Healthcare – it’s an industry that touches us all, so what better industry to use to kick off this compensation market data series?
So without further ado, let’s jump in! Below is basic market compensation data for five jobs within the field. If you need a reminder of what any of the labels mean, please refer back to our first posting where each label is explained and pertinent definitions are provided.
Here are some considerations to keep in mind when reviewing the information above, including ways that these salaries may or may not apply to certain individuals and factors that can influence the interpretation of the data:
- Reported data includes only base salary; these compensation figures do not reflect any additional benefits that might be associated with a specific position.
- Data may vary based upon level of education, tenure, and years of experience. Newly hired employees with the minimum amount of experience are typically paid below the salary median reflected here – that is because these are the 50th percentile salaries, and most people will start the progression through their position’s pay range/grade at the lower end of the percentile.
- The size of the company used to scope the market data will make a difference, as well. For example, smaller companies often pay lower salaries than larger companies, especially for higher level positions. It follows, then, that a healthcare director whose company has 20 employees will likely have a lower salary than the samples listed above due to the company’s size difference.
- After all of these factors have been taken into consideration, if an employee is still underpaid, the organization may be in danger of losing the employee to competitors who are willing to pay closer to the market. Moving the employee closer to the appropriate market salary range is a great first step towards keeping that employee and retaining the competitiveness of an organization. However, keep employee performance in mind when considering market increases, as well.
Whether an organization is a non-profit or a for-profit can also make a huge difference in the compensation benchmark data. Next week we will look at one of the above healthcare positions from a non-profit standpoint in addition to four positions common to not-for-profit organizations in general. Also, we spent quite a bit of time this week on what factors could contribute to employees being paid less than the salaries shown above, so next week we’ll focus on some factors and solutions for employees paid higher than the market data.
As always, you can reach HRG at (859) 514-7724, or send Allison an e-mail at firstname.lastname@example.org.