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Original presentation given by Theresa M. Worman at the 2014 GSHMPR/GSHHRA/GSHPSR Healthcare Leadership & Education Summit in Greensboro, Georgia.
Healthcare compensation professionals today fight shrinking budgets, demanding employees and high turnover rates. All too often, they are forced to react to challenging issues. It’s time to step out from behind the eight ball and get proactive with compensation planning.
Being proactive does not necessarily entail dispersing large increases. The pay increase budget for hospitals in Georgia is reported to be 2.3 percent for 2014, however we are seeing increases that are planned for the year, but have yet to go into effect. The most successful planning is about how to be wise when budgets are low.
RN is a core position and typically comprises 20 – 25 percent of the total workforce.
Complex market realities and complex pay programs exist for RN’s.
1. Staff’s concept of the labor market: This is where your employees think they could get a job.
2. HR’s observations: This is what HR sees on applications as previous employers or hears in exit interviews about where your employees are leaving to work.
3. Leadership’s idea of your competition: This is often a hospital nearby.
4. The actual labor market: This includes all employers who hire the same skills you do within the “recruiting area” for the particular job.
Pay for Performance vs. Years of Experience
Internal analysis of current pay levels and years of experience tends to be enlightening.
Examine compensation practices outside of base pay to be certain your programs reward the desired behaviors. Consider programs such as PRN, on call, shift differentials, in-house agency rates, float pools, BSN rates and overtime.
It can be difficult for those not in a high tech industry to compete for IT labor.
Sometimes hospitals limit the pool of candidates by requiring IT experience in a healthcare setting.
Look for ways to make your IT positions attractive: