A survey of the process of determination of compensation package for nurses in private:hospitals in Nairobi
Abstract
The natural goal of any compensation formula is to distribute income equitaolv
based on capital, productivity and time in the organization. Determining
compensation is a challenge and everyone suspects that pay, particularly one's
own, is determined without apparent Justice. The aim of this study was to survey
the process through which the compensation packaqe for nurses is determined
by private hospitals operating in Nairobi.
The specific objectives were to find out the methods used to determine
compensation package for nurses in private hospitals, find out the process used
to conduct compensation surveys for nursing positions in private hospitais and to
find out the factors considered by management of private hospitals when
determining compensation package for nurses.
In conducting the study, data from the medica! directory was used to come up
with a list of 54 private hospitals, out of which 36 responded. Nursing positions
were chosen because they make up 70% of entire staff employed in any
hospital, while private hospitals were chosen because they operate in a
competitive environment, which was conducive for this study.
The results indicate that the process of determining compensation package for
nurses includes conductng job evaiuation, with the point method being the most
preferred method used combined with carrying Out salary surveys. The most
important factor considered by management when determining compensation
package was professional qualifications of the nurses. External equity, ability of
management to pay and minimum wage scored averagely the same as the
second most important factor. _.
Citation
Master of Business AdministrationPublisher
University of Nairobi School of Business