With the slowdown in the economy, yearly pay raises may be difficult to give. However, a bonus program can be a great way to motivate current employees and even acquire new ones (when needed). When you include an incentive bonus in your total compensation package, it shifts employee mentality to that of ownership. They become motivated to be more productive and see the practice be successful when they are rewarded for ‘going the extra mile’.
With that being said, as the practice owner, you need to be clear when presenting a bonus program. A written copy of the bonus protocol should be posted in the staff lounge.
You can create a bonus program around the needs of the practice. The goals should be attainable. An unattainable goal will have a negative impact on the entire team.
There should be a fair formula and bonus amounts should be based on the amount of time an employee contributes to a practice. For instance, a part time employee should not receive the same bonus and a full time employee.
Also, consider the frequency of the bonus (monthly vs. quarterly). Some offices would rather get more frequent bonuses and some less often, but larger. The Dental Business advocates monthly bonuses as we believe teams are more productive and happy when constantly motivated.
These are all important decisions to make before you present the program to your team.
Bonus programs are important and can make or break team morale.
If you have any questions on setting up a bonus program please contact us at The Dental Business! We would love to help!
Dental Business Coach