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A Cost Benefit Analysis Between the Current Naval Officer Retention Bonus Plan and the Enlisted Retention Bonus Plan

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Naval Postgraduate School Monterey United States

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The current fiscal constraints and increased operational tempo over the last decade have placed a strain on the U.S. Navy and the potential retention of sailors. On September 12, 2014, in an interviewwith the U.S. Naval Institute, Vice ADM Bill Moran, Deputy Chief of Naval Operations for Manpower, Personnel, Training, and Education, stated that he has seen signs of a looming sailor exodus. The exodus could be as bad as the postCold War period and just before the terrorist attacks of September 11, 2001. This project is a cost-benefit analysis between the current officer-retention bonus plan and the enlisted retention bonus plan. To aid in the improvement of retention-targeted bonuses across the Navy, our research focuses on the retention rates and effectiveness of current bonus structures, the timing of those bonuses, and internal and external factors affecting retention.

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Technical Report




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Approved For Public Release;

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