Health systems are rethinking workforce compensation
Hospitals and health systems are shifting their view of compensation to consider it not as a standalone lever, but as one element of a comprehensive workforce strategy.
Organizations are pairing competitive pay with initiatives focused on upskilling, leadership development and recognition to enhance employee engagement and retention.
Becker’s connected with four health systems’ human resources leaders who were asked: How are you rethinking compensation alongside other workforce investments?
Training investments
Akron (Ohio) Children’s model of pairing compensation with workforce investments has led to an average of between zero and five vacancies in respiratory therapy — down from 35 vacancies seven years ago.
“Each year, we dedicate a compensation budget to increase wages in critical jobs while also investing in workforce pipeline programs,” Chief Human Resources Officer Rhonda Larimore told Becker’s. “We regularly review pay to remain market competitive and support career growth through development opportunities up to leadership positions. We invest more than $1 million annually in employees and community members’ training for critical healthcare roles like nursing, respiratory therapy, surgical technology and medical assisting. These programs cover tuition, books and barriers to education like transportation and childcare, while also offering paid training at the hospital.”
Leadership development
Lexington, Ky.-based Appalachian Regional Healthcare views compensation as one part of a broader workforce strategy, Austin Maggard, vice president of human resources, told Becker’s.
“Our approach balances total compensation aligned with competitive market benchmarks with meaningful investments in leadership development, total rewards, and recognition, ensuring that team members feel welcomed, cared for and appreciated, in addition to being fairly compensated,” Mr. Maggard said. “Through initiatives such as our #ItsACulture transformation, Disney-inspired Traditions training, ARH Institute and enhanced recognition platforms, we are fostering an environment where competitive pay is reinforced by a strong sense of belonging, growth and purpose. This integrated strategy enables us to attract and retain top talent while strengthening our ability to deliver exceptional care to the communities we serve.”
Holistic care
Gaithersburg, Md.-based Adventist HealthCare recognizes that holistic care begins with those who deliver it, reinforcing its commitment to the health and well-being of its workforce.
“Our mission to extend God’s care through the ministry of physical, mental and spiritual healing embraces our team members along with our patients and community,” Allison Dichoso, vice president and chief human resources officer, told Becker’s. “In a highly competitive healthcare landscape, the ability of healthcare systems to offer market-driven compensation is shaped by reimbursement models that don’t always keep up with inflation. Adventist HealthCare remains committed to providing a meaningful and competitive total rewards package and a supportive environment for our entire team.”
Stability paired with growth
Baton Rouge (La.) General’s total compensation strategy emphasizes competitive base pay, strong core benefits and market sensitivity to pay, adjusted for skills, performance and contributions.
“We complement this with workforce development, recognition and broad-based well-being investments, creating stability along with opportunities for growth, additional earnings, and a healthier, more engaged workforce,” Paul Douglas, senior vice president of strategy, business development and human resources, told Becker’s. “Recent decisions have prioritized strengthening our competitive position in the market relative to pay and rebalancing away from lower-impact expenses to support higher-value offerings.”
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