Q: Donna is the HIM director at an acute care facility. One of her best employees, Tina, is about to mark her 5-year anniversary at the hospital. Donna planned to give Tina a raise, but executives denied the pay bump, citing budget constraints.

Should Donna explain the situation to Tina? How can she ensure Tina doesn't take her talent elsewhere? What are some cost-neutral ways to reward employees?

A: If she hasn't done so already, Donna should explain the situation to her immediate superiors and express her fear of losing this valuable employee. If they have any suggestions about non-monetary rewards, Donna should carefully consider them. If not, Donna should make several suggestions of her own and get approval for a plan to reward Tina in a cost-neutral fashion for exemplary work. 

Two elements that should be included are:

• Donna should meet with Tina and present her performance evaluation, using well chosen words detailing why Tina's efforts are so valuable to the hospital.
• Explanation of the budget constraints that prevent a pay raise at this time. Donna should also include a realistic expectation of when Tina can expect an increase.

Donna's plan should also include one, two or all of the following to mitigate the impact of the lack of raise:

• Offer additional company-sponsored training or certification that may result in additional responsibilities and/or promotion in the future.   
• Possibility of a more flexible work schedule, if feasible from a managerial standpoint and if it would appeal to Tina. Flexible work schedules can even improve the productivity of accomplished, self-motivated employees.
• A one-time bonus award of a day or 2 of paid time off to be taken at the employee's convenience.

A plan to reward Tina for her service will ensure she feels valued and will be less inclined to look elsewhere to continue her career. This plan should also form the basis of other plans to reward other valuable employees who will not receive increases in wages during this budget year.

--Sherry DiDomenico 

A: In today's economic market, the decision to not issue pay increases is very much the norm. Hopefully the decision to not grant pay increases is a hospital-wide mandate and not limited to the department alone.

Donna should be honest with the reasons for not granting a raise. However, it is important for Donna to do this in a manner that does not degrade the hospital overall. Let Tina know how much she appreciates her work efforts and her tenure at the hospital. Explain how valuable employees like her have made the facility the great place it is.

This is an apt time to talk about other benefits that are available but perhaps Tina is not participating or taking advantage of. If there are talks or plans for additional employee benefits that might be added in the future (and if Donna is allowed to discuss), she should do so.

For Donna, this is also an excellent time for her to evaluate personal methods for showing employee appreciation. For many managers, recognizing employees in a more consistent fashion and on a regular basis is a challenge. Is there something she could do with little or no financial cost? Many times, a sincere and timely thank you will go a long way. Donna could also ask Tina for ideas. Is there something else Donna could do, or some personal and/or career goals she could assist Tina with? If Tina is a valuable employee, surely the hospital would like to retain her for many years to come.

--Gregory West, RHIA

This week's panel:
Sherry DiDomenico is practice administrator at Meadowbrook Neurology Group, Meadowbrook, PA.
Gregory B. West, RHIA, is HIS administrator at Mecklenburg County Area Mental Health, Charlotte, NC.