Question

Mrs. Personal, personal director, reluctantly admits the following to you.   Hospital practice in the past has been to give the employees a cost of living raise = the previous news percentage increase in the consumer price index. Also, historically we have allocated 5% of total wages to a merit pool to be awarded to meritorious employees based on their annual evaluations. Because Mr. Salter treats the employees like family, virtually everyone gets the raise. Because of shortages in nursing, I am recommending a market raise of 3% in addition to the above raises to keep us competitive. Here is a wage comparison to the facilities that we compete with for new hires (

Case Study: Bobcat Integrated Delivery System TABLE VI-A Salary Survey of Area Hospitals Average Hourly Rates (without benefits), December 2014 County Hospital Position Head Nurse Staff RN Staff LPN Nursing Assistant Lab Tech Rad Tech Food Server Housekeeper Accountant Clerk Bobcat $38.00 33.50 26.00 20.70 32.00 28.00 18.40 18.40 30.00 21.00 $35.00 32.00 25.00 18.00 30.00 25.00 15.00 15.00 15.00 10.50 TABLE VI-B hor 31 2014

table VI-A). Mr. Salter asked us not to announce raises until be financial analysis is complete. In the event we can't give the expected raises, explanation giving the reason

   

Answer 1

Mr. Salter asked the staffs not to announce raises until the financial analysis is complete because until and unless the the assessment of the ability to provide increased wages is not done ,nobody can announce about the raised wages because if we announce it without doing an analysis of finance and if in the future there is shortage of revenue then it would hard to pay the staffs and ultimately it will affect the prestige and standards of the Organization and also the services being provided to the consumers because of shortage of staff .