Evaluation of aviation career pay incentives among the Naval Aviation enterprise utilizing auction mechanisms
Williams, Brett M.
Gates, William R.
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Naval Aviation utilizes the Aviation Career Continuation Pay (ACCP) as a means to retain qualified aviators to meet manpower requirements. However, the current program has failed to meet targeted retention across communities while overpaying nearly $5,300,000 during FY-2013, according to Eric Kelso. This thesis examines the potential improvements of applying uniform-price auction, Quality Adjusted Discount (QUAD), and CombiNATOrial Retention Auction Mechanism (CRAM) compensation programs to replace the current bonus system. Incorporating survey results from 2,316 naval officers across Navy Aviation, we analyzed the impact that market-based mechanisms would have on quantity, quality, and cost for retained naval aviators. Using these responses, we developed individual quality scores and reservation prices to apply three auction mechanisms to the retention goals and costs of the FY-2013 ACCP program. Our research shows that a market-based auction could include improvements in cost, quality, and particularly quantity of aviators eligible for the Department Head Screen Board. The uniform-price auction meets all retention objectives across Navy Aviation, while reducing costs in some communities by $1,250,000. The QUAD auction improves the average quality of aviators retained under the uniform-price auction while CRAM demonstrates that non-monetary incentives provide aviators means to remain in service while lowering overall costs to the Navy.
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Kelso, Eric W. (Monterey, California: Naval Postgraduate School, 2014-06);Aviation Career Continuation Pay (ACCP), the retention bonus for Naval Aviators, has historically failed to meet stated retention goals. For fiscal year 2013 Naval Personnel Command reported that ACCP exceeded retention ...
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