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What may appear to be simple questions on the surface
can help identify not only the employees you want to
focus on but potential gaps in your compensation strategy.
Healthcare organizations are fast-moving, complex
businesses that require agile but systematic approaches
to carrying out a compensation strategy. A couple key
questions to answer would be:
• Do we have a consistent way of identifying
these groups?
• Do we have a consistent way to compensate
these groups?
Depending on your organization and your answers to the
above questions, here are a few helpful ways to better
identify your critical healthcare talent.
Hiring & Line Managers – Nobody has a better pulse on
an organization’s talent than the managers that lead them.
Don’t forget to include them in this process, as their insight
is invaluable. From daily interaction to performance reviews
they will be able to provide a human element to the data
that is critical for your compensation strategy’s success.
And, don’t forget to tap into your hiring resources— early
on, they will know more about your talent than anyone
and will know what it took to get them.
Performance Management – You likely have some sort of
performance review process in place. True performance
management (PM) is more than just an annual review of
performance. In fact, it is a continued process through
which objectives are established, progress is assessed,
and feedback and ongoing coaching is provided to make
sure the employees are meeting their career goals and
objectives. An effective PM program will help healthcare
organizations clearly and consistently identify critical talent.
Succession Planning – Depending on the role in the
healthcare organization, succession planning may or may
not be in place. It is a process used to identify and develop
internal people with the aim of filling key positions in an
organization or solving future business challenges. With
the specialization involved with healthcare positions,
succession planning can be a great tool for identifying high
performing, experienced employees who are ready to
take on expanded roles.
Stay Interviews – Although a relatively new concept, the
underlying premise is as old as management itself. Stay
interviews are a structured conversation between a leader
and his/her direct report designed to uncover actionable
items to increase retention (i.e., what will make them stay).
These types of conversations are often more valuable than
any in terms of retention and can quickly identify your at-
risk talent.
3. Build A Pay-for-Performance Model
For most healthcare providers, outcomes data, CAHPS
scores, and other quality indicators are among the
measures of success. Healthcare organizations are
increasingly rewarded or penalized based on the scores
they achieve under a pay-for-performance model.
Similarly, employers can implement pay-for-performance
reimbursement systems that align e mployee performance
with organizational goals. Employee performance for most
organizations falls into one of three categories:
1. Overall Hospital Performance – These may be metrics
related to financial results or activities directly related
to patient experience and outcomes such as quality of
care, CAHPS, etc. Clinical and non-clinical associates
influence the patient experience.
2. Departmental Performance – Metrics related to
achievement of certain departmental goals, such as
successful inspection or accreditation results, for instance.
3. Individual Performance – This includes each associate’s
performance rating, other evaluations, achievements,
or goals.
Once you have created a consistent way of segmenting the
organization, you can then build out a pay-for-performance
plan that rewards high performance in these areas.
4. Pay Competitively. Pay Appropriately.
Pay Accurately.
As noted previously, recent studies have shown that
compensation can be a key reason why many employees
voluntarily leave their job. Now, we all know there are
more factors involved, but at the end-of-the-day, a
compensation strategy for a healthcare organization must
factor in competitive, appropriate, and accurate pay.
HealthStream Industry Perspective: 5 Ways Compensation
Planning Can Improve Employee
Retention
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