that enter the DEP relatively late in their senior years. Second, level-loading accessions will increase attrition if the Navy increases the amount of time recruits expect to spend in the DEP.
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Choice-Based Conjoint Study of Recruitment Incentives
August 1, 2000
In this choice-based conjoint (CBC) study, CNRC tasked CNA to explore three questions: which attributes of an enlistment package do potential recruits consider most important; what are the tradeoffs among various elements of a possible enlistment package; and, what elements of an enlistment package are most likely to help the Navy in its efforts to expand beyond its traditional recruiting base? The relationship between enlistment propensity and recruitment incentives was analyzed. The data show that respondents with different enlistment propensities have different preferences for the various incentives in the survey. The results of this study indicate that CNRC must investigate ways, most specifically by focusing on college-related incentives such as the Navy College Fund (NCF) and college credit for Navy training, to make serving in the Navy competitive with the alternative path of attending college and seeking employment in the private sector after having spent some time in college.
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