Try This One at Home!

Imagine this. Increasing pay satisfaction without increasing pay. And just for fun, try it with one of the toughest crowds -- hospital workers.

Can't be done, you say? It has been done, in one of the most august American healthcare institutions.

Attention must be paid. We have a lot to learn.

The Mayo Clinic conducted their biennial engagement survey in 1999 to find that 17% or so of their employees reported being satisfied with their pay. Slim pickins, even for a measure that is typically no higher than 30% or so in most organizations.

2011 results for the pay satisfaction item at the Mayo Clinic? 82%

How did they do it? As World at Work puts it, "Mayo Clinic’s success had little to do with changes to the compensation program itself but a stronger focus on communication, collaboration, transparency, market competitiveness, and predictability."

I'd suggest that their stronger focus on communication is what made the collaboration, etc. possible. As Karmen Reid, the Director of Compensation at Mayo Clinic who worked this magic, points out, "We always pay the same way . . ." The difference? A new philosophy of openness about all things pay.

Those of you who regularly read the Compensation Cafe know that we find "transparency" to have mixed results unless it is coupled with clarity. The Mayo Clinic's work seems to acknowledge that. What Karmen seems to mean by transparency is more of an intentional collaboration with supervisors and employees. They hide nothing from managers but they don't stop there. Data is paired with insight. Intentions are explained and discussed.

I think she and her colleagues came up with especially elegant solutions. Instead of deciding, they listen. Instead of explaining the "way we do things around here," they collaborate. Instead of "training" supervisors, they give them a briefing and let them brainstorm how they would handle topics with their employees . . . then offer coaching if it is needed. 

How do you make everyone responsible for engagement? Hand over the reins, demonstrate your trust, then act as navigator. The deep sighs of relief from supervisors come from increased job satisfaction -- and lead to higher engagement research scores.

Want to hear the entire story from the Mayo Clinic? Check out the WorldatWork Workspan TV interview with Karmen Reid embedded below, that covers a lot more details. 

Then try this one at home!

Thanks to Ann Bares for pointing out the video to me -- she knew how much I'd like to share it with you.

Margaret O'Hanlon is founder and principal of re:Think Consulting.  She has decades of experience teaming up with clients to ensure great Human Resource ideas deliver valuable business results.  Margaret brings deep expertise in total rewards communications and change management to the dialog at the Café. Before founding re:Think Consulting, she was a Principal in Total Rewards Communications and Change Management with Towers Perrin. Margaret is a member of the Board of Directors of the International Association of Business Communicators (IABC), Pacific Plains Region. She earned her M.S. and Ed.S. in Instructional Technology at Indiana University. Creative writing is one of her outside passions, along with Masters Swimming.

Comments

[Laura Schroeder]

Great topic, Margaret! After all, the phrase, 'They don't pay me enough for this!' says it all.

[Margaret O'Hanlon]

Thanks Laura. It's so great to acknowledge an organization that worked thoughtfully, successfully earned employee support and has the numbers to prove it!

[presentation training]

82% satisfaction rating is a great feat. I'll definitely try "openness about all things pay" philosophy in my business.