Executive Turnover: It’s not all about the CEO

Executive turnover is a hot topic in healthcare right now, but people tend to focus on CEO turnover alone. While the CEO position is vital, it’s also vital to keep an entire leadership team intact long enough for them to build strong working relationships. Unified executive teams are more likely to produce the greatest possible outcomes for an organization. Therefore, longevity at all executive positions can be the secret to achieving organizational goals. It can also be the key to successful leadership transitions in the future. That’s why we believe that an organization’s executive compensation should be designed with longevity in mind.

Strategy 

Having a balance of short-term and long-term rewards supports longevity at executive positions. 

Short-term Rewards

Early rewards keep team members engaged and focused on critical objectives. These rewards can be linked to job performance metrics such as quality, revenue, cost containment, and more. It’s important to have a customizable program so the right objective can be linked to the right team member. This allows executives to have a clear understanding of their objectives that are separate from those shared by the entire leadership team, and it allows them to be rewarded for their individual achievements. 

Long-term Rewards

Long-term rewards demonstrate the potential for growth in a position, reminding professionals that they don’t need to look outside of their organizations when they’re searching for the next steps on their career paths that will bring them fulfillment and a sense of forward progression in their careers. They also point to those overarching organizational objectives and how much can be achieved with a little continuity at top positions. This highlights the opportunity to leave a lasting legacy at a facility.

Finding the Balance

Balancing short-term and long-term rewards keeps team members focused on today with an eye on tomorrow. Compensation is more meaningful when it’s packaged in a balanced rewards suite. Having meaningful compensation makes recruiting offers less tempting. To put it simply, it makes every day a bad day to leave.