Garden view Long-Term Care is a private, not-for-profit, retirement community lo
ID: 430664 • Letter: G
Question
Garden view Long-Term Care is a private, not-for-profit, retirement community located in a medium-sized market. It is a 50-year-old facility offering three levels of care for its elderly residents: independent living, assisted living, and skilled/full nursing care. Garden view’s administration has recently identified a strategic initiative to aggressively pursue the area of dementia/ Alzheimer’s care. In order to pursue this new strategic initiative, Garden view is at- tempting to recruit a marketing director for the organization to market the new program. The board of directors has contracted with an executive recruitment firm to conduct the search for the new marketing director. The first step in the recruitment firm’s process was to determine a market-competitive compensation and benefits package for the position. Their market research deter- mined the following: • Starting salary range: $150,000 to $175,000 • Incentive bonus potential: 10 percent to 15 percent of base salary • Special perks: travel allowance, conference funds, and expense account • Benefits: fully paid health, dental, life, and disability insurance Pension: 10 percent contribution to a 403(b) plan
1. Is the package that is recommended by executive search committee typical for positions of this nature?
2. How could the board of directors be confident that the compensation package recommended by the executive search committee is market competitive?
Explanation / Answer
1. The salary for the position of Marketing Director is in the range of $125000-175000 including perks, bonus, insurance and retirement benefits, depending on the organisation and the place of posting. Going by this standard, the salary range specified is on higher side than the norm. The range is particularly high when the organisation in question is a not for profit type, which have comparatively lower pay structures.
2. The board of directors may take help of market research agencies and compensation analysts that predict the salary range for a position accurately after analysing inputs from industry resources. They can also survey the similar companies for salary range of this position for the given place of posting and other conditions specific to the job.
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