Your Employees Earn More than They Think They Earn by Thomas Giacobbi, DDS, FAGD, Editorial Director, Dentaltown Magazine



by Thomas Giacobbi, DDS, FAGD, Editorial Director, Dentaltown Magazine

I have discussed the pros and cons of employee reviews in past columns, and this month I would like to introduce another great opportunity for a one-on-one conversation. I call it the "compensation and benefits statement" and it is something I had received in the past as an employee and I know there are others that recommend a similar form. Why prepare something like this? It's a great opportunity to have a conversation with your team about their total compensation and not just their hourly rate.

Some employers fall into a trap where they have conditioned their employees to expect a raise every year. If you do not provide any benefits to your team, this may be a simple way to go, but there are many complex tax implications of raising the hourly wage instead of providing a comprehensive package of benefits.

Implementation is easy. A simple payroll report and information from your 401k will provide most of the numbers. If you are ambitious, do the last two years when you do this the first time so your employees can see how their compensation has grown. Take some time to discuss what your practice needs to do to increase their numbers for profit sharing, bonus or an increase in pay.

I have provided an example of this form with some notes on the particular items for further explanation. I hope you find this a useful tool for your practice.



Please drop me a line at tom@dentaltown.com or post a comment on the digital version of this article on Dentaltown.com. I'm on Twitter too: @ddsTom. If you want to keep up with the news in our industry, watch Townie News Wire each week on the Dentaltown.com home page.

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