Dear Team,

Happy holidays and quyana for the extraordinary work you have accomplished this year. Your commitment to providing outstanding care and service to our 30,000 customers supports our mission of Working Together to Achieve Excellent Health.

In recognition of those efforts and YKHC’s strong financial performance this year, we are pleased to be able to offer the following:

• COVID-19 Heroes Bonus payout
• 2% merit wage increase
• Holiday department celebrations
• Administrative leave for afternoon of Dec. 22
• Employee airline ticket raffle

In 2015, and after four years of no raises, YKHC was able to provide a 2.5% merit increase. In 2016, we had a 2% merit increase. In 2017, we paid a lump-sum increase of $1,500. In 2018, we had a 2% merit increase, which was paid out in early 2019. 

As a result of the COVID-19 pandemic negatively affecting patient census in early 2020, we were not able to pay a merit raise based on 2019’s performance. However, in January 2021, YKHC paid a COVID-19 Heroes bonus that ranged from $1,500 to $5,500 depending upon length of continuous service.

In December 2021, we were able to provide a second round of COVID-19 Heroes bonus payouts and followed with a 3% company-wide merit increase in May 2022. These increases were the first time in the company’s history we were able to increase employee compensation in seven of the prior eight years. 

We are excited to announce that we will be able to extend this streak of annual compensation increases for another year, meaning YKHC employees will receive increases in compensation eight of the past nine years, unprecedented for YKHC and as measured against our peers. All qualified employees will receive a lump-sum COVID-19 Heroes on January 13 and a 2% merit wage increase, effective March 26. You’ve earned it!

Read below for more details on compensation increases and other holiday announcements.

COVID-19 Heroes Bonus payout

There are four levels of bonus compensation, depending on your length of continuous service at YKHC as of December 1, 2022:

1. Employees who have worked more than three months and less than one year of continuous service shall receive $500;
2. Employees who have worked more than one year and with less than three years of continuous service shall receive $1,500;
3. Employees with at least three years, but less than six years of continuous service shall receive $3,500; and
4. Employees with at least six years of continuous service shall receive $5,500.
   
   

As always, all amounts are subject to applicable taxes and withholdings. Eligible employees can expect payment on January 13, 2023.

Please note the following eligibility requirements for the Heroes lump-sum employee bonus payment:

• Employees must be full-time or part-time employees, continuously employed through the date the lump-sum payment is issued. Employees eligible for bonuses of $1,500 or more must have worked at least 1040 hours between Dec. 1, 2021, and Dec. 1, 2022.
• Temporary, non-benefited positions do not qualify.
• “Start Date” is considered as the first day on the job, not the date of hire.
• Employees subject to a documented performance improvement plan (PIP) on the scheduled date of payment are not eligible.
• The payment shall be prorated for part-time employees according to base schedule.
• The payment shall be prorated according to the period(s) of documented leave without pay-approved, for example FMLA leave.
• The payment is subject to withholding and payroll taxes in the year the payment is issued in accordance with applicable law.
• The payment shall be characterized for wage administration purposes as a one-time, discretionary, lump sum general compensation payment.
• This payment is in addition to any contractual bonus agreement and does not affect such agreement.

Questions regarding the eligibility of an individual employee should be directed to the employee’s vice-president.

Hopefully, COVID-19 rates and severity will continue to trend downward in 2023.  Barring another large and extended COVID-19 wave, you can expect that this COVID-19 Heroes Bonus will likely be the last one. YKHC thanks you for your commitment and dedication to improve public health during this multi-year pandemic.

2% merit wage increase

YKHC will implement corporate-wide merit wage increases to eligible employees after completion of 2022 performance evaluations in 2023. The eligibility requirements for the 2% wage increase are:

• Must be a permanent, benefitted YKHC employee
• Timely completion of upcoming annual performance evaluation. See key dates below and more information to follow in a separate email.
• Received satisfactory performance evaluation
• Cannot be on performance improvement plan (PIP) on effective date of the wage increase
• Employed at YKHC on or before July 1, 2022
• Job titles that received a pay grade adjustment on or after July 1, 2022, are not eligible.

Below are key dates related to performance evaluations.

• Employee self-evaluations are DUE no later than Friday, January 13, 2023
• Manager evaluations are DUE no later than Friday, February 17, 2023
• Managers and employees must review, finalize and sign evaluations no later than Friday, March 10, 2023
• Merit wage increases for eligible employees will be effective, March 26, 2023, and first paychecks at increased wages will be issued at the end of that pay period, April 7, 2023

Department holiday celebrations

YKHC has allocated funds for department holiday celebrations and potlucks. Managers are encouraged to host or organize a department-wide celebration for their staff. YKHC will reimburse expenses not to exceed $25 per attending employee, up to a maximum of $600 for larger departments.

Please code the expense to budget account #70008. Expenses in excess of $600 (for large departments) will not be reimbursed. If your department chooses, potluck feasts are encouraged in order to accommodate guests of employees.

Thank you in advance for respecting holiday decoration safety protocols as a means to maintain a safe workplace for our customers and employees. Any questions regarding holiday decoration safety should be directed to Safety & Security.

Administrative leave for afternoon of Dec. 22

Non-24/7 departments: All non-24/7 departments will close at noon on December 22. Any employee who is scheduled to work that day and who is not on PTO or Leave will be eligible for the Administrative Leave pay for the remaining 4 hours of the day.

All 24/7 departments: Employees in departments that cannot close early will be paid an additional 4 hours above their hours worked. In order to be eligible for the Administrative pay, an employee must be scheduled and work between the hours of 7a.m. Friday and 7 a.m. Saturday. Employees not scheduled or who are on PTO during those hours are not eligible for Administrative Leave.

The Administrative Leave will be automatically uploaded into Kronos for all employees. Managers should follow the guidelines above to determine if the time should be approved. Exempt employees will not receive additional compensation; however, 4 hours of their shift that day will be allocated to “Administrative Leave” to account for the cost of the program. The intent is to keep employees whole, but allow employees to go home early (meaning, employees should not lose a half day of pay).

All unapproved or non-valid Administrative Leave should be deleted by the manager. Payroll will process the approved time in the normal payroll cycle.

Please direct your questions to Human Resources and Payroll.

Employee airline ticket raffle

Lastly, as a way to again say quyana for all that you do each and every day for our customers, YKHC will raffle four round-trip Alaska Airlines tickets, anywhere Alaska flies, to four very lucky employees! All full-time YKHC employees are eligible and are automatically entered into the drawing. Winners will be announced soon and travel must be booked by June 1, 2023.

I hope each of you, our healthcare heroes, have a wonderful holiday season. You are our most important resource.

Quyana,

Dan Winkelman