Question

In: Nursing

Care in this capacity can range from a short-term to long-term based upon the changing needs...

Care in this capacity can range from a short-term to long-term based upon the changing needs of the patient. Patient age can range from pediatric to elderly. Care can be provided in the patient’s private home, group home, or assisted living setting. Medical homes fall into this category and are a new focus of Accountable Care Organizations through the Affordable Care Act of 2010.

Scenario

As the Director of Human Resources within a home care environment, you are responsible for the ad- ministration of the organization’s labor budgets. Your Director of Clinical Services, who has a MSN, has presented some challenges regarding the compensation of her staff.

This specific assisted nursing facility focuses on long-term care, providing approximately 500 nursing and support personnel who deliver direct and indirect care to approximately 225 patients representing various stages of acuity and need for nursing care. Your overall labor budget represents approximately 60% of expense revenue.

The Director of Clinical Service complains that several of her registered nurses are threatening to leave the organization, allegedly because a competitor nearby pays their nurses higher wages. In fact, Direc- tor of Clinical Service asks for an across-the-board immediate pay adjustment of an additional $5.00 an hour for the nurses. She is awaiting a response from you before the day is over.

When considering the Home Care scenario in the Allied Health Community, how would you identify the qualifying criteria to receive the potential $5 raise? What type of matrix would you build to apply raises? Would you need to consider raising wages for other staff members? Why or why not? Justify your decisions with specific examples.

Solutions

Expert Solution

As the Director of Human Resources in the home care Environment, I definitely would consider the raising of wages. Because the nursing staffs are relieved, then the recruitment of new staff members will increase the labour budget. additionally, the training program of new staffs will further increase the organizational cost. So the wages should be raised based on one of the qualifying criteria

  • Performance-based services of the employees.
  • Compensation to the employees on regular basis.
  • Compensation package based on merit.

Type of Matrix:

Wages raised based on performance

Ratings Raise of wages per hour
Outstanding $5
Above average $4
Average $3
Below average $2
Unsatisfactory $0

Yes. the other staff members also would consider for raising of wages so the quality of services and staff retention can be maintained. The salary package should be reviewed based on the organization labour expense revenue. For example, Calculate the raise of wages based on the performance. The outstanding will get an average of 5% and the average will get 3% and unsatisfactory with no raise. The outstanding makes $30,000 per year, the average performer consumes $ 52,000 per year. So despite the higher percentage, even the average performer will have higher wages. So all the employees will be satisfactory.


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