Goals. Review-Based Staff Compensation Strategies & Benchmarks. Roadmap
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1 Review-Based Staff Compensation Strategies & Benchmarks Jay Binkowitz President GPN 201 Gateway Professional Network, LLC. All Rights Reserved In today's business environment it is critical to create an atmosphere that supports marquee customer service and patient loyalty. YOU RE A TEAM Feedback Greater Patient Loyalty Productivity Goals Specific & measurable way to evaluate and reward performance Merit-based compensation strategy aligned with practice goals Identify challenges and ways to overcome What is meant by Merit based compensation? Overall Practice Goal Role Clarity - how each role contributes to your goals Entitlement Raises Measuring and Pay for Performance - Align compensation 1
2 So Measuring & Pay for Performance Align compensation Role Clarity > What s that? Maria the Receptionist: What are the 10 most important things she can do to drive the practice in these categories? Expertise as a Receptionist Steve Steve the Optician: What are the 10 most important things he can do to drive the practice in these categories? Expertise as an Optician Now What? Measuring & Pay for Performance Align compensation First - we need a rating scale 1) Partially Meets Meets some but not all expectations 2) Meets Fully meets all expectations ) Exceeds Meets all and exceeds some expectations 4) Outstanding It is hard to see how the job can be done better S M A R T Specific feedback Measures/Ratings Action Plan to Develop Results you want to see next review Timely feedback 2
3 S Specific Give specific feedback Strengths Development areas M Measures Talk about performance measures (ratings) Compare Score against highest possible Compare against others (generally) A Action Action plan for change Ask what they can do to improve Offer your suggestions R Results What do you want to see by the next review? Define what success looks like Discuss how their strengths will help them get there Express confidence Phew! T Timely Give feedback {Positive & Negative} Quarterly In-between review time Measuring & Pay for Performance Align compensation
4 Pay for Performance How do I align compensation with this new rating system? Annual raise Annual bonus And how do I abolish entitlement? Individual performance Practice goals Pay-For-Performance It all comes down to this: If individuals do not perform, they do not get a raise or bonus If the practice goals are not met there is no bonus Pay-For-Performance Are you guilty of FAVORIOTISM? Suzy Childcare Steve Lunch time trade off Annual Raises If they do not Meet expectations = NO $ If they Exceed my expectations = MORE $ Eligibility = average 2 or higher all 4 quarters Average Score Merit Increase below 2 0% % % % Annual Raises What do you do when your already paying them to much? Consider a lump sum based on the annualized merit increase. Employee earns $50,000 Their score = 2.5% increase ($1,250 per year) $1,250 lump sum payment in their next paycheck and no increase to base. Annual Bonus If the practice meets the goal, the team shares in the success Paid only if overall practice goal achieved Individual eligibility: average of 2 or higher all 4 quarters or Performance-based: above average performance means above average payout 4
5 Will we get a Bonus? It s March and the bonus payout is 9 months away How do I get excited about it? Annual Bonus Ken will set aside 1.5% of gross revenue to reward his team if they hit their goal of $1 million dollars = $ 15,000 Ken s practice hits the goal! Distributing the Money What % of total points did each employee earn? Distributing the Money What % of total points did each employee earn? Function Job Elements Rating Expertise Maria Answer phones in prompt and courteous manner, make appointments, respond knowledgeably to caller inquiries and take accurate messages. Review schedule and fill open appointments, ensure schedule up-todate at all times, follow-up with N/S and CX'd and put notes in system. Assist with chart prep as necessary. Greet patients, show care and concern as answer all questions & effectively handle difficult patients. Verify eligibility and coverage and benefits and generate insurance authorizations Ensure patient paperwork is completed accurately and remains organized, monitor patient flow to ensure patients seen promptly, notify techs promptly when patients are ready, inform patients and doctor(s) of any delays Schedule future appointments, enter patients in system accurately and completely, handle all aspects of referrals, contact patient when lenses or frames are available to be picked up, send post card for follow-up appointments Be able to explain basic insurance benefits and relevant policies (returns, warranty, etc.). Create a positive, energy filled environment with patients and other staff. Support and nurture a Happy To Help You philosophy. Resolve customer issues & show individual care to patients -listen to concerns/complaints to help keep patients returning to the office. Wow them with our customer service ratings X 4 (highest possible rating) = 2 possible points for Maria Steve Function Job Elements Rating Expertise Greet patients warmly. Responsible for merchandising, display, replenishment, care of products. Follow frame pricing and packaging policies & support special marketing programs. 2 Update system with patient interests, frame favorites and other info that supports future sales. Enter sales in computer acurately & completely. Contact patient with any delays in order - follow through. Clean eyewear and demo lenses. Meet sales goals & support sense of urgency to receive patients from doctor(s) 2 Be able to explain basic insurance benefits and relevant policies (returns, warranty, etc.). Create a positive, energy filled environment with patients and other staff. Support and nurture a Happy To Help You philosophy. Resolve customer issues & show individual care to patients -listen to concerns/complaints to help keep patients returning to the office. Wow them with our customer service. Selling highest margin products, number of customers that purchase multiple items, successful participation in contests throughout the year ratings X 4 (highest possible rating) = 28 possible points for Steve Minimize overhead and cost of goods sold by getting deals on supplies, turning off the lights, etc. 2 Positive influence in the office. Provide support for other roles and people as necessary. Consistently arrive to work on time when scheduled. Back-up for Billing Clerk. Proactively look for ways to improve the practice, our processes and our customer service. Ensure office is neat & fixtures are dusted. Maintain system, records and files accurately and on a timely basis. Maintain appropriate inventory of supplies. Wear uniform and name tag. 2 MARIA Total Points: 20 Therefore, Maria earned 6% of possible points (20/2) Positive influence in the office. Provide support for other roles and people as necessary. Consistently arrive to work on time when scheduled. Back-up for Receptionist. Pull charts when necessary. Proactively look for ways to improve the practice, our processes and our customer service. Keep displays and tables clean & organized. Clean eye wear and demo lenses. Wear uniform and name tag. 2 STEVE Total Points: 1 1 Therefore, Steve earned 46% of possible points (1/28) Distributing the Money How did each person score vs. the average Max Points Bonus Pool: $15,000 # Employees: 9 Average $ Payout: $1,666 Total Earned Percent Earned Variance vs Avg (% earned - avg %) Maria % 0% Steve % -17% Suzy % 2% Nora % -4% John % 4% Becky % -6% Claire % -16% Mike % -2% Kara % 15% Average 21 6% Measuring & Pay for Performance /Align compensation So now what? 5
6 Gather Feedback Can you achieve 100% acceptance? Don t become paralyzed by negative feedback keep the momentum! Recognize that by implementing pay for performance you are supporting your practice s goals. Stopping the implementation is the same as giving up on achieving your goals. 6
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