Designing a New Compensation System for a Healthcare Services Organization- Integrating Pharmacy, Healthcare Equipment, and Chronic Care Management

Designing a New Compensation System for a Healthcare Services Organization- Integrating Pharmacy, Healthcare Equipment, and Chronic Care Management

What role do nonmonetary rewards play in a compensation package?

Nonmonetary rewards increase the effectiveness of a compensation package in motivating employees because they encourage existing employees to be more effective and retain and attract new employees by increasing job satisfaction (Cohen, 2006). Nonmonetary rewards also help boost employees’ self-confidence and enable them to achieve self-actualization, thus increasing job satisfaction.

How might the team create a compensation system to support the organization’s strategy?

The team might create a compensation strategy to support the organization’s strategy by conducting a benchmark in similar organizations to determine the most effective compensation rewards to include in the compensation system. A benchmark is also crucial in allocating a budget for the compensation system because it will give the team an overview of the cost of implementing various compensation techniques.

What other stakeholders should be on this team, and what role should they have in designing this compensation package?

The other main stakeholders that should be in the team are department supervisors and board members. The role of the department supervisors is to offer their input on the most appropriate compensation strategy based on the work completed by employees in each department. Department supervisors also have a better understanding of the employees and can use this understanding to advise the team on whether selected compensation strategies will be effective or not. The role of the board members is to ensure that the chosen compensation system is within the organization’s budget and aligns with the organization’s operating strategy.

Include at least three national (USA) laws or regulations that must be considered in the development of the new compensation system.

One of the laws that must be considered in the development of the new compensation system is the Fair Labor Standards Act, which is a federal law that dictates minimum wage, recordkeeping, eligibility of overtime pay, and child labour standards affecting part-time and full-time workers in local governments, federal and private sectors (Joubert, 2020). The second law is the Employee Retirement Income Security Act, which regulates employers offering employees welfare benefits or pension plans (Joubert, 2020). The third law is the Consolidated Omnibus Budget Reconciliation Act, which dictates that insurance programs must allow eligible employees to access continued health insurance coverage after leaving employment (Joubert, 2020). The team needs to ensure that the provisions of these laws are followed to avoid legal issues.

References

Cohen, S. (2006). Compliment your staff with nonmonetary rewards. Nursing Management (Springhouse), 37(12), 10,14. https://doi.org/10.1097/00006247-200612000-00004

Joubert, S. (2020). Laws every HR professional should know. Northeastern University Graduate Programs. https://www.northeastern.edu/graduate/blog/hr-laws-to-know/

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For this assignment, you will act as the human resources director on an internal team that includes the owner and the benefits analyst. A healthcare services organization with 46 employees has tasked the team with designing a new compensation system for them. The services include a pharmacy, various healthcare equipment for sale or rent, and chronic care management.

What role do nonmonetary rewards play in a compensation package?
How might the team create a compensation system to support the organization’s strategy?
What other stakeholders should be on this team, and what role should they have in designing this compensation package?
Include at least three national laws or regulations that must be considered in the development of the new compensation system.