After announcing raises earlier in January, Rochester, Minn.-based Mayo Clinic is responding to employees who were disappointed in the amount, according to the Post Bulletin.
Mayo, in a statement to employees shared with the newspaper, said the raises are based in comparison to the market and on a review of external market factors.
"We strive to provide increases every year, and we value our ability to be consistent in providing annual pay adjustments regularly, despite volatility in the cost of living," according to the health system statement. "When Mayo Clinic sets the annual salary adjustment, it uses market factors, including projected salary structure movement and projected salary increases across industries. Mayo also reviews positions and makes market adjustments every year or as needed to ensure competitiveness, and we are addressing areas where we are experiencing staffing challenges."
Mayo announced Jan. 18 that the health system will provide employees with a 2 percent raise in 2022 with a 2.75 multiplier.
However, employees have expressed disappointment in the less-than-expected raises amid the COVID-19 pandemic, staffing strain and increasing costs because of inflation, the Post Bulletin reported.
Mayo said employees at the top of the pay scale will receive 2 percent raises, and those who have not reached their salary cap can use .0275 as a multiplier leading to raises above that amount, according to the newspaper. The health system’s statement said this means more than half of employees will receive a raise of at least 3.3 percent.
The raise is the same as the raise workers received in 2020 before the pandemic and less than the national trend, according to the Post Bulletin, citing a survey of 1,004 companies by research firm Willis Towers Watson that found an average raise of 3.4 percent.
Mayo Clinic's revenue climbed 18.2 percent — from $3.39 billion to $4.01 billion — in the third quarter of 2021 compared to the same quarter in 2019, according to the Post Bulletin.
Mayo said eligible consulting and allied health staff will receive the salary adjustment, which takes effect March 16 and will show up in paychecks on April 5. The health system has about 73,000 employees.