Rationale 2: Salary compression is the effect of higher starting pay of new nurses resulting in lower salaries for
long-term employees. This results in the wages of new nurses being just below or even higher than that of current
nurses. This is a quick fix to a nursing shortage, but a dangerous strategy, and it may result in dissatisfaction and
turnover of more experienced nurses.
Rationale 3: Salary compression is not linked to merit raises for training staff.
Rationale 4: Salary compression is not linked to raises for current employees.
Global Rationale:
Cognitive Level: Analyzing
Client Need: Safe Effective Care Environment
Client Need Sub: Management of Care
Nursing/Integrated Concepts: Nursing Process: Evaluation
Learning Outcome: 20-5: Discuss what organizations can do to improve retention of nurses.
Question 9
Type: MCMA
A hospital is experiencing a high nursing turnover rate. One manager suggests offering sign-on bonuses to fill
positions. Why would the nurse executive veto this suggestion?
Note: Credit will be given only if all correct choices and no incorrect choices are selected.
Standard Text: Select all that apply.
1. Sign-on bonuses only attract newly licensed nurses.
2. The bonus schedule adversely impacts the current salary schedule.
3. Current nurses can be discouraged by this program.
4. Sign-on bonuses do not recognize achievement and loyalty.
5. Sign-on bonuses do not attract enough nurses to make it worth the time to set them up and advertise them.