Total Compensation Decisions

What are the most important considerations for employers as they design compensation and benefits plans that are appealing to employees—and financially viable?

Health care organizations are challenged to develop total compensation packages that appeal to employees' needs and interests, and ultimately help the organization achieve their strategic objectives in today's competitive environment.

Health care managers and HR professionals must be able to think creatively about incentive systems, and appreciate the conflicts and contradictions that may emerge in designing any compensation system.

The purpose of this Discussion is to help you analyze the tradeoffs involved in decisions about compensation and benefits.

Prepare for this Discussion by reviewing "Case:

Controlling Employee Healthcare Benefit Costs" as well as the other Learning Resources. Then, with your group: Analyze the four options presented in the "Controlling Employee Healthcare Benefit Costs" case.

You may also consider other options that would be beneficial, such as one that combines some of the options presented in the case.

Discuss the advantages and disadvantages of each one.

Develop consensus about one option that you would propose in this situation.

Suppose that your group is consulting with a health care organization that has a very limited budget.

Its competitors are able to pay 30–40% more in compensation and benefits.

How would you recommend this organization recruit new staff and motivate current employees?

What should be included in this plan? Why?

Consider specific compensation issues for at least two professional groups that might be important for your analysis.

Develop a total compensation plan that helps give the organization some competitive advantage, rewards desired behaviors, helps to promotes retention, and that addresses other concerns noted in the Learning Resources.

What are the intended and unintended consequences of this plan?