Offensive Raise Structure

Nurses General Nursing

Updated:   Published

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This one is a doozy. A nationally renowned hospital recently announced a market-based adjustment for nursing salaries. The problem is that there is a huge disparity in the size of the raises based on years of service--people with less experience are getting an enormous raise (close to 20%), whereas people with more experience are getting tiny raises (around 3%). A nurse with 5 years of experience making $31 per hour will be getting a $6 raise to make $37, whereas a nurse with 15 years of experience making $41 will get a $1.50 raise, to make $42.50. The nurses who had previously reached the max salary of $45 (after about 20 years of service) will get a $0.50 raise as a cost of living adjustment.

The hospital framed it as a great show of appreciation, but all it has done is to (understandably) piss people off even more than if there hadn't been raises at all. It seems like it would be so much more equitable to take whatever sum of money they'd be spending on the entire group of nurses and distribute it equally (I.e. everybody getting a $4.50 raise).

I have some theories about why it financially benefits the hospital to take this approach, but seriously, what a crappy move. Nurses with decades of experience are an enormous asset to the unit--they're often the ones in leadership roles, doing charge, acting as resources to newer nurses, and basically managing the unit during a crisis. If a bunch of them leave because they're offended, you end up with units that are staffed entirely by new nurses (very scary). Ultimately, it ends up harming the entire unit, including the newer nurses who are getting the higher raises. I am just in disbelief.

Specializes in LVN.

A few years ago at a place that I had worked for 13 years, this happened to me.  I was training the new employees that not only was given a $5,000 sign on bonus, but was making 2 bucks an hour more than I was.  Not only was I training them, but once they got out of orientation, I had to clean up their slackingness, if that is a word...........If it isn't a word, I think I just made up my next favorite word.  Anyway, once I found out that the new hires got paid more than I did, I went to the DON.  She told me that the reason they were making more was because they had "an increase of cost of living expenses".  I told here that I too had an increase to my cost of living.  She wanted to argue with me.  I told her that I had not gotten a raise in 5 years, and that being loyal to a company should ensure you get a raise before they start paying new hires a "cost of living raise" and a sign on bonus.  I explained that every time they hire these new people that us oldtimers had to train them, which is not a piece of cake; then they usually quit anyway.  (They all quit as soon as they got their final installment of that bonus).  Anyway, I didn't get an increase for another 6 months, and it was just up to the amount that they were hiring the brand new nurses.  I had been a nurse since 1984, and was making the same as a nurse that graduated in 2015 or maybe 2016.  Being left out really sucks, especially when the amount of your groceries, utilities, gas, etc went up at the same time as everyone elses. 

Where I'm currently at in dialysis I make 25/hr I started at 17/hr. It seems like a lot to increase over 7 years but I received a $5 increase when I became cross trained to do both outpatient hemo and inpatient hemo and even that took 2 years for approval. Fellow LVN's that have less years and no dialysis experience make equal pay to me and some CCHT's make MORE than I do even though based on seniority I outrank every single person on our treatment floor.  Our VP, Director and payroll don't care as long as they receive their salaries. I could go to fresenius and easily get paid more but what keeps me here is that with being top of the totem pole I get first choice when I request off especially around the holidays plus my vacations are always approved. Don't know if it's worth it anymore though

Specializes in Case Manager, Solid Organ Transplant Coordinator.

Yep, you said it correctly, it sounds like they are trying to drive away the nurses with more seniority because they are probably costing them more when it comes to benefits (pensions, retirement, etc). 

Depends on the the salary max(cap). Many HCO’s  are still very antiquated starting new nurses extremely low requiring them to work 15 to 20 years before they hit mid tier or near top out. Keeping this in mind they are doing something that most trade jobs have done for years and are now allowing nurses to come in at a higher pay to reach mid tier and top out in a faster capacity thus ensuring not only recruitment but retention on the backend. While it does not seem equitable for those who had to work for years to get to the pay they have, it is reasonable, and it’s extremely needed for a progressive workforce to move forward. 

Specializes in Case Manager, Solid Organ Transplant Coordinator.

That's interesting. Has this method worked? Perhaps it's too soon to tell. 

28 minutes ago, Secretperson said:

Depends on the the salary max(cap). Many HCO’s  are still very antiquated starting new nurses extremely low requiring them to work 15 to 20 years before they hit mid tier or near top out. Keeping this in mind they are doing something that most trade jobs have done for years and are now allowing nurses to come in at a higher pay to reach mid tier and top out in a faster capacity thus ensuring not only recruitment but retention on the backend. While it does not seem equitable for those who had to work for years to get to the pay they have, it is reasonable, and it’s extremely needed for a progressive workforce to move forward. 

That's interesting. Has this method worked? Perhaps it's too soon to tell. 

Specializes in Geriatrics, Dialysis.
1 hour ago, TonyaMarie said:

Yep, you said it correctly, it sounds like they are trying to drive away the nurses with more seniority because they are probably costing them more when it comes to benefits (pensions, retirement, etc). 

Except the employer's can't really use that expense for keeping experienced nurses on staff as a excuse for essentially driving them out any more. Very few actually pay into a pension fund, pensions have pretty much gone the way of the Dodo bird and  employers that offer a 401k match offer the same match to all employee's so years of service doesn't make a difference.

The only benefit I can think of where a more experienced, read "older" nurse might cost the employer any more money than a brand new nurse is higher health insurance premiums. Even that would be more than offset by the money spent on getting the shiny new grad nurse up to speed in work productivity.

So why don't employer's invest more into keeping their more experienced staff who already know their job and do it well? I don't know, makes zero sense to me. 

hmmm if this true, there has to be more to this; are these new grads with BSN's? across the board of acute care inpatient hospitals or an LTC chain? 

15 minutes ago, TonyaMarie said:

That's interesting. Has this method worked? Perhaps it's too soon to tell. 

That's interesting. Has this method worked? Perhaps it's too soon to tell. 

Progressive pay scales have been in place for years in many trades and professions. It allows for higher earnings within the earlier part of your career and in theory ensures a faster top out. The key to functionality is a transparent pay structure that shows the incremental progress toward said top out. 
 

The part that wrinkles the sheets, is that the top out is is a proxy and viewed as never high enough, especially  when you see someone new making close to what you do much earlier in their career.

57 minutes ago, kbrn2002 said:

Except the employer's can't really use that expense for keeping experienced nurses on staff as a excuse for essentially driving them out any more. Very few actually pay into a pension fund, pensions have pretty much gone the way of the Dodo bird and  employers that offer a 401k match offer the same match to all employee's so years of service doesn't make a difference.

Of note, this hospital system does have a pension plan, where the pension is calculated based on your years of service and your salary in your last few years, so I'm guessing that has a lot to do with it, too... ?

I always knew that the fastest way to increase your salary is to job hop, since salaries to recruit newer nurses are always going to increase faster than the 'cost of living' adjustments which hospitals offer to existing staff. However, it's usually more covert and harder to quantify than this very bold choice. It's like the hospital just stopped caring about trying to cover it up; surely they would not be so naive as to think that people wouldn't talk to their coworkers...

Not to sound too political and all,  but the current trend is no longer fairness and equal pay for an honest days work any more.  It's all about "equity,"  and making everyone equal.   It's raising up the newbies and lowering the old vets so that everyone is the same. 

Elections have consequences. 

Specializes in ER.
9 hours ago, John Taylor said:

Not to sound too political and all,  but the current trend is no longer fairness and equal pay for an honest days work any more.  It's all about "equity,"  and making everyone equal.   It's raising up the newbies and lowering the old vets so that everyone is the same. 

Elections have consequences. 

LOL. Whenever someone says something like "Not to sound too political...", it means they are about to sound very political.??

Specializes in Med-Surg, NICU.
10 hours ago, John Taylor said:

Not to sound too political and all,  but the current trend is no longer fairness and equal pay for an honest days work any more.  It's all about "equity,"  and making everyone equal.   It's raising up the newbies and lowering the old vets so that everyone is the same. 

Elections have consequences. 

From my personal experience, Gen Z does not want to earn their stripes at all. They whine about having to work weekends and holidays and nights even though they work in a 24/7 facility.

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