An Analysis of the Effects of Increases in Aviation Bonuses on the Retention of Naval Aviators Using an Annualized Cost of Leaving (ACOL) Approach PDF Download
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Author: David Riebel Publisher: ISBN: 9781423578420 Category : Languages : en Pages : 69
Book Description
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.
Author: David Riebel Publisher: ISBN: 9781423578420 Category : Languages : en Pages : 69
Book Description
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.
Author: H. E. Mills Publisher: ISBN: 9781423539735 Category : Languages : en Pages : 134
Book Description
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.
Author: Peter F. Kostiuk Publisher: ISBN: Category : Languages : en Pages : 49
Book Description
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.
Author: Carol S. Moore Publisher: ISBN: Category : Bonuses (Employee fringe benefits) Languages : en Pages : 0
Book Description
The Assistant Deputy Chief of Naval Operations (Manpower and Personnel) asked CNA to evaluate a proposed aviator retention bonus, Aviation Career Continuation Pay (ACCP). In this briefing, we estimate the impact of ACCP on the retention of naval aviators, predict the costs of meeting requirements under ACCP and make comparisons with retention and cost under the existing aviation retention bonus. The report finds that ACCP will generate minor shortages of jet pilots, but retention in the prop, helo, and NFO communities will increase. In general, ACCP costs more than ACP because it purchases equality as well as a given rate of retention. ACCP is a relatively cost-effective means of providing equality.
Author: Carol S. Moore Publisher: ISBN: Category : Bonuses (Employee fringe benefits) Languages : en Pages : 48
Book Description
The Assistant Deputy Chief of Naval Operations (Manpower and Personnel) asked CNA to evaluate a proposed aviator retention bonus, Aviation Career Continuation Pay (ACCP). In this briefing, we estimate the impact of ACCP on the retention of naval aviators, predict the costs of meeting requirements under ACCP and make comparisons with retention and cost under the existing aviation retention bonus. The report finds that ACCP will generate minor shortages of jet pilots, but retention in the prop, helo, and NFO communities will increase. In general, ACCP costs more than ACP because it purchases equality as well as a given rate of retention. ACCP is a relatively cost-effective means of providing equality.
Author: Frank Rogge Publisher: ISBN: 9781423576266 Category : Languages : en Pages : 116
Book Description
This thesis investigates the effect of the Voluntary Separation Incentive/ Special Separation Bonus (VSI/SSB) on the voluntary separation behavior of Navy officers and Navy enlisted personnel using the Annualized Cost of Leaving (ACOL) model. The thesis also estimates the effect of the threat of a reduction-in-force (RIF) on VSI/SSB program acceptance behavior. Data provided by the Defense Data Manpower Center (DMDC) on VSI/SSB eligible Navy officers and Navy and Air Force enlisted personnel in FY93 and FY92 are used for the empirical analyses. Multivariate probit models are estimated to predict the voluntary separation rate in the absence of the financial incentive. These estimates are used to calculate the costs and benefits of the VSI/SSB program for both Navy officers and Navy enlisted personnel. This thesis finds that the VSI/SSB program increased the voluntary separation rate by 44.93 percent for Navy officers, but only by 4.29 percent for Navy enlisted personnel. The threat of RIF significantly increases voluntary separation rates.
Author: Russell S. Turner Publisher: ISBN: Category : Air pilots, Military Languages : en Pages : 0
Book Description
The objective of this thesis is to design and construct a unique analytical data base to be used to examine the effects of the military drawdown on the retention of Naval aviators. Past analyses of retention have focused primarily on the individual retention decision. This thesis uses grouped data defined by year of commission, fiscal year, and aviator type. The analysis quantifies the relationship between various downsizing policies and cohort continuation rates while controlling for the effects of time-since-MSR (minimum service requirement) and civilian unemployment. Separate regression models are specified for the jet, prop, and helo pilot communities, and for the jet and prop NFO communities, with the continuation rate as the dependent variable. The models are estimated using weighted OLS. The samples contained observations on a total of 1,907 cohort continuation rates for each fiscal year between 1977 and 1993. The study found that the percentage of Aviation Continuation Pay bonuses available in a given year is directly related to the grouped continuation rate. The effect of the VSI/SSB and IRAD progrnas was found to be statistically insignificant. Thus, it was concluded that the downsizing policies have had only a minor effect on the underlying, baseline continuation rate.
Author: Russell S. Turner Publisher: ISBN: Category : Air pilots, Military Languages : en Pages : 69
Book Description
The objective of this thesis is to design and construct a unique analytical data base to be used to examine the effects of the military drawdown on the retention of Naval aviators. Past analyses of retention have focused primarily on the individual retention decision. This thesis uses grouped data defined by year of commission, fiscal year, and aviator type. The analysis quantifies the relationship between various downsizing policies and cohort continuation rates while controlling for the effects of time-since-MSR (minimum service requirement) and civilian unemployment. Separate regression models are specified for the jet, prop, and helo pilot communities, and for the jet and prop NFO communities, with the continuation rate as the dependent variable. The models are estimated using weighted OLS. The samples contained observations on a total of 1,907 cohort continuation rates for each fiscal year between 1977 and 1993. The study found that the percentage of Aviation Continuation Pay bonuses available in a given year is directly related to the grouped continuation rate. The effect of the VSI/SSB and IRAD progrnas was found to be statistically insignificant. Thus, it was concluded that the downsizing policies have had only a minor effect on the underlying, baseline continuation rate.
Author: David Riebel
Author: David Riebel
Author: H. E. Mills
Author: 
Author: Peter F. Kostiuk
Author: United States. General Accounting Office
Author: Carol S. Moore
Author: Carol S. Moore
Author: Frank Rogge
Author: Russell S. Turner
Author: Russell S. Turner