Today, I want to share a little more about the merit-based compensation increase program that I’ve mentioned previously in this column. The steps of the process are underway, so, now is a good time to share a little about why we are making this commitment to our most valuable resource, our employees.
In the ever-evolving academic medicine and health care landscape, one constant remains – the need for a vibrant, well-trained and engaged workforce. We certainly have this at the Medical Center. Any chance I get, I will talk about how lucky we are to have such a dedicated and hard-working community. And, thanks to a lot of hard work and careful planning, we are able this year to recognize the exceptional contributions of our employees through a merit-based pay increase program, which I believe is a first-of-its-kind for UMMC.
This initiative reflects our commitment to fostering a culture of excellence, innovation and growth. Also, it’s not the only action we’ve taken recently to strengthen our workforce and recognize your work.
Including the money allotted for this merit raise, the Medical Center has invested nearly $80 million (which is an ongoing, annual expense) into our workforce since July 1, 2022, impacting more than 8,000 positions. This is a lot of money. I, along with all of executive leadership, feel passionately that investing in you is a top priority.
Over the years, we have responded to market changes for key jobs and have implemented market adjustments when and where we could. We recently implemented a physician compensation program that allows for incentive pay. Similarly designed compensation plans for advanced practice providers and research faculty are next.
For staff, our new plan includes routine market analyses (and scheduled market adjustments) as well as annual merit-based adjustments. We cannot do everything all at once in one fell swoop, so, we anticipate several years of measured, ongoing adjustments. This can only be born out of a strong and steady financial performance. Along with this people priority, we have many capital and other investment needs. With a positive financial performance, the new merit and market plans initiated this year will be hardwired into our budget.
So, why are we doing merit-based increases tied to an eligible employee’s annual performance evaluation?
Some key reasons for this focus are:
Recognition of Excellence: We believe that acknowledging the hard work, dedication and exceptional contributions of our employees is crucial. Merit increases serve as a tangible way to show our appreciation for those of you who consistently go above and beyond in your role.
Encouraging Continuous Improvement: By linking salary adjustments to performance, employees should be motivated to strive for excellence. This initiative reinforces the power of personal and professional growth, encouraging everyone to invest in their development and seek opportunities for advancement.
Fostering a High-Performance Culture: Excellence should be considered the norm. Merit increases are a critical component in fostering such a culture. They signal to you, our workforce, that exceptional performance is recognized and rewarded, creating an environment where everyone is motivated to perform at their best. This initiative will help us attract and retain top talent, ensuring that our employees remain competitive and innovative.
Boosting Morale and Engagement: Recognizing and rewarding outstanding performance helps create a positive work environment. I hope that it’s clear that this is one way that we show you that you are valued and appreciated.
Enhancing Productivity and Efficiency: When employees know that their efforts will be rewarded, they are more likely to put in the extra effort needed to achieve their goals. This initiative will drive performance improvements across the board, benefiting both our employees and our organization.
In the past, the annual staff performance evaluation process did not always provide meaningful information. This year’s improved evaluation process – moved into Workday and ensuring managers are providing realistic, honest feedback – allowed us to implement this merit-based compensation process. Tying merit compensation to evaluations will help guarantee that managers conduct comprehensive and thoughtful employee evaluations.
Thank you to all the Medical Center units that put in a lot of work to make this initiative a reality – especially Human Resources and Finance. While this first time may not be perfect, it is an excellent starting point that we will be able to build upon for the future. Eligible employees will hear about the merit increases next week.
I’m excited about the positive impact this will have on our organization. Through this initiative, we will become a stronger, more innovative and more successful UMMC by adding a little horsepower to the vehicle taking us on our journey to A Healthier Mississippi.
