Posts Tagged ‘navy retention’

GULF OF OMAN (Feb. 20, 2023) The guided-missile destroyer USS Paul Hamilton (DDG 60) approaches the dry cargo and ammunition ship USNS Alan Shepard (T-AKE 3) in the Gulf of Oman, Feb. 20, 2023. Paul Hamilton is deployed to the U.S. 5th Fleet area of operations to help ensure maritime security and stability in the Middle East region. (U.S. Navy photo by Mass Communication Specialist 2nd Class Elliot Schaudt)

Surface Warfare Officers (SWOs) have been a part of the Navy since…always. Our Navy started out on surface ships, and surface warfare continues to be important, no matter what an Aviator, Submariner or SEAL will tell you. Yet increasingly I have to wonder, does the Navy understand why it is so hard to keep SWOs? You would think with hundreds of years of history this would be obvious, but given its latest actions, I’m not so sure, because the US Navy is facing a SWO manpower crisis, and is dealing with it in ways that simply won’t work.

Let’s go back to my original rules for Navy manpower. When times are good and we have too many Naval Officers, the Navy does the following:

  1. Kick people out for failing physical fitness tests, even if they are otherwise good Sailors
  2. Make it hard to get waivers for things like antidepressants and other medical issues
  3. Begin nicely asking older Naval Officers to retire to make space for younger officers
  4. Lower the number of Officer Candidate School admissions
  5. Reduce bonuses
  6. Make life increasingly difficult, so that more people naturally quit
  7. Conduct a Reduction In Force (RIF) and simply remove people

This is a pretty good strategy to reduce numbers, slowly ratcheting up the pressure to ensure we don’t have too many officers hanging around. Naturally, if we have too few officers, the Navy turns this around by:

  1. Not kicking people out for physical fitness test failures
  2. Waiving darn near everything, from age to non-violent felonies
  3. Asking people to pretty-please stay around a few more years
  4. Opening OCS and other admissions
  5. Raising bonuses
  6. Make life better for officers
  7. Reduce opportunities to leave early
  8. Op-Hold people

In the past, the Navy has done everything on the first list to bring down numbers. Now, they are doing…almost everything on the second list, but it’s not working, and it’s becoming glaringly obvious in the SWO community. If you listen to Admirals speak (and I don’t recommend that), you would think we’re doing OK on SWO retention. But a brief glance at the Health of the Force survey shows that disaster looms around the corner:

Future force structure increases outside the future year defense plan (FYDP) require DH billet increases, requiring increased retention. This compares unfavorably with a declining billet base across the FYDP as the Navy divests legacy platforms. Year groups 2015-18 require an average retention rate of at least 37.3%, exceeding the 10-year average. If fleet size projections remain accurate, Surface Warfare requires a retention rate of 44% in YGs 19-22 to meet future afloat DH requirements.

Health of the Force Survey

So we’re not making the retention rate we need now, and we have to increase this by 10 percentage points in the future, but retention is plummeting.

All the Manpower people in the Navy right now…

The Navy is already overlooking physical fitness failures, waiving medical conditions and opening up OCS admissions…which are now having a higher-than-expected failure rate. I would think most people would understand that lowering admission standards will likely lead to more failures in a difficult program, but apparently “most people” doesn’t include Navy HR.

So what to do next? Raise bonuses. And boy did they raise them.

NAVADMIN 045/23 discusses continuation bonuses for SWO Lieutenant Commanders (LCDRs). SWO leave after their first Navy tour at a fairly high rate, and it’s hard to persuade them to stay in long enough to promote to LCDR around their 8-9 year mark. So why not pay them $22K a year IF they stay in after promoting to LCDR? It’s certainly worth a shot.

NAVADMIN 046/23 establishes a payment schedule for SWO Department Head bonuses. If a SWO screens for Department Head and agrees to stay for two Department Head tours, they can get bonuses up to $105K in total over 6 years. Conveniently, that would put them right at the point of getting a continuation bonus as outlined previously.

Now, normally this would work. Throw enough money at people, and you can normally get them to stay. But it’s not going to do that, and the reason is hinted at in the Health of the Force Survey:

Improving retention requires a multi-pronged approach. First, community managers are allowing more individuals to lateral transfer and re-designate. This will divest end strength in year groups with smaller DH requirements, freeing inventory for future accessions. Second, several monetary and non-monetary efforts are underway to improve Surface Warfare retention. Surface Warfare Officers now have a career-long continuum of monetary incentives with the introduction of the SWO Senior Officer Retention Bonus (SWOSORB) in FY22. Third, the community offers improved education opportunities including: postgraduate education opportunities, tours with industry, and fleet-up options for increased geographic stability. Fourth, Surface Warfare recently modified the career path to incorporate multiple family planning opportunities for career-minded SWOs. Finally, SWO released the junior officer survey, senior officer survey, and junior officer exit survey to solicit retention feedback.

Health of the Force Survey

Two things stick out:

  1. Family Planning opportunities? I thought Navy was all about killing babies, or at least circumventing existing laws to do so? Guess that’s not so popular when retention is on the line?
  2. The Junior Officer Exit Survey results.

I’ve read the JO Exit Surveys. They’ve existed for years, and they say the same things over and over:

  • We don’t train people enough
  • The job is thankless and people treat JOs like dirt
  • JOs find Navy life is incompatible with having any outside life or family time

That’s every survey, ever. Pay doesn’t make the top three retention issues in almost any survey. In the past though, enough money would make people overlook how bad the job is. But when truck drivers make over $100K a year, or companies pay project managers $150K or more a year, that $105K spread out over 6 years starts to look really small. The Navy caps officer bonuses at $330K over a career. Civilian companies don’t. Pay isn’t going to fix this crisis.

The ONLY hope for retaining SWOs is to increase quality of life. This would mean closing the sea duty billet gap, addressing the shipyard maintenance problems, and make driving a warship fun again. These are all inside the Navy’s wheelhouse, but it seems increasingly incapable of taking these actions. I suspect that the top SWOs are looking down thinking “You young officers are pathetic, back in my day we worked 16 hour days on shore duty and we BEGGED FOR MORE!!!”

Given that pay won’t fix it, and Navy won’t address quality of life issues, I predict we get operational holds on people leaving in the next 6-12 months. I’d like to be wrong, and maybe next year you can repost this and laugh at me, but I have a bad feeling I’m right about this.

This post represents the views of the author and not those of the Department of Defense, Department of the Navy, or any other government agency. If you like this post, why not donate to DaTechGuy, or purchase one of the authors books?

…and not in a good way

We’re seeing more news on people leaving the military, even when within one or two years of retirement. First it was Marine Corps Lt Col Stuart Scheller. Next it was Army Lt Col Paul Hague. I’m sure over the next two months we’ll get about one of these every two weeks before it dies down. They’ll make the news, people will comment needlessly on Twitter, and then life will go on.

That’s not the real story. The real story is that for every one of these very public resignations, there are thousands that are quietly leaving. These people aren’t willing to throw away a pension if they are close to it. For the ones that are ending their first five year commitment, they are simply preparing now to walk away. They won’t make a big stink about it. They won’t leave five page resignation letters talking about Marxism, transgender policy and imbedded racism. Nope. These people will simply leave. They won’t make a ruckus or create waves, they’ll simply vote with their feet.

The military will cover this up. Not like X-Files “I want to believe” sort of cover up. It’ll just not make headlines. You’ll hear things like “We’re short on fighter pilots” now and again, but nothing earth shattering will make the news. The media that cover military stories focus almost exclusively on operations, because operations is sexy. It’s sexy and cool to interview the Blue Angels and look at drones landing on an aircraft carrier. It’s boring to look at numbers. That stuff is for nerds.

But nerds rule, and the numbers already look bad on the Navy side. The best indicator of what is called “community health” is how well you’re filling control grade officers, specifically the O-4 (LCDR), O-5 (CDR) and O-6 (CAPT) ranks. These are important for a few reasons.

  • Almost all of your commanding officers and executive officers come from these ranks. These officers control the day-to-day operations and they have by far the biggest impact on Sailor morale. If morale is suffering and things are getting done, this is the first place to check.
  • These people are lifers. They’ve stayed past 10 years, so they are “in it” for the long haul. They either love what they do, or at least don’t hate it enough to quit.
  • These ranks have the not-fun jobs. These ranks run the show from the background. The sexy jobs flying fast planes, driving boats and shooting at bad people are now past. That makes these jobs harder to fill.

So how is the Navy doing in this area? Easiest way to check is selection rates. The Navy’s officer manning is a pyramid. There are lots of O-1, O-2 and O-3 young officers at the bottom. The ideal selection rate to O-4 is 70%, meaning that 30% of otherwise qualified people are not selected. That seems brutal, but it allows you to pick the best. It also takes into account people that leave anyway, since O-3s that are eligible for promotion would also be finishing their first 5-year committment.

As we go up the pyramid, it gets harder. Ideal selection to O-5 is only 60% of eligible people, and selection to O-6 is about 50%. You only want the best people in positions of command and responsibility, and there aren’t as many jobs that high up, so you’re naturally going to shed more people. Also, these ranks allow people to stay until retirement, so you’ll have more non-selected officers that fill slots until they retire.

So how are selection rates now? LCDR selection rate is roughly 90%, CDR is 80% and CAPT is around 65%. This varies a lot by community, with some communities significantly higher.

That’s bad. High selection rates mean not enough people are staying in until they are eligible for promotion. In a business environment, you can simply hire people from outside or promote younger people, but the military is only allowed to pick 10% from what they call “below zone” officers, who are typically 1-2 years younger than officers that are “in zone” for selection. Now, you can pick officers that were previously passed over for promotion, and in many cases, these officers are otherwise great selections. But officers that are passed over once are likely planning their exit already. Once they see opportunity elsewhere, many are going to walk away.

Worse still, look at the communities with the highest selection rates. For CAPT, these are Cryptologic Warfare (85%) and Information Professional (70%). For CDR, these are…the same group, and the same for LCDR. Cryptologic Warfare officers make and break codes, specializing in cyber warfare, signals intelligence and electronic warfare. Information Professionals connect and maintain Navy communications. Both groups require significant engineering backgrounds, and yet both groups are leaving in droves. If the people that conduct the most advanced warfare areas are leaving, it means we aren’t providing enough incentives for them to stay around compared to what they can achieve in industry.

This is the canary in the coal mine. The numbers are trending worse, not better. This has been happening for the past three fiscal years. Now, combine this with a job market that is begging people to work, and one that is rapidly adopting the use of advanced technology to replace low-skilled jobs. The first people to leave the Navy, much like the first people to leave the fictional company in Ayn Rand’s Atlas Shrugged, are the engineers and people with technical skills. Others in the chain will take notice, and short of significant business setbacks, people with good skills will bail. Once they have “Gone Galt,” the Navy is going to struggle to find competent leaders.

I used to laugh at movies like “Battleship,” where the only tactics the military seems to use are bum-rush the bad guy with big guns, resembling the often suicidal battle charges from the Civil War. Sadly, that’s what we’re going to get when its not worth it for smart people to stay around.

This post represents the views of the author and not those of the Department of Defense, Department of the Navy, or any other government agency. All data was publicly available at https://www.mynavyhr.navy.mil/Career-Management/Boards/Active-Duty-Officer/.

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