A Wage Differential Approach to Managing Special and Incentive Pay
Abstract
Special and incentive (S and I) pays allow the Department of Defense (DoD) to address temporary personnel strength fluctuations, persistent differences between external pay and regular military compensation, personnel requirements for high retention in certain occupations, onerous and dangerous conditions such as imminent danger, and variations in external employment opportunities. The Office of Compensation within the Office of the Under Secretary of Defense for Personnel and Readiness asked RAND to conduct research into the concept of a wage differential. Under this concept, S and I pays would be converted into scheduled pay where the schedule would be stable over time and could depend on occupation, pay grade, and year of service. RAND research focused on (1) reviewing S and I pays to identify candidates for a wage differential; (2) providing examples of how a wage differential might be implemented in several occupations; (3) assessing the cost-effectiveness of incentives to select a longer obligation that are part of some S and I pays but would be absent from a wage differential; and (4) assessing the value to a servicemember of eliminating S and I pay uncertainty associated with reenlistment bonuses.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2019
- Accession Number
- AD1085802
Entities
People
- Beth J. Asch
- James R. Hosek
- Michael G. Mattock
Organizations
- RAND Corporation