Using Continuation Pay to Combat Turnover: An Evaluation

Abstract

Turnover is a costly problem for the United States military. Continuation pay has become a preferred retention strategy. This article describes the continuation pay strategy that is used by the United States Naval Services with regard to Surface Warfare Officers. Data from 334 officers do not support the retention objectives of the continuation pay strategy. Alternative retention strategies such as retirement benefits and job satisfaction were more salient. Continuation pay is not an effective retention tool. Given the findings of this study, employers may want to take a second look at their retention programs.