![\"Bill\"](\"https:\/\/blog.advancedpracticemanagement.com\/blog\/wp-content\/uploads\/2016\/02\/Bill.jpg\")
Most incentives need to be adjusted each year\u00a0taking into account factors like:<\/p>\nMost incentives need to be adjusted each year\u00a0taking into account factors like:<\/p>\n
So call us and we will help you retune your bonus targets.<\/p>\n
About a third of area practices have their staff on an incentive.\u00a0If the conditions are right, we highly recommend incentives. It gives the staff a stake in the practice success. However,\u00a0sometimes incentives get to the point where they are no longer\u00a0stimulating performance. They go from being a \u201cnice bonus\u201d,\u00a0to being expected, to being taken for granted and a \u201cright.\u201d<\/p>\n
Sometimes it makes sense to discontinue an incentive that\u2019s\u00a0no longer helping to foster a harmonious and productive team\u00a0and that extra edge of performance that we are always looking\u00a0for. This is best done in conjunction with performance reviews\u00a0because you can \u201cbuy-out\u201d from an incentive by awarding\u00a0increases and then change the game according to the practice\u2019s\u00a0situation \u2013 or just let it lie fallow for a while.<\/p>\n
Productive Performance Reviews:<\/strong> As many of you have\u00a0heard me say, I feel that a productive performance review\u00a0should not be a bureaucratic \u201cgrading\u201d process. Everybody\u00a0hates that.<\/p>\n Instead, I feel that a performance review should be a cross\u00a0between a \u201cWedding Anniversary\u201d and \u201cLet\u2019s Make a Deal.\u201d\u00a0That is, the employee should be thanked and honored for their\u00a0contributions for the past year. Recognition matters to high\u00a0performing employees. So when you give a raise, it is helpful\u00a0to give it with praise \u2013 in a bouquet. Then you\u2019ll get more of\u00a0what you want (happy employees). The \u201cLet\u2019s Make a Deal\u201d\u00a0part is where you outline 3 to 5 concrete things for the\u00a0employee that you want their help with,<\/p>\n \u201cSo Debbie, I am very happy with how you\u2019ve gone\u00a0beyond the call to increase your skills this year, are\u00a0flexible in working hours, always willing to lend a hand\u00a0and always cheerful. That\u2019s why I am giving you a 4%\u00a0raise this year\u2026<\/em><\/strong><\/p>\n Now, for the coming year, here is where I need your\u00a0help\u2026\u201d<\/em><\/strong><\/p>\n Then outline to your employee what you\u2019d like them to do. Be very specific and concrete.<\/span> Note the requests and then the\u00a0next year, if they\u2019ve made progress in those areas, thank them<\/strong>.\u00a0In fact, don\u2019t wait until next year! Tell them right away if you\u00a0see a change in behavior (or don\u2019t!).<\/p>\n As practice owners, you have an automatic \u201cincentive\u201d program.\u00a0You know your career, your livelihood is at stake. Employees are\u00a0a step or two removed from the harsh realities and from the\u00a0rewards. You don\u2019t need anyone to motivate you to grow, to get\u00a0better, etc. Create an environment so good employees can\u00a0flourish. Valuable team members are always adding to their\u00a0skills, always helpful, pleasant and hardworking. If you don\u2019t\u00a0recognize those qualities in an employee, they will go\u00a0somewhere where they can be recognized!<\/p>\n Oh, and one more thing, an important part of the performance\u00a0review process is to ask the employee, \u201cWhat can I do to help\u00a0<\/strong><\/em>support you in doing your job and in being happy at work?\u201d\u00a0<\/strong><\/em>and then really listen to what they have to say. You don\u2019t have to\u00a0grant everything that\u2019s asked for but if you take what they say\u00a0under consideration, they\u2019ll know that. At the very least, you\u2019re\u00a0less likely to be surprised by having someone unexpectedly quit.<\/p>\n Smart Wage Decisions:<\/span> I believe it\u2019s best to take a look at staff\u00a0wages as a percentage of collections at least once per year for the\u00a0sake of determining how much will be available for wages and\u00a0raises. If your total gross wages were running at about 25% of\u00a0collections, for example, last year and they are 23.5% now\u00a0(because your collections grew) then you are in a position to give\u00a0raises. If staff salaries have crept up to 27% or 28%, then it\u2019s\u00a0time to hold off until your practice revenue catches up.<\/p>\n Using this very simple method, you can keep the biggest part of\u00a0your overhead (staff wages) under control.<\/p>\n","protected":false},"excerpt":{"rendered":" Most incentives need to be adjusted each year\u00a0taking into account factors like: Additional staff Raises given to staff (Both of the above items change the Overhead landscape\u00a0and therefore the incentive targets) New practice goals & projects Upcoming performance reviews So call us and we will help you retune your bonus targets. About a third of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wds_primary_category":0,"footnotes":""},"categories":[36,4],"tags":[],"class_list":["post-753","post","type-post","status-publish","format-standard","hentry","category-bulletin-articles","category-dental-practice-management"],"_links":{"self":[{"href":"https:\/\/blog.advancedpracticemanagement.com\/blog\/wp-json\/wp\/v2\/posts\/753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.advancedpracticemanagement.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.advancedpracticemanagement.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.advancedpracticemanagement.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.advancedpracticemanagement.com\/blog\/wp-json\/wp\/v2\/comments?post=753"}],"version-history":[{"count":0,"href":"https:\/\/blog.advancedpracticemanagement.com\/blog\/wp-json\/wp\/v2\/posts\/753\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.advancedpracticemanagement.com\/blog\/wp-json\/wp\/v2\/media?parent=753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.advancedpracticemanagement.com\/blog\/wp-json\/wp\/v2\/categories?post=753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.advancedpracticemanagement.com\/blog\/wp-json\/wp\/v2\/tags?post=753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nExamples:<\/p>\n\n