Identifying the Cost of Non-monetary Incentives (ICONIC)
Abstract
There is growing research that explores using an array of non-monetary incentives (NMIs) to attract and retain quality Sailors. Non-monetary incentives used in this paper are: homeport choice, billet choice, platform choice and geographic stability. This research experiments with the cost of non-monetary incentives for potential reenlistment by using a linear programming assignment optimization model. The ICONIC (Identifying the Cost of Non-monetary Incentives) model was developed as a proof-of-concept mechanism to identify the cost for non-monetary incentives. Forty-five Sailors and sixty billets was the sample size used to test the assignment model. Forty-one different scenarios were run with 50 percent weight on both Navy preferences and Sailor preferences that included a variety of NMI offerings. The same forty-one scenarios were run with 100 percent weight on Navy preference and 0 percent weight on Sailor preferences, and vice versa, for a total of one-hundred twenty-three different scenarios. The number of NMIs offered in each scenario was incremented as follows: five, ten, fifteen, twenty-five, and thirty-five. PCS, training, and fit costs were used to calculate the cost of the NMIs. In general, the more emphasis placed on the Navy's cost, Sailor value decreased. Conversely, Sailor value goes up when cost is ignored. Moreover, the Sailor fit of a particular billet increases when cost is ignored. The key component of the objective function was to minimize the Navy's cost and increase value to the Sailor. In general, the model's results proved successful and showed a logical connection between the philosophical idea of how cost might behave as the number of NMIs offered increases and the heuristic assignment methodology. This proof-of-concept will continue to revolutionize the most economical way to attract and retain Sailors.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 2009
- Accession Number
- ADA514253
Entities
People
- Ryan D. Stitt
Organizations
- Naval Postgraduate School