Download or read book An Analysis of the Proposed Surface Warfare Officer Career Incentive Pay SWOCIP Program Using an Annualized Cost of Living ACOL Model written by David E. Nosal and published by . This book was released on 1997-03-01 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates the effect of the proposed Surface Warfare Officer Career Incentive Pay (SWOCIP) program on the voluntary separation behavior of Navy surface warfare officers using an Annualized Cost of Leaving (ACOL) model. Data provided by the Center for Naval Analyses and the Defense Manpower Data Center (DMDC), Monterey CA, on surface warfare officers are used for this analysis. Multivariate predict models are estimated to predict the effects of the proposed SWOCIP program on the voluntary retention rate of surface warfare officers between six and ten years of service. These estimates are used to calculate the costs and benefits of the SWOCIP program. This thesis finds that the SWOCIP program would increase the voluntary retention rate by 2. 62 percent in the sixth year of service and 1.16 percent in the seventh year of service. The effect would decrease between eight and ten years of service. The calculated savings in accessions are greater then the estimated bonus cost. These calculations indicate, therefore, that the program is cost-effective.
Download or read book An Analysis of the Proposed Surface Warfare Officer Career Incentive Pay SWOCIP Program Using an Annualized Cost of Leaving ACOL Model written by David E. Nosal and published by . This book was released on 1997 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: Uses the annual cost of leaving (ACOL) framework to evaluate the potential effectiveness of the SWOCIP program on surface warfare officer (SWO) retention rates.
Download or read book An Analysis of the Effects of Increases in Aviation Bonuses on the Retention of Naval Aviators Using an Annualized Cost of Leaving ACOL Approach written by David Riebel and published by . This book was released on 1996-03-01 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of this thesis is to develop an Annualized Cost of Leaving (ACOL) model to predict Naval aviator separation decisions in response to changes in aviation bonus pays, specifically Aviation Continuation Pay (ACP) and Aviation Career Incentive Pay (ACIP). The ACOL approach models an individual's decision to stay or leave the military based on the monetary differences between alternative career choices. The individual's 'taste' or preference for military versus civilian life are incorporated into the decision modeling process. The model assumes that individuals will stay in the military if the positive difference between expected military pay and expected civilian pay (the cost-of-leaving) exceeds the distaste for the military lifestyle. Officer Master File (OMF) data from the Defense Manpower Data Center (DMDC) and data developed by Turner (NPS 1995) were used to determine individual characteristics and to compute the present value of the expected military pay stream. Census Bureau data were used to estimate future expected civilians earnings. A logit regression model was developed to simulate the retention of Naval aviators in response to changes in the ACOL due to increases in ACIP or ACP. The results indicate that the proposed increases in either ACIP or ACP are cost effective ways of increasing the retention of Naval aviators.
Download or read book An Analysis of the Effects of Aviation Career Continuation Pay ACCP Using an Annualized Cost of Leaving ACOL Approach written by H. E. Mills and published by . This book was released on 1999-09-01 with total page 134 pages. Available in PDF, EPUB and Kindle. Book excerpt: The U.S. Navy offers financial inducements to its pool of aviators as a retention tool. Navy officials are currently considering replacing the current system of bonus payments, known as Aviation Continuation Pay (ACP), with a revised system known as Aviation Career Continuation Pay (ACCP). ACCP ties annual lump sum payments to accession to seagoing career milestone billets, whereas ACP provides payment only for remaining on active duty. This thesis analyzes retention statistics from the Navy Officer Master File and other data sources to develop an Annualized Cost of Leaving (ACOL) model. The model parameter that designates a monetary equivalent for a predilection to remain in the service was extrapolated into elements of the ACCP program using career progression statistics to project the effect of switching to ACCP on retention. This extrapolation yielded an estimation of a 19.68 percent increase in the likelihood of retention through year of service (YOS) 11 to YOS 20, 29.72 percent from YOS 16 to 20, 13.9 percent from YOS 16 to 25, and 8.86 percent from YOS 21 to 25.
Download or read book Pay and Retention of Marine Corps Aviators written by Peter F. Kostiuk and published by . This book was released on 1985 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report investigate the effect of pay on the retention of Marine Corps aviators. It uses a simplified version of the annualized cost of leaving (ACOL) model to estimate the impact of pay changes on the voluntary attrition of Marine aviators. The estimated pay effects are then used to evaluate the potential effect of three recent proposals to adjust the structure of Aviation Career Incentive Pay (ACIP). The analysis found that pay does have a significant effect on aviator retention. The estimated elasticity of attrition with respect to the pay differential is -0.26.(The elasticity gives the percentage change in attrition for a 1-percent change in pay.) The three proposed changes to ACIP evaluated by CNA would eliminate ACIP for officers with over 25 years of service (YOS), 20 YOS, or 12 YOS. Table I shows the associated costs and benefits of each alternative. The benefits are reduced ACIP payments, and the cost is the expense of training replacement pilots for those who will leave the military because of the pay change. The estimates show that each proposal will actually increase total expenditures once the replacement training costs are included. The aviator's decision to stay in the Marine corps is analyzed as an occupational choice, in which an individual chooses among a set of career opportunities, selecting the career that maximizes discounted lifetime earnings. For this study of aviators, the value of continuing in a military career is compared to the potential earnings of civilian airline pilots. Data form the military pay tables and on the average salaries of civilian airline pilots are used to calculate the expected present value of earnings over different lengths of time.
Download or read book Military Cash Incentives DOD Should Coordinate and Monitor Its Efforts to Achieve Cost Effective Bonuses and Special Pays written by Brenda S. Farrell and published by DIANE Publishing. This book was released on 2011 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Assesses DoD¿s use of cash incentives to recruit and retain highly qualified individuals for service in the armed forces. It: (1) identifies recent trends in DoD's use of enlistment and reenlistment bonuses; (2) assesses the extent to which the services have processes to determine which occupational specialties require bonuses and whether bonus amounts are optimally set; and (3) determines how much flexibility DoD has in managing selected special and incentive pays for officer and enlisted personnel. The report analyzed service data on bonuses and special and incentive pays, and reviewed relevant guidance and other documentation from DoD and the services. Charts and tables. This is a print on demand report.
Download or read book Training Costs for Junior Surface Warfare Officers written by Michael D. Makee and published by . This book was released on 1999 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: Current Surface Warfare Officer (SWO) retention is well below the level needed to staff Department Head billets in the Fleet. The Navy is developing a career incentive pay to stem the flow of SWOs leaving the Navy and increase retention. The purpose of this thesis is to capture the training costs of junior Surface Warfare Officers that occur between commissioning and qualifying as a SWO. This thesis also explains the economic theory of specific training and its relevance to the wage streams offered to SWOs. This thesis estimates the training cost of qualifying a SWO to be $80,194.
Download or read book Early Separation Incentives written by Mitchell Sherman and published by . This book was released on 1993 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Estimation of Retention Parameters for the Prototype Officer Personnel Inventory Cost and Compensation Model written by and published by . This book was released on 1995 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research estimated a multiperiod Annualized Cost of Leaving (ACOL-2) model that predicts officer career decisions as a function of economic, demographic, and Army personnel policy (e.g., military compensation) influences. The panel probit estimation yielded statistically significant pay but not unemployment effects. The research also found that fixed, unobserved preferences for military service significantly influence retention behavior. The estimation encompassed up to 13 consecutive annual decision points, with data taken from ARI's Officer Longitudinal Research Database, covering year groups 1979-1992. The retention parameter estimates were embedded in an Officer Personnel Inventory, Cost and Compensation (OPICC) Model. This PC-based prototype model was designed and developed to improve the Army's ability to effectively manage its officer force by providing policy makers with accurate information about the impact of policy changes, including promotion policy, compensation, and separation incentives. The OPICC model provides estimates of the impacts of policy and economic changes to the Officer Personnel Management Directorate inventory for a 6-year projection horizon. The prototype version does not contain a cost estimation capability. The model was validated by using it to predict actual historical behavior.
Download or read book The DPAC Compensation Model An Introductory Handbook written by James M. Norris and published by . This book was released on 1987 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Personnel Analysis Center of the Directorate of Personnel Plans, Deputy Chief of Staff for Personnel, Headquarters US Air Force (AF/DPAC), is responsible for analyzing the effect of a wide range of current and proposed AF personnel and compensation policies. A fundamental tool DPAC uses in its analyses of compensation policies is a multi-option, interactive computer program known as the Compensation Model, which is based on the annualized cost of leaving (ACOL) framework. This handbook introduces new users to the ACOL framework and provides some guidelines for choosing reasonable values for the four long-run parameters required to run the Compensation Model: the inflation rate, the rates of real growth in military and private-sector compensation, and the real personal discount rate. The handbook assumes at least a basic knowledge of the AF personnel and active-duty pay systems, the military retirement system, several micro- and macroeconomic principles, present discounted value calculations, and compound growth rates. (Author).
Download or read book Cost Benefit Analysis of Special and Incentive Pays for Career Enlisted Aviators written by Patricia K. Tong and published by . This book was released on 2021-02-28 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: To justify budgets for special and incentive (S&I) pays for career enlisted aviators (CEAs), the Air Force needs rigorous analyses on how to efficiently set S&I pays for CEAs to achieve and maintain required end strength. The authors of this report develop an analytic capability to calculate the efficient amount of S&I pays for CEAs, using RAND's Dynamic Retention Model to create separate models for each CEA specialty. They use these models to estimate the per capita cost for each CEA specialty under different policies to show the trade-offs between increasing accessions versus retaining more experienced CEAs for a given force size. They also calculate tipping-point values: the values that recruiting and training costs would need to reach in order for retaining more experienced CEAs using selective reenlistment bonuses (SRBs) to become more cost-effective than increasing accessions.
Download or read book The Military Pension Compensation and Retirement of U S Air Force Pilots written by John A. Ausink and published by . This book was released on 1993 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses the option value model of Stock and Wise to analyze the departure patterns of a sample of pilots in the United States Air Force. Pilot compensation and the military pension are described, as are some details of the option value model and two other models: the Annualized Cost of Leaving (ACOL) model, which is used by the Department of Defense, and a variant of a dynamic programming model proposed by Daula and Moffitt. The option value model captures departure behavior much better than the ACOL model, and substantially better than the dynamic programming model. The superiority of the option value model to the dynamic programming formulation raises the possibility that individual decision-making may not always be best modeled by a formulation that is intended to capture 'correct' economic financial calculations. This is consistent with findings by Lumsdaine, Stock and Wise for civilians in a Fortune 500 firm.
Download or read book An Econometric Analysis of the Effect of Fully Funded Graduate Education on Performance for Surface Warfare Officers written by Michael T. Talaga and published by . This book was released on 1994 with total page 133 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis analyzes the impact of the Navy's fully-funded graduate education program on Surface Warfare Officer performance. Three measures of officer performance are used: (1) probability of promotion to O-4; (2) percent of all LT FITREPs recommended for early promotion; and (3) the probability of receiving an early promotion recommendation on the last LT FITREP. Navy Officer Master Files (FY1981 through FY1990), created by Prof. William Bowman, USNA, are merged with NPRDC's Officer FITREP Files to statistically analyze performance differences between Surface Warfare Officers with and without fully-funded graduate education. Ordinary least squares and non-linear maximum likelihood techniques are used to estimate the three performance models. Since selection into the fully-funded program is not random, an attempt is made to model the selection process and to correct for the potential bias in the estimated coefficient of graduate education in the performance models. The findings reveal that fully-funded graduate education has a significant positive impact on the probability of promotion to O-4, but insignificant effects on receiving early promotion recommendations on LT FITREPs. Additionally, selectivity does not appear to bias estimates of fully-funded graduate education in the performance models.
Download or read book The Military Pension Compensation and Retirement of U S Air Force Pilots written by John A. Ausink and published by . This book was released on 2010 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses the option value model of Stock and Wise to analyze the departure patterns of a sample of pilots in the United States Air Force. Pilot compensation and the military pension are described, as are some details of the option value model and two other models: the Annualized Cost of Leaving (ACOL) model, which is used by the Department of Defense, and a variant of a dynamic programming model proposed by Daula and Moffitt. The option value model captures departure behavior much better than the ACOL model, and substantially better than the dynamic programming model. The superiority of the option value model to the dynamic programming formulation raises the possibility that individual decision-making may not always be best modeled by a formulation that is intended to capture 'correct' economic financial calculations. This is consistent with findings by Lumsdaine, Stock and Wise for civilians in a Fortune 500 firm.
