The paper examines the relationship of two aspects of job satisfaction: satisfaction with the work itself (job content) and satisfaction with the job environment (job context) to retention behavior and measures of on-the-job performance of first-term Naval enlisted men. While both job content and job context factors were found to be important determiners of job performance, only the job context and compensation measures asserted a strong influence on reenlistment decision. The findings suggested that the Navy should concentrate on improving the aspects of naval life associated with the satisfaction of more basic needs--such as pay, image of the Navy, and ship-board living conditions--to retain enlisted men, particularly those in the "hard" ratings in the electronics and electro-mechanical occupational groups. (Author)