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FPCD-79-84 1 (1979-08-13)

handle is hein.gao/gaobaazof0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE C 0 WASHINGTON, D.C. 20548 COMPENSATION DIVISION B-157371 AUGUST 13, 1979 110097 The Honorable Robert B. Pirie, Jr. Assistant Secretary of Defense (Manpower, Reserve Affairs and Logistics) 1'- Dear Mr. Secretary: We have completed a/survey of the use of the bonus as an incentive in recruiting and retaining members in the / Selected Reserves./ As a result of our work, we have developed some opinions on the use and direction of the bonus as a tool in manpower management. We recognize that the manpower shortages particularly in the Army-Selected v Rqseryes are a serious problem which will note solved b any single program. However, we believe the Reserve com- ponents can utilize the bonus incentive as a highly selec- tive manpower tool adjustable to changing manpower needs. Our findings relating to the 1978 reenlistment test and 1979 Selected Reserve incentive programs are described more fully in the enclosure. The congressionally directed reenlistment bonus test conducted last year did not result in a significant differ- ence between test and control groups which raises questions regarding the cost effectiveness of this incentive. The test did show a significant difference between test and con-) trol units in the percentage of reservists choosing a six year enlistment contract. We recognize the analysis cur- rently being conducted by the Rand Corporation will provide further information that may help to explain the results of the test and provide the basis for some adjustment to the direction of the current reenlistmeftt incentive. We believe that there is enough statistical information on the current bonus program initiated on December 1, 1978 to make some observations on its impact. In the Army com- ponents a total of 10,760 enlistment contracts were written; 10,304 enlistees choosing the enlistment cash bonus, and / FPCD-79-84 (963123)

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