Question

A health system is building a new service line and must recruit applicants with a specialized and scarce skill set. Which compensation strategy would be most appropriate for this health system to ensure competent staffing of this service line?

Answer 1

Answer:

A third-quartile compensation strategy

Explanation:

The company's compensation and financial health strategy need to be balanced to achieve the proposed objectives. How will I pay and how much, or, does my business support the salary investment that will be made? Paying the first quartile, average, median, third quartile or the highest salaries in the market, are strategy decisions and the actions chosen may be different in relation to the functions considered key, within the process in relation to the others.

Then, the decision may be to pay in the middle part of the market, technically known as the median (Md); the lower part of the market, technically the first quartile (Q1), or pay in the upper part of the market, or third quartile (Q3).

But if you must recruit applicants with a set of specialized and scarce skills, the third quartile is recommended.