Majority of Reservists' families report more income during service - HR News

HR Magazine, May, 2003 by Bill Leonard

A report released by the Department of Defense (DOD) reveals that the economic hardship suffered by workers who are called to active duty as part of the U.S. armed forces Reserves or National Guard may not be as severe as some economists have estimated.

Officials with the DOD's Office of the Assistant Secretary for Reservist Affairs have been conducting ongoing surveys of spouses of about 52,000 Reservists mobilized since Sept. 11, 2001. Thirty percent of respondents reported a decrease in family income when their husband or wife began active duty, while nearly 60 percent reported an increase in their household income.

Since military pay is generally much lower than salaries in the private sector, it appears many employers are taking up the slack by offering financial support to employees summoned to active duty. The Society for Human Resource Management (SHRM) conducted a survey of employers in early March and found that 61 percent of the nearly 400 respondents provide some form of compensation support to Reservists on active duty. Of the respondents that offer financial aid, 34 percent make up the difference between the Reservists' civilian and military wages, and nearly 10 percent continue to pay salaries that are equal to what their employees normally earn. The SHRM survey also found that 61 percent of the respondents continue to provide health insurance to the families of the Reservists.

"Many employers have been very generous and supportive of their employees who serve as Reservists," said Col. John O'Shea, director of the Defense Education Forum of the Reserve Officers Association (ROA) in Washington, D.C. "However, not all employers have the resources to provide the kind of support many families need, and many smaller employers really are facing severe hardships created by the recent Reservist mobilization."

O'Shea said that both the DOD and Congress are well aware of the economic hardships the Reservist call-up may have on businesses and want to work with employers to find solutions. Both the House and Senate armed services committees plan to hold hearings on the Reservist mobilization and examine its overall economic impact.

The ROA has set up an Internet-based survey to gather more data on the financial impact that the deployment of Reserves and National Guard troops has on individuals and their families. O'Shea said the ROA will compile and present the data to Congress.

O'Shea added that plans are under way to survey employers about how the Reservist call-up has affected business operations. No date for the launch of the employer survey has been set.

For additional resources, see the SHRM Military Leave Toolkit at www.shrm.org/hrtools/toolkits/mltoolkit.asp