Running header: COMPENSATION IN THE HEALTHCARE INDUSTRY 1
Compensationand Benefits Options within the Healthcare Industry
Accordingto the USA Bureau of Labor Statistics, the health industry employsmore than 15 million people. Compensation and benefits are ways bywhich an employer is able to provide financial value to employees forwork performed. It is a crucial part of the management oforganizations and if done well improves work productivity and jobsatisfaction among staff. Compensation specialists are professionalshired to asses an organization’s pay structure and come up withcompensation policies. This paper is a report summarizing the answersof a compensation and benefits specialist interviewed on compensationand benefits options within the healthcare industry. The specialistinterviewed is a compensation and benefits manager at a UniversityHospital in Cleveland, Ohio that employs over 15,000 staff.
Determinationof wages and salary levels for your employees
Frominsights provided by the specialist, compensation and benefits areevaluated according to the employees’ educational background, workexperience, and job description. Candidates with qualifications fromhigh ranked schools combined with work experience from similar orhigher ranked organizations attract better compensation and benefits.Sometimes there are job descriptions where compensation is based onperformance.
Ensuringadequate pay to attract the types of employees needed
Onthis question, the specialist advised that compensation has to bewithin or above market levels and aligned with job descriptions.Including benefits such as adequate life insurance and medicalcoverage in the compensation package ensures the organization is ableto attract the best from the labor market. This way the organizationis able to offer compensation that ensures employee job satisfactionas well as good work performance. It becomes easier to attract theright talent when this is implemented.
Thespecialist opines that compensation is seen to be fair when it isaligned to work performance, job description and employeequalifications and work experience. Employees with similar jobdescriptions may not necessarily be compensated similarly. Their payshould be based on the above criteria and adhere to any relevantlegal regulations such as wage discrimination laws.
Whenasked whether employees ever negotiate for pay, the specialistconfirmed that it has become a trend now. Employees want to negotiatetheir salaries according to what they believe they can provide to theorganization. Interviewers usually ask a candidate how much theythink they should be paid if offered the job and eventually when thecandidate is appointed their salary is negotiated. In thenegotiations, the employee suggests what they believe would beadequate for them and the employer makes an offer. The employee thendecides whether the offer is attractive enough.
Onthe question of whether her organization ever pays hiring bonuses,the specialist observed that it is a rare occurrence. She agrees thatit is a common practice in other occupations but admits it rarelyoccurs in the healthcare industry.
Needfor change of pay systems
Thespecialist said she does not see the need to change the paymentsystem used by her employer given that it has shown good results.According to her, the organization has highly motivated employees.
Thespecialist advised that incentives are the number one way to keepemployees satisfied in their work. She admitted that her organizationoffers employees incentives in the form of pay for performance andtraining opportunities. The employer values the advancement of skillsto improve performance. To this end, the employer funds training forspecialist employees to improve outcomes in patient care. Herorganization offers bonuses to employees that perform wellperiodically.
Whenasked whether she has developed a career structure for herorganization, she agreed. She observed that one way of motivatingemployees to have a structure that shows them where their efforts cantake them. She has a structure that promotes employees based onperformance and additional qualifications. Her organization also hasa compensation structure that provides salary increments periodicallybased on performance.
Thespecialist on the question of how she ensures compensation that goodworking conditions for the employees answered that her organizationconsults widely and regularly with the employees to come up withpolicies that ensure the employees are comfortable. She mentionedexamples such as the provision of meals to employees within thecompany premises to save time. She agreed that employees in thehealthcare sector work in the most strenuous of conditions.
Inconclusion, the specialist gave an example of a nurse. According toher for an organization to attract the best qualified and competentnurses, it has to offer an attractive compensation package. Thehourly market rate pay for nurses ranges from $22 to $40 for regularhours and $15 to $60 for overtime pay culminating an annual pay ofbetween $45,000 and $97,000. Some small organizations such asphysician offices offer profit sharing options to nurses. Herorganization offers a salary that is at the high end of the marketrates. She observes that the size and funding of an organizationdetermines how well it can compensate its staff.
29-1111Registered Nurses*. (n.d.). Retrieved January 12, 2017, fromhttps://www.bls.gov/oes/2011/may/oes291111.html
McConnell,C. R. (2013).Thehealth care manager`s human resources handbook.Burlington, MA: Jones & Bartlett Learning.