Running head: MILITARY COMPENSATION
Waylon Magobotha
Military Compensation
Compensation Management
Park University
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MILITARY COMPENSATION
Developing and giving the suitable military compensation sets comprising wages, health
care, reenlistment additions, retirement, vacation, dependent reimbursements, and survivor
reimbursements is essential to attract and preserve active obligation and reserve staffs with
necessary skills. RAND has carried out general research to guide representatives on developing
compensation preferences to entice and maintain military personnel able to meet the strategic
objectives of a country (Carter & Kidder, 2015).
Basic pay is a vital part of the military compensation structure, along with the easiest
component to comprehend, but it encompasses only around half of the total yearly compensation
for most facility members. Additionally to basic pay, provision members can get Hostile
Fire/Forthcoming Danger Pay, and a range of other exceptional and inducement payments
(Carter & Kidder, 2015). For instance, service associates obtain inducement to pay for being a
pilot or working at sea. Moreover, they obtain a Basic Allowance for Subsistence to fund their
food expenses. Individuals that live off-base receive a Basic Allowance for Housing, which
caters for 100 percent of their accommodation expenses, accustomed for the confined living cost
(Wallace et al., 2015).
The pay gauge begins low, but service affiliates’ pay rapidly rises as they become more
experienced and are supported out of the most subordinate positions. For both recruited service
members and constables, fixed military pay is around twice as much like that of noncombatants
with similar education and knowledge (Maldon et al., 2015). Nevertheless, captains are
remunerated much more up to double as much as recruited provision members with comparable
years of work. Although this pay distinction made sense for a military with profession majors
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MILITARY COMPENSATION
and recruited registered militaries, it does not imitate the genuineness of the experienced
recruited soldiers who make up today’s all-volunteer power (Harrison, 2012).
Military Compensation comprises Cash Reimbursement and Considerable Retirement
and Health Paybacks. Of DoD’s $150 billion appeals for payment in 2013, above $90 billion
would be for the basic pay, foodstuff and accommodation payments, extras, and several sorts of
distinctive pay. Additional $16 billion would be for accumulation expenditures that represent the
upcoming annuities of existing service members who will withdraw from the military. In 2012,
DoD salaried 34 cents for every dollar of rudimentary pay for lively workers and 24 cents for
every dollar of basic pay for backup staffs.
The balance of DoD’s appeal for reimbursement in the last past years approximately $40
billion would stand for health reimbursements. However 1.4 million military staffs work on
vigorous calling, a total of approximately 10 million individuals are qualified for martial health
benefits (Wallace et al., 2015). Additionally to active-duty martial workers, the individuals who
have contact to health welfares comprise entitled family members of those staffs, discharged
armed staffs and their entitled family members, fighters of facility members who passed on while
on active calling, and some associates of the assets and National Sentry (Harrison, 2012). DoD’s
entreaty comprises funding for TRICARE which is the services health care platform for
contemporary and particular aged service followers (Maldon et al., 2015). Besides, the sector
makes addition outlays for the forthcoming health care of present service affiliates and their
partners who will withdraw from the military and come to be qualified for Medicare particularly
at age 65.
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MILITARY COMPENSATION
All service associates on active duty get consistent military reimbursement, around 60
percent of which is basic salary. Heights of basic salary, which are brought out in the basic fee
board, rely on rank and years of work (Redmond et al., 2015). The lowermost wage grade is E1, for individuals with the rank of reserve in the Army or Marine Forces, seaman trainee in the
Navy, or airman rudimentary in the Air Force. The uppermost registered salary grade is E-9,
which comprises the ranks of sergeant officer or command sergeant captain in the Military,
sergeant officer or chief gunnery officer in the Marine Forces, a master chief trivial captain in the
Navy, and main major sergeant in the Air Force (Wallace et al., 2015). In 2006, most of the
recruited force was in pay ratings between E-3 (a secluded first class in the Military, for
instance) and E-6 (a Military personnel sergeant, for example). Cash salary is consistent martial
reimbursements which are a basic fee, grants for housing and maintenance, and the tax benefit
that rises because those grants are not drained. Noncash and delayed cash remuneration contain
the accrued price of veterans’ advantages and retirement benefits.
Compensation in the United States military can as well be sedated in various means. One
of the most common is that description entails of the basic pay, housing and maintenance grants,
and related tax benefits to which every service member is eligible. DoD has employed that
systematic military reimbursement as a central portion of military pay ever since at least 1962.
The other one is more comprehensive where the amount of martial payment contains noncash
and delayed cash advantages (Harrison, 2012). They can include health care for present-day
service affiliates and their relatives, the health care and other troupers’ advantages that affiliates
can obtain once they retire, and withdrawal pay and health advantages for associates who work
for at least 20 years or get extremely disabled (Maldon et al., 2015).
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MILITARY COMPENSATION
Military staffs and their families are also entitled to supported child care and foodstuffs,
the usage of physical aptness and entertaining amenities, free lawful and fiscal therapy, and other
family-sustenance platforms (Redmond et al., 2015). Lastly, even within the limits of virtuously
cash reimbursement, service members can get special salaries, bonuses, as well as payments that
are not calculated. Distinctive and spur wages are typically presented for specific abilities or
risky duty, counting disposition and war (Carter & Kidder, 2015). Associates might also receive
bonus costs when they reenlist for numerous more years, particularly if they have work-related
abilities that are in short amount.
The kinds of health plans that personnel have and the quantity they wage for those plans
vary considerably between the martial and noncombatant segments. Like the soldierly, closely all
big national managers presented health care advantages to their employees’ years back but unlike
the martial; just around one-third presented such advantages to their pensioners. Of the citizen
employees who contributed in a medical plan, around 20 percent were registered in a health
upkeep association. After years of kicking the matter, Congress has embraced numerous reform
endorsements in the House Armed Services Committee’s account of this year’s protection
approval bill, plus a key alteration to the withdrawal structure that would entail DOD to
subsidize to a 401(k)-style strategy for each facility associate. This is a good beginning, but
much more rests to be completed. The military salary, health care, and departure structures
require being reorganized to meet the requirements of the present force while making certain that
they will upkeep the supple impending force that America national security will need. The actual
problem is whether Congress will uphold the administrative drive to act.
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MILITARY COMPENSATION
References
Carter, P., & Kidder, K. (2015). Military Compensation and Retirement Modernization: A
Primer. Center for a New American Security.
Harrison, T. (2012). Rebalancing military compensation: An evidence-based approach. Center
for Strategic and Budgetary Assessments.
Maldon Jr, A., Pressler, L. L., Buyer, S. E., Zakheim, D. S., Higgins, M. R., Chiarelli, P. W., ...
& Carney, C. P. (2015). Report of the Military Compensation and Retirement
Modernization Commission. MILITARY COMPENSATION AND RETIREMENT
MODERNIZATION COMMISSION ARLINGTON VA.
Redmond, S. A., Wilcox, S. L., Campbell, S., Kim, A., Finney, K., Barr, K., & Hassan, A. M.
(2015). A brief introduction to the military workplace culture. Work, 50(1), 9-20.
Wallace, R. A., Colarusso, M. J., Hall, A. O., Lyle, D. S., & Walker, M. S. (2015). Paid to
Perform: Aligning Total Military Compensation With Talent Management. Volume 8.
ARMY WAR COLLEGE CARLISLE BARRACKS PA STRATEGIC STUDIES
INSTITUTE.
Running head: MILITARY COMPENSATION
Waylon Magobotha
Military Compensation - Special Groups
Compensation Management
Park University
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MILITARY COMPENSATION
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There is a need for ensuring that the military compensation system aligns with the
fundamental principles that comprise its theory. The approach should reflect consistency as well
as basic concepts of the country. The aim of designing the compensation is to foster
professionalism in the army for ensuring that it is a respected, honored, and dignified career.
According to the Army ranking system, a major general will be a two-star general. Such an officer
will hold an O-8 rank that is almost near the top of the pay scale of the military (Offenhauer, 2007).
The major generals that engage in active duty are entitled to additional compensation to carter for
their cost of living in addition to the basic salary per month.
There are variations in the pay levels within the O-8 rank according to seniority. Although
it is difficult for an individual to enter the Army as a major general, the starting basic pay of officers
that fall under the O-8 rank and have less than two years of service is $10,398.60 per month. This
pay increases gradually as the officer gains experience in the position over time. When the officer
has served for more than 20 years in the post, the compensation will increase to $13,925.10. The
pay of a major general continues to rise until he serves for more than 34 years where it plateaus at
$14,991.00 per month. The general rule is that the major generals of a similar level of service
belong to the same standardized pay system. Besides the basic pay, major generals receive different
incentive pay and allowances. For instance, the objective of the housing allowance is to subsidize
the housing needs of the generals during deployment. However, this allowance varies depending
on the location. The generals that belong to O-7 pay grade are not eligible to receive a basic housing
allowance. When a major general serves in an active combat zone, they receive hazard pay of
about $150 when they find themselves in a hazardous situation.
The pay of a major general is subject to two major limitations. First, the second level of
Federal Executive Schedule caps any officer within the rank between O-7 and O-10 for
MILITARY COMPENSATION
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compensation that does not exceed $14,975.10 per month. Secondly, any major general serving in
the combat zone, the only pay that qualifies for tax exemption is the first $7,738.80. However,
there is a possibility of excluding the $225 in the monthly hazard pay. Each major general has
access to the benefits package of the National Army including employer-sponsored vacation,
military pension plans, and health insurance. The basis of the pension of the major general is on
the highest-paid years which continue over the life of the officer after retirement. The major
general should have served in the military service for at least 20 years.
Every U.S.A military branch has elite officers commonly referred to as the Special Forces.
In the army, this group is the Green Berets. When an officer reaches the level of Green Beret is
not only an honor but also results in additional benefits and pay. Just as the other professions, there
are variations in the Green Beret officers’ salary according to their title and rank. Generally, the
average basic pay for a Green Beret officer is $70,000. Compared to other general Army Soldiers,
the pay for the Green Beret is more than double of their counterparts (U.S. Army, 2018). Becoming
an active duty officer increases your earnings hence there is an increase in the salary as you
transition from a soldier to either sergeant or lieutenant. There is an opportunity of earning an
additional income such as $75 and $400 monthly special duty pay for putting in more effort as
well as $50 to $150 hardship allowance for the officers across all ranks.
The Army Special Forces refer to a collection of officers with specialized training for completing
specific global missions such as reconnaissance missions and counter-terrorism among others
(Robinson et al., 2018). The average pay for such officers is subject to the ranking and service
years in the Army in addition to the bonuses that depend on the assigned mission. The special force
captain knows specific field thus his years of experience makes him eligible for a particular task.
The years of service determines the salary scale of Special Forces captain. For instance, those
MILITARY COMPENSATION
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having less than two years of service in the position earn $4,143.90 as per the data from the 2018
Army Pay Chart (U.S. Army, 2018). The special force warrant officer is responsible for the
coordination of duties of the 12-man operational detachment with the captain as the group split
into six-man teams for the easier accomplishment of the objectives of the mission. It is possible to
categorize a warrant officer among the five pay scales according to years of service and the rank
(Myers & Boudreau, 2011). A warrant officer with the level of W-1 and has provided service for
not more than two years earns $3,037.50 monthly compensation while the warrant officer with a
ranking of W-5 having more than 20 years of experience earns $7,614.60 per month.
The master sergeant’s earnings that have less than eight years in the service each month is
$3,845.10. In most circumstances, the Army Special Forces work in challenging environments that
negatively impact on different aspects of their lives. Therefore, the army compensates these
soldiers through the payment of bonuses depending on the parameters of the mission, extra
responsibility, and risk. The payment range for the special duty is from $75 to $450 in addition to
their basic pay. The hardship allowance of officers that spends more than 30 days in conditions
poorer than USA ranges between $50 and $150 per month. Moreover, the army pays an additional
bonus of $1,000 to active duty soldiers with proficiency in foreign languages since their skills and
capabilities apply to the satisfaction of the parameters of the mission. Also, navigators, pilots, and
aviators qualify for the Career Enlisted Flyer Incentive Pay from the Army.
The army officers in aviation services during their careers are eligible for pay compensation
between $125 and $840 monthly. The Officer aviators that continue with active duty after the end
of their initial service commitment earn up to $12,000 additional pay each year. Enlisted divers
are eligible to an extra maximum salary of $340 monthly whereas officers receive $240 with the
aim of offsetting the duty sea hardships. For officers to become eligible to receive sea pay, they
MILITARY COMPENSATION
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must have undertaken a shipboard assignment for more than three years. The Enlisted Soldiers can
reach E-4 pay grade without considering the time they have spent at sea.
From the above research, it is evident that the pay grades for the U.S Military officers
depend on their ranks and number of years in the service (Poston et al., 2015). The soldiers with
similar ranks receive the same basic salary in spite of the job they do. Some of the tasks could be
dangerous or require additional efforts, thus the office that performs these duties are eligible to a
further bonus on their base compensation. For instance, an enlisted officer in the Special Forces
with an experience of less than two years receives similar base pay as his counterparts with the
same ranks and experiences. However, the eligibility for additional bonuses such as the hardship
allowances, sea pay, foreign language proficiency pay, flight pay, and special duty pay can add up
to more than $1000 each month.
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References
Myers, R. C., & Boudreau, T. M. (2011). Charging toward an even brighter future. Army Signal
Center and Fort Gordon GA.
Offenhauer, P. (2007, December). General and flag officer authorizations for the active and reserve
components: a comparative and historical analysis. Washington, DC: Library of Congress.
Poston, W. S., Haddock, C. K., Jahnke, S. A., Hyder, M. L., & Jitnarin, N. (2015). A content
analysis of military commander messages about tobacco and other health issues in military
installation newspapers: what do military commanders say about tobacco? Military
medicine, 180(6), 708-717
Robinson, L., Long, A., Jackson, K., & Orrie, R. (2018). Improving the Understanding of Special
Operations: A Case History Analysis (No. RR-2026-A). RAND Santa Monica United
States.
U.S. Army. (2018, October 12). Military Compensation: Total Military Pay & Benefits. Retrieved
from https://www.goarmy.com/benefits/total-compensation.html
Running head: MILITARY COMPENSATION MANAGEMENT
Waylon Magobotha
Military Compensation – Pay-For-Performance
Compensation Management
Park University
MILITARY COMPENSATION MANAGEMENT
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Military compensation touches on various aspects which include the wages they are given
as well as the benefits. The benefits include dependent reimbursements, reenlistment additions,
survivor reimbursement, vacation, health care, vacation and retirement among others.
Compensation is meant to ensure that members of the military feel that they are paid for the
services that they offer (Maldon et al., 2015). They are also meant to improve on their morale with
respect to the duties that they are normally given. As a result, an effective military compensation
system bears the chance to boost the ability of the military force to provide high-quality services.
There is, therefore, the need to conduct an analysis of the current state of the compensation system
and address pay-for-performance and benefits.
The pay-for-performance military compensation system is based on recognizing the input
that military personnel normally offer in their services. Pay-for-performance entails assessing the
specific skills that the military personnel bring to service as well as the targets that they meet while
doing their job. The plan was suggested by the Department of Defense (DoD) as a way of dealing
with the incessant complaints regarding pay inequalities that were raging on (Wallace et al., 2015).
Therefore, the process of performance appraisal would clearly establish the military personnel who
needed to be paid more than others, by how much and by what extent. The action needs to be done
in a manner that is credible and fair. Through the process, other members of the military are likely
to gain the confidence that their interests have been taken into great consideration. Such members
are also likely to put in great efforts with respect to ensuring that they perform in a manner that
relates to meeting the specific targets that have been placed for them.
The inception of the pay-for-performance in the 2010 financial year meant that the DoD
would put more actions in ensuring that the various personnel would attain the chance to offer the
appropriate capacity to deliver on the specific duties that they are given (Gilbert, 2016). For
MILITARY COMPENSATION MANAGEMENT
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instance, it is imperative with respect to ensuring that military personnel are provided with the
appropriate training, mentoring and counseling. The personnel, therefore, identify more with the
situation in which they are and seek to engage more in practices that boost upon their better
performance levels.
While the pay-per-performance system is effective, it is much complex and less likely to
create total satisfaction with various stakeholders when not well-implemented. Its effectiveness in
application requires proper communication between the leaders and the military personnel
(Bianchi, 2016). The situation will offer the military leaders on the specific gaps shown in the plan
and, therefore, seek to bridge them. The move will also be imperative with respect to building
upon the motivation levels that military personnel held in the different duties that they are given.
There are various individual benefits that members of the military normally receive in
regards to the services that they offer to the body. For instance, there are special pays that are given
in line with more unique services offered. One of them is the Hostile Fire/Imminent Danger Pay
(Cancian, 2015). The pay is offered to military officers who have been given more specialized
training to work in environments that are particularly more dangerous owing to the hostile
conditions that they offer. An instance relates to military officers who are pilots or those who work
at sea. They need to be given more financial benefits to complement the unique circumstances that
they work under.
Some of the group benefits contained within the individual and group benefits are basic
allowance for subsistence and basic allowance for housing. The allowances are meant to ensure
that military personnel bear the chance to access both food and housing simultaneously (Bianchi,
2016). The move is important with regard to increasing the willingness of the military officers to
continue providing their services, owing to the general value that is put upon them.
MILITARY COMPENSATION MANAGEMENT
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Some of the legally mandated compensation systems in the military include the healthcare
and retirement benefits. The DoD normally offers healthcare to its military officers through the
TRICARE plan. The plan ensures that both the members in service as well as their dependents
have the chance to access healthcare without having to provide any premiums or giving any
copayments (Gilbert, 2016). The plan is effective, especially when compared to the one offered
within the private sector. In the private sector, it normally costs employees an average of $16,834
every years in the amount of money that they provide as premiums. The application of the
healthcare plan in the military ensures that they attain the best healthcare without necessarily
having to pay much for it.
The application of the retirement benefits is still weak, especially given the fact that only
service members who are in active duty for at least 20 years become eligible to be given a
considerable amount of pension immediately they leave service. Those personnel who provide
their services in the military for less than 20 years, on the other hand, are not eligible to receive
any retirement benefits. Therefore, the retirement plan is unequal and highly expensive. The
situation means that about 83% of military personnel who provide their services do not get the
chance to earn any pension. It is an all-or-nothing arrangement that only favor those who give too
much of their time to military service.
While the military is doing well in terms of providing the pay-for-performance
arrangement, it needs to do more in terms of making the appropriate arrangements in determining
the appropriate personnel who need to be paid more, especially owing to the specific skills and
talents that they normally offer (Cancian, 2015). Better measures also need to be applied in regards
to the retirement benefits that members of the military get to obtain. The 20 years’ minimum years
of service established to make one eligible for pension is high. It shows that most of the military
MILITARY COMPENSATION MANAGEMENT
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personnel fail to get the chance to lead better lives once they leave the military. For the most art,
they are less likely to have nothing much to show for the services that they offered. Where the time
limit is reduced to 10 years, it is more likely to create desirable benefits to military personnel.
The current military compensation system applied is applied only that various actions can
be taken to make it better. For instance, where the pay-for-performance arrangement has been
deemed to be effective, more actions need to be applied with respect to ensuring that the most
appropriate persons are enlisted for a higher pay. The move will help to boost the morale of military
personnel. There also needs to be a change within the retirement plan in a bid to ensure that most
people who provide service qualify for pension.
MILITARY COMPENSATION MANAGEMENT
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References
Bianchi, S. C. P. (2016). Compensation as a consequence of environmental damage caused by
military activities arising from unlawful invasion: How to design a multilevel legal
framework?. Journal of Social Sciences and Humanities at West Point, 1.
Cancian, M. F. (2015). The Impact of Rising Compensation Costs on Force Structure. Joint Force
Quarterly, 79, 79.
Gilbert, E. (2016). From Declassified Documents to Redacted Files: Tracing Military
Compensation. In The Routledge Companion to Military Research Methods (pp. 50-63).
Routledge.
Maldon Jr, A., Pressler, L. L., Buyer, S. E., Zakheim, D. S., Higgins, M. R., Chiarelli, P. W., ... &
Carney, C. P. (2015). Report of the Military Compensation and Retirement Modernization
Commission. Military Compensation and Retirement Modernization Commission
Arlington VA.
Wallace, R. A., Colarusso, M. J., Hall, A. O., Lyle, D. S., & Walker, M. S. (2015). Paid to
Perform: Aligning Total Military Compensation With Talent Management. Volume 8.
Army War College Carlisle Barracks PA Strategic Studies Institute.
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