Although there are factors outside of your control, such as moving states or exiting the workforce altogether, one of the primary factors you can control is compensation. Compensation is one of the most important factors that affect employee retention, especially in the medical industry.
In this article, we’ll cover strategies for attracting and retaining top talent, including which components should be in your compensation packages, how to utilize market research to present competitive salaries, and how to piece together an attractive package.
Components of Compensation Packages
Despite what you might believe, compensation goes beyond an hourly rate or a set salary. It encompasses every financial aspect of hiring a staff member. There are four main components of well-built compensation packages:
Salary
This is the hourly rate or base salary that your employee will receive. This amount is reported on a gross basis before any taxes or deductions are taken out.
Benefits
Your compensation package will include a variety of benefits, including a retirement plan match, health insurance, disability insurance, life insurance, health savings accounts, flexible spending accounts, and paid time off.
Bonuses
Bonuses are additional pay for completing certain metrics. For example, you might provide staff members with a bonus after their first year with your practice or for each new patient they sign on with your practice. Bonuses aren’t guaranteed, but they can help your staff stay motivated and working toward different goals.
Non-Monetary Perks
Most medical practices also have non-monetary perks. For example, your dental office might provide free cleanings to your staff and their family members. Other non-monetary perks might include a free gym membership, annual Christmas parties, a flexible work schedule, professional development opportunities, or the opportunity to use practice resources for personal projects.
Benchmarking and Market Research
The good news is that you don’t have to guess on competitive salaries and benefits. In fact, all the data you need can be found online. First, define the role you are hiring for. The market research for a front office assistant will be different compared to a lead hygienist. Then, search on platforms like ZipRecruiter, Indeed, and Glassdoor. Professional organizations you’re a member of might also have compensation data.
When using online research platforms, keep your geographic location in mind. For example, salaries in Missouri will vary drastically from salaries in California, or even salaries in Chicago can vary from the Western suburbs of Chicago. During this process, it can also be helpful to research other opportunities that potential candidates are seeing. Look at current job openings at similar organizations. What benefits do they offer? What is their starting compensation? Remaining competitive relies on understanding how you can improve.
Your compensation package doesn’t need to exactly match your competitors or your market research. For example, if a competitor is hiring a staff member at $20 an hour but not offering any benefits, maybe you decide to start the hourly rate at $19 an hour with retirement benefits and health insurance. Use market research and benchmarking when creating packages, but don’t be afraid to adjust for the specific factors of your practice.
Creating an Attractive Package
Creating an attractive compensation package relies on balancing cost with value for employees. For example, if employees would rather have a higher salary compared to milestone bonuses, you can adjust their compensation packages to fit this need. Instead of promising $5,000 to each employee at the end of the year, you can increase their hourly pay or set salary by this amount, keeping employees happy.
Similarly, offer professional development opportunities to new and existing staff members. Staff members are more likely to stay with your practice when they have a clear career path. For example, after two years of working as an entry-level hygienist, you could offer a promotion to lead hygienist. Career paths that recognize the professional development goals of each individual staff member are great ways to bolster engagement and retention.
Moreover, work-life balance is a major factor. Recent data from The National Center for Health Workforce Analysis found that 49% of healthcare respondents felt burned out, while 43% felt overworked. Ensuring these feelings don’t trickle into your practice relies on offering work-life balance to your staff members. Setting boundaries, establishing responsibilities, encouraging time off, creating flexible schedules, and opening communication lines are a few starting points to infusing work-life balance into your practice.
Remember, hiring is only half the battle, with retaining top talent on the other end. After you hire a new employee, regularly review their compensation package. What is the sentiment among your employees? Would they rather skip the annual Christmas party and receive bonuses? How about loading up on hours at the front of the week and having off on Fridays? Making these small shifts make your employees feel heard and can drastically improve your retention rates.
Summary
Staff compensation is a fundamental component of attracting and retaining top talent in your practice. Ensuring your staff members are taken care of can lead to less turnover, improved client satisfaction, and less stress surrounding retention. If you have questions about staff compensation, please contact us.