Incentives and Economic Implications

Debbie and her supervisor are having some preliminary budget discussions. The use of incentives is mentioned. Discuss the purpose of using incentives in Debbie’s operating budget. Use of Incentives When discussing and developing a marketing plan, it is beneficial to complete a market analysis prior to this development to help determine the supply and demand in the external, surrounding environment. Completing the market analysis will provide the organization with additional insights into whether there is enough projected demand for a particular service or product. For example, an organization wished to add a cardiac rehabilitation center to its existing facility; they completed the market analysis to discover that there is already a thriving cardiac rehabilitation center within five miles. It was determined there would not be enough patient volume to sustain both facilities and the projected patient volume. Based on this analysis, the organization may choose to redirect its efforts to a different area of the market. Included within this analysis is the projected patient mix that may use these services and projected revenue sources such as Medicare or private insurance. As part of the overall market analysis, being familiar with the strengths and weaknesses within the organization can help target marketing efforts and allot designated funds for a particular project the organization would like to consider. Some geographical areas may have more new nurses or more seasoned nurses, or a shortage of nurses for a specialized area. In locations where a shortage of staff may exist, creative marketing strategies, which may include incentives, can be used by organizations to encourage staff to seek employment with the respective company. The benefits of securing and retaining employment at the healthcare organization are typically included to aid recruitment efforts in advertising materials. Advertising for an organization can occur in a variety of venues to capture a large audience such as radio, television, newspapers, nursing journals, the Internet, and selected ZIP-code direct mailings. Some incentives to encourage individuals to seek employment at an organization may include: tuition benefits, matching of 401K contributions, childcare benefits, free parking, a flexible schedule, continuing-education support, a clinical-ladder program, Magnet designation of the facility, a wellness center, bonus options, malpractice insurance, and other possibilities. Economic Implications for Managers The marketing plan is a multistep process; however, the results of a well-developed marketing plan can have many benefits to the organization, such as staff recruitment and patient-volume increases. The recruitment and retention efforts for younger nurses compared to older nurses may vary. The nurse leader must be cognizant that there are a large number of nurses in the workforce over the age of fifty (Finkler, Jones, & Kovner, 2013). Therefore, with the increasing complexity of care for patients, it is necessary for nurses to take care of themselves by taking their designated breaks, having adequate assistance when moving patients, and an ergonomically friendly environment to avoid unnecessary injury. As the nurse leader of an organization, it is important to be visible and network at various events when possible to establish contacts and meet potential future employees. Some networking opportunities include presenting at various conferences, being a guest speaker at local nursing schools, mentoring students, participating in professional organizations, and many other opportunities, which allow you to market your product or organization to others in the community and nursing profession. As the leader, you represent your organization, especially your nursing staff. Healthcare organizations have experienced an increase, historically, in the number of uninsured patients, which has caused organization leaders to be more aware of expenditures and resources in order to meet their budget targets. Some organizations incentivize nurse managers and senior leaders to meet certain targets within their budget. This can have a financial implication for the manager or leader if certain target goals or outcomes within their budget, including recruitment and retention, are not met. Due to the supply and demand for nursing personnel, a certain specialty, or a certain geographic location, the salary for nurses may be higher or lower than other areas. This factor should be considered as part of the organization marketing plan for recruitment and retention.