Total Rewards includes: Compensation Structure, Benefit Programs, and Paid Leave Plans

Defining the Problem:

  • Salary and benefit costs are rising, while 3rd party payers are reducing reimbursement for services performed, resulting in unsustainable expense and employee expectations
  • Industry merger and acquisition activities has exceeded HR’s bandwidth to create consistent compensation and benefit programs across newly formed enterprises
  • Financial challenges within the healthcare industry have resulted in use of premium pay and benefit programs as quick fixes for base rates
  • The “separation of duties” between Human Resources and Finance creates an ownership void with less than ideal monitoring of compensation and benefit expenses, including vendor contracts

What You Should Know and Consider:

  • Reviewing the compensation and benefit offerings should be done in conjunction with all base rate increases
  • Verification and validation of calculations associated with all add on practices should be conducted routinely, with participation by HR, IT, and Finance; utilization opportunities should not be overlooked
  • Union environments do not ensure that practices are implemented in accordance with policies

Solution Dynamics:

Defining a total compensation structure, including governance oversight, provides transparency and ensures that all decisions regarding compensation and benefit programs are made within the context of the structure. Adjusting programs to meet the needs of patients, while balancing needs of employees and the organization is critical to an engaged workforce. Identifying associated metrics and venue for monitoring performance ensures compliance and sustainability. 

GE Value Statement:

GE’s approach to Total Rewards addresses required solution dynamics to drive the following improvements:

  • Developing a governance structure for review of compensation and benefit programs increases transparency and reduces unnecessary compensation and benefit expense
  • Standardizing and aligning roles and responsibilities and associated compensation across the enterprise improves equity and employee satisfaction, reducing costly turnover
  • Communication of agreed upon modifications to compensation and benefit programs, when carefully planned, prevent employee anxiety and job dissatisfaction which can negatively impact quality of patient care.

[Click here for full-sized Human Capital Value Chain Image]

Human Capital Value Chain Quicklinks:

Overall Human Capital Value Chain Model

Talent Acquisition

Total Rewards

Performance Management

Talent Development

Demand-Based Staffing

Daily Shift Management

Labor Productivity

Management Enablers

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