Introduction
One of the world’s largest and most important industries is healthcare. Ensuring people have access to healthcare and keeping the general population healthy is crucial. Healthcare organizations must recruit and retain talented and skilled professionals to provide patients with high-quality care. There is a critical need in the healthcare industry to offer a competitive salary and benefits package to attract and retain the best and brightest professionals (Hassan, 2022). To improve its cost-benefit ratio and hence its recruiting and retention methods, the Cleveland Clinic, a major healthcare institution, will be the focus of this article as it examines its pay package.
Cleveland Clinic Compensation Package
One of the best hospitals in the world can be found in Cleveland, Ohio, at the Cleveland Clinic. Almost 70,000 people, including doctors, nurses, and support workers, are employed at this non-profit academic medical facility. Base pay, bonuses, retirement benefits, and health insurance are part of the Cleveland Clinic’s competitive compensation package. The average salary for an RN at the Cleveland Clinic is $30.41 per hour, according to Payscale.com, which is higher than the median RN salary of $29.71 per hour across the country. Medical, dental, and vision coverage, paid time off, and retirement plans are all part of the Cleveland Clinic’s generous benefits package (Shandy, 2022). Eligible workers have access to a 401(k) plan with a corporate match of up to 5% and a pension plan.
Cost-Benefit Analysis of the Cleveland Clinic
The expenses and advantages of a project or program may be evaluated using a cost-benefit analysis. The Cleveland Clinic may analyze cost-benefit to determine whether its salary and benefits package is competitive enough to recruit and retain the best medical experts. The cost-benefit research examines how much something costs compared to what you get. The Cleveland Clinic incurs expenses in staff pay and benefits while reaping advantages in the high quality of treatment it can provide its patients (Brouwer et al., 2019).
The Cleveland Clinic offers a competitive salary and benefits package, which helps the facility recruit and retain top-tier medical personnel. Hence, the quality of treatment given to patients improves. The advantages of recruiting and keeping outstanding healthcare workers exceed the costs of offering competitive wages and benefits, so the Cleveland Clinic’s compensation package has a positive cost-benefit ratio.
Cost-Benefit Analysis’ Effect on Employee Acquisition and Retention
The cost-benefit ratio profoundly affects recruitment and retention policies in the healthcare industry. The healthcare sector must provide competitive remuneration packages to recruit and keep the best and brightest professionals. Healthcare providers may profit from a higher cost-benefit ratio by attracting and retaining skilled medical personnel to improve their standing in the community and their patients’ happiness (Fulmer & Li, 2021). The Cleveland Clinic’s ability to recruit and keep excellent medical staff directly results from the generous salaries and benefits it offers its employees. The Cleveland Clinic’s efforts to attract and retain talented employees centre on a benefits package including retirement plans and health insurance, expanding and diversifying employees’ skill sets, and creating a welcoming and diverse workplace (Brouwer et al., 2019).
Ways to Improve the Cost-Benefit Ratio of the Cleveland Clinic
Even if the Cleveland Clinic’s pay and benefits package has a good price/quality ratio, it may be much better. Telecommuting, job sharing, and adaptable scheduling are just a few examples of how businesses can boost productivity while reducing costs. Employee happiness and retention may both be improved via such agreements. Giving employees greater chances to advance in their careers is another method to save costs while increasing productivity. Provide opportunities for professional growth, such as internships, mentoring, and stipends for further education (Hassan, 2022). The Cleveland Clinic recognizes that if it invests in its staff’s professional development, it can raise the bar on the level of care it provides to patients.
Role of HRM in Ensuring a Competitive Compensation Package
Regarding healthcare firms, human resource management (HRM) is crucial in providing a competitive salary and benefits package. Human resource management is accountable for creating and enforcing competitive remuneration packages to entice and retain top-tier medical professionals. Human resource management also ensures that pay is commensurate with performance and aligned with the organization’s core values and objectives (Fulmer & Li, 2021). Human resource management (HRM) may help guarantee a competitive pay package by monitoring salary and benefit trends in the healthcare business via systematic market research. With this data, a healthcare provider may create a competitive compensation plan with similar companies in the area (Rajagopal et al., 2022). Human resource management may also utilize analytics and metrics to assess how competitive the salary and benefits package is in attracting and maintaining qualified medical professionals. Data-driven choices concerning pay and benefits may be made with these facts in hand.
Methods of Improving the Compensation Package of the Cleveland Clinic
Human resources management has various options for enhancing the Cleveland Clinic’s pay structure. First, it may ask workers what they think of their perks and pay by sending questionnaires and holding frequent focus groups. With this input, we can zero in on problem spots. Second, HRM may check whether the company’s remuneration and benefits package follow its long-term objectives and core values. Examples include changing retirement plans, offering a higher 401(k) business match, and creating new pathways for professional advancement. Finally, HR management may consider allowing for more flexible work schedules, locations, and other factors. The cost-benefit ratio of an employee’s total remuneration may be improved by implementing such agreements by decreasing turnover and increasing job satisfaction (Fulmer & Li, 2021).
Recommendations to Enhance Recruitment and Retention Strategies of the Cleveland Clinic
Some suggestions have been made that HRM might consider improving recruiting and retention efforts. For starters, HR may create an all-encompassing onboarding program for new hires to ease their transition into the company and its culture. These examples allow people to learn more about the organization’s beliefs, purpose, and strategic objectives and establish new connections (Hassan, 2022). Second, human resources management may institute a comprehensive employee recognition program to honour staff members’ efforts and loyalty. They may take the shape of monetary rewards, trophies, or even public acclaim for a well-done job (Rajagopal et al., 2022). Finally, HRM may expand access to avenues for professional advancement through training and development opportunities, tuition reimbursement, and mentoring programs. The quality of patient care could be enhanced if personnel were given these chances to learn and grow.
Conclusion
Providing a competitive salary and benefits package is crucial for healthcare providers to recruit and retain qualified medical staff. The Cleveland Clinic’s excellent compensation package includes health insurance, pensions, and a generous incentive structure. Cleveland Clinic’s compensation plan has a positive cost-benefit ratio, although it may be better. HRM is essential in the healthcare industry because it ensures that businesses can pay their employees fairly. To do this, we perform systematic market research, listen to employee input, and provide development opportunities.
References
Brouwer, W., Van Baal, P., Van Exel, J., & Versteegh, M. (2019). When is it too expensive? Cost-Effectiveness thresholds and health care decision-Making. The European Journal of Health Economics, 20, 175-180. https://link.springer.com/article/10.1007/s10198-018-1000-4
Fulmer, I. S., & Li, J. (2021). Compensation, benefits, and total rewards: A Bird’s-Eye (re)view. Annual Review of Organizational Psychology and Organizational Behavior, 9(1), 147–169. https://doi.org/10.1146/annurev-orgpsych-012420-055903
Hassan, Z. (2022). Employee retention through effective human resource management practices in Maldives: Mediation effects of compensation and rewards system. Questa Soft. https://www.ceeol.com/search/article-detail?id=1044321
Rajagopal, N. K., Saini, M., Begum, R., & Solanki, U. (2022). Retaining high-Value staff to ensure a competitive advantage: Role of HRM. ECS Transactions, 107(1), 14355–14362. https://doi.org/10.1149/10701.14355ecst
Shandy. (2022, December 28). Benefits – Cleveland clinic careers. Cleveland Clinic Careers. https://jobs.clevelandclinic.org/benefits-2/
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