Review the Special Topics: 1) Motivation and Behavior 2) Compensation and Benefits and 3) Cost of Benefits as needed.
Word limits – 1200 word minimum
Required: Describe in detail the total compensation package you will recommend to the CEO, keeping your total cost at or below 13.0 Relative Cost points. You are not allowed to create alternatives through extrapolation, e.g., “add 401k match at 4% for 3.5 Relative Cost points” nor propose items not listed above that bring with them any significant cost.
As the new CHRO (or Chief People Officer), you are tasked with designing a total compensation program to fix the mess you have inherited. The hospital has given you a budget to work within and some options to choose from, which are summarized below.
Be certain to discuss why you have selected each of the compensation and benefit features included in your recommendation. This discussion could include the importance of the proposed feature to a group of employees (ex: nurses), a generation of employees (ex: Gen X), or the Hospital itself (ex: marketing, recruiting, etc.). Brief reasoning that certain benefits were NOT included might strengthen your post.
The Scenario
Assume that you are the new CPO of a 450 bed, metropolitan full-service hospital with over 1,800 employees — Congratulations! In spite of ranking at the 48thpercentile for wages in the area (there are 3 other hospitals within 10 miles of your facility), morale among employees is at an all-time low. A recent employee survey revealed the poor morale as well as a high rate of burnout. (In fact, 30% of the nursing staff admitted to currently looking at other jobs.) Staff turnover during the past 2 years has been about twice the previous rate and absenteeism was up 50% over the same time period. The last COO introduced an employee “flex time” plan that saved the hospital 15% in wage costs by sending employees home when the patient census was low. (Of note, 70% of nurses managed to consistently work a 40-hour week last quarter.) This program gives all employees 3 days of personal time/sick time and 2 weeks of paid vacation per year.
Current employee benefits include a small life insurance policy, a 401k plan (no matching) and health insurance for employees, but not spouses or dependents. No other insurance or benefits are currently offered. (80% of employees have a “significant other” and 40% have at least one child between 1 and 12 years old.)
Item Descriiption Relative Cost Points
Wages Increase for all salaried and professional employees
to 65th %-ile 3.5
Min Wage Increase Min Wage to $12/hr 1.5
Increase Min Wage to $15/hr 3.0 (accompanied by a
5% lay-off)
PTO Increase PTO to 7 days/yr 2.0
Increase to 10 days/yr 3.0
Extended FMLA (12 weeks paid) 2.5
Insurance Add spouse/dependent coverage 2.5
Add life insurance upgrade 0.5
401k Add 3% match 3.5
Add 6% match 5.0
FSP Flex Spending Plan – includes
Dental, optical, meds 1.5
Education Tuition supplement – (current semester only) 2.5
Student loan repayments –
(Pay off 30% of balance, up to $12,000) 5.0
Child Care Cover 25% of cost for employees 3.5
Offer On-site day care for all employees 5.5
