At close to 40 percent of gross revenue, payroll is the largest expense your practice incurs. And this is for good reason, because what really matters in your practice is the people on your team. A strong practice team is the best asset you can have for a successful business.

“Take care of your employees and they’ll take care of your business.” – Richard Branson

A strong team needs a great workplace in order to thrive. You’d like to see happy, engaged employees functioning at the highest level and delivering excellent service to your clients and their pets. You’ve already got top talent on your team, or you might be in the process of attracting new talent. Either way, you’ll want to make sure you know what your employees and applicants are seeking in a job.

In the excerpt below, you’ll get some insight from the recently released Compensation and Benefits, Eighth Edition.

“Make sure your compensation packages are competitive in the industry. Compensation is tricky. There is a clear correlation between practices that don’t offer competitive employment packages and practices that can’t attract or retain great talent. Understanding compensation trends, ranging from gross revenue produced by doctors and/or support staff, to average client transactions, to number of invoices generated, is imperative. Many managers make the mistake of putting too much emphasis on national averages or local cost of living when it comes to compensation and end up over- or underpaying employees. National averages are great tools in that they present to owners and managers what metrics to track in their practices so that a baseline can established. When figuring compensation for a veterinarian, a simple metric is that a veterinarian’s compensation package should equate to roughly 25% of their gross production. Generally, 20% of that is marked for salary and 5% for benefits. As an example, if a veterinarian wants a $70,000 salary, that professional needs to produce roughly $350,000 (20% of which is $70,000).

Compensation isn’t the only factor top talent is looking for in a career. According to Leigh Branham, author of The 7 Hidden Reasons Employees Leave, 70% of managers think employees leave because of money, but 88% of employees say they leave for reasons other than money. Offering a well-rounded compensation package that includes benefits (healthcare, retirement, and paid days off) seems to be the standard, but employees are looking for more than standard benefits. Flexible scheduling, continuing education, a culture that values its employees’ skills and knowledge, and more sincere appreciation are some of the benefits you can provide, even if you can’t increase compensation.”

Your team is your most important asset. Without them, your practice won’t succeed. Make sure you’re offering them competitive compensation and benefits packages.

Not sure what you should be offering? Get a copy of Compensation and Benefits, Eighth Edition so you have the tools to compare your pay and perks to those of other practices and take your team to the next level. 

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