Module 6 Presentation

Mayo Clinic’s Performance Bonus Policy

Mayo Clinic Bonus Policy

Policy No. 017/23/’20

Effective Date: 31-03-2020

Next Review Date: 31-12-2020

Policy Approver: Chief Executive Officer

Name of the Policy: Comprehensive Performance Bonus Policy

Brief and Purpose

The policy provides a detailed explanation of the approach that Mayo Clinic will employ to award performance bonuses for the stimulation of patient-centered activities and outcomes. The organization will acknowledge exemplary performance by individual employees and the attainment of the goals set. In the context, emphasis will be on the ability and extent of compliance with standard medical guidelines. Moreover, leadership contends that motivated workers will certainly exhibit commitment to assigned tasks and set goals in the future. The policy specifies the approach of determining individual workmen to receive rewards based on compliance results. Furthermore, it provides a formula for calculating the bonus amounts to extend as rewards.

Scope

The policy applies to both part-time and full-time health workers as well as those with contracts. In the context, both temporary employees and interns will be excluded, while the modification of the policy is the discretion of the Mayo Clinic Board, which may undertake such modifications at any time without informing any person.

The value-based reimbursement model will pay for performance and will reward employees who stick to set guidelines within their respective departments. The outcome therein will be exemplary customer services, contentedness, and minimal or no cases of complaints for errors.

Policy Elements

Mayo Clinic will undertake to comply with physicians, clinicians, and nurses whose dedication contributes to superior client experiences. The reward system will comprise the following:

· Lump-sum bonus

· Month-end bonus

· Incentives

Lump-sum bonus

The healthcare firm may award one-time bonus awards to employees who exhibit exemplary performance, which is demonstrated by various events. One such event would be exceeding set goals, while the other one would be offering additional roles, other than the ones assigned in the job description. Above all, a healthcare worker who serves as an example in complying with the code of conduct and ethical standards may qualify for the aforementioned bonus.

The awarding process will be executed by the human resource department, whereby it will make recommendations subject to the approval of the executive officer, and in liaison with departmental heads (Cai et al., 2018). The bonus will not exceed 20% of the employee’s salary.

Quarter-end

The executive team will have the power to determine the bonuses of all healthcare workers at the end of each quarter. The general conditions for extending the bonus include the company’s attainment of compliance commendations and approval by the board of management. In the context, individual healthcare work persons must be working with the firm at the date of granting the bonuses, and must not have announced intentions to resign.

Non-Cash Incentives

The human resource department considers an alternative means to award its employees other than the use of cash. This award method will be particular at the end of the year when the department of finance will be preparing its annual report. However, only those workers who will have met their set compliance targets will qualify for the award. Unlike the quarterly bonus that will be dependent on the collective effort to hit company target, the latter will affect individuals. At the beginning of the next month, there will be a committee of evaluators within every department who will be processing and documenting the necessary information on a monthly basis. The team will then submit their reports to the auditor for analysis. The incentives will include a tour to the place of their choice, position elevation by their supervisors, refurbishing, and installation of new software to improve their work efficiency.

Department and Function

The policy applies to three departments of the facility, which include the clinical, physicians, and nursing sections. The evaluation will be based on the extent of compliance with the guidelines of each of the sections and the general medical care standards (Werner et al., 2018).

Summary of the Policy Structure

The policy is divided into subsections that describe the terms of the bonus. The first sub-heading describes the purpose of the introduction of the policy, including the motivation therein, while the second one outlines the qualifications for such bonuses as well as the ones who do not. The third sub-heading outlines the policy elements in the form of the actual bonuses to be extended, the conditions for such, and appropriate approval. Individual elements include the lump sum, quarterly, and non-cash incentives.

References

Cai, M., Wang, W., Cui, Y., & Stanley, H. E. (2018). Multiplex network analysis of employee performance and employee social relationships. Physica A: Statistical Mechanics and its Applications, 490, 1-12.

Werner, R. M., Kolstad, J. T., Stuart, E. A., & Polsky, D. (2011). The effect of pay-for-performance in hospitals: lessons for quality improvement. Health Affairs, 30(4), 690-698.