The paper focuses on one aspect of the training and utilization of military manpower--specialty training for first-term enlisted personnel. Costs of both formal and on-the-job training (OJT) are considered, as well as the returns from training for first-time enlisted personnel. After a description of the conceptual framework the paper describes the pilot test of the method, conducted among Air Force Aircraft Maintenance Specialists at Norton Air Force Base, California. Data consisted of performance measures of 64 trainees based on 12 supervisors' estimates, and background information on the trainees. Regression analysis of 13 variables concerning the relationship between OJT costs and the personal attribute data demonstrated that OJT costs are a function of the quality and quantity of prior education, prior civilian job experience, and ability. Regression analysis applied to alternative specifications of the model yielded similar results and further research studies were planned. The study concludes that fundamental changes in military manpower resulting from the all-volunteer force have increased the relative cost of training inexperienced personnel, and that this change may necessitate the military's seeking major increases in retention rates or adopting new training policies. Seven tables accompany the text. (JR)