This is the million-dollar question faced by most managers today. With the competition for top talent heating up, figuring out a way to keep your best people motivated and productive at work is rapidly becoming one of the top priorities for employers. Many employers believe that an excellent compensation package holds the key to employee engagement and motivation. High compensation provides employees with a sense of satisfaction from their job and incentivizes them to perform better especially when compensation is directly related to job performance.
Comments Abstract Background and Objectives: The use of incentive compensation in academic family medicine has been a topic of interest for many years, yet little is known about the impact of these systems on individual faculty members.
Better understanding is needed about the relationship of incentive compensation systems ICSs to ICS satisfaction, motivation, and retention among academic family medicine faculty. This study reports the results of the incentive compensation question subset of the larger omnibus survey.
Overall mean motivation and intent to remain in their current position were similar. Faculty perceptions of appropriateness of the measures, understanding of the measurement and reward systems, and perception of due process are all related to satisfaction with the ICS, motivation, and retention.
ICSs are common in academic family medicine, yet most faculty do not find them to motivate their choice of activities or promote staying in their current position. Design and implementation are both important in promoting faculty satisfaction with the ICS, motivation, and retention. The use of incentive compensation in academic medicine has been a topic of interest for many years.
Yet, physicians may not be motivated to act in the interest of the larger organization if there is a conflict between the goal of the individual physician and the goal of the organization. Incentive formulas that are too simple lead to lack of attention to key strategic areas, while incentive formulas that are too complex lead to lack of understanding and lack of motivation for the physician.
This study attempts to fill that gap by providing further empirical evidence about the impact of diverse ICS programs on faculty satisfaction, motivation, and retention by exploring the relationships between the categories of incentives offered, the ICS design, and implementation of the ICS, with ICS satisfaction, motivation, and retention.
Methods To better understand the satisfaction, motivation, and retention of academic faculty, we developed a set of 35 survey questions to explore aspects of ICS design and implementation and individual faculty outcomes based on organizational psychology and business management principles of incentive compensation systems.
Two physician faculty members who were not involved in survey design were asked to complete the question subset prior to distribution of the CERA survey to establish face validity. We specifically asked faculty to report how their ICS impacted their motivation to devote time and energy to specific activities within the scope of academic medicine, their intentions to remain with the organization, and their overall satisfaction with the ICS.
Active members were defined as those who have attended a CAFM organization meeting since January 1,or were listed as a member of a committee or group within these organizations.
Data Collection Survey support staff of STFM surveyed potential respondents electronically with an initial email invitation for participation.
The survey included a personalized greeting, a letter signed by the presidents of each of the four participating organizations urging participation, and a link to the survey. STFM staff sent nonresponders two follow-up emails encouraging participation.
We completed descriptive statistics for the responses to questions from the common demographic question set and the ICS-specific question set. We captured all responses to questions assessing faculty perceptions and reactions on a 5-point Likert scale.
By using two-tailed t-tests assuming equal variance we evaluated differences in satisfaction, motivation, and retention between groups of responses for demographic subsets including incentive amounts, types of incentives, and elements of the ICSs.
Lastly, we used correlation, linear regression and multivariate analysis of variance MANOVA to examine the research questions of interest.
To better understand variability in satisfaction, motivation, and retention, we first examined various structural domain aspects of the ICSs, and then examined faculty perceptions of the implementation as predictors of the outcomes of interest. In particular, we asked faculty whether the behaviors being targeted by the ICS were appropriate two items: Results The all-member CERA survey was completed by individuals out of 1, potential respondents for a response rate of The incentive compensation system set of questions was completed by individuals for a response rate of The majority of respondents were non-Hispanic white physicians of assistant or associate professor rank Table 2.
The means indicating the between-groups effects are reported in Table 4. There were significant differences between all three groups on retention, and there was a significant difference between the first and second groups on satisfaction and motivation.
We asked survey respondents whether or not their ICS included incentive opportunities in each of the following categories: There were no significant relationships between the reported outcomes and whether or not the clinician was eligible for a clinical productivity incentive.
We performed a regression analysis to look at whether or not faculty half days of clinical time was a predictor of clinical motivation, and the model was nonsignificant. As reported in Table 3, incentives in the other four categories were significantly related to satisfaction, retention, and motivation.
Table 5 demonstrates that one-fourth Sixty-seven percent of plans offered automated tracking of ICS data. Faculty Perceptions of Incentive Compensation Systems Faculty perceptions of appropriateness, understanding of their ICS, and due process were all significantly related to the outcomes of interest see Table 3.
We conducted a series of regression analyses looking at the relative weight of each of these predictors on the outcomes.
Given that the percentage of total income significantly predicted each of the outcomes, this was included in the first step of the regression. As reported in Table 6, in each case, perceptions of appropriateness and due process were significant predictors of satisfaction, motivation, and retention, above and beyond the differences accounted for by percent of incentive.
Understanding of the system was not a significant predictor when entered with the first two predictors.Intuitively, one would think that higher pay should produce better results, but scientific evidence indicates that the link between compensation, motivation and performance is much more complex.
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Feb 16, · “Pay for performance” – the concept that executives’ compensation should be commensurate with the value they deliver to shareholders – has become a household phrase in recent years.
The. Feb 16, · “Pay for performance” – the concept that executives’ compensation should be commensurate with the value they deliver to shareholders – has become a . Compensation and Motivation shows how to apply the proven techniques of behaviorists such as Herzberg, Maslow, and Skinner without taking your eye off the bottom line.
Use this pioneering yet practical handbook to make psychological and financial rewards work together at your company- Reviews: 1. Employee motivation through compensation can come in the form of raises, performance bonuses, commissions, profit sharing, or any number of "extra benefits" like, automobiles, vacations, or other tangible items purchased and used as rewards.