{"id":11299,"date":"2019-03-13T23:09:00","date_gmt":"2019-03-14T06:09:00","guid":{"rendered":"http:\/\/nursemk.wpengine.com\/how-you-can-use-market-adjustment-can-retain-top-nursing-talent\/"},"modified":"2022-03-02T14:54:49","modified_gmt":"2022-03-02T19:54:49","slug":"how-you-can-use-market-adjustment-can-retain-top-nursing-talent","status":"publish","type":"post","link":"https:\/\/www.nurse.com\/solutions\/blog\/how-you-can-use-market-adjustment-can-retain-top-nursing-talent","title":{"rendered":"How You Can Use Market Adjustment To Retain Top Nursing Talent"},"content":{"rendered":"

Attracting and retaining talented nurses creates an ongoing challenge for nurse recruiters and HR professionals, especially during a nursing shortage.<\/h2>\n

Pulling out all the stops to stay ahead of the game and remain fully staffed is essential. One strategy for you to remain competitive when recruiting and working to increase retention rates is by updating salaries with a market adjustment.<\/p>\n

What is a market adjustment?<\/h3>\n

Market adjustments are specific to compensation and are a means to reflect where current employees are with regards to salary, relative to what the market is paying for the same occupation, said David Twitchell, a member of the Society of Human Resource Management\u2019s Special Expertise Panel and vice president of human resources at Catholic Charities in Manchester, N.H.<\/p>\n

\u201cTypically, the market reflects an average of salaries<\/a> based on a number of institutions being surveyed in that market,\u201d he said. \u201cQuestions for recruiters to consider include, ‘Are we behind the market, on market or leading the market?’\u201d<\/p><\/blockquote>\n

In addition to general recruiting and decreasing overall turnover, a market adjustment can help when you hire and work to retain specialty nurses.<\/p>\n

\u201cIn some parts of the country, some employers and hospitals in particular hit the panic mode when specialized nurses with decades of experience leave, especially from areas such as the ER, OR and ICU,\u201d said Joanne Spetz, PhD, professor at the Philip R. Lee Institute for Health Policy Studies at the University of California, San Francisco.<\/p>\n

When seasoned nurses leave, you might want to fill those positions with other nurses with lots of experience.<\/p>\n

\u201cDuring a shortage,<\/a> some recruiters will offer hiring and retention bonuses, along with pay increases,” Spetz said. “This is where market adjustments come into play and recruiters need to be aware of this.\u201d<\/p>\n

Routinely compare your salaries to the going rate<\/h3>\n

There are no set rules on the frequency of analyzing and implementing a market adjustment when recruiting new hires in nursing<\/a>.<\/p>\n

\u201cMarket adjustments should be considered at least annually, at a minimum,\u201d Twitchell said. \u201cPerforming market adjustments can be done by hiring an outside consultant to survey salaries of competing institutions to determine how their pay practices compare to yours. You can also purchase surveys that have already been done to make this determination.\u201d<\/p>\n

Examining and implementing a market adjustment for existing staff also is essential.<\/p>\n

Trisha Zulic, SHRM-SCP, state director-elect with the California Society for Human Resource Management, said, \u201cIf you begin to lose high performers that \u2018once upon a time\u2019 loved the culture, it\u2019s time to take a closer look and see what has changed. Also, if you\u2019re hiring because you are desperate, you can cause a culture shift that might cause high performers to exit.\u201d<\/p>\n

Understanding what your market pays its nursing talent while remaining proactive to reduce your future costs is important.<\/p>\n

\u201cStaying on top of the market makes sense,\u201d Spetz said. \u201cEngaging in cost avoidance is good practice \u2014 paying out money now, can help save money later, whether paying out higher salaries, or\u00a0sign-on or retention bonuses.<\/a>\u201d<\/p><\/blockquote>\n

When a nurse resigns, the replacement cost ranges<\/a> from $40,000 to $100,000, according to Spetz, depending on that nurse\u2019s position and the market.<\/p>\n

\u201cIt costs time and money to post a job and recruit for a replacement, and the vacant position will likely need to be filled in the interim with registry temps or travelers,\u201d she said.<\/p>\n

At some point, nurses will leave \u2014 even the ones who are happy with their schedule or manager.<\/p>\n

\u201cThat\u2019s why exit interviews can be helpful<\/a>, to ask the question, \u2018Why are you leaving?\u2019\u201d Spetz said.<\/p>\n

Questions recruiters should ask nurses during exit interviews include:<\/p>\n