What's fair compensation?

What's fair compensation?

Keep employees happy and engaged with competitive compensation and benefits.
source-image
Jan 01, 2010

There's no doubt that fair compensation is important when it comes to employee job satisfaction. However, compensation can be tricky to determine, especially when money is tight. And discussing the topic with team members can be understandably difficult. But failing to examine and discuss one of your practice's largest expenses could lead to problems down the road.


Photo by Photodisc/Getty images
Unmotivated employees can dramatically affect productivity, turnover, and the quality of care you offer clients and patients. To help you keep employees engaged, Benchmarks 2009: A Study of Well-Managed Practices by Wutchiett Tumblin and Associates and Veterinary Economics sheds light on the latest strategies for addressing compensation.

SO WHAT'S FAIR COMPENSATION?


Source: Benchmarks 2009: A Study of Well-Managed Practices by Wutchiett Tumblin and Associates and Veterinary Economics
Staff wages, retirement contributions, and payroll taxes represent about 25 percent of total practice revenue. While staff compensation is a significant expense—one you might be tempted to slash when money is scarce—consider what your team does for you. Staff members support doctors' production, and competitive pay helps ensure you've got the best help possible. See Figure 1 for compensation ranges in Well-Managed Practices.


Source: Benchmarks 2009: A Study of Well-Managed Practices by Wutchiett Tumblin and Associates and Veterinary Economics
When it comes to doctor compensation, 50 percent of Well-Managed Practices pay a guaranteed base plus a percent of production, and 22 percent pay straight production. The remaining 28 percent pay their doctors a straight salary. For those practices paying a blended production rate—the same percent for medical services and product sales—the average rate is 20 percent. Practices that use a split rate pay, on average, 22 percent on medical services, 8 percent on pharmacy items, and 8 percent on therapeutic diets. Figure 2 shows the average starting salary for doctors in Well-Managed Practices.


Hot topics on dvm360

Dog of Dallas Ebola patient will not be euthanized, authorities say

Health officials have quarantined and will monitor dog and amid concerns surrounding deadly virus.

Video: How to perform a belt-loop gastropexy

Prevent GDV in your at-risk patients with this simple technique.

Stretch your skills to earn more in veterinary practice

Finding new tasks could be the key to generating more income for your practice—and boosting your pay.

Veterinary community stunned by Sophia Yin's unexpected death

Prominent veterinary behaviorist died of suicide Sept. 28.

Study shows sustained salary slump for veterinary support staff

Since 2009, technicians paid by the hour have experienced a bump in pay, but pay for other team members has stayed stagnant, according to data from the 2014 Firstline Career Path Study. Here’s a look at changes in team pay from 2009 to 2013.