January11, 2007:
Last year, the U.S. Army got 80,000 new recruits, while 64,000 troops
who had completed their service, re-enlisted. But to get that many troops to
re-enlist, the army paid out $623 million in "retention bonuses." The army uses
the bonuses to encourage troops in some job specialties (where there are
shortages) to stay in. Sometimes, responding to, say, unfavorable media
coverage, additional bonuses will be added. For example, the new, Democratic
party controlled Congress just began its new term with a lot of criticism of
the war. This is not good for the morale of the troops. So the army is offering
an additional "signing bonus" (of up to $7,500) for any soldier getting out
between now and the end of April, if they re-enlist before then. For example,
an infantryman, with the rank of Specialist (E-4), finishing a four year
enlistment, could increase his re-enlistment bonus from $10,000 to $17,500, by
signing up for another four years. This would tempt the soldier to stay in for
twenty years (to qualify for a half pay pension), because at the end of eight
years he might be E-6, or even an officer (via Officer Candidate School).
The
army has found that money does matter, and has become quite expert at avoiding
shortages in key skill areas by adjusting the re-enlistment bonuses. It's
cheaper to spend money on these bonuses, than it is to recruit a civilian, and
go to all the time and expense to create a soldier of equal skill and
experience. Moreover, keeping more soldiers in the military as a career
provides more experienced NCOs and officers. That superior leadership makes all
the difference when you are in combat.