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Employee Compensation

By: Bryan Durocher
Posted: May 3, 2010, from the May 2010 issue of
Money falling into a stack

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Medical professionals such as RNs and PAs most likely are accustomed to salaried positions, so if you are moving new people into a commission-based structure, they probably will need to be trained on and transitioned into performing services based upon dollar incentives and commissions. Spa professionals such as estheticians and massage therapists may be more used to commission-based pay, but it is still important for you to take into consideration you are bringing two different types of professionals together. Accountability goals may be new to both of them.

Team member compensation

Though it certainly isn’t the only compensation structure available and like any, there are pros and cons in regard to it, many practices choose to compensate employees with a base and/or a commission salary package. Even within this structure, however, there are differing options and strategies.

A compensation package can vary depending on the position and commission percentage due to services performed. An RN may have a higher hourly wage, such as $20–25, plus tiered commissions of 2–5% on services performed. Meanwhile, an esthetician may earn $10–15 per hour with 35–45% tiered commissions. You pay the base draw or the commission, whichever is greater. Service providers should be eligible to participate in a retail commission program, as well.

The following are four ways to track a service provider’s performance and pay them accordingly.

Pre-booked percentage. The pre-booking number comes from the number of patients in a pay period who have scheduled a next appointment with the service provider. If the service provider saw 40 patients during the pay period and 20 of them booked their next appointment before leaving, the provider’s pre-booking percentage would be 50%, because half of the scheduled patients are pre-booked for a next appointment.