By Roger P. Levin, DDS
In a tight economy, should a staff bonus system be out of the question? Many dentists think so, due to flat or decreasing production over the last two years. But that’s exactly why they should consider a well-structured bonus plan — it can motivate a team to increase productivity and production, two signs of a growing practice!
A bonus system will not magically make a sluggish economy disappear, but it can light a fire under a team to do everything in its power to reach challenging practice goals. However, before implementing an effective bonus structure, the practice’s systems — especially scheduling, collections, and case presentation — must be evaluated and updated. High-performance systems allow the team to function at its potential.
Once updated systems are in place, a bonus program can be a win-win for both team members and the practice. A bonus program can create far greater commitment than salary alone. The reason? Now the staff has a genuine sense of ownership in the practice. Team members recognize that practice growth will directly affect their compensation.
Are you ready for a bonus system?
Introducing a bonus system at the right time with the right factors in place is critical to its success. The bonus program needs to be structured so that both the doctor and team benefit. Levin Group recommends an effective bonus system be ...
1. Based on revenue, not production. Bonuses based on production are pointless because you cannot spend what you have not collected. The entire team needs to understand that revenue must be collected to run an efficient business.
2. Easy to understand. If the bonus system is so complicated that the staff cannot track their progress daily, the potential bonus will fail to have any motivating effect.
3. A team bonus. For the practice to meet its goals, everyone on the team must contribute. When the practice does well, everyone does well. An effective bonus system can help create an even stronger team while increasing job satisfaction for both the staff and dentist.
Good leaders motivate team members to reach their potential. The bonus system should be more than simply about money — it should be about achievement and appreciation. Nothing is better than the excitement building up as the practice performs better and the team continues to increase production. The right bonus system can help both you and your team take your practice to the next level.
Roger P. Levin, DDS, is chairman and CEO of Levin Group, a leading dental management consulting firm that is dedicated to improving the lives of dentists through a diverse portfolio of lifetime services and solutions. Levin Group may be reached at (888) 973-0000, or www.levingroupgp.com.
By Roger P. Levin, DDS