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62 NAVY ENGINEERING BULLETIN SEPTEMBER 2003<br />
BY CPOMT GLEN POPE,<br />
HMAS STUART<br />
You would all be aware that<br />
current retention rates within the<br />
Technical Categories are poor,<br />
particularly for our ET brethren.<br />
You would also be painfully aware<br />
of the impact all those empty<br />
billets (resulting from said<br />
retention rate) have on the<br />
personnel that are left to<br />
shoulder the workload. And most<br />
of you would be aware that one<br />
of the main reasons our<br />
personnel leave the RAN is a lack<br />
of job satisfaction. What is not<br />
readily recognised is the exodus<br />
of corporate knowledge that<br />
accompanies the personnel that<br />
choose to leave.<br />
How do we solve this problem?<br />
The issue of job satisfaction is<br />
extremely complex; how exactly<br />
do you quantify job satisfaction?<br />
What I consider to be a satisfying<br />
day at work others may consider<br />
boring. A common complaint from<br />
most personnel relates to the<br />
need for them to perform noncore<br />
functions, such as café<br />
party, or watch on deck. Since the<br />
inception of the <strong>Navy</strong> there has<br />
been café party and watch on<br />
deck and I for one can not<br />
foresee a time in the near future<br />
when there will not be a<br />
requirement for them. The<br />
difference between now and the<br />
days of old is that our ships carry<br />
less personnel and subsequently<br />
there is a smaller pool of<br />
personnel to provide the<br />
resources required, therefore you<br />
will get “lashed” more often for<br />
non-core functions.<br />
So what is my point? My point is<br />
that it is going to be difficult to<br />
Retention Bonus or<br />
Reward Scheme?<br />
The following article is the result of absolutely zero research and was<br />
prompted by a random thought I had (which I naively voiced) at the<br />
recent TSAG meeting held in Sydney. My aim is to stimulate discussion<br />
on the subject of retention and how to achieve it, a topic I feel certain<br />
sections of the wider Naval community is ignoring.<br />
overcome the job satisfaction<br />
dilemma, and retention bonuses<br />
as we have seen in the past are<br />
not necessarily the answer.<br />
Retention bonuses have the<br />
unfortunate effect of annoying the<br />
hell out of all those who don’t get<br />
one, usually resulting in a drop in<br />
their performance or worst case,<br />
a dummy spitting discharge.<br />
Retention bonus or Reward<br />
Scheme? is the question I pose.<br />
What if we reward personnel who<br />
put up with the watch on deck<br />
and the café party, who persist<br />
with the long hours and the<br />
dismal sea/shore roster;<br />
personnel who persevere and<br />
progress themselves and who are<br />
prepared to stay for more than<br />
their initial engagement? I<br />
imagine right about now most of<br />
you are thinking, “what is the<br />
difference” (….and they let this<br />
joker loose on a ship?) between<br />
what I am suggesting and a<br />
Retention Bonus?<br />
The difference is simple. A<br />
Retention Bonus works like this; if<br />
we need personnel from Category<br />
A to stay in the <strong>Navy</strong> for x number<br />
of years, we get them to sign on<br />
the dotted line and at the end of<br />
the allocated period they are<br />
given a wad of cash that is then<br />
taxed as income. A Reward<br />
Scheme is as the name suggests;<br />
My point is that it is going to<br />
be difficult to overcome the<br />
job satisfaction dilemma, and<br />
retention bonuses as we have<br />
seen in the past are not<br />
necessarily the answer.<br />
a reward, not a fistful of dollars<br />
you have to share with the<br />
<strong>Australian</strong> Taxation Office.<br />
How will it work? I would suggest<br />
that the rewards should be<br />
something tangible and useful<br />
ranging from computers,<br />
contributions to a private<br />
superannuation scheme, or<br />
ultimately a car. I know all these<br />
things are available via salary<br />
sacrifice; the difference is the<br />
<strong>Navy</strong> would pay the relevant<br />
payments and the associated<br />
fringe benefits tax. As this is a<br />
system that is currently in place<br />
there would be minimal start-up<br />
costs, if any.<br />
Who would get the Reward, and<br />
when? Personnel re-engaging<br />
after their initial period would<br />
qualify for a “reward” that was at<br />
the lower end of the financial<br />
scale, and as they progress<br />
through to Senior Sailor level and<br />
10 years service the value of the<br />
reward would increase and so on.<br />
Eventually, a Warrant Officer with<br />
over 20 years service would<br />
qualify for a Porsche Boxster AND<br />
a new walking frame . . . no, just<br />
kidding, but you get the picture.<br />
As you can see, every one of us<br />
will qualify for some reward or<br />
other after our initial engagement.<br />
Personnel would have the option<br />
of rejecting the scheme and<br />
receive nothing until such time as<br />
it suited them. There would be no<br />
“cashing” out option and<br />
personnel would only receive the<br />
reward commensurate with their<br />
rank and “time in”. I have<br />
deliberately tied rank and time in<br />
service together, as some<br />
personnel experience more rapid<br />
movement in their promotion<br />
rosters than others.<br />
So is it feasible? I believe so. The<br />
beancounters will tell us that it is<br />
a pay rise by default and it will<br />
undoubtedly cost a fair sum of<br />
money. But how much money do<br />
we waste recruiting people and<br />
training them just to watch them<br />
walk out the door six years later?<br />
I believe that it will have a<br />
positive effect on retention – even<br />
if we only succeed in keeping 20<br />
personnel from leaving, that is<br />
money saved by not having to<br />
recruit and train another 20<br />
personnel (or in the case of 20<br />
Petty Officers, another 100<br />
personnel). Not to mention the<br />
loss of corporate knowledge,<br />
which is something no-one can<br />
put a price on.