ST. LOUIS – BJC Healthcare announced a new compensation structure that it says would maintain or increase pay for 72% of its employees, but the health system did not immediately clarify impacts on the remaining 28% of its workforce.
In a statement shared Thursday with FOX 2, BJC did not specify whether more than one-quarter of workers could see pay reductions or other changes under the new structure that might lower overall compensation.
The changes come as BJC says it is standardizing pay policies, following a recent analysis of compensation in its St. Louis and Kansas City markets and an “integration,” likely referring to its 2023 merger with Saint Luke’s Health System.
BJC says it will invest $70 million annually in base pay and benefits for more than 8,000 nurses, starting on March 8. Then, the company will “align pay practices” on May 3, a move it says will result in pay increases for 65% of affected employees and maintain pay for 7%.
The company did not provide details about how compensation would change for the remaining 28%.
BJC shared the following statement Thursday with FOX 2 on upcoming pay structure:
“BJC Health annually evaluates benefits and compensation offerings across the Midwest and in its Kansas City- and St. Louis-based regions. This process includes a comprehensive market analysis to ensure our benefits and compensation package remains highly competitive with peer organizations within the health care industry and across the region.
Like any organization following an integration, BJC is creating a single set of policies and practices for consistency. This standardization can lead to more pay opportunities, career growth, and the ability to move within the organization. These changes are meant to align pay and benefits while keeping total compensation competitive in the Kansas City and St. Louis areas.
Starting on March 8, more than 8,000 BJC nurses will receive the benefit of an investment of $70 million in base pay and benefits, each year. This, along with aligning pay practices beginning May 3, ultimately maintains or increases pay for 72% of employees (7% maintaining and 65% receiving increases).
BJC understands the important role benefits and compensation play in supporting our team members and is proud to be recognized as one of the Forbes Best Large Employers and Newsweek’s America’s Greatest Workplaces.
These pay practice changes promote enterprise-wide consistency and market competitiveness to help BJC Health remain an employer-of-choice in the Midwest.”
The announcement follows another major workforce change last year when BJC confirmed plans to phase out its pension plan and close it to new employees, according to the St. Louis Post-Dispatch.
BJC employs around 47,000 workers between its St. Louis and Kansas City-area operations.
