case study

Their Foundation: Total Rewards (2013) Cleveland Clinic offers total rewards to their employees. The organi- 43,890 e...

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Their Foundation: Total Rewards


Cleveland Clinic offers total rewards to their employees. The organi-

43,890 employees

zation assured they had comprehensive and adequate health care, including wellness programs, pension / investment, tuition

16 full service health centers

reimbursement, adoption help, an Employee Hardship Fund in

Locations in Ohio, Nevada, Florida, Canada and Abu Dhabi

which employees apply for financial support based on emergency needs; home purchase assistance; employee discounts for purchases

Ranked one of the top

such as computers, sporting and theatre event tickets, cell phones hospitals in

services and other local venues (employees saved over $2 million

America (U.S. News and World Report 2013) the Cleveland Clinic is a

dollars annually on discount purchase programs). In addition, they

growing organization, with success greatly supported by their employee

adjusted jobs to assure that they were paid at current market levels.

engagement work began in 2008. Central to their initiative is an innovative, multi-tiered recognition program used to strategically align It was on top of this

employee engagement with organizational goals.

solid foundation that they



A Role-Based Engagement Strategy



tions program, which started in 2010.

Cleveland Clinic used a role-based approach to drive desired outcomes, choosing specific behaviors to target, measure and reward by both headquarters and front line managers. Embracing employee engagement in 2008, Cleveland Clinic made it a part of a major change initiative designed to transform how every employee delivered patient care -- a hallmark being for every employee to focus on his/her role as a caregiver. “We are all caregivers" extends as the overall theme and identity to embrace by every single employee in order to ensure a more "patientcentric delivery model" which began in 2006. This coincided with a major facilities expansion, restructuring, and the appointment of a chief patient experience officer in 2007.

While reading the following, make a mental note of the various connections to core values. Cleveland Clinic went well beyond engagement to develop a strategy focusing on them.






Role-Based Lens Metric Used Education &Training

Cleveland Clinic provides an example of how a role-based approach The Gallup Q12 employee survey was used to establish a baseline set of employee engagement metrics.

combined with employee engagement, can lead to achieving firm-level success. One can analyze their overall rewards strategy as follows, using the role-based lens:

The "We Are All Caregivers" initiative was complemented by leadership education. The group taught and built a model based on service leadership, which was a variant of servant leadership (based on book by Robert K. Greenleaf ). “So far the biggest and most ambitious part of our engagement initiative has been something we call “The Cleveland Clinic Experience.”

This is a series of

half-day learning sessions attended by every one of our 43,000 caregivers.”

Mission Vision Values

Recognition Programs

Core Job Role. Overall market-level base salary and benefits programs

All initiatives were designed to complement their traditional mission, vision and values ("striving to be the world's leader in patient experience, clinical outcomes, research and education.") "Compassion and integrity" were added as new values that already included quality, innovation, teamwork and service.

signal a willingness to pay what it takes to bring in top talent; benefits are designed to keep them. The organization wants to create a high quality compensation package to incent, be fair and keep people working at their best in their core job roles. Career Role. Their tuition reimbursement program signals that learning new skills is important -- and it’s considered to be one of the best in the market based on benchmark studies. Cleveland Clinic’s mission emphasizes the importance of “further education of those who serve.”

Cleveland Clinic’s values, vision, goals, mission, daily behavioral expectations and engagement come together in their rewards strategy. Patient satisfaction and engagement scores have increased dramatically.

Team Member Role. Individuals and teams are part of Cleveland Clinic’s recognition program, supporting the importance of being a team member. Teamwork is one of Cleveland Clinic’s core values.

Individuals receive $2,000 and teams split $2,000 amongst their members. One individual and team receive the top CEO Award valued at $10,000.

Innovator Role. Innovation is a core value, with individuals being recognized based on their ideas or innovations that have been used, with more rewards for innovations targeting improved patient experiences. Organization-Member Role. The emphasis on "everyone being a

Recognizes individuals or teams for exceptional effort or initiative resulting in a significant impact on patients, business, innovation, etc. A total of 4% of employees receive a monetary gift certificate or cash award each quarter.

caregiver" brings the organization-member role front and center. Employees think about being part of one organization -all with the same daily goal. This is a very powerful message that is not only delivered but reinforced by actions and the rewards program.

Managers recognize individuals and teams for outstanding performance that leverage values and patients first culture. Recognition gift denominations range from $10 to $100. Overall program awards can be approved or denied by the institutes, divisions and hospitals -- a level of flexibility that was important to support business goals as the organization changed.


The Cleveland Clinic demonstrates Cleveland Clinic

synergy between values, vision,

Gallup Q12 Survey -- Grand Mean


goals, mission, daily behavioral


expectations and engagement -- all


A non-monetary award administered peer to peer, by manager or physician to employee or from patient to employee to say “thanks” to a caregiver for a job well done. Reinforces behaviors that support Cleveland Clinic values and a patient-centric culture.


coming together with their rewards


strategy. The connections are what


have led the many changes that


have dramatically improved patient

3.80 3.70

satisfaction 2008







Cleveland Clinic.

Acknowledgement: This series of papers is based on the work of Theresa M. Welbourne, Ph.D. -- FirsTier Banks Distinguished Professor of Business and Director, Center for Entrepreneurship; and Steven Schlachter, Ph.D. Student; Research Assistant, University of Nebraska, Lincoln, in the IRF-funded paper “Engaged in What? Creating Connections to Performance with Rewards, Recognition, and Roles.”



scores and the work done at