Competitive Compensation and Benefit Plan
The key factor to be considered in the creation of a competitive compensation and benefits plan for an acute care hospital is the base pay (basic salary) that will serve as a bench mark to any compensation or benefits the employees of the hospital will get. According to Obringer (2013), a standard base pay program offers fixed salary ranges for each position type for employees performing standard duties of their jobs. If you do not have an idea of what the base pay for each position in an acute care hospital is, you will find it difficult to create compensation and benefits plan that will be competitive (in terms of rival acute care hospitals) and enticing to employees. Knowledge of different basic pays for different job positions will help you set up minimum and maximum levels within those pay ranges to account for variations in experience and skill levels. By so doing, you can set up competitive compensation and benefits plan that will entice employees and at the same time will not incur a lot of costs for the hospital.
From the perspective of HR, one of the strategies that can be used to manage complaints from employees who believe their salary and benefits package is not fair is to use the market wage information to commission a wage and benefit study. By comparing what employee in other comparable firms are earning, an employer can try to shape employee perceptions about fairness or unfairness of rewards.
ReferenceObringer, L. A. (2013). How Employee Compensation Works. Retrieved from: http://money.howstuffworks.com/benefits1.htm
