Cost-Benefit Analysis of Fire Controlman Aegis Regular Military Compensation versus Civilian Wages

Abstract

Retention initiatives play a crucial role in maintaining combat-ready forces. Retention has become a pressing issue due to the declining interest among individuals to join the military, the low unemployment rate, and the current labor market’s attractive compensation packages for critical skills. This thesis compares military and civilian pay within similar occupations, explicitly focusing on servicemembers specializing in highly technical fields like U.S. Navy Fire Controlman Aegis (FCA). In particular, this thesis uses data from the U.S. Bureau of Labor Statistics (BLS) to calculate the net present value (NPV) of Regular Military Compensation (RMC) in conjunction with Selective Reenlistment Bonuses (SRB) to assess the comparability of compensation packages with civilian wages. Military compensation, even for specialized roles like FCA, offers a higher net present value than civilian compensation. This underscores the significance of acknowledging and preserving compensation differentials to ensure the retention of skilled military personnel.