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More Than a Paycheck by Dr. Bruce B. Baird

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Categories: Practice Management, HR and Accounting;
More Than a Paycheck

The Key to Retaining a Loyal, High-Performing Team

by Dr. Bruce B. Baird

Every day, dental practice owners walk a tightrope—striving to deliver premium patient care, keep their business running smoothly, and ensure their team is happy, working efficiently and paid competitively. One of the more delicate challenges you’ll face is handling compensation increase requests from your team members. After 40 years of running my dental practice in Granbury, Texas, I’ve learned that handling team raises isn’t about yearly reviews and standard raises—it’s about creating a practice where your team is so invested in your success that they rarely think about their hourly rate.

So how do we get there? Without a game plan, you can end up hurting morale and potentially costing your best people, so let me share what I’ve learned—sometimes the hard way—to help you keep your best players working, well compensated and happy.


Change your views on annual reviews
I’ve never been good at those formal annual employee reviews. It’s one-on-one and you’re both nervous and on edge. You also know there is potential for the conversation to veer in directions you don’t want to go. Above all, I don’t think they work. They’re an institutional formality, but to be honest, if my team members don’t know what I think of them at every point of the day, I’m not doing my job. I do daily reviews, weekly reviews and monthly reviews. My team knows precisely where they always stand with me. Any time there is a problem, I address it immediately. When someone is doing great, I tell them right then.

What is the alternative? Holding everything in until you’re good and pissed off, and then when someone asks for a raise, it turns into a big, stressful confrontation where both parties are surprised in the worst way? Been there, done that. It doesn’t work. Or can you imagine sitting in the dentist’s office and she says, “Well Tammy, on May 5th you had a really positive interaction with Mrs. Davis, and I want to commend you for that.” I’ll bet you five dollars Tammy has no recollection of that interaction.

You see something good from your team members, you praise them. You see something that needs to change, redirect it without delay.


Compensation should reflect value, not time
I’m totally against “time and grade” raises. You know what I mean, “I’ve worked here for 12 years, so I deserve a raise.” That means nothing to me. When you get into situations like that, the longer a person works for you, the less they end up doing over time. Just because the earth went around the sun one more time doesn’t mean you automatically get more money.

What matters is metrics—results, patient care and philosophy. Take hygienists, for example. I have no trouble paying a hygienist $50-$55 an hour if they understand what we’re looking for clinically. There is a major difference between someone who is “just a tooth cleaner” and someone who has a comprehensive philosophy of care. Hygienists who produce $250 to $300 an hour are the ones worth a premium because they are bringing more revenue to the business by taking extraordinary care of the patients, building relationships and recommending appropriate treatment.


Share the profits
What I believe is that the whole office should receive raises based on our metrics and how we’re growing. They should be sharing in the profits of the business, not worrying about individual hourly rates.

Here is what worked for us:
  • Profitability Incentive Points (PIP): When all the bills are paid, I share 20 cents on the dollar with my team. That becomes their raises or bonuses. Dentistry is a team game. When the office wins, the team wins.
  • Daily Goal Bonus: When we reached our goals plus 30 percent on a daily basis, everyone got to grab a chip (valued at $10, $20 and $50) from our “grab bag bonus.” Two days in a row? Two chips.
  • Team Trips: When we hit our big goals, we took the whole team (and their spouses) to places like Hawaii, Cancun and New York City.

Inform them of their true compensation
Most team members don’t know their true hourly rate—they usually only focus on their base pay. This narrow view can lead to frustration on both sides when conversations about raises or compensation arise. That is why it’s essential to paint the full picture, showing your team exactly how much they’re earning when you factor in benefits, bonuses and other perks.

This type of conversation might look like this: "Mary Lou, I want to make sure you understand your complete compensation. Right now, you’re making $27 an hour, but that is just the starting point. On top of that, you’re earning about $4 an hour in healthcare benefits and another $3 an hour in bonuses. When you add it all up, your actual hourly rate is closer to $35 or even $37 an hour—and that’s a reflection of how much we value your work."

By taking the time to break down the numbers, you make sure everyone is on the same page. It also fosters transparency, trust and appreciation—all of which contribute to long-term retention and a healthier practice culture. When you set these expectations right off the bat, it’s part of being a great leader. It’s about having a team that drives the practice, not a team that expects someone else to drive it.


The real issue? It might be you
If compensation complaints are a constant drumbeat in your practice, it’s time for a hard look in the mirror. Ask yourself—are you afraid to present the treatment your patients need? Have you handed over control of your fees to PPOs? Are you writing off 40 percent (or more) of your production, only to turn around and gripe about what you’re paying your team?

That is not a team problem. That’s a you problem. You’re the one who signed those PPO contracts. And when you shift the financial burden onto your team—making them the scapegoat for decisions they had no part in—you’re driving straight to Turnover City. Population: You.

Here is the hard truth—if you don’t start valuing your team and paying them accordingly, you’ll eventually find yourself working alone. I say this from experience (not that I ended up working alone). Outside the office, I’m a pretty nice guy but back when I was under that kind of pressure—feeling squeezed by write-offs and scared to raise fees—I was miserable to work for. I knew something had to change. The breakthrough came when I shifted my mindset from scarcity to abundance. When you stop playing small and start running your practice like a business owner instead of a hostage, everything changes—from your profitability to your culture to the way your team shows up every day.


Build a team that stays
When your team realizes you’ll go the extra mile to take care of them, they understand there is more to the job than an hourly rate. Yes, team members look to you for compensation, but they also look to you for job stability—the kind of stability that comes from knowing their employer has their back when life takes an unexpected turn.

I experienced this firsthand when one of my team members had a child who was seriously injured in an accident. I told her, “I don’t want you back in the office until your child is out of the ICU. And while you’re away, I’m going to pay you just like you’re here.” She ended up being out for five months—and I paid her full salary the entire time.

Moments like this define your leadership. When your team sees you’re willing to go the extra mile to support them during life’s hardest moments, they realize their job is about more than just an hourly wage. It’s about security. It’s about knowing they’re part of a practice that genuinely cares—and that is worth more than any paycheck alone. The result? I’ve had team members stay with me not just for years, but for decades.
Your Raise Discussion Checklist
When preparing for compensation conversations, having a clear plan makes all the difference. Use the following checklist to ensure each discussion is well-prepared, productive, and professional:

  • Track metrics monthly rather than waiting for annual reviews.
  • Set clear expectations about what earns a raise (production, patient reviews, leadership, continuing education).
  • Ensure team members understand their total compensation package, not just their hourly rate.
  • Consider profit-sharing and goal-based bonuses instead of standard raises.
  • Look for creative alternatives when cash is tight (trips, education, time off).
  • Ask "Is everything okay?" when performance drops.
  • Let your team help with hiring and training to create ownership.
  • Check if you need to produce more before blaming team overhead.
Handling specific situations
When someone asks for a raise:
  • Ask them to come prepared with:
    • Their production numbers
    • Examples of their impact
    • Patient feedback
    • Market research
  • Evaluate based on:
    • How they compare to the job they’re supposed to do
    • Practice financials
    • If they’ve maxed out their current role
  • If you can’t say “yes” to a raise: “I appreciate everything you’ve shown me. Right now, a raise isn’t in the cards, but here is what I need to see in the next six months to make it happen…” Schedule the follow-up meeting right then.
When a team member isn’t pulling their weight:
  • Ask directly: “Is everything okay?” Often, there is something going on outside of work that is affecting them. Be compassionate and understanding. Offer grace.
  • Check if they need more training or if they’re in the wrong position.
  • Make expectations clear and measurable.

From stress to success
Great leaders face compensation issues much less often because they’re constantly communicating with their team. Your goal should be to create a practice where your team is so well taken care of that they rarely think about their hourly rate.

Was I always this way? Hell no. But I learned. And you can, too.
Want your team to understand where you’re coming from? Have them check out Advocating for Change: How to Ask for Raises, Resources and Respect by Jodie Heimbach, RDH, BS
Author Bio
Dr. Bruce B. Baird Dr. Bruce B. Baird is a seasoned dentist, entrepreneur and educator with more than 40 years of experience in dentistry and business. He co-founded Productive Dentist Academy and Comprehensive Finance Inc., both of which have transformed the dental and healthcare industries. A sought-after speaker and host of The Productive Dentist Podcast, Dr. Baird shares his expertise on dental implants, leadership and practice growth with professionals across the globe.





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