Total compensation package refers to the amount of money and employment benefits that an employee receives from his/her employer. The components of total compensation package includes the basic pay, perks, free housing, insurance, stock options and payments in kind. Employers offer employees attractive total compensation packages in order to retain them in their organization. It helps a company to avoid costs such as employee turnover costs and reduction in company’s productivity. In addition, it helps to motivate the employees to improve their overall performance. This is because they are able to know that an organization cares for their welfare. Nurses should be offered good total compensation packages. This is because they sacrifice a lot of their time and effort in order to ensure that they provide quality patient care. Some nurses also attend to their patients the whole day and they therefore need motivation from good total compensation packages.
The level of pay for nurses depends on many factors. One of these factors is the education level of a particular nurse. A nurse who has received a PHD in nursing will earn more money compared to a nurse who has only done a degree in nursing. In addition, the level of experience of nurses also determines the level of nurse’s pay. An experienced nurse will have a higher level of pay compared to a less experienced nurse. The skills that a nurse possesses also determine the level of pay that a nurse will receive. The entry-level pay of nurses ranges between $10,000 and $30,000. The level of pay for a certified nursing assistant is about $24000. A certified nursing assistant mainly takes care of old people in nursing homes. The pay mix of nurses should include a variable incentive in order to encourage them to improve the quality of services that they offer to patients. This will also motivate them to improve their performance. A nurse could be given a 3.5 percent payment increase when the patients are satisfied with the quality of services that he/she offers. This will help in reducing the number of complaints raised by patients leading to an improvement in the level of patient satisfaction.
The nursing industry has adopted the pay for performance incentive as a policy guiding the pay of nurses. According to this policy, nurses will be paid salaries considering the services that they offer to their patients. This policy offers reimbursements according to how a nurse serves his/her patients. Health care institutions conducted a study on whether this policy would improve patient outcome. 87 percent of the nurses interviewed stated that this policy would help in improving patient outcome. However, several people criticize this policy. They argue that it is unethical for nurses to be given incentives in order for them to improve their performance. This is because it is the duty of all nurses to provide care to patients. In addition, this payment policy makes a hospital incur additional costs. Hospitals will be required to acquire new technology in order to improve the performance of nurses. In addition, they will require new training and documentation procedures in order to implement this policy effectively. I would recommend that nursing companies adopt this payment policy since it will help in improving the quality of patient care and increase the level of patient satisfaction.
Components of pay package
Examples of these components include merit pay, base pay and spot bonus. Merit pay refers to rewarding nurses who perform better higher wages compared to the other nurses. Most employers prefer merit pay since it helps to incentivize nurses to improve their performance. In addition, it helps organizations to recruit high qualified nurses since these nurses will earn more money due to the quality services that they offer to patients. However, most nursing unions do not support merit pay since they sometimes fail to motivate experienced nurses. Using this system, a nurse with less experience may earn more money compared to a nurse with high experience. In addition, backstabbing will also increase in a hospital. Nurses will be competing amongst themselves in order to ensure that they earn high salaries. This will reduce teamwork in an organization. Base pay refers to the fixed amount of money that the employer of a nurse pays the nurse after he/she delivers services to health care institutions. While calculating the base pay of a particular nurse, the employer should not include the employment benefits that may be offered during service delivery. These benefits include life insurance, pay during sick days, retirement benefits and long term disability insurance. The basic salary for nurses differs from state to state. In states where the number of nurses is high, the basic pay will be lower compared to the states where the number of nurses is low. The average base pay of nurses is $ 20 per hour for nurses with less than one year experience. I would recommend high base pay since it will help nurses cover their costs. Spot bonus rewards nurses on the spot for any exceptional achievements that require recognition. I would recommend this type of bonus since it will motivate employees to provide exceptional services.
An organization should consider several things before deciding on its pay levels. One of the factors that it should consider is the profitability of an organization. Nurses working in a healthcare institution that earn high profits should be paid more compared to hospitals that earn less money. The skills that a particular nurse possesses should also be considered while determining the pay level of nurses. A nurse with many skills should be paid more money than a nurse that has fewer skills. The training programs that a particular nurse has attended should also be considered while determining the pay level of nurses. Nurses who have attended quality training programs should be paid more compared to nurses who have attended fewer training programs. The compensation philosophy of an organization also determines the wage levels that the management of an organization should pay its nurses. If the philosophy is to pay high wages, then the organization should consider paying its nurses high wages. Performance reviews will also determine the pay levels of nurses. If a nurse has positive performance reviews from previous employers, he/she should be paid high wages. The pay levels of nurses should be revised after the financial year of the organization ends. This is because the revenues of a company are calculated after the end of the financial year. Managers should compare the revenues that they have earned and change the pay levels considering the reported profits. Moreover, managers should review the performance appraisal of all employees during this period in order to determine whether they require a raise.
To conclude, nurses require attractive total compensation packages. Attractive compensation packages will motivate nurses to improve their level of service delivery leading to increased patient satisfaction. Components of total compensation package include spot pay, merit pay and base pay. Spot pay and merit pay encourage employees to dedicate all their efforts while delivering services to patients. Pay levels of nurses depend on several factors. A nurse with experience will be paid more money compared to a nurse who has little experience. In addition, a skillful nurse will be paid more than a nurse with fewer skills.