- Median base salaries for executives at healthcare firms elevated by 4.5% from 2021 to 2022, in accordance with a report from consulting agency SullivanCotter.
- Executives additionally noticed incentive payouts just like these earlier than the pandemic, after these awards fell beneath historic ranges final yr attributable to COVID-19-driven monetary challenges.
- In the end, median whole money compensation, which equates to base wage plus annual incentives, rose by 9.7% over the previous yr for healthcare executives, in accordance with a press release. SullivanCotter didn’t make the complete report out there to Healthcare Dive.
The findings replicate a aggressive labor market and ensure that the seek for proficient staff within the healthcare sector extends past physicians, nurses and different workers dealing with pandemic-driven burnout.
This yr’s rebound in govt compensation is partially attributable to improved monetary metrics, however can be pushed by excessive demand for expertise that’s outpacing provide due to burnout and accelerated retirements, in accordance with the report, primarily based on survey knowledge collected from executives at greater than 3,000 organizations.
Executives noticed modest base wage elevated in 2021 after many organizations froze these salaries initially of the pandemic, in accordance with the report.
Wage progress for different healthcare roles did outpace that of healthcare executives although amid widespread recruitment and retention challenges.
Most scientific roles noticed median base salaries rise 5% or greater, with registered nurses seeing over 8% progress, in accordance with the report.
Whereas whole compensation for executives grew yr over yr, there have been no shifts in annual incentive plan prevalence or award alternative ranges.
Development in whole money compensation as an alternative is being pushed by greater incentives awards in mild of improved organizational performances within the aftermath of the primary years of the pandemic, in accordance with the discharge.
“It exhibits that the performance-based incentive applications are working as designed by tempering awards in difficult years and rising them when efficiency improves,” Bruce Greenblatt, managing director at SullivanCotter stated within the launch.
Organizations ought to anticipate wage will increase above norms of three% in 2023 in the event that they need to retain key expertise, mitigate the impacts of inflation and handle pay fairness points, the report stated.