Dallas-based Parkland Health and Hospital System cut its executives bonuses this year, but not because the head honchos performed poorly. The system’s governing body decided the money was better spent raising the pay of the system’s lowest-earning employees instead.
Now, thanks to money coming from the executive staff’s bonus pool, the least a Parkland employee can earn is $10.25 per hour.
The generosity will cost the health system approximately $350,000 per year. The bonus pool’s value fluctuates between $3 million and $5 million per year.
PHHS already paid workers more than the federal minimum wage of $7.25. Prior to this increase, workers earned at least $8.78 per hour.
In a statement, Dr. Jim Dunn, the hospital’s executive vice president and chief talent officer, said the decision was made in the hopes of improving workers’ morale and to provide a living wage. “We really want, in any way possible, to break down any gaps or anything between the top leaders and those who are closest to our patients,” he said. “We feel like it’s the right thing to do.”
Note: As the country crawls out of recession, workers may be more willing to change jobs. Making staying in place a more viable option can help cut employer turnover costs.