RETENTION BONUSES & Would You Stay?

  1. I'm trying to do some research for our "Recruitment/Retention" committee.

    Do you know of any hospital that has implemented a RETENTION BONUS PROGRAM? If so, do you know the specifics of the program or have a contact person at that hospital?

    If you had the following Retention Bonus program would you be inclined to stay with your current employer? (Assuming staffing was "OK", nurses were respected, no mandatory OT, you still would get a yearly raise, etc., etc.) PLEASE NOTE: We work in a great hospital, have the highest pay range in the city, great benefits, less than 8% turnover rate, etc. Our instructions were to "dream" a retention bonus plan and this is our dream...but would you buy it??

    (Assuming an average hourly rate of $29/hr or about $60K/yr without OT...since we all get OT the final $ amount would increase, but how are the %'s to you?)

    1-5 years of employment = 1.0% x yearly salary = $ 600.00
    6-10 years if employment = 2.0% x yearly salary = $ 1200.00
    11-15 years of employment = 3.0% x yearly salary = $ 1800.00
    16-20 years of employment = 4.0% x yearly salary = $ 2400.00
    21-25 years of employment = 5.0% x yearly salary = $ 3000.00
    26+ years of employment = 6.0% x yearly salary = $ 3600.00

    Also, in the retention program would be:

    1. Increase in employer paid retirement program (based on yearly salary)
    1-14 years of employment would have 7% contribution
    15-20 years of employment would have 10% contribution
    21-29 years of employment would have 12% contribution
    30+ years of employment would have 15% contribution

    2. Certification bonuses

    3. Employer sponsored loans for buying a home (points paid) for employees with 5 years of employment.

    Any information or input will be appreciated. Thanks in advance.
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  2. 36 Comments

  3. by   NancyRN
    Wow Gomer, where are you? I'm moving! In my area (Cincinnati), new RNs get about $18. to start. An RN with 20 years experience gets about $4/hr more. That's IT. No money for ACLS or any other certification, no increase in salary based on anything except time on the job. No hiring bonuses, no retention bonuses.
  4. by   eltrip
    Ditto what NancyRN said, Gomer. New RNs don't start above $16/hr here in Tennessee. At least not down in the SE part of the state.
  5. by   Gomer
    If you are impressed with the $29/hr...that's the average hourly rate...New Grads start at $24.00 (Assoc. Degree) and $24.70 (BSN). End of the range is $39+ (that's for FT/PT with benefits...PD and In-House Registry get more). All that being said, we are in southern California where the cost-of-living is a
    "little high".

    Still seeking RETENTION BONUS information. Thanks
  6. by   live4today
    Give me a flat salary of $100,000.00 annually for three 36 hour shifts per week, and I'll give you one damn good nurse! Forget the bennies...except for health/dental/vision care that is. Those incentives suck! The best way to retain a good nurse is to treat her/him like she/he is worth their weight in gold as a nurse in your facility or hospital. Doctors are screwing up everyday with patient care, yet they make well into the thousands and thousands of dollars. I say...SHOW ME THE MONEY BABY! :chuckle
  7. by   911fltrn
    Gomer, I wish the best for you up front. But in simple terms "Its not enough" THink 3 or 4 times as much. I scrolled back up to look again. Pay good retention bonuses or play the wage war game we all know is coming. Or better yet make the ceo/coo/cno and any other fancy titles you can think of to "present himself on this field and a beg for forgiveness for the 100 years of oppression" If not you can kiss our arse... "I think thats how a line in braveheart went." Happy Fourth of July to all!
  8. by   mattsmom81
    I think retention bonuses are a start, Gomer, but the working conditions must be good and nurses must feel they have a say in bettering their workplace.

    Last year I received a 10% retention bonus/raise plus a 3% cost of living raise...it was a nice gesture...but turnover has been horrid due to management shakeups and POOR STAFFING.....so as I see it the working conditions are still the key.

    Good luck with your committee work Gomer!

    And for those who like California's wages, keep in mind the cost of living is sky high there....my 125K house in Texas would cost maybe half a million there....I'll stay in good ol' Texas where I can afford things.
  9. by   ANnot4me
    I think those bonuses are bogus too! Quadruple them. I live in the bay area and make about $70K with 4 years experience. I'm new to my facility and the patient load is usually OK. However, I have no intention of staying full-time at this job for more than a year because the pay is less than other comparable institutions in the area, getting comp time or vacation time off is a major production (unless it suits the institution) and you only get what nobody else wants, staffing is not flexible enough, the environment is not what I consider to be collaborative and I could go on, but won't. I'm not saying that it's all negative, but it sure isn't anything to get too excited about. It's a job and if I wanted a job, I'd wait tables.
  10. by   Gomer
    Thank you all for your comments....please keep them coming! (Yes, the % is low...it's just a starting point....personally, I would had a 0 on the end of each)

    And HAPPY 4th TO ALL! (Stay safe)
  11. by   Furball
    My high school grad BIL get 3x the amts you quoted for 7 years service doing electrical work, beaucoup (sic?) benefits, M-F, zero holidays, nights. Can leave on a moments notice if his dtr becomes ill at school. Oh yeah, he gets a hour, uninterrupted lunch PAID... it's a start but your offer needs some work.

    I'm still soooo baffled....people are fully aware of the shortage of RN's and for the most part vaguely understands how important our jobs are and yet we are still treated so shabbily. So odd.....

    PS the co. also offered to pay 100% tuition if he returned to college.......also allowing whatever time off he needed for class (an hour here an hour there if his afternoon/eve class cut into the workday)WITHOUT LOSING PAY.......

    I feel like I am whining.......sorry
    Last edit by Furball on Jul 3, '02
  12. by   adrienurse
    I remember when I was quitting my first nursing job, had my mind set already, had already gotten into one too many bad political "situations". My manager called me into his office, and begged me to stay. His idea of a retention bonus was an offer to give me a more "challenging" work load and begin paying me as a nurse III (hard to explain, but would be in the same pay category as the then extinct head nurses that had been grandfathered when they were demoted).

    I considered it fo .5 seconds only. TOO LITTLE, TOO LATE! I didn't care if they had offered me double my pay! If I'm gonna burn out, its not gonna be in a place like that.

    To sum it up, being treated well is far superior to being given a raise.
  13. by   EricaCCRN
    I personally think retention bonuses are a joke simnce many require a continued committment. I agree with cheerfuldoer, give me a six figure flat salary, I will bust my ass. I think if a plumber can charge $70 per hour & a bus driver can make $15, then I am worth 100 grand. I don't want pissy bennies (like some shithole I read was offeirng their nurses free dry cleaning for a year...who the hell cares?). I'll give you an example. This *****, I mean RN manager that I worked for would give a a free cookie from the hospital cafeteria for working an extra shift. Then she'd try to call you off on one of your scheduled days (she figure out a way to run the unit short if she could) to try to screw you out of the overtime. I want more money and a change in attitude. $600 bonus for a year of service amounts to **** after taxes. I don't mean to sound bitter or rude, just offering my opinion.

    Have a lovely day, all.
  14. by   goldawgz
    I work in an office, and haven't had a raise at all in 5 yrs!!!! No wonder the doc started me with a high salary-he just never planned on giving me a raise!!!!!!!HA!

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