Enhance Your Executive Compensation Model to Improve Retention and Recruitment
- August 21, 2018
As the competition for experienced healthcare executives increases, the proper executive compensation model can help retain and recruit leaders. Though this statement may seem like common sense, you may be unsure of where to begin in assessing your organization’s plans, especially in contrast to others.
A strategic approach to executive compensation will help ensure the model is well positioned compared to the market, job function, and other relevant parameters. In fact, the path to an appropriate executive compensation plan is similar to one for physicians and other healthcare providers.
The first step in establishing an effective executive compensation model is to evaluate the current one and identify its strengths and weaknesses. A full assessment should encompass position, tenure, experience, and other factors, as well as the best way to standardize compensation going forward. The evaluation should also analyze the recent operating budget, constraints, turnover, evaluation processes, human resource policies, and secondary issues that influence executive management’s compensation. Another beneficial and necessary approach is to compare the plan to industry standard benchmarks.
Coker Group has a team of experienced consultants prepared to analyze and review compensation models for all healthcare executive positions. Through an assessment, we will provide specific conclusions and recommendations on how current compensation in the organization compares to the marketplace, both regionally and nationally. Then, we will recommend revisions and, if necessary, redesign the executive compensation structure and incentives.
Specifically, our review considers the following:
- Market comparisons
- Standardization of pay plans
- Applicable incentive models
- Evaluation process and timeline for completion
- Goal setting and analysis of procedures for improving compensation, feedback, and evaluation
- Designation of appropriate individuals to be involved in the evaluation process
- Assessment of compensation in light of perceived performance
- Assistance in setting goals and objectives going forward
- Employee morale and turnover
- Complete or partial redesign of incentive plan(s)