Compensation Strategy for the Future Force

The Assistant Deputy Chief of Naval Operations, Manpower and Personnel (N1B) requested that CNA analyze the Navy's compensation system in view of current recruiting and manning shortfalls and anticipated future changes in the Navy's workforce. This study will help the Navy implement an effective, market-based compensation system that will give it the ability to attract, retain, and motivate a high-quality workforce in a competitive, dynamic labor market. The intent is to take a strategic look at Navy compensation policy and practices. The starting point is to consider what the Navy wants to accomplish with its compensation system. What goals, in terms of managing human resources, can be met through compensation policies and practices? We consider human resources management system approaches, as well as approaches suggested by economics literature, and arrive at a succinct set of strategic goals.