Addressing Healthcare Total Rewards During a Pandemic

Tonight, my husband will come home, immediately enter the bathroom next to the garage, strip off his scrubs, and stick them in an old bag. He will shower and scrub, wear a new set of clothes, and disinfect every doorknob he’s touched. Then, he will lock the bathroom from the inside and hide the tool we use to open it from the outside, so our kids won’t enter. And while at home, there will be a different cadence to our evenings as we try to keep a reasonable distance from him just in case, he has been exposed to this virus that has the entire world on its knees.

Since his work doesn’t directly involve treating COVID-19 in patients, he is not necessarily “on the frontlines.” But he’s pretty close; certainly, too close for comfort.  As procedures that aren’t deemed essential in the immediate term are on delay, his practice will bring in less revenue. And, as a result, while the calculated risks he takes performing his job have multiplied, he may make less during this crisis than he has before.

As compensation consultants, we know and rely on the most basic foundational rule of pay. The current worth of any job is baked into market levels of compensation. Since market pay levels are set by the supply and demand of labor for a specific role, it stands to reason that the hazards undertaken by a job – for example, firefighters, or police – are reflected in commensurate pay. But what happens when the people taking certain roles integral to societal health didn’t sign up for the dangers they now face? How do we make whole, for example, our current healthcare workers as they walk headfirst into the fray?

Here at FutureSense, we like to remind clients that pay cannot fix anything. It can be an odd thing to hear from a firm that prides itself on its compensation consulting services. Our perspective is that you cannot pay your way out of a problem or into a happy staff. This has never been truer than the situation currently faced by the healthcare industry. Healthcare workers are not looking to take advantage of this opportunity to get rich. First and foremost, these professionals want to know their jobs are secure and they have the proper workplace protections and know that they and their families are safe. Any pay-related issues must support these two focus points.

It is important for organizations to keep in mind that increasing the likelihood of these needs being met, along with transparent communications, are better retention tools than any short-term pay remedy. At the end of the day, most healthcare employees, especially clinically facing, did not choose their profession to make millions. Their work is their calling, and that must be respected, especially now.

It is hard to imagine a scenario where “hazard pay” or incentives can reasonably be considered as a replacement for gloves, masks, and sufficient cleaning and sterilization products. Many healthcare organizations, both large and small, operate with limited margins and will be even more challenged in the next several months. When asked to choose between safety and compensation, the immediate answer is clearly safety first.

Luckily, healthcare professionals are often motivated by a sense of service and duty first, with pay and rewards being a lower priority. It is critical for most of them to know that patients are receiving the best care possible. Providing the proper protective gear and support is the first step to this process. The work environment also plays a critical factor. These professionals are social and must provide a confident persona to those they treat. Basics like safe places to take a break and the support of management to do just that can be game-changing tactics.

Many non-COVID treatments deemed non-essential have been put on hold for the short-term. These may have utilized individuals with specific expertise and may generate higher revenue than the immediately needed critical care. In many practices, we can expect revenue will go down, which will impact everyone from top to bottom. In the next few months, even the most successful organizations are likely to face the toughest times in their histories.

Families are also a critical factor. Many healthcare professionals also have the duty of caring for elderly parents or children. This crisis stretches childcare and eldercare beyond expectations. Because of social distancing, utilizing family members for childcare may no longer be an option. Individuals must balance the risk of illness with the stress of extended periods of separation from those they love. For many, coworkers are also an extended family. As their coworkers fall ill, the burden on each working individual rises.

While all of this is dire, none of it suggests that there are no solutions. Every potential solution starts with increased transparency and communication. These communications must be two-way. It is essential to spend at least as much time learning what your staff needs from you as you communicate what you need from them. Addressing those concerns may not always be possible. Still, things as simple as a safe place to decompress and relax or access to additional childcare support may be more impactful than more expensive gestures.

So, where do total rewards fit into all of this? First, pay and rewards must respect the work that is being done. That work is essential, dangerous, and stressful. Second, pay and rewards must regard what your organization can deliver without putting itself at risk. During this time, we need every healthcare facility, so risking your operational capabilities is not an option. Third, whatever you do now does not need to reflect your long-term compensation philosophy or strategy. The focus must be on keeping your people motivated and healthy for a few months so they can do the same for others.

We like to point out that there are truly only two compensation philosophies. The first is paying people as little as possible while remaining competitive in the market. The second is paying people as much as possible while leading the marketplace. Often these translate to the same thing, but now is the time to choose the second path if it is viable for your company. Before you start paying, find out what your people want and need.

Some enhancements are quick and relatively easy. Better food, a TV with all the channels, a video-conference space where staff can connect with family and friends during breaks, or reallocating offices as private decompression spaces are relatively inexpensive and can be executed immediately. Each will be appreciated by different people, all of them are hard to perceive as anything except positive. You must also make sure that your staff knows you value them, their work, and their commitment. This effort is all about communication. Lots and lots of communication. When you think you have communicated everything more than enough, communicate it more. Your teams are sure to be distracted. During times like this, you cannot communicate too much. Lastly, consider providing additional pay if there is an ability to do so. If pay is not an option, consider providing additional future paid time-off, contracted support for schooling, or other future non-cash benefits or perks. The key is making sure that beyond their safety and well-being, you are doing what you can.

We are confident that the organizations that move early and confidently down these paths will be able to care for patients better and launch themselves into a successful future. For more information go to futuresense.com