The MVI Compensation Survey: The Power of Performance Pay
Multi-View just distributed its annual Hospice Compensation Survey results. It reports current compensation packages for CEOs, CFOs, Clinical Managers, RNs, Social Workers, CNAs, Chaplains and more. For the second year we’ve included a section on performance pay. We’re encouraged that more organizations are using standards pay and performance pay as part of their management systems. Not surprisingly Hospices that use performance pay or standards pay have have a 38% higher ADC than Hospices that do not.
Organizations in the 90th percentile align Compensation System with Standards – Why? To remove the monitoring of (1) productivity and (2) documentation as well as the need for (3) annual reviews from a Manager’s job description, there must be an easy, automatic structure that holds the individual employee Accountable for these things without the Manager’s effort. Compensation is the most effective way of doing this as it is structural and NOT reliant upon the “personal inspection of work” or the Manager’s energy level. 100% of the Hospices in the 90th percentile have creative and different compensation approaches that attract, richly-reward and thus, retain the Talented and DRIVE the less Talented from the organization. This is exactly what you want your compensation to do! This creates organizational health based on a culture of mutual reliance that rewards employees in multiple ways including: (1) Individual Base Pay (Each Pay Period), (2) Standards Pay (Each Pay Period), (3) Individual Extra Pay (Each Pay Period), (4) Team Pay (Monthly) and (5) Organizational Pay (Quarterly). It is in this area that the rewards dwarf the pain that we have attached to structurally to Uniform Accountability for the Standards of the organization. Nobody can be “siloed,” doing their own thing, in this type of system. No skin in the game is BAD business as BAD decisions are made when people don’t FEEL the consequences or results of their decisions as soon as possible so they can correct. Get past the “fear barrier!” Everyone will NOT quit! It will charge your Talented People up and drive the value-destroyers, energy-sucks and low-performers that disrespect the hard-working from the organization! And management will become drastically EASIER!
Multi-View Incorporated brings devastatingly effective FOCUS to the development of Extraordinary Managers based on Benchmarking and the practices of the 90th percentile regarding quality and financial performance called the “Model.” Need help building your Model? Call us at 828.698.6885 or email us at firstname.lastname@example.org