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.
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