Paycut Rumours swirling.

Happyinwonerland

DIS Veteran
Joined
Jul 1, 2014
One of my RN friends messaged me, worrying about rumours of paycuts at her hospital. She said there are last minute meetings scheduled for next week, so she should have more info soon. She works in the same town as me but for a different hospital system. It has me worried, if one hospital makes a move, the others usually follow suit.

It got me really thinking about my job. I've always said the biggest thing keeping me here has been the fair pay. If we took a paycut, I'd have to re-evaluate. Even if the new rate was fair or above market rate, I think I would be hurt that today I was worth $x, and tomorrow I'm worth $x-y. Why would a person's value decrease so suddenly?

Anyhow, I knew there would be changes coming to healthcare compensation, and I have feared the worst but hoped for the best. If the worst happened, and your pay was cut but still at or above market rate, would you stay or look elsewhere?
 
My pay now barely pays for my necessities each month (rent, student loans, food, etc.) so if I took a pay cut, I would definitely need to look somewhere else or I would be moving back home with my parents!
 
I would look elsewhere. I know what I am worth. If enough people start looking maybe they will realize the problem with what they are doing.
 
One of my RN friends messaged me, worrying about rumours of paycuts at her hospital. She said there are last minute meetings scheduled for next week, so she should have more info soon. She works in the same town as me but for a different hospital system. It has me worried, if one hospital makes a move, the others usually follow suit.

It got me really thinking about my job. I've always said the biggest thing keeping me here has been the fair pay. If we took a paycut, I'd have to re-evaluate. Even if the new rate was fair or above market rate, I think I would be hurt that today I was worth $x, and tomorrow I'm worth $x-y. Why would a person's value decrease so suddenly?

Anyhow, I knew there would be changes coming to healthcare compensation, and I have feared the worst but hoped for the best. If the worst happened, and your pay was cut but still at or above market rate, would you stay or look elsewhere?
:scratchin Tough one. I am paid very well for a pretty difficult job. I do it because I need the money, not because it's a calling. I think I would look elsewhere but I'm not sure I'd find anything similar that would pay as much and I'd have no great prospects in any other industry. Depending on how steep the pay cut was, I may make a change just to get out from under the weight of my current responsibilities.
 


With more people being kicked off health care because of changes to the affordable care act, hospitals have to act now because they are going to be getting more people using ER as free health care. I used to work in HR. Th fact that your pay went down as part of an overall effort to save money won’t change what you are worth in a new job. But from what I have read hospitals around the country will be putting cost saving efforts into place. Employee pay is the easiest way to save immediate dollars even though it leads to lower morale and less productivity. Often seniority will play a role in who gets pay cuts and who doesn’t. Or sometimes hospitals can put hiring freezes in and ask current employees to work different types of shifts to make up the difference. Or make reductions in 401k contributions or other benefits. So don’t just assume it will be pay decreases. And in a smaller community, if one does it, the other will probably follow unless it has a different patient base that keeps revenues the same. so there are limited places for employees to go to get the same pay or benefit package unless they move to a larger city with more options. Nurses are needed everywhere and experienced nurses are valuable but like everything else, nurses are a commodity.
 
With more people being kicked off health care because of changes to the affordable care act, hospitals have to act now because they are going to be getting more people using ER as free health care. I used to work in HR. Th fact that your pay went down as part of an overall effort to save money won’t change what you are worth in a new job. But from what I have read hospitals around the country will be putting cost saving efforts into place. Employee pay is the easiest way to save immediate dollars even though it leads to lower morale and less productivity. Often seniority will play a role in who gets pay cuts and who doesn’t. Or sometimes hospitals can put hiring freezes in and ask current employees to work different types of shifts to make up the difference. Or make reductions in 401k contributions or other benefits. So don’t just assume it will be pay decreases. And in a smaller community, if one does it, the other will probably follow unless it has a different patient base that keeps revenues the same. so there are limited places for employees to go to get the same pay or benefit package unless they move to a larger city with more options. Nurses are needed everywhere and experienced nurses are valuable but like everything else, nurses are a commodity.

I have been concerned that changes in administration would mean changes in healthcare staffing, because love it or hate it, the ACA has been a goldmine for healthcare providers.

My friend has no clue what, if any, amount her pay rate will decrease, but it definitely has me sweating. My family could survive a drop in my pay, but my morale would decrease. I won't care as much avlbout jumping through management's hoops if I feel like my job is a dime a dozen opportunity.

*I would still take care of my patients as thoroughly and thoughtfully as I do now. I mean that I would have less desire to sit on comittees, attend meetings, etc. I would also be less loyal to my employer than I am now. At my current rate ,it would take a lot for me to walk out the door. At a rate that every hospital in the country is offering, I'd be looking elsewhere the next time they made up some lame, arbitrary rule.
 
I have been concerned that changes in administration would mean changes in healthcare staffing, because love it or hate it, the ACA has been a goldmine for healthcare providers.

My friend has no clue what, if any, amount her pay rate will decrease, but it definitely has me sweating. My family could survive a drop in my pay, but my morale would decrease. I won't care as much avlbout jumping through management's hoops if I feel like my job is a dime a dozen opportunity.

*I would still take care of my patients as thoroughly and thoughtfully as I do now. I mean that I would have less desire to sit on comittees, attend meetings, etc. I would also be less loyal to my employer than I am now. At my current rate ,it would take a lot for me to walk out the door. At a rate that every hospital in the country is offering, I'd be looking elsewhere the next time they made up some lame, arbitrary rule.

OP, I am not a stalker, I promise, but don't you have some pretty sweet deal at your current position with great hours and substantially higher than market rate pay? I recall you posting about that on a thread when your family was considering moving.
 


OP, I am not a stalker, I promise, but don't you have some pretty sweet deal at your current position with great hours and substantially higher than market rate pay? I recall you posting about that on a thread when your family was considering moving.

Yes, I do. That's why I'm worried. If local hospitals start making changes, eventually mine will follow suit. If current set up stops being as lucrative, I will have some big decisions to make, and I need to mentally prepare for it.
 
Hospital pay cuts are not unusual. We had one 15 years ago(5% for hourly and 10% for administrative) to prevent mass layoffs. This was prior to the ACA when hospitals were closing all over the place due to the uninsured.
 
If I were an RN with at least a 4 year degree I would take my skills to another area that is not facing this type of payroll upheaval. The RNs I know are in the 6 figure salary range and receive bonuses and other benefits to not retire early.
 
I would at least start looking seriously at something new. At the very least, I would assume that your co workers would be doing the same, and I wouldn't want to be one of the last ones left on a sinking ship of low morale, and RN turnover, just because I wasn't at least seriously looking for something else.

Good luck to you, I am very sorry that you are going through this. I work for a large University/Healthcare network (not in patient care myself) and the past year has been very stressful, with a lot of difficult decisions being made, and some very real consequences as a result.
 
Yes, I do. That's why I'm worried. If local hospitals start making changes, eventually mine will follow suit. If current set up stops being as lucrative, I will have some big decisions to make, and I need to mentally prepare for it.

If you’re currently overpaid relative to the market, and the market further corrects itself in a downward direction, I think it would be difficult to proceed under any assumption other than you will have your pay corrected to match the market. If you have special skills that justify higher compensation, then it’s likely you will remain above the market rate, but if you’re just fortunate to be in a good position you may want to be extra alert, because in times of reductions the overpaid become “low hanging fruit” and usually get picked off first.

Good luck!
 
If the worst happened, and your pay was cut but still at or above market rate, would you stay or look elsewhere?

You have to look at the other factors. If you're happy with hours, working conditions, co workers, distance from home, etc....I'd stay.

I mean, if factors are positive and if you're still at or above market rate, where are you going to go?
 
If I were an RN with at least a 4 year degree I would take my skills to another area that is not facing this type of payroll upheaval. The RNs I know are in the 6 figure salary range and receive bonuses and other benefits to not retire early.

That has been the situation around here for the past 4 years as well, I worry what the future holds though.
 
I guess I should clarify, that even if I face a paycut, I will still earn a good living. We won't be facing homeslessness or hunger or any of the very real situations that some people face every day. But I won't be happy doing the same job for less.
 
I would at least start looking seriously at something new. At the very least, I would assume that your co workers would be doing the same, and I wouldn't want to be one of the last ones left on a sinking ship of low morale, and RN turnover, just because I wasn't at least seriously looking for something else.

Good luck to you, I am very sorry that you are going through this. I work for a large University/Healthcare network (not in patient care myself) and the past year has been very stressful, with a lot of difficult decisions being made, and some very real consequences as a result.

Thanks. With changes in healthcare laws on the horizon, I have been very nervous about the state of hospital finances. I am sure everyone is feeling the heat.

I'm hoping this isn't a sign of bigger things to come regarding jobs and the economy. Nothing has happened to my job yet, but it is getting too close for comfort!
 
State of Florida employees received a 3% pay cut across the board a few years ago. We just tightened out belt. We both feel strongly in public service so accepted the cut and hoped for future increases, which state government in Florida rarely achieves.
 

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