Compensation Transparency in the US Healthcare Workforce

Summary

The research paper "Compensation Transparency in the US Healthcare Workforce" by B. Perkins, published in 2025, investigates the critical role of transparent compensation practices in influencing key employee outcomes within the American healthcare sector. Drawing upon social exchange theory and organizational justice models, the study posits that healthcare staff who understand and perceive fairness in their pay decision process will experience enhanced psychological safety and commitment. This theoretical framework suggests that employees' positive perceptions of organizational fairness, particularly regarding compensation, lead to a reciprocal positive response in their attitudes and behaviors, such as increased engagement and loyalty. The methodology involved a quantitative survey conducted among 200 clinical and non-clinical employees across diverse US healthcare organizations, including academic, nonprofit, for-profit, and government institutions. The study utilized established psychological and organizational behavior assessment tools, employing composite scales and regression analyses to explore the relationships between perceived compensation transparency, work engagement, burnout levels, and intentions to stay. Specifically, self-reported views of transparency were evaluated using measures such as the Pay Secrecy Policy Scale, Utrecht Work Engagement Scale, a short-form Personal Burnout subscale from the Copenhagen Burnout Inventory, and a stay intention measure. This robust quantitative approach allowed for a detailed examination of how transparency perceptions impacted critical workplace outcomes, while accounting for individual and workplace factors. The findings underscore a strong positive association between increased perceived compensation transparency and greater work engagement, alongside significantly lower levels of burnout among healthcare employees. Both work engagement and reduced burnout emerged as major predictors of employees' intentions to remain with their current organizations. Furthermore, regression and mediation analyses demonstrated that compensation transparency directly influences retention attitudes. It also indirectly enhances employee engagement and lessens burnout, emphasizing transparency as a vital organizational practice that cultivates feelings of value, motivation, and psychological security. The study implies that fostering clear and equitable compensation systems can lead to a more stable and satisfied healthcare workforce, ultimately promoting employee well-being and reducing turnover. These implications are particularly relevant for healthcare administrators and human resource professionals, who can leverage these insights to refine compensation strategies, improve communication, and address concerns related to fairness and retention. By doing so, organizations can build trust and credibility, reduce pay disparities, and cultivate a supportive work environment.