Cost-Benefit Analysis of Special and Incentive Pays for Career Enlisted Aviators

📖 The Scoop

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.

Genre: Business & Economics / Econometrics (fancy, right?)