Navy unveils new retention bonuses for SWO department heads

The Navy is doling out more cash in retention bonuses to surface warfare officers , offering up to $150,000 for officers to stay in service.

The increase in bonuses comes as the Navy eyes ways to keep more SWOs, who historically have departed the Navy at higher rates than their submarine and aviation community counterparts.

Under the new bonus structure, officers who sign on for the department head bonus after three years of service could receive $10,000 at their fourth year of service, $15,000 at the fifth year of service, followed by five annual payments of $25,000, for a total of $150,000.

When an officer signs the department head bonus in their career determines the total amount they are eligible to receive, according to a naval administrative message, or NAVADMIN , released July 30.

That means the amount declines the more senior an officer is, in accordance with the payment structure. For example, the new incentive states an officer who signs the bonus after seven years of commissioned service would only receive three, $25,000 annual payments on their subsequent year of commissioned service anniversary.

Check out the exact payment structure here .

Here’s what the Navy is doing to boost SWO retention

Those with at least three years of commissioned service are eligible for the retention bonus, so long as they’ve completed one division officer tour and are administratively screened for department head.

Those eligible must also agree to complete two afloat department head tours, a single longer department head tour, or complete commissioned service for 10 years — whichever is longer, the NAVADMIN said.

Under the previous SWO department head retention bonus , officers could receive a maximum of $105,000 – if signed three to eight years after commissioning.

For Fiscal Year 2023, SWO retention among division officers who choose to go to department head school dropped to 34.7 percent — just down from the previous year’s 35.1 percent retention rate, Naval Surface Forces commander Vice Adm. Brendan McLane told reporters in January.

“While each year’s group is unique, our 10-year department head retention average is about 35 and a half percent,” McLane said ahead of the Surface Navy Association’s annual conference. “So we continue to assess our retention trends through surveys with our division officers, we follow the GAO reports closely and then we engage a lot on the deck plates with our officers to find out what’s most important to them and then what we can do.”

On top of the retention bonuses, the Navy is also implementing changes such as providing greater flexibility for school career paths to better support shore opportunities and family planning, according to McLane.

This includes allowing SWOs to complete department head school up to approximately the ninth year of service, rather than at the seven year mark, McLane said.