1. OUSD Personnel and Readiness Overview Senior Military Colleges September 26, 2011

2. 2 OUSD(P&R) / Military Personnel Policy 2 2  Repeal Implementation December 22, 2010, RIT organized and activated Key Implementation Message:  Leadership – Professionalism – Discipline – Respect Stages of Implementation:  Pre-repeal – Implementation – Sustainment  Service members have been trained, our policies are in place, and our force is ready for repeal  SecDef and CJCS certified to the President on July 22, 2011  Repeal on September 20, 2011 –Amended Policies implemented –Sexual orientation neutral  MEPCOM implemented and provided seamless service DoD DADT Repeal Implementation

3. 3 OUSD(P&R) / Military Personnel Policy 3 3 DoD Repeal Implementation Plan

4. 4 OUSD(P&R) / Military Personnel Policy 4 4 FY2012 Budget Themes ?

5. 5 OUSD(P&R) / Military Personnel Policy 5 5 Comparison of Military & Civilian Earnings Health care Retirement Annual leave Excludes… RMC: Regular Military Compensation – Pay, Allowances, Tax Advantage Growth in RMC has Outpaced Civilian Wages and Salary Growth Since 2002 Wages for officer equivalent civilians

6. 6 OUSD(P&R) / Military Personnel Policy 6 6 Drawdown Source: Services - Army end strength dropping 49K - Marines end strength dropping ~15 /20K 569,400 520,400 186,000 325,700 328,800332,200

7. 7 OUSD(P&R) / Military Personnel Policy 7 7 Recruiting Environment in 2011  Challenges Continued War on Terrorism (10 th year of conflict) Low support from influencers to recommend service Low youth propensity to serve, but increasing Shrinking pool of qualified youth  (25% of youth qualified & eligible to serve) Projected Budget Cuts  Mitigating Factors Stagnant economy (high unemployment) Enrollment/Applicants up for ROTC & Service Academies Increase in quality of cadets/midshipmen Adequate recruiting resources (Easy target for cuts) Improved situation in Iraq & Afghanistan

8. 8 OUSD(P&R) / Military Personnel Policy 8 8 Confidence in The Military Source: The Gallup Poll® June 23, 2011 (2011)

9. 9 OUSD(P&R) / Military Personnel Policy 9 9 Unemployment Rate 16 Years & Over (Seasonally Adjusted) August 9.1%

10. 10 OUSD(P&R) / Military Personnel Policy 10 10 Strong Relationship Between High Quality Enlistments and Youth Unemployment High-quality enlistments as a percent of total enlistments Unemployment rate of 16-24 year olds Source: DMDC and U.S. Bureau of Labor and Statistics.

11. 11 OUSD(P&R) / Military Personnel Policy 11 11 Recruiting Situation (Active) FY 2011 through August QuantityQuality Active Enlisted Recruiting AccessionsGoal Percent of Goal % High School Diploma Graduate (HSDG); DoD Benchmark = 90 percent % Scoring at / above 50th Percentile on Armed Forces Qualification Test; DoD Benchmark = 60 percent % Scoring at / below 30th Percentile on Armed Forces Qualification Test; DoD Benchmark = 4 percent Army 60,19959,150 102G99G63G<1G Navy 31,308 100G99G89G0G Marine Corps 26,13526,097 100G G72G<1G Air Force 26,533 100G G99G0G DoD Total 144,175143,088 1019978<1 Source: Services

12. 12 OUSD(P&R) / Military Personnel Policy 12 12 Only 25% 17-24 Year Olds Eligible But only 15% available (4.7 out of 31.2 million) Youth population will continue to grow to 35 million by 2025 Represents market available for recruiting; about 4.7 million Source: The Lewin Group, 2007 Target market (1.6M) Category based on AFQT scores in relation to youth population - CAT I-IIIA = upper 50th percentile - CAT IIIB = 31-49th percentile - CAT IV = 10-30th percentile - CAT V = 9th percentile or lower

13. 13 OUSD(P&R) / Military Personnel Policy 13 13  Since 1995, the proportion of adults ages 18 to 34 who are considered obese (BMI greater than 30) has steadily increased. Source: CDC BRFSS 1995-2009 Long-term Challenge: Obesity

14. 14 OUSD(P&R) / Military Personnel Policy 14 14 Obesity Trends: 1991 (BMI ≥ 30, for 18 – 34 Year Olds) No Data <10% 10%-14% Centers for Disease Control and Prevention (CDC). Behavioral Risk Factor Surveillance System Survey Data. Atlanta, Georgia: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention. (1991).

15. 15 OUSD(P&R) / Military Personnel Policy 15 15 Obesity Trends: 2008 (BMI ≥ 30, for 18 – 34 Year Olds) 15%–19% 20%–24% 25%–29% ≥30% Centers for Disease Control and Prevention (CDC). Behavioral Risk Factor Surveillance System Survey Data. Atlanta, Georgia: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention. (2008) ( http://www.cdc.gov/obesity/data/trends.html).

16. 16 OUSD(P&R) / Military Personnel Policy 16 16 Women in the Services Review  Established to answer FY11 NDAA mandated review of restrictions to the assignment of women  Representatives from DoD, Joint Staff, Services and EO  Thorough review of all laws, policies and regulations that limit the service of women in military  Report to Congress in Oct 2011  Continued review will focus on assignment restrictions  Goal to: Maximize military capability Ensure realistic, definable and defendable standards Utilize gender-neutral assignment policies Provide consistent implementation methodology amongst Services

17. 17 OUSD(P&R) / Military Personnel Policy 17 17 Questions

18. 18 OUSD(P&R) / Military Personnel Policy 18 18 Percent Non-Prior Service Accessions Benchmarks High School Diploma Graduates Category I-IIIA Recruit Quality DoD Active Component Recruit Quality