The Army has long relied on fixed retention bonuses to keep senior technical experts in uniform. But as competition for specialized skills intensifies, leaders are trying something new: an auction.
Under the new program, called the Warrant Officer Retention Bonus Auction, eligible warrant officers will submit confidential bids for how much money it would take to keep them on active duty for an additional six years, the Army announced last week.
Lt. Col. Tim Justicz, an Army economist who helped design the program, said in the release that, “the goal is simple. Reward as many qualified Warrant Officers as possible with the most competitive bonus the budget allows.”
Eligible officers can submit a minimum bid of $100 per month, increasing at $100 intervals, the release said, and once the market closes, the Army will use those bids to define a “single, market-clearing bonus rate,” to pay as many officers as the service’s budget allows.
Officers who submit bids at the chosen rate — or lower — will be awarded those bonuses. The catch? Those whose bid above the rate will get no bonus.
The changes apply to those in select specialties with ranks from promotable chief warrant officer 2 through chief warrant officer 4, according to a Military Personnel, or MILPER, message issued a day after the release.
The range of specialities is broad, including CID special agents, unmanned aircraft systems operations technicians and bandmasters, among others. It does not include pilots.
“The structure is designed to make the best strategy straightforward — bid your true value,” the release reads, adding, “Army leadership believes the system rewards transparency and encourages officers to carefully consider the compensation that would make them comfortable with continued service.”
Though officials describe the model as more transparent, the approach introduces uncertainty for participants, who must decide how much to bid without knowing their peers’ requests or where the final rate will land.
