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Leadership Perspectives

JONA Volume 44, Number 5, pp 250-253 Copyright B 2014 Wolters Kluwer Health | Lippincott Williams & Wilkins

American Organization of Nurse Executives Nurse Leader Survey Compensation Trends and Satisfaction Levels Terese Hudson Thrall, MFA The American Organization of Nurse Executives conducted a salary survey of more than 4,600 nurse leaders, capturing information from 2012. About half of the salaries fall between $80,000 and $130,000. When correlating years of leadership to salary level, the 10-year mark appears to be the tipping point in terms of higher salaries for nurse leaders, with 52% of those with 11 to 20 years of experience and 64% of those with more than 20 years of experience reporting annual salaries equal to or greater than $120,000. Overall job satisfaction is high among nurse leaders, with 62% stating that they are very satisfied and another 29% responding that they are somewhat satisfied. Author Affiliation: Senior Communications Specialist (interim), American Organization of Nurse Executives, Chicago, Illinois. This study was initiated and developed under the leadership of Alyse Kittner, director of membership and marketing, American Organization of Nurse Executives, Chicago, Illinois. The author declares no conflicts of interest. Correspondence: 155 N Wacker Dr, Chicago, IL 60606 ([email protected]). Supplemental digital content is available for this article. Direct URL citations appear in the printed text and are provided in the HTML and PDF versions of this article on the journal’s Web site (www.jonajournal.com). DOI:10.1097/NNA.0000000000000062

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As the primary organization for nurse leaders, the American Organization of Nurse Executives (AONE) is committed to the success of nurse leaders. As such, AONE has embarked on several initiatives to help its members and the nursing leadership community advance in their careers and achieve their desired level of job satisfaction. In 2012, AONE members expressed an interest in learning more about the salaries of various positions in nursing leadership. To meet this need, AONE developed the AONE Salary and Compensation Study 2013, and the following findings resulted from the survey. The study and a companion online reporting tool are available to AONE members free of charge and are available for purchase to nonmembers at www.aone.org/compensation. The online tool filters survey results according to title, geographic location, and other factors. Method The online survey was sent to 22440 e-mails, which included AONE members and nonmembers. In total, 4,638 respondents completed or partially completed the survey, for a response rate of 21%. Respondents completed the survey in the spring of 2013,

reporting data from calendar year 2012.

Respondent Profile The typical survey respondent has been in a leadership position for at least 6 years, is a white woman, and works full-time at an acute care facility. Most respondents (67%) work at acute care hospitals, with another 13% in academic institutions and 7% in a healthcare system or corporate office. The remaining 13% work in other settings. The 3 job titles most represented by respondents include director (32%), manager (26%), and chief nursing officer (CNO)/chief nursing executive (17%). Most (80%) of the respondents have been in leadership roles for 6 years or more. Ninety-one percent of the respondents are women.

Salaries Annual salaries from responding nurse leaders vary widely, with about half, or 52%, falling between $80,000 and $130,000. Only 14% earn less than $80,000. The remaining respondents (34%) earn $130,000 or more, broken down as follows: 12% earn between $130,000 and $150,000, 13% earn between $150,000 and $200,000, and 9% earn $200,000 or more (Table 1).

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Leadership Perspectives Table 1. Overall Salary Ranges (Annual) Salary Distribution

Total

G$40,000 $40,000-$49,999 $50,000-$59,999 $60,000-$69,999 $70,000-$79,999 $80,000-$89,999 $90,000-$99,999 $100,000-$109,999 $110,000-$119,999 $120,000-$129,999 $130,000-$139,999 $140,000-$149,999 $150,000-$159,999 $160,000-$169,999 $170,000-$179,999 $180,000-$189,999 $190,000-$199,999 $200,000-$249,999 $250,000-$299,999 Q$300,000 n

1% 1% 2% 4% 6% 10% 11% 12% 9% 10% 7% 5% 4% 3% 2% 2% 2% 5% 2% 2% 4399

The survey also details salary level as it correlates to years of leadership experience. The 10-year mark appears to be the tipping point in terms of higher salaries for nurse leaders. Most respondents with 0 to 10 years of leadership experience, including 73% of those with 6 to 10 years, reported a salary less than

Cumulative 1% 2% 4% 8% 14% 24% 35% 47% 56% 66% 73% 78% 82% 85% 87% 89% 91% 96% 98% 100% 4399

$120,000 per year. This leaves 27% of respondents with 6 to 10 years of experience reporting a salary higher than $120,000. Salaries for those with more than 10 years of leadership experience demonstrate a significant shift: 52% of those with 11 to 20 years and 64% of those with more than 20 years reported salaries

equal to or higher than $120,000 per year. Not surprisingly, nurse leaders with senior-level titles earn higher incomes than other nurse leaders do. Directors and managers are most likely to earn between $80,000 and $160,000 annually, with 84% and 80% falling into that range, respectively. It is noteworthy that only 6% of directors and 17% of managers have annual salaries of less than $80,000. For nonsystem CNOs, more than half (61%) earn from $100,000 to $200,000. Nearly onefifths (19%) earn between $200,000 and $250,000, whereas only 12% earn higher than $250,000. Other nonsystem C-suite titles show a similar pattern, with most of the chief executive officers (CEOs), chief operating officers (COOs), and vice presidents earning between $120,000 and $250,000 (Table 2). Predictably, system CNOs tend to earn higher salaries than their nonsystem counterparts do, with 71% earning $200,000 or more. Clinical staff and specialists/coordinators are the most likely (69% and 51%, respectively) to be at the lower end of the salary scale, earning less than $80,000.

Table 2. Salary by Job Title Total Salary

CEO

COO

CNO (Nonsystem)

CNO (system)

Clinical Staff

G$40,000 $40,000-$59,999 $60,000-$79,999 $80,000-$99,999 $100,000-$119,999 $120,000-$139,999 $140,000-$159,999 $160,000-$179,999 $180,000-$199,999 $200,000-$249,999 $250,000-$299,999 Q$300,000 n

Y 3% 3% 8% 14% 19% 11% 11% 3% 11% 6% 8% 36

Y 2% Y 2% 4% 19% 7% 16% 9% 14% 12% 16% 57

Y Y 2% 6% 10% 14% 11% 13% 13% 19% 7% 5% 759

Y Y Y 6% 1% 3% 10% 1% 4% 18% 22% 31% 67

6% 30% 33% 16% 9% 2% Y 1% Y 1% Y Y 141

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Specialist/ Vice Director Manager Coordinator President Y 1% 5% 18% 29% 25% 12% 5% 2% 1% Y Y 1 403

Y 2% 15% 36% 28% 12% 4% 1% 1% Y Y Y 1 176

2% 16% 33% 27% 13% 5% 2% 1% Y 1% Y Y 128

1% 1% 1% Y 5% 16% 11% 20% 12% 24% 7% 4% 152

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Leadership Perspectives

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92% 50% 82% 113 92% 91% 82% 1 088 92% 93% 87% 1 320 90% 56% 85% 123 91% 65% 93% 129 93% 65% 89% 101 89% 90% 84% 115 92% 94% 90% 142 90% 49% 92% 80 93% 95% 91% 705

94% 94% 94% 64

90% 69% 81% 86% 86% 85% 81% 73% 75% 80% 64% 92% 75% 84% 87% 88% 89% 87% 72% 76% 84% 70% 90% 68% 76% 79% 93% 84% 75% 73% 78% 89% 66% 92% 64% 80% 76% 82% 85% 81% 71% 79% 84% 65% 92% 73% 79% 81% 88% 87% 85% 73% 80% 77% 67% 94% 79% 82% 90% 91% 94% 91% 78% 83% 82% 69% 95% 81% 96% 88% 88% 95% 87% 76% 82% 85% 76% 95% 72% 88% 88% 93% 97% 91% 83% 83% 85% 70% 96% 81% 69% 92% 87% 81% 80% 63% 74% 82% 65% 96% 76% 88% 88% 90% 92% 89% 77% 81% 85% 70%

Job overall Compensation Benefits Organization Industry work Areas of responsibility Amount of authority Opportunity for growth Job security Relationship with supervisor Equal treatment with other nonnursing functions Relationship with coworkers Relationship with direct reports Joy and meaning n

Clinical Staff Professor/ Dean APRN System CNO Consultant CNO

Table 3. Satisfaction of Job Aspects by Title

More than half (58%) of all respondents said they were eligible for bonus awards in 2012. Nurse leaders with higher salaries and greater management responsibilities were more likely to be eligible. The tipping point appears to be $120,000. Those who reported salaries at or above this mark were more likely to be eligible for some type of financial incentive. Similarly, those with a span of control involving more than 50 employees were more likely to be eligible for a bonus. That said, a percentage of nurse leaders across all titles, including clinical staff, indicated that they were eligible for a bonus. However, the percentages of nurse leaders eligible with each title follow an expected hierarchy. In the case of nondiscretionary bonuses, nurse leaders with C-suite titles were most likely to be eligible (63% to 49%), followed

Vice President

Bonus Awards

Other c-suite

‘‘Somewhat’’ or ‘‘Very’’ Satisfied

Director

Manager

Specialist/ Coordinator

According to survey data, nurse leader salaries are fairly similar across employer types. With the exception of nurse leaders employed at consulting firms, most earn salaries between $60,000 and $140,000. As mentioned earlier, nurse leaders employed by health systems or corporate offices are most likely (22%) to earn the highest annual salaries, at $200,000 or more, followed by consulting firms (15%). More than half of nurse leaders employed by consulting firms, 62%, garner salaries of $140,000 or more. Predictably, rural/critical access hospital nurse leaders are the most likely to have the lowest salaries, with 30% earning less than $80,000 and only 10% earning $140,000 or more (See Table, Supplemental Digital Content 1, which shows the salary distribution by employer, http://links .lww.com/JONA/A302).

88% 75% 75% 84% 84% 80% 71% 71% 64% 84% 63%

Salary by Employer Type

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Leadership Perspectives by directors (50%), managers (41%), specialist/coordinators (26%), and clinical staff (23%). Of the respondents who were eligible for a bonus in 2012, only about half said they received one. Of those who received a bonus, organizational financial performance was listed by 66% as a contributing factor, followed by clinical performance measures (54%) and customer or patient satisfaction (44%). Although some nurse leader respondents received bonuses, the financial incentives are a relatively small contribution to their income. Nearly half, 47%, said the bonus was 5% or less of their base salary. Another 23% said the bonus was more than 5% but less than 10% of their salary. Only 10% of nurse leaders indicated that the bonuses were more than 20% of their salary.

Job Satisfaction Overall job satisfaction is high among nurse leaders, with 62% stating they are very satisfied and another 29% responding they are somewhat satisfied. When asked why they choose to stay in their current job, the top response (44%) is ‘‘I find joy and meaning in my work.’’ Respondents

JONA  Vol. 44, No. 5  May 2014

indicated that they are less satisfied with their benefits and compensation. The percentage of nurse leaders highly satisfied with benefits is nearly half (48%) and only one-third (34%) are highly satisfied with their compensation. However, when combining the categories of very satisfied and somewhat satisfied, nurse leaders seem largely satisfied with benefits and compensation, with percentages in those 2 categories at 82% and 73%, respectively. When this same information is broken out by title, the pattern is repeated. System CNOs and nonsystem CNOs are generally satisfied, with 96% and 95%, respectively, claiming they are somewhat or very satisfied overall. However, fewer nurse leaders holding these titles reported satisfaction with compensation. Only 76% of nonsystem CNOs reported that they are somewhat or very satisfied, and 72% of system CNOs fall into these 2 satisfaction levels. In fact, only 3 other nurse leader titles had fewer respondents in the very or somewhat satisfied categories for compensation: managers (69%), clinical staff (68%), and professor/dean (64%) (Table 3).

The position with the fewest respondents indicating overall satisfaction is specialist/coordinator, with only 88% saying they are very or somewhat satisfied. This position also has the lowest percentage of respondents satisfied with their job security (64%). And although directors and managers generally reported satisfaction overall, both of these title’s respondents are among the lowest for satisfaction with job security. Titles show similarity in satisfaction, with nursing departments receiving equal treatment with nonnursing departments within their organization. Although most nurse leaders in all titles are very or somewhat satisfied, this percentage hovers at or below 70% for 10 of the job titles. The only title with respondents expressing a higher percentage of satisfaction in this regard is vice president (76%). Specialist/ coordinators have the lowest percentage of respondents satisfied with equal treatment of nursing (63%). Some intangibles of a nurse leader’s career, such as the respondent’s relationship with coworkers and finding joy and meaning in their work, received high satisfaction ratings across all job titles.

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American organization of nurse executives nurse leader survey: compensation trends and satisfaction levels.

The American Organization of Nurse Executives conducted a salary survey of more than 4,600 nurse leaders, capturing information from 2012. About half ...
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