The University of Virginia Health System in Charlottesville, Va., has instituted a new compensation system that has moved away from "fewer, broader pay grades to more, narrower grades," according to a Daily Progress report.
The previous compensation model had 19 salary ranges, but the new one, which took effect Oct. 2, has more than 100 salary ranges, according to the report.
For each job, health system officials compare pay rates from competing institutions and offer a "market-based" salary when hiring people. Consequently, UVa Health System has budgeted an extra $5 million in extra compensation this year as a result of the change.
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The previous compensation model had 19 salary ranges, but the new one, which took effect Oct. 2, has more than 100 salary ranges, according to the report.
For each job, health system officials compare pay rates from competing institutions and offer a "market-based" salary when hiring people. Consequently, UVa Health System has budgeted an extra $5 million in extra compensation this year as a result of the change.
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