Research for special pay

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October 1, 2002
Abstract:D6620 Because the Navy must order personnel into hard-to-fill billets, negative impacts on manning can result. Consequently, the Navy is considering ways to restructure the assignment system including the implementation of an Assignment Incentive Pay (AIP). The Assistant Deputy Chief of Naval Operations, Manpower and Personnel (N1B) asked the CNA Corporation to analyze the attractiveness of alternative incentives meant to persuade Sailors to volunteer for historically hard-to-fill billets. To do so, we developed and administered the Assignment Incentive Survey. Against the backdrop of upcoming AIP implementation, the most important findings from the analysis are those that relate to the effects of special pay on Sailors' assignment preferences. At the most fundamental level, we find that pay is an effective way to sway people's assignment decisions, which indicates that AIP is likely to work. For example, a monthly special pay of between $60 and $900 would make an assignment to Japan attractive. The amount of money that will make a hard-to-fill attractive differs depending on Sailors' dependent status and current assignment location. For example, Sailors without spouses or children have less of a home-basing preference, so these Sailors will most likely be the first to fill hard-to-fill billets with AIP attached.
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December 1, 2001
The 9th Quadrennial Review of Military Compensation (QRMC) is seeking ways to better structure military compensation to alleviate current recruiting, manning, and retention shortfalls. Structured correctly. Basic pay and special pays should provide incentives to stay in the military, to gain experience and skills valuable to the services, and to move into critical skill areas or jobs where they are most needed. No existing pays fully answer the need to provide incentives to take on jobs that require serving alone, away from home. For this reason, the 9th QRMC is considering the creation of a new pay that would compensate service members for the hardships associated with deployments. The difficulty in creating such a pay, however, is establishing consistent definitions and measures of many of the key concepts related to time away from home. Relevant issues include: identifying the goals of any new deployment pay and the hardships for which people should be compensated; defining deployments and time away; and developing a deployment pay structure. Taken together or separately, these definitional and conceptual issues must be considered when determining the structure or use of a new pay and how it would relate to existing military pays. In a companion paper, we examine in detail the largest "away" pay, sea pay. Here we summarize that paper's conclusions regarding sea pay and examine several of the other special and incentive pays that historically have been used too compensate people for hardships associated with deployments. We then examine the availability of these pays to date and assess the adequacy of these pays in meeting the military 's goals. Finally, we conclude by outlining policy options and recommending compensation changes that would better align existing pays with any newly created pays and with the military's primary goals and objectives.
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