Evaluation of the Assignment Incentive Pay (AIP) System

The Navy has long faced shortages in certain critical shore billets. A variety of methods have been used to fill these billets, including involuntary assignments and sea duty credit for rotational purposes. However, these methods are inflexible, affect end strength, and reduce retention. To better alleviate shortages in hard-to-fill billets, the Navy began offering Assignment Incentive Pay AIP in three locations in June 2003.AIP levels are determined by a market-based system Sailors submit the amount of pay they require to volunteer for less preferred locations. Sailors submit their bids along with their applications and application preferences in the Job Advertising and Selection System JASS. Submitted bids are constrained only by AIP caps set by the Navy. These caps vary by location, by pay grade, and, in some cases, by rating. At the end of the job cycle about 2 weeks in length,detailers review all applications for each billet and select the Sailor with the lowest AIP bid from all who are qualified for the billet. If selected, Sailors begin receiving their stated monthly AIP upon arrival at their new assignments.