What Management
says About RN Wages
What Nurses Say about RN Wages |
Nurses salaries actually ERODED from 1992 to 2000, a terrible decade for nursing, and a period marked by increasing patient ratios, increasing acuity of the patients under an RNs care, increasing tasks not part of the nurse practice act, less voice in the industry hegemony, and fear for patient and license safety.
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Background: 1987-1992:
The National median Nurses salaries experienced a 38% increase between 1987 and 1992 [Science and Engineer Indicators '93] . This followed the acute Nursing Crisis Shortage of the 80s, labor strikes excercised in that period, and industry's delayed response to market demand, and was followed itself by an increase in nursing school enrollment, a cut back in bedside hospital nurses nationally, and a subsequently misidentified "nursing glut" perceived to have occured on this period's heels. |
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2000-2001: a national mean increase of 11% occurs in a [limited ] study of full time staff RNs. When added to the erosion of salaries having occured 1992-2000, the mean increase nationally for the period 1999-2001 reflects a change in buying power for the RN of $2,526.90 in the period 1992 to 2001, or 6.546 % over 9 years and entirely owing to the period 2000-2001.
Methodology for the above is provided below
Footnote 1- These statistics do not provide a breakdown of differentials occuring within the salaries provided. The difference in regional salary may in part reflect the highly variant pay or lack of it for periods of highest resource deficit [nights/ weekends/ holidays] and/ or variance in charge pay for each hour a staff RN is assigned that demanding duty. Identification of hourly pay per shift in each region, and differential pay in each region, would address this confusion.
Regional
average annual salary for full-time RNs in staff positions year 2000 and
the 1992 average** :
**From NursingWorld.com. Today's
RN- Numbers and Demographics citing Spratley, E. (March 2000)
The Registered Nurse Population, Findings from the National Sample Survey of Registered Nurses, U.S. Department of Health & Human Services, Bureau of Health Professions, Division of Nursing, Health Resources and Services Administration.
[Based on the above, the median national income of full time RNs, staff positions ] [Based on the above, the median national income of full time RNs, staff positions ]
What cost $36073 in 1992 would cost $43989.63 in 2000. Also, if you were to buy exactly the same productsin 2000 and 1992, they would cost you $36073 and $29581.10 respectively.
**According to "Nurse and Allied
Healthcare Annual Compensation and Benefits Report, April 2001, Martin/
Fletcher
"A Survey of 3,960 hospitals in 48 states" reflects 43, 968 a mean 1999 salary for RNs and 48, 972 in 2001 Cited in "Hospitals
scramble for Cutting Edge Personnel" MANAGED CARE November 2001
What cost $48972 in 2002 would cost $38599.90 in 1992. Also, if you were to buy exactly the same products
These numbers when computed against Inflation show a LOSS in income for the full time staff RN Inflation and Actual Buying Power 1992
vs 2001:
[What cost $36073 in 1992 would cost $45766.10 in 2002. Also, if you were to buy exactly the same products in 2002 and 1992, they would cost you $36073 and $28432.86 respectively. (Results computed from "the Inflation Calculator") ] Let's see what happened to the
salaries of managers of Hospitals during the period of "weathering the
storm" and "Belt Tightening"
we practicing nurses were told to endure
during the early mid, mid and early later mid 90s
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What
the 2000 RN Nationsal Survey stated regarding RN Earnings;
"In examining the extent to which average RN earnings have increased over the years, and the related economic demand for RNs, it is important to consider how earnings have increased during times of relatively high inflation as well as during times of relative stability in the cost of living. However, inflation is only one of the factors influencing the size of increases in RN earnings over time. The highest increases in actual annual earnings (35.1 percent) were experienced during the period between November 1980 to 1984, followed by a 33.2 percent increase in average earnings between March 1988 and 1992. These were times of relatively high increases in the cost of living. These were also periods when nurses were being actively sought for employment. There were substantial increases in the supply of RNs in the workforce from 1977 to 1984. There was also a perceived nursing shortage from 1988 to 1992. For these reasons, the substantial increases in actual earnings, far greater than would be expected just from the CPI levels, may reflect economic demand by employers for RNs. The average actual annual earnings of RNs
employed full-time in March 2000 was $46,782, 11.2 percent higher than
in March 1996. This is similar to the 11.5 percent increase between 1992
and 1996. The eight years from 1992 to 2000 were relatively stable in
the cost of living, where the CPI increased about 10 percent over each
4-year period. Thus, it appears that nearly all of the increases over each
of these four-year periods may be due to inflationary factors.
The second measure for assessing trends in average earnings utilizes the consumer price index. Obtaining the trends over time in ërealí increases in RN earnings is possible after accounting for the changes in purchasing power of the dollar from the reported earnings found in each respective Sample Survey. For example, the increase in real earnings that RNs experienced between March 1988 to 1992 (11.2 percent) was large and almost equalled by the increase (9.7 percent) experienced between 1980 to 1984. These increases in earnings also occurred during periods when the supply of employed nurses increased substantially. These combined facts suggest that there was a significant economic demand for RNs over this period. In contrast to the large real earnings increases from 1980 to 1984 and 1988 to 1992, real earnings were relatively stagnant over the years from 1992 to 2000 ... On an annual basis, the CPI averaged about 2.4 percent annually over the 1996 to 2000 period, or about 10 percent over four years. At the same time, RNs who were employed full time in nursing saw earnings increases of roughly the same magnitude as the CPI; their actual earnings increased annually at an average rate of 2.7 percent. Any changes in earnings since March 2000, which may reflect changes in demand for RNs in the health care marketplace, are not reflected in these figures..... those whose highest nursing educational preparation was a diploma was $46,624, while it was $46,570 for those whose highest nursing education was a baccalaureate degree. Earnings for those with baccalaureate degrees and diplomas as their highest nursing educational preparation are about 10 percent higher than the average earnings for those with associate degrees ($42,676) as the highest nursing education. Earnings/education patterns appear to be more complex than simply assuming that higher levels of education automatically translate to higher earnings. Larger proportions of diploma nurses in the workforce have more years of experience than do those with baccalaureate or associate degrees. They also comprise a large percentage of those RNs in administrative positions ... These circumstances of the workforce may possibly explain why diploma earnings appear to be competitive with baccalaureate earnings..... Staff nurses, the largest group of employed nurses, had average earnings of $42,133. The staff nurse earnings level is about 10 percent below the overall average earnings for all RNs with full-time employment in nursing. To some extent, higher earnings can be attributed to highest education level at the masters degree and above which prevail in some positions. ...Growth in actual earnings from 1996 and 2000 were compared for selected positions. While the average reported earnings for all full-time nurses increased by 2.7 percent on an annual basis between the 1996 and 2000 Sample Survey, there was a broad range to the level of increase across positions. Categories of nursing positions that experienced annual rate increases which were higher than the average rate of increase include: administrators (3.7 percent), instructors (3.4 percent), supervisors (3.3 percent), and head nurses (3.3 percent). However, staff nurse earnings only increased
on average by 2.2 percent annually. Furthermore, staff nurse earnings in
hospitals only increased by 2.0 percent.This lower increase contrasts to
the earnings increases of staff nurses in nursing homes, where the latter
reported increases of 3.6 percent annually.It
appears that demand for a high level of skills in staff nurse hospital
service is not being compensated at a rate that meets even the CPI.
Nevertheless, the larger rate of increases in earnings for nursing home
staff RN services may begin to raise basic compensation levels for nursing
home staff RNs who have been difficult to recruit and whose earnings have
been historically-lower than comparative earnings in hospitals....
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