Military Compensation: Trends and Policy Options

Military Compensation: Trends and Policy Options
ISBN-10
0833027425
ISBN-13
9780833027429
Category
History / Military / Veterans
Pages
59
Language
English
Published
1999
Publisher
RAND
Authors
Beth J. Asch, James R. Hosek

Description

The diversity of today's military operations, the threat of a major war, and plans for modernization draw attention to the crucial role of defense personnel and, supporting them, well-functioning personnel and compensation systems. Recently, concern has arisen regarding military pay and retention's ability to meet force needs. In this documented briefing, the authors provide a detailed analysis showing that (1) there is a pay gap for officers and senior enlisted personnel, but not for junior enlisted personnel, when their basic pay growth since 1982 is compared to wage/salary growth of similar civilian populations; (2) overall, military pay has declined by 6.5 percent relative to civilian pay since 1993, though the "official" pay gap shows a decline of only 1.5 percent; (3) this pay decline and low unemployment rates have contributed to retention and enlistment difficulties; (4) measured by the extent of long or hazardous duty (perstempo), retention had not declined despite the heightened pace of military operations in the mid-1990s; yet, today's pace may be even higher and, if so, could have a negative retention effect on more personnel; (5) over time, military personnel and compensation systems have been effective in retaining high-quality personnel and promoting them into higher ranks by providing incentives for high-quality personnel to remain in the military and seek advancement. The authors also discuss policy.

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