Systemic Issues with US Army Talent Management and Retention

Abstract

The Officer Personnel Management Act of 1947 standardized the talent management of officers across all the DoD services and implemented an “up or out” system that incentivized top-performing officers for promotion while removing officers from service who did not possess the potential to serve at the next level. In practice, only the most talented officers would remain and continue serving in the US Army while poor performers were removed. However, this industrial-era one-size-fits-all promotion system leaves little flexibility for career progression and has quickly become outdated. The Army’s method of evaluating its officers with an Officer Evaluation Report (OER) is also plagued with biases and inconsistencies. The OERs that determined officer promotions led to a skewed distribution of representation and a lack of diversity in the upper ranks of the officer corps.

In 2018, the FY19 National Defense Authorization Act granted nine new personnel management authorities, allowing the Army to offer more career flexibility and reward top performers. In conjunction with the new Army People Strategy, the Army Talent Management Task Force has made significant progress in revolutionizing how the Army manages its talent. New programs include a comprehensive assessment for battalion commanders, officers having more flexible options for their career timelines, and the Assignment Interactive Module (AIM) giving officers greater transparency and the ability to apply and compete for all positions available to them for their next assignment.

While progress is being made, systemic issues within Army talent management remain that should be addressed. Additionally, recent talent management changes could be causing unforeseen adverse effects. The biggest challenge the Army will continue to face is retaining talent, regardless of how much it improves its talent management system. The Army’s top talent will continue to leave unless the Army addresses more significant problems that concern officer career satisfaction and the support of their families. This thesis evaluates current Army talent management practices and recent changes while recommending system improvements. As an all-volunteer force, the Army must adapt to societal changes and compete with private industry opportunities to effectively manage and retain its talent.