Practice Executive Compensation: Strategies to improve attraction, performance, and loyalty
Medical practices are becoming larger and more competitive, and, like hospitals, they’re looking for creative and cost-effective strategies to help them achieve their organizational goals.
Compensation is a great place to start. In fact, medical practice executive compensation is the fastest growing area of executive compensation in healthcare. When designing compensation packages for executives, traditional elements like salary and qualified plans remain essential, but they are no longer sufficient. These days, practice groups are relying on their compensation to help them improve executive attraction, performance, and loyalty.
It’s important for an organization to identify its top priorities so its compensation can be designed accordingly. By using a combination of short-term, long-term, guaranteed, and at risk elements, an organization can create a balanced rewards suite. A balanced rewards suite offers more meaningful rewards, and it can aid in the improvement of those frequently targeted areas.
Attraction: To improve attraction, you can rely more heavily on short-term, guaranteed rewards.
Performance: If performance is a top priority, at-risk rewards can be tied to quality metrics. When an executive is rewarded for their performance, they will feel appreciated, which often leads to a deeper level of engagement.
Loyalty: Using at risk, long-term rewards will help a practice retain its executive leadership.
When designed properly, a balanced rewards suite can even help a practice recoup a portion of its compensation expenditure. This ensures that their compensation will be sustainable in the long run, making it easier to offer the kind of rewards that will help them remain competitive in the race for executive talent.
REQUEST OUR WHITE PAPER:
Complete the form below and receive a copy of our latest white paper: Rewarding Excellent Administrators
Want to Learn More?
Roadblocks to Physician Recruitment and Retention Part Three: Financing Non-qualified deferred compensation (NQDC) plans can help hospitals and health systems recruit and retain physicians. Unfortunately, most healthcare organizations do not fully utilize this tool. In previous posts, we talked about how a lack of thoughtful design and communication can…
Roadblocks to Physician Recruitment and Retention Part Two: Communication A recent Jackson Physician Search survey found that the pandemic has caused an increase in the number of doctors considering early retirement. This trend is expected to exacerbate the physician shortage that’s already placing a strain on the industry. In…
Roadblocks to Physician Recruitment and Retention Part One: Plan Design For most healthcare organizations, physician recruitment and retention has never been more important or more challenging. Many don’t realize that they already have an excellent tool at their disposal: their non-qualified deferred compensation (NQDC) plans. These plans can distinguish…
Retention plans counteract troubling trends A recent Becker’s Hospital Review article outlined 5 compensation trends in healthcare, including the fact that the annual turnover rate in emergency, ICU, and nursing departments has increased during the pandemic, rising from 18% to 30%. Turnover is expensive, particularly when it comes to…