The Current Hiring and Compensation Dilemma, Part 2

Jamie Marboe BSDH, CEO

PART TWO

The phrase “back in the day” is often used to recall a pleasant or nostalgic experience from a past era or time in life, typically decades ago. It evokes memories like waking up to the smell of homemade bread that your mom made, or in our profession, reminiscing about the camaraderie shared with colleagues in earlier years of one’s career.

In the dental industry, being a hygienist was once a highly coveted and privileged role, and for many, it still holds the same significance and importance today. However, business owners are currently struggling to meet the demands of hiring and the large pay increases for the same job that was paid significantly less just two years ago. Making this feel more like a War of the Roses situation in our field.

Back in the Day, most hygienists were paid hourly rates with gradual increases of up to $1.50 every 1-2 years. This method no longer works due to the shortage of hiring resources and other factors.

Although commission has always been an alternative compensation option available for hygienists, it appears that many are apprehensive about this model. Some worry about unforeseen events causing their schedule to fall apart, while others question whether they would still be obligated to attend team meetings or receive paid holidays if they are not being paid hourly.

While I did not invent this hybrid compensation model that I am about to suggest, it is one that has been seldom used. There is no better time to implement it, and as a result, I have transitioned most of my current clients onto a pay structure that combines an hourly rate with commission based on daily goals.

The outcome has been extremely positive, as everyone involved has expressed their satisfaction with this arrangement. This new system has even reduced the likelihood of hygienists quitting to attain the same rate of pay as their peers in the industry.

The hourly rate will be just lower than the going rate in your area and the net commission based on what the provider produces over the goal each day. It looks like this:

HYGIENIST BOB:

• 3:1 daily goal (based on hygienist producing 3x his salary + benefits) is $1500 per 8 hr day

• Paid $40/hr (going rate in area is $45/hr)

• The commission is 30% of what he produces (services rendered, no exams or product) over his goal of $1500

EXAMPLE:

• $40/hr x 8= $320 + $90= $410/ 8 hrs = $51.25/hr. That is $11.25 more per hour well above area going rate

A win-win, motivation for the hygienist as well as having the opportunity to increase that daily number by providing highlevel services to the patient, like perio therapy, adult fluoride, etc. The daily goal and commission cover doctors’ expenses and incentivize the provider

3 THINGS TO KNOW BEFORE STARTING THIS MODEL:

1. Know your 3:1 for your hygiene department. (Producing 3x their salary plus benefits) then divide that by days worked. If they work less than 8 patient hrs/day, divide that goal by hours and figure different daily goal

2. You must know what your write-offs are so you can pay the commission with the correct net amount produced (collectible production).

3. If you offer any in-office payment plans, you will need to decide on a fair compensation for those patients, it may just be their hourly rate.

Back in the Day, we never thought we would see these types of changes and dilemmas in hiring and the exploding increase in wages. It looks like it happened in the blink of an eye and truly knowing how, why it did… not sure, but it is here.

Business owners, my advice to you is to get good at knowing your numbers if you do not already. Be open to a blended pay model like this one. Start looking at your environment and leadership style. Communication is key to keeping your current team happy and listening to their concerns and needs.

Hygienists, my advice to you, is if you are happy with your current work environment but feel that you are not being compensated at a fair rate as other hygienists in your area, talk to your doctor or business owner. Do not jump ship just to get that raise. I promise you the grass is not always greener on the other side!

Discuss and look at something like this model. Go back over your own numbers for the past 3-6 months and see what you could have earned if you were on this hybrid compensation model. Together, you can look at options that would be a winwin for the providers, the business, and most importantly, the

patients. Help create a compensation model everyone feels good about.

And, hygienists, if you are not providing the proper treatment to address the infection in your patient’s mouth (aka doing bloody prophies), start now! Be proactive with treating disease properly. It is our responsibility to our patients we care about so much.

Be worthy of your increased salary and be proud of the services you provide.

If you have any questions about how to implement this type of hygiene compensation or about any other hygiene-related topics, please contact me.

HERE ARE A FEW INDUSTRY BENCHMARKS FOR YOUR REFERENCE:

• 3:1 Profitability

• 1/3rd covers hygiene salary, 1/3rd covers department supplies, 1/3rd goes into the bank

• 8-10% Cancellation or No-shows

• 25% > Perio performed

• 65% of dx production comes out of hygiene chair

• 75%> acceptance rate

• Hygiene department produces 30% of the overall production

Jamie Marboe BSDH, CEO and Founder of Marboe Dental Consulting, has accumulated more than 40 years of experience in Dentistry. She obtained her Dental Hygiene degree from Idaho State University and held a clinical instructor position there as well. During her early career, Jamie served as a Registered Dental Assistant in her home state of California. Throughout her time in dentistry, she also became certified as an Eaglesoft trainer and still trains offices on the best uses of their software today. Her main objective is to encourage and inspire her clients to develop their team and leaders into an effective and cohesive team, and to assist them in becoming the best versions of themselves. This led Jamie to earn the title of “Team Achiever” coach. Her commitment to the growth of people has rewarded her with countless lifelong friendships with her clients and colleagues.