In an effort to boost employee morale and provide a living wage, one Texas hospital will use money once designated for executive bonuses to give its frontline employees a raise, according to Think Progress.
Parkland Health & Hospital System in Dallas will raise minimum wage to $10.25 an hour next month, boosting the salaries of about 230 lowest-level employees from $8.78 an hour, higher than the federal $7.25 minimum wage, according to the article.
The hospital will cover the $350,000 annual expense with money from the $3 to $5 million annual bonus pool for the organization's 60 vice presidents and top executives, according to the article.
"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," said Executive Vice President and Chief Talent Officer Jim Dunn, according to Think Progress. "We feel like it's the right thing to do."
The move could improve the hospital's relationship with employees, especially as CEOs across the country continue to see pay increases, making 295.9 times the pay of their own workers, up from 87.3-to-one in the early 1990s, according to the Economic Policy Institute.
Compensation trends for hospital CEOs may shift as the industry pushes for quality. C-suite executives will likely receive modest pay increases this year and boards will look to make sure compensation falls in line with the organization's goals, while physician executives receive larger payouts, FierceHealthcare previously reported.
To learn more:
- here's the Think Progress article
- read the Economic Policy Institute data