Salary Benchmarking

Scenario

  • Our client, a Foundation Trust, is a major provider of healthcare for children and young people in South Yorkshire.
  • Having recently achieved Foundation Trust status, the directors were adjusting to commercially focused operations with greater personal accountability.
  • But with senior NHS salary levels in a state of flux and controls relaxed centrally, there was a strong demand for executives with this experience.
  • Anecdotal evidence suggested our client’s board level salaries lagged behind the market; even that search consultants had approached some directors.

Actions

  • We benchmarked salaries for five executive directors against Foundation Trusts of comparable size, status and complexity.
  • We met our client’s HR director, who helped us to scope the project, and CEO, with whom we reviewed each post-holder’s job responsibilities.
  • With a clear understanding of each role and its relative position in the management hierarchy, we matched with market data derived from an NHS Partners survey of 74 NHS Trust organisations covering over 500 executive director positions.
  • We also looked at research by our executive search team for assignments in the health service sector and for posts advertised externally within the previous six months.
  • We matched the survey data by organisation size, as measured by annual income and number of employees.
  • Our report was reviewed by the CEO and presented to the remuneration committee to discuss the findings.

Outcome

  • We were able to determine if salaries for the five posts were falling below market level and, if so, what action to take.
  • Our client was able to reward their staff at a suitable level and take measures against their being poached.

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