January 10, 2020

Mayo’s structured compensation model tackles gender pay inequality

By Karl Oestreich

Health Leaders Media

Mayo Clinic's structured, salary-only compensation model appears to have successfully tackled the nettlesome issue of gender pay disparity, a review shows.

A review of the compensation model — which relies on national benchmarks, standardized pay steps, and increments — for 2,845 Mayo physicians — including 861 women — affirmed pay equity in 96% of the cases, according to the analysis, which was published in Mayo Clinic Proceedings.

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Context: Gender pay equity in the field of medicine remains elusive. Gender-based pay differences have been shown to persist, even when controlling for experience, clinical productivity, academic rank and other factors. These inequities result in significantly lower lifetime earnings, job burnout and negative attitudes toward work, and adverse effects on the profession and society.

One model for eliminating pay disparities among physicians is a structured, salary-only plan that incorporates national benchmarks, and standardized pay steps and increments, such as the plan that is used at Mayo Clinic.

Mayo Clinic study set out to assess how well the institution adheres to its own compensation model and achieves pay equity. The study reviewed data for all permanent staff physicians employed at Mayo Clinic destination practice sites in Arizona, Florida and Minnesota who were in clinical roles as of January 2017. Each physician's pay, demographics, specialty, full-time equivalent status, benchmark pay, leadership roles and other factors were collected and analyzed.

Among 2,845 physicians, pay equity was affirmed in 96% of the cases, according to the analysis, which is published in Mayo Clinic Proceedings. All physicians whose salaries were not in the predicted range were evaluated further and found to have the appropriate compensation, most often due to unique or blended departmental appointments. Of the 80 physicians — 2.8% of the total — with higher compensation than predicted by the model, there was no correlation with gender, race or ethnicity. The same was true of the 35 physicians — 1.2% — who had lower-than-predicted compensation.

"Our analysis is unique and to our knowledge the first to demonstrate that a structured compensation model achieved equitable physician compensation by gender, race and ethnicity, while also meeting the practice, education and research goals of a large academic medical center such as Mayo Clinic," says Sharonne Hayes, M.D., a Mayo Clinic cardiologist and the study's first author. "The analysis of this long-standing salary-only model was reassuring, not only that it was equitable, but that we as an organization adhere to our own standards."

You can read more about the study on Mayo Clinic News Network.

Contact: Kelley Luckstein

Tags: Dr. Sharrone Hayes, gender pay disparity, HealthLeaders Media, Mayo Clinic Proceedings, physician compensation, Uncategorized

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