How can a search firm help healthcare organizations determine appropriate salary levels for a position?
Many healthcare organizations rely on executive search firms to help determine compensation for new executives. The wrong offer can sabotage hiring a great candidate.
So where do those numbers come from? And how does a search firm help?
One of the greatest values to using an executive search firm is their experience negotiating compensation
After all, search firms are in the business of talking to dozens of individuals in the exact same positions. And if they work with the same healthcare organizations to hire different positions within their companies, they will know the organization’s budget restrictions and which benefits are the most valuable.
Trying to research salary on their own, healthcare organizations are looking at self-reported numbers posted on Glass Door or in online forums. They may not necessarily be accurate. And responsibilities vary between positions and from company to company.
Nothing replaces rapport. As time goes on, relationships are built and experience cannot be overlooked.
Trends in healthcare executive salary
Compdata performed a survey for The New York Times, and found that the average insurance CEO makes almost $600,000/year. A hospital CEO makes close to $400,000. Compare these numbers to surgeons making $300,000 and it turns healthcare salaries on its head.
Healthcare executive salaries increase and outpace inflation, and companies are growing. The larger the company, the greater the responsibilities, the larger the salary.
How healthcare organizations save money using an executive search firm
An organization searching for candidates on their own may try to woo an executive from a company who isn’t ready to be wooed. They will overpay trying to convince a candidate they like to leave. If they even nail the right number.
Candidates come to search firms and through the hiring process, the firm will learn what is important to an executive beyond a paycheck. Time will not be wasted fitting candidates into the wrong environment.
Hiring an executive search firm buys salary expertise. Hiring for the same roles and knowing how salaries and benefits vary between greatly decreases time and hiring costs for a healthcare organization. Reeder & Associates has over 25 years of hiring experience in the healthcare industry. We are experts in salary negotiation and candidate placement. If you are ready to hire a healthcare executive or are a candidate looking for a new path, contact us today.