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In 2016, Congress created the Cyber Excepted Service (CES) and granted the U.S. Department of Defense (DoD) flexibilities when setting compensation to support the recruitment and retention of personnel who are critical to the DoD cyber warfare mission. To justify a market-based permanent pay adjustment, there must be evidence that existing compensation is insufficient to attract and retain a required number of qualified employees. A persistent labor shortage signifies that compensation is insufficient and can be identified by high employee turnover or difficulty in filling posted vacancies. In this report, the authors analyze the labor demand and supply for seven DoD cyber work roles that were collectively identified as high priority by the service components and the Office of the DoD Chief Information Officer (CIO). The authors provide a framework for adjusting pay according to economic theory, identify private-sector occupational counterparts for the seven work roles, discuss findings from DoD employment and compensation questionnaires completed by CES organizations, compare characteristics and life-cycle pay between DoD cyber civilians and their private-sector counterparts, and make recommendations for the DoD CIO when setting compensation policy.