In gathering data, the city hospital can relate to market demand and supply, organization structure and associated levels of payment. There are different labor and market factors the healthcare organization can use to compare pay designs. While labor is specific to healthcare providers, land is required to set up offices and facility rent or other related financial costs where the hospital is built. Secondly, capital for infrastructural acquisition and management will vary depending on the size and structure of a hospital. Basically, a pay structure categorizes each occupation with specific wages and benefits based on performance, productivity and the employer's ability to pay. The prevailing market rates can be compared to three major product markets: occupational mix, labor and product, and private or public sectors.
Occupational Market and Compensation Structure
Occupational mix is the combination of healthcare providers in a particular setting. There are different occupations involved in a hospital setting, which is also defined by the quantity of each position. The city hospital can acquire a labor cost index to identify related healthcare organizations and wages per occupation. Job descriptions, evaluations and titles are crucial determinants of pay policies: junior positions, interns and senior professions such as surgeons and registered nurses may be categorized depending on their experience and professional qualifications. The higher the level of a job, the higher the expected wage or pay of an occupation. Individual capacity and the nature of occupational hazards in a particular job will necessitate the hospital to additionally account for them when assessing a pay structure.
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Labor and Product Markets
Demand and supply are the main aspects in a labor market. Demand for certain occupations is based on community needs for healthcare while supply is managed by availability of professional healthcare providers and amenities with quality benefits such as insurance and locality advantages. Different organizations pay their employees differently depending on the locality (in this context a city), the size of the hospital and industrial demand. Labor market involves competitors with similar products and services mix as the city hospital. Cost of living in the city will act as a measure of community financial status and obligations based on national economic trends. The higher the cost of living, the higher the expected compensation structure. This will also reveal actual pay acceptance by employees in specific labor markets. The city's demographic data also assesses availability of labor and demand for hospital products and services.
Private and Public Sectors
Regulations and differences in public and private sectors determine the expected market rate of specific occupations in a healthcare organization. Competition between organizations in these sectors, based on the geographical location, associated benefits and occupational perspectives such as shift time and contract details. Other financial perspectives such as basic salaries in cash compensation and pay periods can be used to compare different institutions with the same products and services as the city hospital in context. Depending on the sector the hospital belongs to, minimum wage will determine other factors such as demand and supply through occupational attraction and retention. Pharmaceutical organizations, equipment suppliers and healthcare providers are also essential elements in comparing wages and salaries as they are all related occupations. Legal requirements across the sectors e.g. equal employment opportunity and overtime wages will also determine financial obligations to employees. Presence of labor unions and their influence on employee salaries are present in both private and public sectors.
