GUIDELINES: INCENTIVES FOR HEALTH …

1 guidelines : INCENTIVES FOR HEALTHPROFESSIONALSPre-publication copy 6 . guidelines : INCENTIVES for HEALTH Professionals Pre-publication Copy 2 Copyright 2008 by: International Council of Nurses, International Hospital Federation, International Pharmaceutical Federation, World Confederation for Physical Therapy, World Dental Federation, World Medical Association. All rights, including translation into other languages, reserved. No part of this publication may be reproduced in print, by photostatic means or in any other manner, or stored in a retrieval system, or transmitted in any form, or sold without the express written permission of the above mentioned organisations.

2 Short excerpts (under 300 words) may be reproduced without authorisation, on condition that the source is indicated. 3 TABLE OF CONTENTS Contributor 4 Acknowledgements 4 Foreword 5 Executive summary 7 Introduction 9 A typology of INCENTIVES in HEALTH care 11 Financial INCENTIVES 13 Wages and conditions 13 Performance-linked payments 14 Other financial INCENTIVES 16 Non-financial INCENTIVES 17 Career and professional development 18 Workload management 19 Flexible working arrangements 20 Positive working environments 21 Access to benefits and supports 22 What does an effective incentive scheme look like?

3 25 Developing an incentive package 31 Conclusion 33 Appendix 35 References 37 4 CONTRIBUTOR Bridget Weller has extensive experience in public sector HEALTH and community services policy, funding and workforce development. She has more than 15 years experience in a range of public sector policy and management positions. Her areas of interest include workforce development and strategy, acute HEALTH services, rural and regional HEALTH services delivery, HEALTH funding policy, demand management and children s services. She holds a Bachelor of Arts (Honours) from Monash University, Melbourne, an Executive Master of Public Administration (Australia and New Zealand School of Government, University of Melbourne), as well as formal qualifications and experience in professional writing and editing.

4 Bridget now works as a consultant and writer in Edinburgh, United Kingdom. ACKNOWLEDGEMENTS This publication was commissioned by the Global HEALTH Workforce Alliance as part of its work to identify and implement solutions to the HEALTH workforce crisis. It is a joint initiative of the International Council of Nurses, International Hospital Federation, International Pharmaceutical Federation, World Confederation for Physical Therapy, World Dental Federation and World Medical Association. It is part of a larger initiative to promote work settings that ensure the HEALTH , safety and personal well-being of staff, support the provision of quality patient care and improve the motivation, productivity and performance of individuals and organisations, thereby strengthening HEALTH systems and improving patient outcomes.

5 Further information about the project partners is provided in the Appendix. The group acknowledges the support of the International Council of Nurses, which managed and coordinated the project on their behalf. 5 FOREWORD The growing gap between the supply of HEALTH care professionals and the demand for their services is recognised as a key issue for HEALTH and development worldwide. Policy-makers, planners and managers continue to seek effective means to recruit and retain staff. One way to achieve this is to develop and implement effective incentive schemes.

6 The World HEALTH Organization report Working together for HEALTH (2006a) estimated a global shortage of million HEALTH workers, including million physicians, nurses and midwives. Translated into access to care, the shortage means that over a billion people have no access to heath care. Many countries are affected by the shortage and 57 have been identified as in crisis . An effective workforce strategy will address the three core challenges of improving recruitment, improving the performance of the existing workforce, and slowing the rate at which workers leave the HEALTH workforce (WHO 2006a).

7 INCENTIVES can play a role in all these areas, providing a means by which HEALTH systems can attract and retain essential and highly sought-after HEALTH care professionals. Effective incentive schemes also help build a better motivated, more satisfied and better performing workforce. Some countries have already implemented comprehensive incentive schemes (Dambisya 2007; Zurn et al. 2005; Langenbrunner & Xingzhu Lui 2004; ICN et al. 2008 unpublished). For others, there is further work to be done, requiring commitment from governments, employers and managers to develop schemes that are adequately funded, effectively targeted and, most importantly, respond to the needs and priorities of HEALTH service professionals and enable the delivery of quality care.

8 Innovative thinking and research into the effectiveness of incentive schemes must continue to inform development in decision-making. Improved monitoring and documentation, as well as sharing of good practices and lessons learned are crucial if we are to continue to develop better HEALTH workplaces, strengthen the HEALTH workforce and improve patient safety and outcomes. International Council of Nurses International Hospital Federation International Pharmaceutical Federation World Confederation for Physical Therapy World Dental Federation World Medical Association Global HEALTH Workforce Alliance 6 7 EXECUTIVE SUMMARY The growing gap between the supply of HEALTH care professionals and the demand for their services is a critical issue facing governments, managers and professionals seeking to improve international HEALTH and development.

9 There are a number of complex and interrelated factors that contribute to the ongoing workforce shortage globally, including poorly resourced HEALTH systems, unsatisfactory working conditions and inadequate human resources management. It is in this context that policy-makers and managers have turned their attention to using INCENTIVES to improve the recruitment, motivation and retention of HEALTH care professionals. INCENTIVES are important levers that organisations can use to attract, retain, motivate, satisfy and improve the performance of staff.

10 Their use is common in public and private sector organisations across all work settings. They can be applied to individuals, groups of workers, teams or organisations and may vary according to the type of employer ( nongovernmental organisation, public or private). INCENTIVES can be positive or negative, financial or non-financial, tangible or intangible. Financial INCENTIVES are integral to the employment contract. Financial INCENTIVES involve direct monetary payment from employer to employee (Kingma, 2003 ), such as wages, bonuses or loans.