Archived Publications Ebook: Using Goal Setting and Performance Manageme | Page 26

CHECKLIST FOR BUILDING A
PAY-FOR-PERFORMANCE MODEL:
☑ Clearly outlined performance category segmentation
☑ Clearly defined job descriptions and goals
☑ Clearly defined department and organizational goals
(aligned with the employee goals)
☑ Performance management system for tracking
manager feedback/evaluations
☑ Transparent goal tracking system for employees
(view current results vs. goals)
Some specific measurements of improvement
may include:
☑ Organizational outcomes (hospital-acquired
conditions or readmission rates, surgical site
infections, shared savings, etc.)
☑ Patient outcomes (LOS, mortality, etc.)
☑ Patient experience of care (CAHPS surveys, etc.)
☑ Processing times (patients, claims, etc.)
☑ Billing progress (amount billed, outstanding A/R, etc)
Some compensation components may include:
☑ Base compensation
☑ Merit Pay
☑ Equity
☑ Special Recognition
☑ Paid Time Off (PTO)
☑ Opportunity Income (tuition, paid development, etc.)
The challenge for most healthcare organizations is that
they are dealing with highly competitive talent markets
while simultaneously trying to fill highly specialized and
complex positions. It is not uncommon for an employee
of a healthcare provider to have multiple positions and pay
rates all within the same building!
The opportunity here is to create a compensation
strategy that is a step ahead. Knowing what you need to
pay, what not to pay, and how to pay can save healthcare
organizations huge amounts of time and money. Let’s look
at each of these a little closer.
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Pay Competitively
We’ve all heard stories of healthcare employees literally
leaving jobs for a dollar here or a dollar there. While market
compensation data is somewhat of an inexact science and
a quickly moving needle in healthcare, it is still helpful
information to have. In fast-moving, competitive markets
like healthcare it is easy to assume you know the market
pay rates, but these could vary greatly based on the region,
specialty, or even size of the organization. Check with folks
in your recruiting department, industry associations such as
ASHHRA , or check with any of the various compensation
survey vendors to get the best data.
Pay Appropriately
As much as we don’t want to lose good talent because
of compensation, we also don’t want to overpay. A good
compensation planning strategy will allow you to avoid
overpaying by having done the research, established
benchmarks, and collectively decided upon your pay
structures and pay-for-performance modeling. Employees
may have a very different idea on what competitive market
pay should be (more or less) based on previous jobs,
locations, etc. Ask the right questions, and don’t be afraid
to be creative and leverage your compensation budget so
it’s put to use keeping the best talent.
The takeaway here is not just to lower base compensation
or blindly hand out bonuses—it’s to recognize there are
more factors at work, many of which are in your control.
Keeping your finger on the pulse of some key data points
can go a long way in helping you pay more appropriately.
Pay Accurately
This may seem more like a requirement than a strategy, but
it’s important to healthcare employees. Have you ever had
an employee confused about his/her paycheck or annual
statement? Of course, we all have! As we mentioned
previously, it’s not uncommon for healthcare employees to
hold several positions with varying pay rates depending on
what type of work they are doing on that shift.
Having a consistent, transparent compensation payment
process will provide peace of mind for your high performers.
It may not add financial value for their employment, but
knowing they are being paid accurately can be a great
retention tool.
HealthStream E-Book:
Improve Outcomes Through
Goal Setting
HealthStream.com/contact
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• and Performance Management