Pay Incentives for Healthcare Workers
No Thumbnail Available
URL
Journal Title
Journal ISSN
Volume Title
School of Business |
Bachelor's thesis
Electronic archive copy is available locally at the Harald Herlin Learning Centre. The staff of Aalto University has access to the electronic bachelor's theses by logging into Aaltodoc with their personal Aalto user ID. Read more about the availability of the bachelor's theses.
Authors
Date
2022
Department
Major/Subject
Mcode
Degree programme
Bachelor’s programme in Economics
Language
en
Pages
18 + 5
Series
Abstract
This literature review explores the topic of incentive pay systems for healthcare workers. The healthcare systems of many developed and developing countries are facing a similar problem: the financing is not effective enough to reward the work of physicians and nurses sufficiently nor motivate younger people to choose a career in healthcare. For several professions, pay-for-performance has been an effective way of giving incentives to employees. Consequently, pay incentives have been widely discussed to invigorate the healthcare system. However, implementing an incentive pay system in healthcare might experience obstacles. Selecting the right pay scheme and measuring performance accurately are essential in developing an efficient system that generates desired incentives for workers. The healthcare work includes multitasking and high uncontrollable risk, which, based on theory, implies using pay schemes with thresholds, with performance evaluation based on both quantitative measurement and subjective evaluation of performance. Empirical studies have indicated that in practice, the costs of implementing a pay-for-performance system exceed its benefits. However, with more experience and available data, incentive pay systems in healthcare have the potential to improve.Description
Thesis advisor
Murto, PauliKeywords
incentive pay, healthcare economics, performance evaluation, job design