Hazard Pay for Executives?
Do executives deserve hazard pay? Really?
McKnight’s reported that executives’ salaries are increasing during COVID-19. The explanation is that stress and burn-out are increasing demand. Ryan McPherson is vice president of Medical Recruitment Specialists LLC, of Stoughton, MA. He said:
“We are seeing a hazard pay bump. They have to pay. There is not a lot of youth in this industry, so to keep these people around, they are seeing a nice little bump in pay.”
Retirements are creating vacancies at the upper levels, further making this a seller’s market, he pointed out. Some salary experts assume that these temporary bumps will translate to more permanent increases heading into 2021. “We’ll see salary increases for top-level executives who received temporary increases of 4% to 6% during [the start of the pandemic],” one said, noting that overtime pay increases also will continue into 2021.
Julie Rupenski is the owner and principal of MedBest Recruiting. She agreed that the pandemic has driven up executive compensation.
“Successful executives are able to command higher salaries and bonus packages due to the increased demands brought on by the pandemic,” she said. “Their jobs are simply more demanding and, therefore, they have less work/life balance.”