Bonuses to deserving workers

Several weeks ago, in recognition of better-than-expected financial results, we partially repaid our staff who had given up raises and benefits during last year's hard times with a one-time bonus. These thousands of people had made sacrifices last year to save the jobs of their fellow workers and to offer special protection to the lower wage workers in our hospital, sacrifices that received national recognition. (See here and here for examples.)

Now, one gubernatorial candidate is criticizing us for this action. (Full disclosure: I am supporting another candidate.) If this one would have inquired, he could have received a copy of the email that we sent out to several thousand of our people. Perhaps, then, he would not have been so critical.

Here's the email, dated September 8. Following the email, I present representative responses from several of the staff members. You be the judge.

Dear BIDMC,

Last year, in a terrific outpouring of mutual support, thousands of you gave up salary increases and benefits to help save the jobs of hundreds of people and to offer special protection to people in our lower wage categories. This action received national acclaim, as the country recognized the sense of community and family here at our hospital.

Over the past several months, as our finances improved, I followed your collective guidance, gradually restoring salary increases, 401(k) matches, and earned time accruals. Back in July, we discussed things with our Board of Directors, and they agreed that, if finances allowed, we should do something more to help make up for some of what was taken away from you.

Things have worked out along those lines, so I am now pleased to send you this note. As a result of very tight expense management and strong patient volumes, we are running ahead of our expected budget for this fiscal year, which ends September 30. Just as we shared the sacrifices last year, we want to share with you this year’s strong financial performance. To thank you for your past sacrifices and to make up a small portion of them, we will be distributing a special one-time bonus to you.

Here's how it will work. The bonus for full-time staff working 30 or more hours per week will be $500; for part-time staff working 20 to 29 hours per week, it will be $250; and for those working 8 to 19 hours per week, it will be $150. To be eligible, since this is meant to thank those who sacrificed last year, you need to have been working here since January 1. This bonus does not apply to students, temporary employees, employees on leaves of absence, or employees who are not in good standing. Like all income, the bonus is taxable, so taxes will be withheld.

The bonus will show up in your paycheck on September 23 (but only if you are still working here on that day.) You don't need to do anything special to make this happen. You have already done something special.

That’s the good news. We work in fiscal years here, so the results from one twelve-month period do not necessarily give a signal as to what will happen in the next year. The bad news is that we expect FY 2011 to be particularly hard financially for all hospitals, including BIDMC. Given what we already know about planned cuts in Medicare and Medicaid, we cannot plan on our strong results from this year to continue next year. Meanwhile our costs (everything from clinical supplies to food to parking to health insurance) will increase. We will all have to continue to manage through those realities.

But for today, we simply want to recognize that our financial results this year are better than we had planned, and to share that with you.

With my thanks, that of all of the Vice Presidents in our senior management team, and of our Board of Directors,

Paul

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Thank you so much Paul! It is nice to know our sacrifices were not taken for granted. Thank you again for your kindness!

My husband lost his job almost 2 years ago...Every little bit helps...Thanks...

Thank you so very much Paul! It is so needed by so many at this time, it will be greatly appreciated by many I am sure. Your outstanding generosity with the help and guidance of the board is very charitable and will not be forgotten.

Thank you very much. You have no idea how much this helps me.

Thank you so much, Mr. Levy and Board of Directors. A very nice surprise.

Thank you very much Paul…what a wonderful gesture. It is a privilege to work at this great organization!!! I'm so glad that we were able to get through some rough times.

You can not imagine what this email did for the moral of our staff in radiology @ Lexington and Chelsea. We appreciate all that you have done to salvage jobs, while keeping constant communication. Thank you again.

This is very generous and thoughtful. I appreciate it and I know so many others will. Everyone can certainly use a little extra cash these days.

Management and staff of Mail & Motor Services would like to say thank you to all involved, Much appreciated.

Thank you for making my day & reminding why BIDMC is a great place to work!

Thank you for this wonderful email, you just made my daughter's day as well. Now she can enroll in Driver's Ed.

WOW!!! I have a daughter at Brandeis, this will help pay for her books...

I cannot tell you how much this seemingly benign gesture means to me. From the bottom of my heart, thank you. Given that me and my paycheck just started at BC yesterday (omg, what was I thinking.....), this is greatly appreciated.