Healthcare salary increases are primarily driven by merit, as the charts below demonstrate. Although increases are projected to remain flat in 2000, the key to getting higher pay is performance, which is assessed on an individual provider basis, according to William M. Mercer.
Most healthcare organizations believe their existing salary structures are effective at accomplishing the basics of managing salary costs and providing flexibility in setting hiring rates. However, they are less effective at recognizing new and expanded roles and enabling upper management to reward superior performers, according to the Mercer report.
To retain top talent, healthcare employers will need to reevaluate their hiring policies with an increased focus on an active recruitment market, salary range spreads and policies compensation of high-performing executives.
2000 salary increases (excluding incentives and bonuses) are projected to remain flat across all employee groups. In spite or these modest projections, middle and upper manager can expect their roles to be expanded to compensate for a leaner workforce and a conservative financial environment.