Question:
I am a dentist and hiring a part time dental associate with set salary
+ commission. My office is in Newark,NJ. Can anybody help me with
going rates these days?
Answer:
It depends on the opportunities ,, the types of patients, YOUR goals,
and whose system will be implimented. Is this for eventual partnership
or is this a hired hand?
As example, Rick Workman of Heartland Dental fame has 130 offices yewt
he pays his associates, well dentists, 25% of what they personally
produce. There is extra money if the office itself does well.
Rick provides the system and the method and the "employees" do well.
Other offices pay 40%-50% and that is not enough is the senior dentist
uses the associate as a trash can. Before the associate he used to
toss the patients out and now the associate handles them!'
It all depends on how many cheez-O-rama insurances you take, etc.
Here is one suggestion: A draw charged against commission. This is
better than salary plus commission which tends to make the associate
feel if he knocks himself out he gets this but if he's a slacker he
only gets this little amount less.
A draw tells the associate what you can GUARANTEE him, however, he can
do better if he applies himself EACH WEEK.
The standard where I'm from is 40% of gross billings COLLECTED. The lab
fees are taken off before the 40% calculation. Hygiene revenue goes to the
senior dentist except for x-rays (the associate is paid for interpreting
them).
Sample month...
$35,000 billings
$5,000 lab fees
40% of $30,000
= $12,000
Sorry if the numbers seem off. This is a Canadian example. Some associates
are desperate and will settle for 35% or other little tweaks to the
contract.
