Reenlistment Bonuses and Retention Behavior.
Abstract
Reenlistment bonuses constitute a small fraction of the annual budget for military compensation, but their role is an important one. By supplementing basic military compensation, they help prevent personnel shortages in occupations critical to the capability of the force. The inherent efficiency of reenlistment bonuses as a component of military compensation stems from their being selectively assignable: bonus dollars may be allocated to where they are most needed. Still, several questions remain concerning the effects of bonuses on retention behavior. For example, if reenlistment bonsues increase the retention rate, to what extent do they encourage longer commitments and greater expected manyears of service? Do the retention effects of bonuses parallel those of military pay? Is it reasonable to expect that higher bonuses can offset the adverse retention effects of lower unemployment? And finally, are lump sum bonuses really more cost effective than installment bonuses? This analysis originated with the issue of lump sum versus installment, yet the development of methodology and data suitable for that question permitted insight into the others. This research was prepared by Rand's Defense Manpower Research Center at the request of the Office of the Assistant Secretary of Defense, Manpower, Installations and Logistics.(Contract MDA903-83-C-0047). Additional keywords: military force levels.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1985
- Accession Number
- ADA154923
Entities
People
- C. E. Peterson
- J. R. Hosek
Organizations
- RAND Corporation