Total Compensation Plan

Total Compensation Plan

In the competitive healthcare arena, employers are the challenged to offer a comprehensive benefits package that will attract and retain healthcare workers at all stages of their careers. Employers are further challenged to provide these benefits in a cost-effective manner with careful consideration to designing a structure that will meet the needs of their employees. Attention must be paid to the complex federal guidelines that govern many benefits programs so that compliance standards and fiduciary responsibility are met.

As the competition is so high in the market, we need to adjust the plan for requirement according to the consulting group`s budget, basically the recruitment plan will include the following considerations: (a) reward employee performance, (b) achieve internal equity within the organization, (c) maintain external competitiveness in relevant labor markets, and (d) consider the consulting group`s budget in the requirements and the compensations.

Our group suggests the recruitment of moderate-level skilled employees, as the high-level skilled employees will be expensive for the budget. We will take care for the training and the payment will be according to the skill-level. Each employee will be pushed and encouraged to get to a higher skill level. This approach can attract more employees and the payment will be controlled as the budget is limited, and our approach will be skills-based pay rather than pay-for-performance, at least initially until the administration find the employees reach to the goal skills that match the excellence medical care. This approach follows a stair-step approach, in which a logical well-defined progression is followed in skills development and pay will be increased as skills are mastered. Jobs are given a point rating that is based on the difficulty of mastering job skills, and compensation is increased in accordance with points earned (Fried & Fottler, 2008).

To attract recruits in this limited budget, include; bonuses, more research opportunities, 5 days extra at the end of the year for high level performance, an annual paid course or conference for improving skills and knowledge in the same specialty. Benefits are competitive levers in recruiting and hiring employees. Employment benefits provide additional compensatory value to individuals and their families through the provision of leave time, insurance against uncertain events, and additional targeted services. Basically, the benefits are an important factor to increase employee retention and attract more new employees (Fried & Fottler, 2008; Chamber of Commerce, 2006). Employee benefits account for almost 40 percent of total compensation. Due to the importance of remaining competitive, it is mandatory for us to prioritize these benefits of the compensation plan.

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