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Retention Through Redemption

If employee retention is a headache for business, it’s a migraine for the U.S. Navy. Forty percent of the navy’s new recruits will wash out of the service before their four-year tours are up. That’s not just bad for the military’s effectiveness, it’s expensive: it costs taxpayers about $35,000 to recruit one sailor and send him through nine weeks of boot camp. Of those who make it through their first hitch, only 30% sign on for a second term.

A version of this article appeared in the February 2001 issue of Harvard Business Review.

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