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Reenlistment Bonuses and Retention Behavior

This report, an executive summary of Rand Report R-3199-MIL, presents a nontechnical discussion of the most policy-relevant findings of research on the effects of bonuses on retention behavior. The findings suggest that, overall, the reenlistment bonus program should be continued and perhaps expanded. It enables the services to respond quickly to changes both in labor supply, such as those created by economic and demographic cycles, and in labor demand, such as those created by changes in weapons systems or force deployment. Bonuses are effective in increasing retention rates and promoting longer terms of service. Since they are not part of base pay, they do not directly increase the potential retirement outlays as an increase in base pay would. Their power and flexibility make them a valuable aid in managing the size and shape of the career force. Keywords: Military personnel; Reenlistment; retention (General); Military force levels; Compensation; Recruiting. (Author).

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  • "This report, an executive summary of Rand Report R-3199-MIL, presents a nontechnical discussion of the most policy-relevant findings of research on the effects of bonuses on retention behavior. The findings suggest that, overall, the reenlistment bonus program should be continued and perhaps expanded. It enables the services to respond quickly to changes both in labor supply, such as those created by economic and demographic cycles, and in labor demand, such as those created by changes in weapons systems or force deployment. Bonuses are effective in increasing retention rates and promoting longer terms of service. Since they are not part of base pay, they do not directly increase the potential retirement outlays as an increase in base pay would. Their power and flexibility make them a valuable aid in managing the size and shape of the career force. Keywords: Military personnel; Reenlistment; retention (General); Military force levels; Compensation; Recruiting. (Author)."@en
  • "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."@en
  • "This report, an executive summary of RAND Report R-3199-MIL, presents a nontechnical discussion of the most policy-relevant findings of research on the effects of bonuses on retention behavior. The findings suggest that, overall, the reenlistment bonus program should be continued and perhaps expanded. It enables the services to respond quickly to changes both in labor supply, such as those created by economic and demographic cycles, and in labor demand, such as those created by changes in weapons systems or force deployment. Bonuses are effective in increasing retention rates and promoting longer terms of service. Since they are not part of base pay, they do not directly increase the potential retirement outlays as an increase in base pay would. Their power and flexibility make them a valuable aid in managing the size and shape of the career force."@en

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  • "Reenlistment Bonuses and Retention Behavior"@en
  • "Reenlistment bonuses and retention behavior executive summary"@en
  • "Reenlistment Bonuses and Retention Behavior - Executive Summary"
  • "Reenlistment bonuses and retention behavior : executive summary"
  • "Reenlistment bonuses and retention behavior : executive summary"@en
  • "Reenlistment Bonuses and Retention Behavior: Executive Summary"@en
  • "Reenlistment bonuses and retention behavior"