Assessing the Impact of Pay-For-Performance Compensation on Nursing Retention in Acute Care Settings

Abstract

A cross-sectional analysis of current research was performed to determine the impact of pay-for-performance compensation models on nursing retention rates in acute care settings. Factors contributing to low nursing retention rates in acute care settings include low wages, a lack of proper benefits, increased workloads, burnout, and poor job satisfaction. Through this analysis, pay-for-performance compensation models are evaluated to determine their impact on nursing retention rates in acute care departments to improve current nursing retention strategies. Specifically, merit-based pay was assessed as a potential pay-for-performance compensation model that could be used as a nursing retention strategy. Patient satisfaction scores were suggested as a performance indicator for merit-based pay. A brief analysis of current nursing retention strategies has also been discussed. Alternative nursing retention strategies must be explored to improve the stability of the current nursing workforce in acute care departments and improve the organizational commitment of nurses in acute care settings.

Keywords: healthcare, retention rates, registered nurses, acute care, nursing staff, pay-for-performance, compensation, merit-based pay