Aligning Staff Compensation To Value

Performance-based compensation is gaining traction in all sectors of the economy. In 2019, 84% of organizations offered variable pay as part of their compensation program. And 69% of organizations based rewards on a combination of organizational or unit success and individual performance. Variable pay as a percentage of base pay was 39% for executives, 17% for managers, 12% for exempt employees, and 7% for nonexempt employees (see Performance-Based Compensation: The Other Value Strategy). Our survey earlier this year found that 65% of specialty provider organizations had “some” performance-based compensation—43% involving clinical staff, 42% involving executive team . . .