Custom Compensation Essay Paper Sample
The health sector is a very sensitive sector especially when other sensitive issues like money are involved. Compensation in this sector needs to be handled with high care since it affects the main players in the industry (Leggat, & Dwyer, 2005). The human resource departments need to make sure that at all time the staffs are attended to and their complaints are met in the best way possible. They should employ strategic moves so that excellence is achieved in the employee and the patient satisfaction (Leggat, & Dwyer, 2005).
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Mayo Clinic is one of the top medical institutions; which is the first and largest integrated non profit clinic in the world. The medical specialist and other employees in the health care system of the Mayo Clinic have continued to work together to give excellence in the care of patients (Ramlall, et al. 2009). The Human resource department has been very instrumental in establishing workforce planning, employee recruitment and selection, performance management, training and development and most of all compensation and benefits as a way of enhancement of the institution.
Through an effective and efficient compensation scheme the institution is able to achieve competitiveness and higher profits. This also helps in motivation of employees. For Mayo Clinics the compensation model developed to foster attitudes and behaviors of the Mayo patient care (Ramlall, et al. 2009). It does this by taking into service long term employees and avoids any appointments based on performance. It applies the standard of excellence to everyone without fear or favor. More so, employees are paid higher and at the 60th percentile of the market range. The salaries are marketable and makes the employees motivated to work since they have all their needs covered. Moreover, there are comprehensive benefit packages that range from medical, tuition reimbursement, dental, pension plans and retirement packages that motivate the employee themore.
At Mayo the HR department has been so effective and efficient in creating a framework used in tilting management jobs and reviewing options for the management salary structure (Ramlall, et al. 2009). In addition, they have conducted a all-inclusive market appraisal for all employees in the administration posts and recommended better leadership for them. The institution has also designed programs fro leaders that are to be used during transitions; moreover review and appraisal of jobs for all employees regularly is done to ensure they are paid at the best rates and desired levels. Internal surveys are also conducted regularly to ensure that the employees air their views on the employment, pay and conditions of work.
The institution is more significantly focused on retaining the employees and making sure they are comfortable with their work place so that they can deliver their best. And although questions still abound on the ability of the compensation system to work in an atmosphere of fewer qualified individuals; Mayo concentrates on giving its employees an incentive based compensation package so that they are retained in the institution (Ramlall, et al. 2009). In acquiring and maintaining a highly skilled and committed work force Mayo has focused on team work and the well being of the employee.
A reward based programs also keep many of the employees in the institutions since the rewards are irresistible. They include, paid time off, work life balance, competitive total compensation, income protection, relatively low cost comprehensive benefits, a Mayo funded retirement plan, professional development and regular increases in salaries.
El Camino Hospital
The El Camino Hospital stands out as an icon of success in the health sector. In its quality effective and efficient services it has attracted many clients to its fold. Behind this success are the employees who provide the unmatched services. Management also plays a great role in motivating the employees to provviding quality to the patients (El Camino Hospital Executive Compensation Philosophy, 2011). It has been rated as the best in health grades, quality services and best financial management.
The compensation packages are mainly decided by the executives and it has been regarded as an executive compensation plan. It revolves around cash compensations such as salaries and incentive pay; along with non cash compensation such as benefit plans that give the total compensation. The program is run by the executives including the board of directors and a compensation committee. Their main objectives are attracting, retaining and motivating the employees in the workplace.
The plan developed is aimed at tapping the best talent in the health sector and particularly an management team that is dedicated and able to run the organization effectively. It is aimed to help the El Camino Hospital achieve its mission of improving the health of the communities being served by the hospital. In addition it focuses on health care, education and research with regard to the patient regardless of their status.
The El Camino Hospital provides salaries that are competitive and also give performance incentives. Compensation is done on position and compared to other competitive hospitals. There are also cost of labor adjustments, the hospital median; and incentive payout; bonuses; and a wide salary range.
The two institutions may be of the same level and in most of the attracting packages of the employees they are generally the same since they offer competitive salaries; but, they differ in the use of Performance Incentive Compensation. While El Camino Hospital applies Performance Incentive Compensation the Mayo Clinics do not apply them. On the other hand the compensation is handled by the HR in the Mayo Clinics while in the El Camino Hospital it is handled by the executives' i.e. Board of directors. More frequent appraisals are common in the Mayo clinics than in the El Camino Hospital.