Five facts about bonus incentives

By Dianne Glasscoe Watterson, MBA

Doctors seriously considering a bonus program should evaluate why they feel an incentive would be a positive step for the practice. Here are some basic facts and fallacies about bonuses:

Fact #1 — Any bonus plan must be attainable to be motivating. If you fail to adjust your bonus goal when your business slows down, the bonus becomes a de-motivator. If you are going to use a bonus system, you must be willing to adjust it when business cycles occur.

Fact #2 — Staff members come to expect the bonus. Please understand that many staff members live from paycheck to paycheck. If they go for several months making $XXX and suddenly their pay is “cut” due to things they cannot control (such as the economy) and they do not get the expected bonus, the bonus becomes a de-motivator.

Fact #3 — Everyone is not motivated by the same things or to the same degree. While the possibility of extra pay for extra work may motivate some people, there are staff members who feel they already give 110%. So the thought of working even harder is not an option. The bonus opportunity may cause the business assistants to push clinical people beyond their physical limits through over-scheduling. This situation could foster resentment between clinical and business staff members.

Fact #4 — Using a bonus system to prop up a weak salary system is a bad idea. If a staff member leaves, it may be very difficult to attract a high-quality candidate with seemingly low wages, albeit a bonus possibility.

Fact #5 — Bonuses do not compensate for poor schedule control.

Bonus incentives can be a motivating force among staff members if the reason for having the bonus is to allow staff members to share the wealth when the practice is financially healthy, since they are such an integral part of the total practice success. Evaluate the goal of the bonus in your practice, and do not allow a “stale” bonus system to become a de-motivator.

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Dianne Glasscoe Watterson is a consultant, speaker, and author. She helps good practices become better through practical onsite consulting. Her book, Manage Your Practice Well, can be purchased through her Web site at www.professionaldentalmgmt.com. For speaking or consulting inquiries, contact Dianne at [email protected] or call (301) 874-5240.