Staff compensationplanningslideshare
1 like424 views
This document discusses using benchmark surveys to create a staff compensation plan. It recommends benchmarking compensation against peer practices to ensure fair pay that allows recruitment and retention of staff while managing costs. The document provides tips for evaluating external benchmark sources and how to select benchmark jobs. It also demonstrates using a relative value formula to determine pay ranges for different roles based on the pay of a benchmark job like medical assistants. Factors that could place staff outside the typical pay range are also addressed.
Staff compensationplanningslideshare
- 1. Using Benchmark Surveys as Tools to Create YourUsing Benchmark Surveys as Tools to Create Your Practice Staff Compensation PlanPractice Staff Compensation Plan Jan Krause FACMPEJan Krause FACMPE
- 2. Why Benchmark StaffWhy Benchmark Staff Compensation?Compensation? keep it fairkeep it fair Managing overall staffing costsManaging overall staffing costs Obtaining maximum cost benefit fromObtaining maximum cost benefit from investment in staffinvestment in staff To offer competitive compensation and benefitsTo offer competitive compensation and benefits for staff recruitment and retentionfor staff recruitment and retention To fully understand the localized geographicTo fully understand the localized geographic market influencesmarket influences
- 3. External Benchmarking SourcesExternal Benchmarking Sources Publishing organizationPublishing organization: How is the organization’s expertise in: How is the organization’s expertise in surveys rated, and how widely used is the information?surveys rated, and how widely used is the information? MethodologyMethodology: How were the data collected, and what was the: How were the data collected, and what was the response rate?response rate? Definition of terms: DoesDefinition of terms: Does the survey define the statistics usedthe survey define the statistics used and explain how they are calculated?and explain how they are calculated? Publication datePublication date: How current are the data?: How current are the data? Participant baseParticipant base: What practices are included? Are hospital: What practices are included? Are hospital systems included?systems included?
- 4. Internal BenchmarkingInternal Benchmarking Link compensation directly to the strategy of the practiceLink compensation directly to the strategy of the practice
- 5. Compensation RangeCompensation Range Compensation ranges are commonly used to manageCompensation ranges are commonly used to manage payroll costs and to provide an objective method ofpayroll costs and to provide an objective method of determining individual pay levelsdetermining individual pay levels A compensation range defines the minimum andA compensation range defines the minimum and maximum rate the practice will pay for a particular jobmaximum rate the practice will pay for a particular job
- 6. Job EvaluationJob Evaluation What is the overall worth of this job to the practice?What is the overall worth of this job to the practice? A practice’s job evaluation structure must:A practice’s job evaluation structure must: Cover all positionsCover all positions Be perceived as consistent and internally equitableBe perceived as consistent and internally equitable Be competitive in the marketBe competitive in the market
- 7. Benchmark JobBenchmark Job A standard job that is easy to identify, common to mostA standard job that is easy to identify, common to most practices, is relatively stable in job content, and can bepractices, is relatively stable in job content, and can be described in clear and concise terminologydescribed in clear and concise terminology Examples of benchmark jobsExamples of benchmark jobs Medical assistantsMedical assistants Licensed practical nursesLicensed practical nurses Registered nursesRegistered nurses
- 8. Look at the 2011 Colorado MGMALook at the 2011 Colorado MGMA SurveySurvey All Colorado – Hourly Medical Assistant CountCount MeanMean StdStd DeviatioDeviatio nn 25th25th %tile%tile MedianMedian 75th75th %tile%tile AllAll 493493 Years inYears in PracticePractice 1 and under1 and under 197197 2 to 52 to 5 177177 6 to 106 to 10 6666 11 and over11 and over 3333 GeographicGeographic AreaArea Colorado Springs &Colorado Springs & PuebloPueblo 126126 Denver metroDenver metro 221221 NorthernNorthern 115115 Western (mountain)Western (mountain) 3131
- 9. Relative Value FormulaRelative Value Formula 1. Determine benchmark job position. 3. To determine Relative Value for any other job position, divide the median for the benchmark position. 1. Benchmark position is Medical Assistant. 3. Relative Value for Registered Nurse is 1.75, computed by dividing median Value ($25.88) by Medical Assistant ($14.79) .. 2. Assign Relative Value of 1.00 to benchmark position 2. Relative Value for Medical Assistant is 1.00 and median compensation is $14.79
- 10. Relative Value Formula AppliedRelative Value Formula Applied Median Relative Job Description $ Per Hour Value Benchmark job position is Medical Assistant Registered Nurse $ 25.88 1.75 Medical Assistant $ 14.79 1.00 Billing Coder $ 16.92 1.14 Billing Clerk $ 14.85 1.00
- 11. Compensation RangesCompensation Ranges Based on Practice Strategic Goals In General… •Nonexempt positions – 40% •Exempt positions – 50% •Executive positions – 60% Per Hour 10.00$ 11.00$ 12.00$ 13.00$ $ 15.00$ 16.00$ 17.00$ 18.00$ 19.00$ Billing MACoderClerk
- 12. What if Jobs are Out of Range?What if Jobs are Out of Range? Red Circle RatesRed Circle Rates Instead of raising the employee’s base pay when increases areInstead of raising the employee’s base pay when increases are
- 13. What if Jobs are Out of Range?What if Jobs are Out of Range? Green Circle RatesGreen Circle Rates Green circle rates are equally as problematic as red circle rates in that
- 14. Open communication with the employeeOpen communication with the employee enhances trustenhances trust Understanding the practice’s limitations forUnderstanding the practice’s limitations for that job position is taking a proactivethat job position is taking a proactive stancestance Discussing in advance the limitations ofDiscussing in advance the limitations of the position can avert instances of inflatedthe position can avert instances of inflated compensationcompensation
- 15. Real Time Payroll & Accounting Reports Wherever YouReal Time Payroll & Accounting Reports Wherever You AreAre 4155 E Jewell Ave Suite 1000 Denver, CO 80222-4505 P: 303-691-5090 F: 303-766-0232 Jan Krause FACMPE
Editor's Notes
- #10: by