HR Pulse - Fall 2008 - (Page 42)

>> RETAINING SCARCE, CRITICAL TALENT Both of these approaches for determining base pay— skill growth and individual performance—are not as easily accomplished as across-the-board increases to base pay as the labor market increases. These study participants, however, are committed to these programs for their scarce/ critical talent to provide not only pay based on the individual’s value but also for career growth and opportunity. These medical centers are working to improve these programs by reﬁning and improving the measurement of performance and skills and updating and reﬁning skills to match advancements in medical technology and care. Variable Pay Variable pay, a cash payment that does not fold into base pay, is a popular way to keep pay from becoming an entitlement while emphasizing measures of excellence. Variable pay must be reearned from performance period to performance period. Two-thirds of the study participants have scarce/critical talent below executives and directors eligible for variable pay. This is consistent with the general ﬁnding that some 80 percent of all organizations in the United States use some form of variable pay for their non-management people. Incentive plans, lump-sum payments and cash awards are the types of variable pay used by study participants to reward scarce/critical talent. An incentive plan that rewards results on clinical goals was most frequently used, followed by lumpsum payments to reward skill acquisition and usage, individual performance, or both. All the survey participants with incentive plans use incentive metrics that communicate and reward patient-focused outcomes. These medical centers believe that ﬁnancially oriented metrics send the wrong message and may drive the wrong behavior, so they do not use cost savings, productivity and income as metrics for the general scarce/critical talent population. This approach contrasts with other industries’ incentive practices that include such metrics but ﬁts with these nonproﬁt medical centers’ focus on professionalism and health care excellence. Recognition Although games and gimmicks were not viewed as effective, verbal recognition and excellence rewards do work. Verbal and written forms of recognition are imperative to communicate to scarce/critical talent that the organization truly appreciates their contributions. Effective symbolic recognition awards (e.g., certiﬁcates) reinforce recognition from patients and patients’ families, professional excellence, and role-model behaviors consistent with the medical center’s values. Overall, however, these organizations do not consider recognition programs a key 42 HR Pulse Fall 2008 ✓ ✓ ✓ 298018_JAMACareerNet.indd 1 10/13/06 7:50:16 AM http://www.jamacareernet.com

Table of Contents Feed for the Digital Edition of HR Pulse - Fall 2008

HR Pulse - Fall 2008 Contents Pulse Points Executive Director’s Letter President’s Message HR Leader Profile: Irma Pye Sammy’s House: Making a Difference in Austin Working Mother Magazine’s 100 Best Companies Increasing CEO Engagement Pastoral Care Retaining Scarce, Critical Talent The Engagement Dilemma Diversity Considerations…More than AAP & EEO Quashing the Workplace Bullying Bug How to Become a Strong Human Resources Partner Citizen Lobbyists Descend Upon Capitol Hill Conference Highlights Schedule at a Glance Sponsors Exhibitors Advertisers’ Index

HR Pulse - Fall 2008

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