Introduction
The compensation structure is a necessary element that deserves exploration in every successful company. There are various other essential factors, yet the overall firm’s success depends directly on employee performance. The wage structure is a strategy that assists with evaluating the amount of financial gain an employee receives, according to their performance. Communicating the compensation plan to the job candidates that apply for a particular position is vital to retain workers and create a thriving base to attract more qualified people in the future. A well-developed compensation structure creates a financial incentive for the workers to show better performance, including merits for more challenging work. Therefore, to explore the benefits of compensation structure, it is vital to exemplify the situation with benchmark position in healthcare.
As salary is relatively crucial for nearly every individual who is already working or is looking for the correct position now, it is essential to evaluate the compensation structure types and choose the most relevant one. There are three general types of pay structures: traditional, market-based, and broadband (L. Berger, 2015; D Berger, 2015). The market-based approach to compensation is universally known and quite successful among employers and, for that reason, will be exemplified in the paper. This type of compensation requires market research to evaluate the optimal pay rates for the workers. Therefore, in the case of healthcare workers, the estimated average pay should be around 65000$ annually if using the market-based approach.
In exploring the compensation structure in a medical organization, it is necessary to state the benefits the workers would receive for working in the company. Firstly, using compensation as an incentive and allowing employees to achieve better results has proven its effectiveness, compared to the companies that offered fixed wages (Dias et al., 2020). Therefore, it is vital to provide workers with bonuses for night shifts, compensations for health risks when working in dangerous zones, etc. For medical workers, in particular, there may be a need to incorporate social security and discounts on medical care provided for them. Considering the current situation in the world, to attract workers to work in healthcare at the moment, companies need to provide them with the best bonuses available.
The compensation structure for workers in healthcare is to be created with particular attention to detail and understand how it affects the company’s performance in general. There is an opinion that corporate social responsibility may affect the compensation structure in various ways (Karim et al., 2018). Although the firm’s performance may be associated negatively with financial incentives, it is necessary to state that monetary benefits are pretty pleasant to gain for those whose labor is closely related to dangerous activities. A similar example was referenced in the Bible, stating the following: “You shall eat the fruit of the labor of your hands; you shall be blessed” (Psalm 128:2, The Holy Bible, 2019). Therefore, the choice of a structure might be based on the benchmark compensation approach, as this field of labor is currently lacking workers who are willing to risk their lives. Offering the laborers competitive salaries and ensuring the benefits might be the key to successful worker retainment rates.
In conclusion, the compensation structure is necessary and is worthy of addressing when exploring the topic of healthcare organizations. Considering the current situation, it becomes vital to provide workers with all the required benefits and to use the salary as an incentive, rather than the obligated measure. A market-based approach would be more suitable for healthcare workers, as it would make an organization more competitive with others and lead to more qualified workers attracting to the position.
References
Berger, L. A., Berger, D. (2015). The Compensation Handbook. McGraw-Hill Education.
Dias, A., Vieira, V., & Figlioli, B. (2020). Tracing the links between executive compensation structure and firm performance: evidence from the Brazilian market. Corporate Governance: The International Journal of Business in Society, 20(7), 1393-1408.
Karim, K., Lee, E., & Suh, S. (2018). Corporate social responsibility and CEO compensation structure. Advances in Accounting, 40, 27-41.
The Holy Bible. (2019). Creative Media Partners, LLC.