When Dream Team Employees Reach Pay Caps: Three Strategies to Use

Originally Published in Today’s Veterinary Business, March 2018

At your practice, let’s say you have the veterinary nurse of your dreams. Not only is she wonderful with the animals brought to the practice, she is compassionate with their owners. She communicates clearly with your clients; is highly experienced in necessary skills; is always on time; is willing to do her share and more; and avoids gossip, among numerous other positive traits. She is, without a doubt, a star-level veterinary nurse, one you’re extremely lucky to have on your team.

The problem? She is already receiving the maximum pay allowable in her range, according to your practice standards – and a nearby corporate practice is known for wooing away top talent. A cost of living increase is due soon, but that’s not going to make a significant difference in her pay. You may not have this exact same situation at your practice, but practices often face challenges that are very similar. If your practice is, what can you do?

Here are three possibilities, ones you can mix and match for your unique practice needs.

Strategy One: Double-check the Current Market

When is the last time you checked to see the going pay rate for, in this example, veterinary nurses? If it’s a been a while, it’s likely you’ll need to review the pay ranges you’re offering. As a starting point, review this chart of hourly pay amounts being offered in small animal companion practices, according to current key indicators. This is not an all-inclusive list. Rather, it’s step one to help you determine if your practice is on target with pay ranges or if you’ll need to consider some revisions.

Job Title Starting Hourly Compensation: Median Starting Hourly Compensation: 75th Percentile
Hospital Administrator $29.65 $35.10
Practice Manager $21.65 $22.80
Receptionist $12.00 $13.00
Credentialed Technician $15.00 $16.00
Veterinary Assistant $11.50 $12.50

 

How closely does your pay structure align with these figures? Where you live in the United States will likely affect the local rates paid, but this chart is a start. Is it possible to extend the upper range of your compensation rates to keep dream employees at your practice? Because the economy has remained strong for a while, the reality is that you may continue to lose your top talent if you can’t find ways to compensate them appropriately, and this unfortunate fact will continue to be true until the job market tightens. And, let’s face it. Your best employees will likely continue to find higher-paying opportunities, no matter the economic situation.

If you can’t offer a higher pay rate to a star employee, how you explain salary caps is crucial in your attempts to keep that employee at your practice, so be prepared to sit down and have an honest talk about your practice policies and budgets.

Also, be creative. Can you offer a one-time bonus to fill the gaps as you consider strategies two and three provided in this article? Can you formulate incentive pay structures for your team? This will help your star employees to add to their paychecks, and other employees may also become motivated by these incentives. Win/win!

Strategy Two: Career Opportunities

If you can’t offer more money for the person’s current job, consider what promotion opportunities exist for this employee within your practice and then talk to him or her about the possibilities. How does your star feel about the responsibilities involved in a new position? If the promotion will require more education and/or training, can you help to provide that – or at least do all you can provide a conducive work environment for this transition to happen?

Here, though, is an important caution. Let’s say a supervisory position is open at your practice and it would allow you to pay a star employee more than he or she is currently making. It’s easy to become enthusiastic about the idea of promoting this employee, but it’s also crucial to take your time throughout the promotion process for multiple reasons, including these two:

  1. You need to follow your practice’s standard policies and procedures each and every time you hire or promote.
  2. This new promotion may or may not fit your employee’s strengths. If it doesn’t, then not only have you promoted the wrong person, you’ve also taken a star team member out of the position where he or she was shining.

Whether you can or can’t employ strategies one and/or two in your practice, all practices should consider strategy number three.

Strategy Three: Creative Perks

What perks can you offer your employees? One of the most in-demand perks today is more flexible scheduling. And, while you may not be able to offer telecommuting to most of your employees, it may make all the difference in the world to your star employee if you re-arrange schedules so that he or she will have the flexibility to come in to work 30 minutes later in the morning – which allows him or her to see his or her children safely off to school. And/or, you can help to ensure that this employee can always take a lunch break when it’s time to pick up his or her children. In the relatively rare instances when telecommuting can work with a veterinary practice employee, this will likely be a treasured perk.

Caution: make sure you offer perks to all employees in a fair way. Although you do not need to offer the exact same perks to every employee, it’s crucial that you ensure you aren’t discriminating based on race or gender, as just one example. And, even if you aren’t providing perks in a discriminatory way, to keep office morale at a quality level, you also need to make sure you aren’t acting in a way that can reasonably be perceived as unfair. If you are unsure about what is legal, consult your attorney. If you’re unsure about what may cause other employees to lose heart, prioritize coming up with creative perks in the best way for your entire practice, including but not limited to your best employees.

What professional development perks can you offer? How can you help employees who take you up on bettering themselves and improving their skills to juggle all their demands? How can you relax dress codes to a degree that allows your employees flexibility while still keeping a professional look to your practice? In which instances can you allow employees to help choose the technology they will use at work?

When you ask your employees what perks are most important to them, how do they respond?

More about the Pay Plateau

Rather than waiting until a situation arises in which a top performer reaches his or her pay plateau, create a policy on how the situation will be handled and know what conversations you’ll need to have with that employee. How much information will you share about practice financials to help him or her understand why pay plateaus exist where they do?

Know ahead of time what options you can offer that employee (more flexible scheduling, incentive pay and the like), and be aware of those you should avoid. As in virtually every challenge, well thought-out policies and preparation are key.

Click Here for Link to the article Today’s Veterinary Business: https://todaysveterinarybusiness.com/put-on-your-thinking-cap/

Importance of a Practice Culture Audit – and How to Conduct One

If you’ve owned, managed or worked at a particular veterinary practice for any length of time, you may be so used to the workplace culture of the practice that you can’t effectively define it, much less analyze its strengths and weaknesses. If that’s the case, that’s perfectly normal. Having said that, it makes good sense for your practice to conduct a culture audit where you examine the assumptions, values and beliefs shared by people in the practice. This allows you to develop the healthiest culture possible for your practice, where the veterinary practice and individual members of the team can thrive and grow, and where the best service possible is offered to clients and their companion animals.

Organizational culture is comprised of all the elements of the environment of your veterinary practice. This includes the life experiences of each of the employees, along with how these experiences blend together – as well as how they clash. Add to this mix the influence of the veterinarians’ belief systems and life experiences, and the result is the practice’s culture.

People sometimes believe that culture is created through the spoken messages provided, including the policies stated by the veterinarians and the conversations occurring among employees. This is partly true, but culture is largely formed by unspoken messages received about what is valued by the practice. So, to improve the workplace culture, you need to appropriately change messages received by your veterinary team via spoken word but also by observing the behavior of employees at the practice, and determining what is considered acceptable. To change the culture, you’ll need to change the behaviors that are determined to not be acceptable.

For example, your policy handbook may say that gossip about clients is not permitted. But if, in reality, employees roll their eyes about clients and then laugh – and if that is allowed to continue to happen – then your culture is pro-gossip, not anti-gossip, even if no words are spoken.

This example also highlights the importance of performing a culture audit. At its core, a culture audit identifies messages conveyed, and then assesses whether they are the ones you want to be imparting and how consistent/inconsistent they are. This information will help to provide you with the insight you need to develop a healthier workplace culture.

Before You Begin an Audit: Authenticity Matters

As you begin to read more about workplace cultures, you will find ones that you admire – and ones that you don’t. It’s good to be able to identify what you want as part of your own culture (and what you don’t!). But, as the CEO and co-founder of UrbanBound, Michael Krasman, points out in a 2015 article titled Successful Entrepreneurs Understand the Importance of Company Culture, “Be true to who you are. Don’t define your company’s culture by the catchphrase of the day.” He also warns against creating a “grandiose vision and mission” that isn’t true to what you’re actually doing.

Performing a Culture Audit

You can gather information for your culture audit in multiple ways, and it’s more effective if you use more than one information-gathering method. To begin, it makes sense to simply observe your practice. Now that you’ve got a watchful eye, what are you noticing about the messages that are shared among team members and between them and your clients? Are they ones you want to impart?

You can also interview employees of the practice, both individually and as part of small focus groups. You can provide employees with surveys where they can choose to stay anonymous; if someone wants to share information with you but isn’t sure how you’d respond, he or she will most likely feel more comfortable with an anonymous survey.

It often makes sense to hire a consultant to get an impartial observer’s impressions. You are so close to what’s happening in your practice that it may be hard to be objective. This is especially true if your culture needs improved upon, but it can also be true with a practice where the workplace culture is largely positive and effective.

Throughout this process, notice how people are behaving. Note what they do and try to determine why they are doing what they do. What belief systems are driving their behaviors? As just one example, are they not trying to improve processes in the practice because they’re convinced that others won’t change what they’re currently doing? If so, how objectively true is that?

Assess the current procedures. How well do they dovetail with the verbal messages you are giving relevant team members? Perhaps, for example, you are telling your receptionist staff that nothing is more important than the client who is in front of them at the moment. That’s a great message – but if, in reality, you expect the same person to answer the phones while checking in the new clients, how realistic is it for him or her to provide a client with his or her undivided attention?

Take a good hard look at how you are using your finite resources, including time and money, and compare that against your ideal scenario. How close are you to the ideal? Where do disparities exist? Look at how you reward employees, how you develop them as leaders and how you promote them. This is not a comprehensive list by any means, but it should get you started.

Additional Questions to Ask Yourself

Consider what your communication style is, and whether you’re happy with it. Do you simply make announcements and expect your employees to run with it? Or do you solicit feedback and empower employees? What is your risk tolerance? Does your customer service style match your practice’s stated vision and values? How do your customers talk about your practice? Are you happy with what you hear? What is your competition doing well? Not so well?

Where to Go from Here

Once the audit is complete, you can then compare your ideal culture to today’s actual culture, and identify where gaps exist. Once those gaps are identified, then you can begin to create a plan to improve your practice’s culture so that it’s a healthy one, and one that serves the practice itself, the members of the team, and the clients and their companion animals well.

If you’re looking for an experienced professional consultant to help you with your practice’s culture audit, contact us online, email info@veterinarybusinessadvisors.com or call 908-823-4607.