Reenlistment Bonuses and First-Term Retention
RAND CORP SANTA MONICA CA
Pagination or Media Count:
An extension of the methodology and data used in an earlier Rand study reported in R-1502-ARPA which developed and estimated a statistical model of reenlistment supply for the Army, Navy, and Air Force for a single year, FY 1971. The present study analyzes four years of reenlistment data FY 1971-FY 1974 using two regression models to generate an estimate of a four-year average bonus response. It is concluded that 1 selective reenlistment bonuses have the desired positive effect on first-term reenlistment rates 2 the bonus elasticity under current bonus policy is likely to about 2.0 3 differences in bonus response between service branches are not large enough to require separate bonus management policies for each service 4 the different bonus multiples each produce about the same per dollar effect and 5 there is no evidence of differences between broadly defined occupational groups in bonus response.
- Administration and Management
- Personnel Management and Labor Relations