13 June 2001 1
DoD Study of Morale/QoL Study Charter National Security Presidential Directive #2 Tasked SecDef to conduct study of qualify of life Requested recommendations for improvements in several key QoL areas SecDef expanded study charter to encompass the broader issue of Morale Concern for Morale/QoL is a primary duty for civilian and military leaders Must address quality of life issues in context of their impact on morale of total workforce 2
Problem Statement Highly esteemed institution but declining propensity to serve High operational tempo No longer downsizing Fewer influencers with military experience Too much & dated infrastructure Limited/missing job enablers Inefficient business practices Total force usage Competitiveness in market for personnel Inflexible, one-size fits all personnel system Career compression Requirements for critical skills Changing demographics High individual expectations Substandard & limited housing Call for Change is Clear Past paradigms no longer address today s problems, much less requirements of the future. 3
Continuing Pattern of High Operational Tempo Since 1990 Army - Deployments up 300 percent in 10 years Navy - Deployed Navy ships on any given day up 52 percent Marine Corps - Calls to respond to crises tripled Air Force - Deployments quadrupled since 1986 4
Changing Force Design & Employment Concepts Expanded Use of Reserve Component Millions of Duty Days 39.0M Duty days DESERT SHIELD / STORM CONTRIBUTION NOTE: NOTE: DATA DATA SHOWS SHOWS DIRECT DIRECT SUPPORT SUPPORT ONLY, ONLY, NOT NOT INDIRECT INDIRECT SUPPORT SUPPORT (e.g., (e.g., RECRUITING, RECRUITING, USPFO, USPFO, MOST MOST AGR AGR SUPPORT). SUPPORT). EXCLUDING DESERT SHIELD / STORM 13.5M Duty days 12.6M Duty days 13.5M Duty days 12.3M Duty days 5.2M Duty days.9m Duty days 5.2M Duty days FY86 FY87 FY88 FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 5
The War for Qualified Personnel Rising Cost of Quality Percentage of Recruits 85% 75% 65% 55% Investment* $10,000 $8,000 $6,000 45% Cost per Recruit $4,000 35% 25% 81 % Hi-Quality Recruits 83 85 87 89 91 93 95 97 99 01 $2,000 $0 Fiscal Year * Investment means recruiters, recruiter support, advertising, education benefits, and bonuses per recruit in the year shown (constant FY 2000 dollars). Hi-Quality = HSDG/I-IIIA. 6
Changing Demographics of Enlisted Force Educational Aspirations and Attainment Percent 100 90 80 70 60 50 40 30 20 10 0 1985 1992 1999 Enlisted personnel, percent with some college education Years of Service 1-4 5-10 11-20 21-30 7
Enlisted Pay Insufficient for Comparable Workforce Relative to Earnings of Civilians with Some College July 2000 Enlisted Pay (Regular Military Compensation) Compared With Predicted Year 2000 Earnings of Males with Some College (SC) $60,000 $55,000 Annual Earnings (in 2000 Dollars) $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 Flatness of mid-grade pay a particular challenge 0 5 10 15 20 25 30 Experience 70th Percentile Avg SC Avg RMC (E1-E7) 50th Percentile 8
Aging DoD Civilian Workforce Frequency 50,000 40,000 30,000 20,000 10,000 0 <=20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 Age of employee Pre-Draw Down (1989) Current (2000) Projected Future (2007) Challenges in management of civilian workforce Management of DoD civilian workforce based on complex civil service system, not under SecDef control Effects of continuing downsizing have resulted in workforce imbalances by age, experience, and skills Half of civilian workforce eligible to retire in next five years Fewer young people available to grow into mid-level and senior positions Lack of attention on civilian leadership and management development 9
Providing Better Military Housing Sooner Housing Privatization through Public-Private Ventures Lackland AFB - Before & After Before--Wherry Housing After--Tejeda Estates Privatized Housing 10
Workplace Conditions Impact Morale & QoL $185,000 to fix plane $500 to fix grate Pay me now or pay me much more later F-15 aircraft at Langley AFB drives over deteriorated sewer grate and collapses into the hole (January 1999). 11
Four Key Areas Identified by Morale/QoL Study Leadership Force Management Workplace Personnel & Family Support 12
Leadership Recommendations Communicate nobility and value of military service Engage American public Reinforce integrity throughout chain of command Improve command climate 13
Force Management Recommendations Develop overall human resource strategic plan Implement DoD personnel requirements Design flexible career management system Redesign recruiting and accession strategies Compensate workforce satisfactorily 14
Workplace Recommendations Right-size and modernize infrastructure Transform business processes Improve worker quality of life 15
Personnel & Family Support Recommendations Provide better housing sooner Continue to improve health benefits Respond to changing family demographics in military Redesign relocation process Guarantee service members and spouses right to vote 16
Presidential Initiatives: Restoring Military Morale POTUS Trip to Fort Stewart Increase Military Pay and Allowances ($1.4B) Improve Housing for Military Personnel and Families ($.4B) Implement expanded health benefits for military retirees ($3.9B) 17