Download An Analysis of Pay for Enlisted Personnel (Documented by BethJ Asch PDF

By BethJ Asch

The briefing examines how the pay of enlisted team of workers compares to that in their civilian opposite numbers, how those comparisons have replaced over the years, how the FY 2000 pay activities have an effect on the comparisons, and the way recruiting and retention have fared lately.

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Extra resources for An Analysis of Pay for Enlisted Personnel (Documented briefing)

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Al (1992) and Arkes (2001) The extent to which recent improvements in retention are due to the FY 00 pay action are unclear. Too little time has elapsed since July 2000 to judge the impact of the legislation on recruiting and retention. As for the expected effect in the future, we used available estimates of the effects of changes in relative military and civilian pay and in the civilian unemployment rate to make predictions of the effect of the legislation on first-term reenlistment rates. These estimates are shown in this chart, and the discussion about them is the same as for the recruiting forecast chart.

As discussed in Asch and Hosek (1999), these anomalies included longevity pay increases that were greater than promotion pay increases for some personnel and larger pay raises for early promotions than for some later promotions. The July FY 00 targeted raise addressed many of these problems and helped create a pay table that is more graduated overall. Therefore, any additional graduated pay raise in the future would build on the July FY 00 basic pay raise. 48 Enlisted Compensation Is Already Graduated Due to the Role of Expected Retired Pay Average Enlisted RMC (July 00) + Expected PV of Retired Pay (if Retire at YOS 20) $200,000 RMC $160,000 RMC+HI 3 $120,000 RMC+REDUX+ Bonus $80,000 $40,000 $0 1 5 9 13 Year of Service 17 It is useful to note that the structure of the military compensation system is already graduated because it provides disproportionately more expected compensation to those in the more senior grades.

The present value calculations use a 10 percent real personal discount rate. ) The perspective of the comparisons is that of a high school graduate interested in the payoffs to different education levels and career tracks. The present value (PV) of an enlisted career has risen considerably from 1983 to 1998, and the full implementation of the FY 00 pay increases will increase it even further. In contrast, the PV of a high school production/craft career has fallen, reflecting the gradual erosion of real earnings of high school graduates.

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