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Compensation and BenefitsCompensation and BenefitsGarin DemirjianFundamentals of Human Resource Management BUS3040February 20201
Compensation and BenefitsCompensation and BenefitsCompensation is the money awarded as an equivalent for services. Compensation should reflect the value an individual brings their organization. Benefits include non-wage compensation in addition to their salaries or wages. This includes startup bonuses, bonuses, paid time off, medical, dental, and vision insurance, tuition reimbursement, 401k matching, education, and growth opportunities.In order to attract and keep talent, healthcare organizations must offer competitive compensation and benefits. The current climate in healthcare is there is more jobs than talent, so many health care organizations are able to attract this talent through strong compensation and benefits packages. When considering compensation, healthcare organizations must keep in mind that compensation and perks play a key role in job satisfaction. (Monster.com, n.d.)Dignity Health Pay Structure and RaisesA company’s pay structure is the “method of administering its pay philosophy (Ojimba, n.d.).” The two most common types of pay structures are internal equity method and market pricing. When determining the method in which they will create their pay structure an employer considers the legal and economic issue of equal pay for similar work, pay differences caused by external competition or market pressures, fairness of individual wage rates for those who are doing similar or the same work, and how the individual views their pay relative to their worth. (Romanoff, Boehm, & Benson, 1986)Dignity Health utilizes the market pricing pay structure. They utilize the compensation survey market data when designing and reevaluating salary structures. Their structure is based upon current competitive market rates for the same or similar positions. Dignity Health has an in-2
Compensation and Benefitshouse compensation consultant that conducts benchmarking, which is the matching of an internaljob to an external job of the same kind. As mentioned above the medical field is extremely competitive and therefore healthcare companies need to stay on top of current market rates to attract and retain talent within their organizations. (Ojimba, n.d.)When determining a salary, Dignity Health first takes in the average starting wage for that position. For a registered nurse for example, it is approximately $32 per hour for a new hire with an associate degree, slightly higher for a bachelor’s degree. Then they take into consideration theexperience, with registered nurses, experience is often a strong indicator of talent. They increase by a determined percentage for every 5 years of experience. So, a new grad registered nurse withan associate degree will make $32 per hour, a new grad with a bachelor’s degree approximately $35 per hour. However, a nurse with 5 years’ experience and a bachelor’s degree can start at $45 per hour or more.