Q. My associate earns 22.5 percent of her total production. Of that, about 17 percent is wages and the remainder is fringe benefits. She also receives a bonus. How can I switch her to ProSal without giving away the farm?
ProSal is a compensation formula that pays production but guarantees a base—see the February 2006 issue of Veterinary Economics for a description. Mark Opperman, CVPM, president of VMC Inc. in Evergreen, Colo., suggests placing your associate on a guaranteed base of $70,000 to $75,000 and 18 percent or 19 percent of her production. Discontinue her bonus but continue to provide the same benefits. And factor in the cost of CE. "Her total package shouldn't exceed 25 percent of her production," Opperman says. "With ProSal, she'll have the incentive to produce more and both she and your practice will benefit."