Salary compression of nursing managers

Area of Science:

• Healthcare Management
• Nursing Workforce Studies
• Human Resources in Healthcare

Background:

• National and local nursing shortages have driven significant increases in staff nurse salaries and benefits.
• Existing wage structures place clinical nurse salaries above those of nurse managers and administrators.
• This disparity creates challenges in recruiting and retaining essential nurse management personnel.

Purpose of the Study:

• To address the retention and recruitment issues faced by nurse managers.
• To evaluate a novel compensation strategy aimed at incentivizing nurse management roles.

Main Methods:

• Implementation of a compensation model that includes eligibility for differentials.
• Provision of a modest economic incentive for undertaking managerial responsibilities.
• Monitoring of nurse manager attrition rates into clinical positions.

Main Results:

• The hospital has successfully halted the attrition of nurse managers into clinical positions.
• The new compensation approach appears effective in retaining nurse managers.
• The strategy balances economic incentives with the assumption of managerial duties.

Conclusions:

• A targeted compensation strategy can mitigate nurse manager attrition.
• Financial incentives and differentials are crucial for nurse manager retention during workforce shortages.
• This approach offers a viable solution for healthcare organizations struggling with nurse management recruitment and retention.