[University Affiliation]
Changes in the system of staff compensation for attaining continuous growth and achievement at Phoeba Putney Hospital
In order to bring about continuous and competitive growth in organizations, changes in the human resource strategies are inevitable as they form the key players for enhancing organizational capability and service excellence. Employee compensation forms a decisive factor in establishing proper associations at workplaces and so compensation has to be made competitive and variably linked to performances in order to enhance individual performances. As administrator of the Phoeba Putney Hospital, the following changes in staff compensation would be made for ensuring continuous growth and achievement at the organization.
Need for changes in staff compensation: Compensation, from the point of view of the employee, is the value given for their contribution and so each employee would most likely appreciate being rewarded fairly and justly by the employer (Hong et al, 2012). So right levels of compensation could act as a motivating factor and is found to have linkages to the employee loyalty, performances and contributions. In a service oriented industry like the Phoeba Putney Hospital it is of prime importance that the employee performances be enhanced in line with the customer expectations and demands. So some changes in the staff compensation packages, in line with the expected individual and organizational performances are inevitable for achieving continuous growth in organizations.
Changes that would be made at Phoeba Putney Hospital
The changes that would be made in the staff compensation system at Phoeba Putney Hopital includes,
- About 30 to 40 percent of the compensation to be linked to the employee performances and its impact at individual and organizational levels. Healthcare being a customer centric industry, assessments on the performances of the employees appear easier and less ambiguous.
- Employees would be rightly informed of the need to develop competitiveness and efficiencies at individual and organizational levels. They would be empowered of the long term gains and prospects of attaining organizational growth in relation to their compensation.
- In addition to the cash rewards in their pay packages that are linked to their performances, they would be provided with diverse other non cash benefits like insurance, loan offers, tax saving options, allowances, paid vacation and other related benefits.
- Employee would be given opportunities for career growth, trainings, empowerments, etc. Special training sessions would be organized for helping the employee to develop needed levels of competencies and to develop diverse skills depending on the type of tasks and responsibilities.
- Employee would be properly guided for the accomplishment of individual, group and organizational goals and openly communicate of the linkages of their compensation to the performances.
- Compensation packages would be made competitive and relevant changes in the structure would be made to attract and retain skilled and talented people. In addition to revising the staff compensation packages, the work environment and the organizational culture would be aligned to the organizational needs and demands.
- There would be transparency and equity in the way the compensation packages would be designed and each employee would be given opportunity to assess the fairness of the pay structure. Proper communication regarding the pay systems are found to be decisive in earning and enhancing employee loyalty and commitment (Gruman & Saks, 2011).
- Two way communication would be maintained and the employee comments, opinions and feed backs would be given due importance.
Conclusion: The changes made in the compensation system at Phoebe Putney Hospital mainly focused on linking performance to the pay systems and considered the relevance of communication, empowerments, etc to the employee for attaining needed levels of productivity, satisfaction and competitiveness.
References
Gruman, J. A. & Saks, A. M. (2011). Performance management and employee engagement. Human Resource Management Review, 21: 123–136.
Hong, E. N. C., Hao, L.Z., Kumar, R., Ramendran, C. & Kadiresan, V. (2012). An effectiveness of human resource management practices on employee retention in institute of higher learning: A regression analysis. International Journal of Business Research and Management, 3 (2): 60 – 79. Retrieved January 20, 2014, from http://www.cscjournals.org/csc/manuscript/Journals/IJBRM/volume3/Issue2/IJBRM-81.pdf
