Retention Bonuses: More Direction and Oversight Needed

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Report Type	Reports and Testimonies
Report Date	Nov. 6, 1995
Report No.	NSIAD-96-42
Subject	Military compensation Military downsizing Military officers Military recruiting Military personnel retention Military reenlistment bonuses Personnel management Reductions in force Retirement benefits Staff utilization DOD Selective Reenlistment Bonus Program DOD Special Separation Benefit DOD Voluntary Separation Incentive Program JCS Status of Resources and Training System Navy Enlisted Classification System Combat readiness

Summary:

The Selective Reenlistment Bonus Program was created 30 years ago to help the military retain highly skilled service members. However, GAO found that in 1994, the Defense Department (DOD) paid about $64 million in retention bonuses to individuals who worked in job categories in which positions were filled or who had been paid incentives to leave. Military officials defended their management of the retention and separation incentive programs, asserting that each is targeted at different segments of the force, that retention and separation incentives went to personnel in different grades and year groups, and that payment of separation incentives did not mean that they were satisfied with manning levels. GAO believes that if a skill is experiencing shortages that warrant the payment of retention incentives, it is not prudent to pay incentives to others with those same skills to leave the service. The Office of the Secretary of Defense is not providing adequate direction and oversight of the programs.

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Retention Bonuses: More Direction and Oversight Needed