Cottage Health 2020 Culture Audit

Compensation Above the Market Each year, Cottage Health conducts a comprehensive analysis of over 900 positions to ensure that base pay, as well as specific pay practices, are market competitive with over 300 hospitals and health systems throughout California. We anchor clinical and difficult to recruit positions at 25% above the average (the 75th percentile) and all other positions at the average (50th percentile) of the market. We adjust our programs as needed to maintain our competitive edge in the marketplace. An employee’s base pay is determined based upon the total number years of experience as well as their performance in the position. When organizational performance has been exceptional, we have awarded discretionary year-end bonuses. We also offer a management incentive plan that provides up to 10 percent of base compensation for individual and team goal achievement. Cottage Health embraces a Code of Conduct that requires respectful behavior and communication throughout the organization. All levels are invited to participate in peer interviews to ensure new hires are a fit within our culture and will be comfortable with their new colleagues. We also offer a grievance procedure that employees may pursue for corrective actions that they feel are unjustified. Our Shared Governance is designed and proven to promote collegiality, equity and collaboration. It is an important part of why employees like working at Cottage. Through Shared Governance, employees can apply to participate on the Coordinating Council which is the group responsible for helping drive process improvement throughout the organization. The Coordinating Council helps to ensure equity between employees and managers, because the Coordinating Council requires that less than 50 percent of its membership is from management. 6.34 How does your company promote a sense of fairness within the organization? • Methods used to determine levels of compensation • Unique or special forms of compensation (i.e. profit sharing, bonuses, employee ownership, etc.) • Policies and/or practices that promote a sense of equity between employees and managers 114/119 Start | Contents | Highlights | Business Description | Hiring & Welcoming | Inspiring | Speaking | Listening | Thanking | Developing | Caring | Celebrating | Sharing • Sharing 6.34