Our client, an investor-owned healthcare company comprised of four health systems in major metro areas, utilized an historically effective total compensation program for its senior talent that included long-term incentives in the form of stock options.
Working with the senior executive team, we first analyzed the market to ensure a clear understanding of what the market offered different types of executives and why. We combined quantitative information from various labor markets, filtered by the risk-reward profiles for each market, to define potential gaps among our client’s executive packages and those available to similar executives in the market. We then helped craft an employment value proposition and rewards strategy to target specific risk-reward traits in different executive areas that fit the type of talent our client needed and provided an attractive package in the market. A key stone program change was the adoption and integration of a performance based SERP as an offset to delivering capital accumulation strictly through stock options.
The jury is still out in terms of talent acquisition and reward-for-performance because the strategy and program changes are too new. Clearly the company feels it is better positioned to attract the talent it needs and then get what it pays for. The immediate impact felt was one of talent retention and engagement. A number of key team members – those who had helped build the company – were retained and felt the rewards realignment increased their engagement levels and supported an entrepreneurial and committed executive team