Baton Rouge, Louisiana-based FMOL Health has improved employee pay and benefits in the past year, with the latest enhancements last month.
In January, the health system made what it called a major market compensation rate adjustment, and it also increased the minimum wage it pays to $15 an hour, from $14. The federal minimum hourly wage is $7.25. Neither Louisiana nor Mississippi — the two states where FMOL Health operates — has a minimum wage.
About 80% of current FMOL Health employees saw their pay increase as a result of the improvements. Their new pay went into effect with the Jan. 19 pay period.
According to a press release, FMOL Health made the changes after conducting an extensive analysis of thousands of roles across the system, benchmarking each position against competitive rates at comparable organizations. The analysis took into account both national and regional data sources.
In its release, FMOL Health said it has consistently offered wages well above the federal minimum. The system said this is in line with its commitment to fair and just labor practices, which flow from strongly held beliefs instilled by the system's foundresses, the Franciscan Missionaries of Our Lady.
The compensation adjustments and establishment of a new minimum wage at FMOL Health follow a 4% pay increase in June as well as a paid parental leave policy that the system began at the start of this year.
In a press release, FMOL Health President and CEO E.J. Kuiper said the system was able to make the investments because it is in a strong financial position and wants to invest in "the team members responsible for our continued success."
Other systems have made similar adjustments to their pay scales in recent years.