"Demand For Higher Compensation In Healthcare Will Continue Into 2022” - Jane Lock, CPO, Connections

 

“One major trend in the pay and compensation space is the increase in sign-on bonuses to nearly all job levels to attract candidates in a tight labor market. There is also higher compensation growth, especially in healthcare, as we approach 2022 due to employment churn and an increasing labor market participation rate. However, with more open jobs and fewer not enough candidates in many cases, I predict another year of stiff competition in attracting talent throughout many industries,” said Jane Lock, SPHR, SHRM, Chief People Officer, Connections Health Solutions.

In an exclusive interview with HR.com, Jane touches upon how they are preparing employees for the hybrid work culture, the new trends in pay and compensation, and more.

Q: With many employees working remotely or working in a hybrid model, what are the compliance challenges that HR will face in terms of pay and compensation? What has been your experience?  

Jane: At Connections Health Solutions, we are not faced with many compliance issues because of the structure of our organization.  We operate crisis centers 24/7 and have done so throughout the pandemic to continue serving the community.  
 

Supporting the centers from afar are our corporate team members, who work remotely or in a hybrid model and we have found this works well for all team members. At the end of the day, it’s imperative that we continue treating every person with the compassion, respect, and support they need to achieve recovery from mental health or substance use conditions.  

In future, we will move corporate employees (except those who live out of state) to a hybrid model working onsite three days per week and the balance remotely.

Q: Rulings from the SEC and CRD IV directives mandate that compensation policies need to be compliant. How can HR ensure that they are in compliance with these rulings? What are the challenges they would face with regards to this in 2022 and beyond? 

Jane: These directives do not impact us as a private company with employees in the United States only. For compliance in general, compensation policies are reviewed in-depth starting in November to ensure compliance in the upcoming year. 

Q: What are some of the new pay and compensation regulations that HR should be mindful of in 2022? 

Jane: Not related to a specific regulation, but HR should be mindful of job descriptions in 2022. The ways organizations can leverage job information and technology to adapt to changing work, competition for talent, business disruption, DE&I are all dependent on powerful, agile and adaptable job descriptions. 

This allows organizations to use skills-based recruiting to attract a larger talent pool for a more diverse and inclusive workforce. 

Q: What are the new trends you see coming in terms of pay and compensation in 2022? 

Jane: One major trend is an increase in sign-on bonuses to nearly all job levels to attract candidates in a tight labor market. There is also higher compensation growth, especially in healthcare, as we approach 2022 due to employment churn and an increasing labor market participation rate. However, with more open jobs and fewer not enough candidates in many cases, I predict another year of stiff competition in attracting talent throughout many industries.   

Q: The divide between executives and staff over flexible work models is growing. How have you been addressing this issue at your company?  

Jane: I expect that almost all companies are wrestling with this issue. We have developed a hybrid model for all corporate employees, including the executive staff, and equal treatment does help lessen any divide.  

We wanted to be fair and reasonable, recognizing that even moving to a hybrid model after working fully remote for most corporate employees is a significant shift that will impact family life. We have also given corporate employees four months to prepare to return to work using the hybrid model with an effective date January 2, 2022, after the holidays.
 
We have reframed this conversation from one that focuses on where work is done to discussions that focus on the definition of productivity. We believe that the future of work is more dependent upon the nature of work being done and the best environment that is needed to accomplish a task or goal. Some activities are best suited for independent focus while others require collaboration.  

Our leadership team is working alongside team members to identify and outline a plan that works for the individual and the teams, and ultimately the patients, we support. We are working to be more intentional with our time and space. In healthcare, the majority of our employees are patient-facing, which does not lend to flexibility to work remotely, however, we are working to provide more flexibility to some of our attendance policies and leave policies to allow for a better work/life balance.   

Q: What could be the probable answer to this situation in future? 

Jane: We are in the process of building both a Leadership Academy and a Career Lattice that will offer development opportunities for all team members in our efforts to retain and attract talent. We continue to review our compensation structure and strategy on an annual basis to ensure our wages are competitive. 

The pandemic fundamentally changed work in all industries, especially healthcare. It is incredibly important that the needs of the individuals working for a company and providing services and care to others are balanced against the operational needs of the company. I think it is more important than ever to listen to the employees and consider all aspects of the work as we develop and guide policy for the company. 
 

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