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Current Events & Hot Topics Current Events & Hot Topics

Hospital in Texas (Say what!?) Does Right by Its Employees

Posted by on Jun. 18, 2014 at 8:39 AM
  • 10 Replies

Hospital Uses Executive Bonus Money To Give Its Workers A Raise

BY BRYCE COVERT  


"Hospital Uses Executive Bonus Money To Give Its Workers A Raise"

 

CREDIT: SHUTTERSTOCK

Parkland Health & Hospital System in Dallas will raise its own minimum wage to $10.25 an hour next month, paying for the increase with money originally devoted to executive bonuses.

The lowest-level employees at the hospital currently make $8.78 an hour, and the increase will give about 230 workers a raise. Those workers were already making more than Texas’s minimum wage, which is the same as the federal $7.25 an hour rate. The move also means that every worker employed by Dallas county, inside and outside the hospital, will make more than $10.25 an hour.

The wage increase will cost the hospital about $350,000 a year. The expense will be covered with money from the upcoming quarter’s bonus pool for the hospital’s 60 vice presidents and top executives. That pool was between $750,000 and $1.2 million in the most recent quarter, and it’s between $3 million and $5 million for the full year.

Dr. Jim Dunn, the hospital’s executive vice president and chief talent officer, told Modern Healthcare that the decision was made in the hopes of improving workers’ morale and to provide a living wage. “We really want, in any way possible, to break down any gaps or anything between the top leaders and those who are closest to our patients,” he said. “We feel like it’s the right thing to do.”

Raising wages can help businesses’ bottom lines, as it can improve efficiency, make it easier to recruit workers, and lower turnover. Losing employees to turnover is particularly expensive, as it can cost as much as 20 percent of a workers’ salary to replace her. Other companies have voluntarily raised their minimum wages lately, including retailer Gap, which boosted its lowest pay to$10 an hour.

Funding a raise with executive compensation also makes sense, given the growing disconnect between pay at the top and the bottom. CEOs’ pay is now295.9 times the pay for their own workers, far higher than the 87.3-to-one ratio in the early 1990s. Average pay for a chief executive last year was $15.2 million, a 21.7 percent increase over 2010, while workers saw their pay fall by 1.3 percent in the same time. Corporate profits have also hit record highs as workers keep increasing their productivity, but they haven’t shared in that growth. If the minimum wage had kept up with rising productivity, it would benearly $22 an hour, and if it had simply kept up with inflation since the 1960s it would be over $10 an hour.

President Obama and Congressional Democrats have pushed to raise the federal minimum wage to $10.10 an hour, but it’s been stymied by Republicans. In light of that inaction, some states have taken matters into their own hands, and three have passed a $10.10 minimum wage while Vermont put its at $10.50.

by on Jun. 18, 2014 at 8:39 AM
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Replies (1-10):
snookyfritz
by Platinum Member on Jun. 18, 2014 at 8:51 AM
4 moms liked this

Raising the minimum wage to $10.25 an hour simply by not giving out executive bonus checks is a simple, harm no one way of working toward equity

snookyfritz
by Platinum Member on Jun. 18, 2014 at 8:59 AM

BUMP!

MommyOK
by Member on Jun. 18, 2014 at 9:03 AM
3 moms liked this

That's what every company should do....to keep people motivated and feel little more appreciated so they can do a better job too !

snookyfritz
by Platinum Member on Jun. 18, 2014 at 10:00 AM

I agree.  Happy workers are productive workers.

Quoting MommyOK:

That's what every company should do....to keep people motivated and feel little more appreciated so they can do a better job too !


PamR
by Pam on Jun. 18, 2014 at 11:23 AM
2 moms liked this

This is what more companies should do. The workers have as much to do with productivity and success as the executives do. 

FromAtoZ
by AllieCat on Jun. 18, 2014 at 12:27 PM
1 mom liked this

Other companies should take note.

latashac
by Bronze Member on Jun. 18, 2014 at 12:42 PM
It seems to be gaining momentum. I even heard that McDonalds is considering raising it's wage. Something I never thought would happen.
jobseeker
by Bronze Member on Jun. 18, 2014 at 6:11 PM
1 mom liked this

 This Houston girl has never been a fan of Dallas, but I have to give respect where respect is due.  Mayby Houston's Medical center hospitals will take note?

VooDooB
by weird cheese on Jun. 18, 2014 at 6:26 PM

I don't really get the thread title.

yourspecialkid
by Platinum Member on Jun. 18, 2014 at 7:44 PM
1 mom liked this

 Too bad they had to take a great story into the political arena...totally ruined it for me.

 

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