News Review: Bonuses for Army | ADM May 2007

1 May 2007

As part of the Australian Government's $1 billion package to overhaul ADF retention and recruitment, the Army has commenced paying soldiers two types of retention bonuses to underpin the growth in Army workforce numbers.

Since 16 March 2007, the Chief of Army has commenced the offer of the Army Expansion Rank Retention and Completion Bonus and the Army Critical Employment Category Bonus.

These bonuses are targeted financial incentives to employment groups and individual serving Army members who hold high-value skills and experience that must be retained to meet the people capabilities required by the Hardened and Networked Army and the Enhanced Land Force initiatives.

Army's two new bonuses are:

* Army Expansion Rank Retention and Completion Bonus. This bonus is based on military ranks critical to Army workforce growth and will be offered in two rounds, once in 2007 and once in 2008.

Initial one-year retention bonuses of $10,000 followed by completion bonuses of $30,000 for three years additional service for selected and experienced corporals, sergeants, captains and majors. There are 5000 Army personnel who are potentially eligible for this year's offer round and 1600 for the second next year.

* Army Critical Employment Category Retention Bonus. This bonus is based on the Army personnel who hold high-value skills and experience in designated critical employment categories, and whose loss could impact on ADF capability, training or operations.

Retention bonuses of up to $25,000 for two years additional service will be offered each year until the category has recovered its personnel strength. The first categories for this bonus are Engineering Plant Operators, Electronic Warfare Operators, Petroleum Operators, and Engineering Construction Supervisors.

There are 380 Army personnel in these categories who are potentially eligible for this year's offer round. Army is continuing to develop the policy guidelines and implementation arrangements for two additional incentives:

* Bonuses to encourage currently serving soldiers to undertake trade training and transfer to technical trade employment groups critical to Army workforce expansion. Retention bonuses of $17,500 or $25,000, depending upon the personnel strength of the trade group.

* Allowances to encourage selected personnel to undertake military instructor postings and recognise the critical roles they play in delivering world-class military training. Allowance of $5000 paid upon completion of each year of instructional posting.

The total value of the Army retention bonus program is $193.5 million over the next seven years. Retention bonuses will only be used as a short-term measure until other major career and remuneration reforms are in place.

Army Headquarters will monitor the progress of these incentives to gauge their retention success and to ensure that Army personnel are able to easily and quickly access their benefits.