2014 Volume 15 Issue 1 Pages 44-49
Ashiya Municipal Hospital has a variable compensation scheme based on periodic staff performance reviews in order to increase employee motivation and enhance the effectiveness and efficiency of the hospital operation and management. The performance review is performed for each department at team level (not at individual level). Team goal is set at the beginning of each half-year period, and the actual achievement against the goal is reviewed at the end of the period. Actual achievement is assessed by reviewing difficulty of the goal and the level of achievement, and rated as the overall performance using a five scale rating. Based on the performance rating, 0% to 20% (by 5% increment) bonus is added to the variable compensation. Average bonus percentage added during six performance periods since this compensation scheme was introduced three years ago was between 6.47% and 10.22%.
Result of the employee satisfaction survey (64.9% collection) conducted for the staff subject to this compensation scheme was closely divided：47% answered review results were “Adequate” or “Mostly adequate”, and 41% answered “Not adequate” or “Mostly not adequate”. However, 74% supported continuing the compensation scheme, while 52% of which requested improvement of the scheme. 21% were supporting and 32% were against the introduction of the individual performance evaluation. 47% answered “Do not know”.
Performance based compensation scheme at Ashiya Municipal Hospital is substantially approved by its staffs. The scheme should be continued while improving the detail reflecting suggestions provided by staffs.
