Hillcrest Long-Term Care is a private,
not-for-profit retirement community located in a medium-sized market. It is a
60-year-old facility offering three levels of care for its elderly residents:
independent living, assisted living, and skilled/full nursing care. Hillcrest’s
administration has recently identified a strategic initiative to aggressively
pursue the area of memory care. In order to pursue this new strategic
initiative, Hillcrest is attempting 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 determined 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
Questions
Is the package that is recommended by executive
search committee typical for positions of this nature? Explain your
position on this package.
How could the board of directors be confident that
the compensation package recommended by the executive search committee is
market competitive?
