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20080211 U HCDC Study CL RR 04 Memorandum from the Ministry of Defence 1. This memorandum aims to provide the House of Commons Defence Committee with information for their inquiry into Recruitment and Retention in the Armed Forces. INTRODUCTION 2. The manning position facing the Armed Forces remains challenging. At 1 January 2008 the Armed Forces were outside the agreed Public Sector Agreement Manning Balance. Trained strength was 174,910, against a liability of 180,430. The shortfall of 5,420 is 3.1% of the requirement. Manning balance is a broad measure, and within the overall picture there can be larger shortfalls or excesses against particular trades and specialist groups. Where there is a shortfall in a particular area, or a commitment that exceeds the formal establishment, this is identified as a pinch point and closely managed to alleviate the impact. Details of current pinch points are listed below. Recruitment (intake from civilian life) has been relatively strong in 2006/2007 and so far in 2007/2008. Wastage in training, however, means it is proving harder to sustain our targets for gains to the trained strength. Voluntary Outflow rates remain broadly stable and in line with historic norms. Nevertheless, they are edging upwards, and in a number of specialisations (for example the Infantry and RN General Service Warfare Branch) are higher than we wish. MOD is focussing its investment on Service Personnel to try to improve retention, through direct measures such as commitment bonuses and targeted Financial Retention Incentives, and indirect improvements to the overall Armed Forces package, for example the extensive investment to improve the quality of Service Accommodation. DATA 3. The information provided in the MOD’s Annual Report and Accounts 2006/2007 has been updated at Annex A to include the latest available figures which, in most cases, reflect the position at 1 January 2008. It includes the original figures provided in the MoD Annual Report and Accounts 2006-2007, revised figures for 2007 and figures at 1 January 2008. The original 2007 information presented Naval Service and RAF figures at 1 April 2007 and Army data at 1 March 2007 because Army data from the new Joint Personnel Administration System had not been validated. The Army information has now been updated to show figures at 1 April 2007. There have also been some minor Naval Service and RAF 2007 revisions. THE LATEST POSITION REGARDING THE MANNING PINCH-POINTS 4. An Operational Pinch Point is defined as a shortfall in trained strength that has a detrimental impact on operational effectiveness. Trades facing structural manning issues requiring recruitment and/or retention measures for resolution are described as Manpower Pinch Points, Critical Shortage Groups and Critical Manning Groups. Details of the current pinch points are provided at Annex B. 5. There are 16 pinch points in the Naval Service plus 9 Critical Manning Groups which are potential pinch points. A shortage of Submarine manpower, in particular Able Rate Warfare Systems (Tactical Submariner) and Strategic Weapon System Junior Rates, 1 is beginning to cause concern. Although the nuclear watchkeeper plot is improving, a potential shortage of Reactor Panel Operators remains a concern, as does the more general risk to retention of nuclear watchkeepers implicit in the resurgent civil nuclear programme. A second area of concern is naval aviation, notably Royal Navy Harrier GR7 Instructors and Lieutenant Pilots. The Air Engineering Technician situation remains challenging. Merlin Pilots, Observers and Aircrewmen shortages are leading to gapping of frontline crews with a subsequent impact on Operational Capability. Long term gapping of Leading Seaman (Warfare), the mainstay of the RN’s operational capability, remains serious. Royal Marine Other Ranks are still an area of concern despite high uptake of the Financial Retention Incentive payment. 6. The Army currently has 30 pinch points. The Army Pinch Point Working Group regularly reviews the action plans in place to address each of the Pinch Point areas. A manning shortfall which has affected the structure of that specialisation and will take recruitment/retention measures to rectify is defined as a Manning Pinch Point. Shortages in the Infantry, Royal Artillery and Royal Electrical and Mechanical Engineers all impact on sustaining operational capability. In February 2008, Royal Artillery soldiers and Musicians were added to the Register as an Operational Pinch Point and a Manning Pinch Point respectively. Royal Logistic Corps Petroleum Operators were removed from the Register in February 2008 as a result of the successful implementation of measures to improve the manning situation. 7. The RAF currently has 31 pinch points; 16 are manning pinch points, and 15 are operational pinch points. Operational pinch points reflect the pressure of current operations and can change rapidly as a direct result of outflow at specific ranks. They are therefore highly sensitive to Voluntary Outflow and re-engagement rates. The areas under most pressure comprise Weapon System Operators, Helicopter crewmen, the operations support area (RAF Regiment gunners, Intelligence analysts), airfield support trades (firefighters, movements controllers, Air Traffic Control assistants and managers, drivers), and medical staff. The RAF Harmony Working Group maintains a robust set of action plans designed to ameliorate the effects of the shortfalls. Currently, operational success is not at risk from the existence of these pinch points. HOW MUCH WAS SPENT ON RECRUITMENT FOR EACH OF THE LAST SEVEN YEARS BY EACH OF THE THREE SERVICES AND THE RESERVES 8. Overall spending on RN/RM recruitment over the past seven years is detailed in the table below: 2 Financial Financial Financial Financial Financial Financial Financial Year Year Year Year Year Year Year 2001/200 2002/200 2003/200 2004/200 2005/200 2006/200 2007/200 2 3 4 5 6 7 8 £M £M £M £M £M £M £M Manpower 16.259 16.245 Marketing and Publicity 10.251 12.683 Advertising 5.753 7.242 5.903 Recruiting Offices 1.997 2.039 Other costs including utilities, vehicle repair, 4.399 4.194 agency fuel cards, stores, travel & subsistence, TOTAL 32.894 29.927 31.182 32.254 34.764 32.906 35.161 Note: 1. Financial Year 2007/2008 is a forecast. It is not possible to break down the data for Financial Years 2001/2002 to 2005/2006. Similarly, expenditure on Royal Naval Reserve and Royal Marine Reserve recruitment is only included for FY 2006/2007 and FY 2007/2008. 9. The total amount spent on Army recruitment in each of the last seven years was: Financial Financial Financial Financial Financial Financial Financial Year Year Year Year Year Year Year 2001/ 2002/ 2003/ 2004/ 2005/ 2006/ 2007/ 2002 2003 2004 2005 2006 2007 2008 £M £M £M £M £M £M £M Manpower 27.360 32.541 34.712 35.205 35.495 37.592 38.6271 Advertising 5.23 5.37 7.750 15.950 21.350 23.248 26.052 Offices 4.430 4.860 5.149 6.769 6.603 5.376 5.158 Regional 8.565 Marketing Bursaries 2.533 Regimental/ Corps/Army 1.903 Recruiting Teams Information Technology 2.617 Systems Army Development 1.113 & Selection Centres Other 29.329 25.611 23.754 27.457 25.52 24.882 8.599 TOTAL 66.349 68.382 71.365 85.381 88.968 91.098 95.167 10. These costs include those of the Army’s Recruiting Group’s but do not include other costs such as additional activities by units. 11. The main areas of Army recruiting expenditure are: 1 Excludes costs related to Army Development and Selection Centres which became part of Recruiting Group in April 2007. 3 • Manpower (41%). • National Marketing/advertising, including television media and production, publications, websites, response handling etc (27%). • Regional Marketing (9%). • Bursaries and Cadetships (2.5%). • Rent & Rates for Armed Forces Careers Offices & Army Careers Information Offices (4.5%). • Property maintenance, relocation, refurbishment, utilities costs etc of Armed Forces Careers Offices and Army Careers Information Offices (1.5%). • Supporting Regimental Recruiting Teams, Corps Recruiting Teams and Army • Recruiting Teams (2%). • Recruitment and Selection Management Information Systems (2.75%). • Army Development & Selection Centres [primarily costs of session doctors] (1%). • Headquarters of the Army’s Recruiting Group (7%) • Other costs (1.75%) 12. Prior to the introduction of One Army Recruiting, Territorial Army recruiting effort was spread through the Chain of Command from Regional Forces through Divisions and Brigades to Units. The Regional Forces Cadet Associations were also involved, particularly in the marketing and advertising campaigns, albeit under direction from the Chain of Command. As a result it is not possible to easily separate out those costs linked directly to recruiting from the historic data. 13. RAF recruiting expenditure over the past seven years was: Financial Financial Financial Financial Financial Financial Financial Year Year Year Year Year Year Year 2001/ 2002/ 2003/ 2004/ 2005/ 2006/ 2007/ 2002 2003 2004 2005 2006 2007 2008 £M £M £M £M £M £M £M Manpower - Inspector of Recruiting 12.345 12.715 13.097 13.489 14.557 15.076 15.453 (including Field Force) Manpower – Officer and Aircrew 2.541 2.617 2.696 2.777 3.206 3.132 3.210 Selection Centre Manpower - 2.566 2.643 2.722 2.804 3.209 3.097 3.174 College Marketing 6.518 8.125 8.317 9.365 7.572 10.642 12.890 Armed Forces Careers Office running costs 0.884 0.906 0.929 0.952 0.868 0.682 0.699 (11 RAF Sponsored) Armed Forces Careers Office 0.679 0.696 0.713 0.731 0.713 0.784 0.804 Lease costs (paid centrally) Other Costs 4.158 3.308 7.090 5.948 7.018 5.077 5.204 including 4 educational sponsorships, travel and subsistence, admin, vehicle hire, contracts Total 29.690 31.010 35.564 36.066 37.143 38.490 41.434 Note: 1.
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