1. Set either a monthly or quarterly goal.
2. The goal is based on what is commensurate with 25% or less payroll percentage. Example: Say your payroll is normally around $20,000. Collections must be over $80K per month for there to be any kind of bonus.
3. If the goal is exceeded, a bonus is given. How much you bonus and how the bonus is split among the staff will vary from office to office. It can be an arbitrary amount of $200 to $400, or be specifically calculated on how much "bonus sum" is available, i.e., the difference between 25% and the actual payroll percentage.
A. Run the bonus as a pilot for three months before settling it in stone. This allows time to ensure it is fair and equitable for owner and staff.
B. The timing of when you pay out bonuses should be a strategic choice: Monthly gives more of an "instant gratification" that can help increase production quicker while quarterly will help prevent "sandbagging".
C. Profit sharing is another option to consider as it helps staff to know they are part of a team with a vested interest however, there is not the "now" impact on employees that a bonus creates.
D. Many practices like to bonus hygiene separately based on the hygienist's production. In that case, you lower by 8-10% the overall staff payroll percentage used to determine the bonus (see point 2 above).
Kevin Tighe, Cambridge Dental Consultants, Senior Consultant, got bitten hard by the business and marketing bug during long summer days working at his dad's Madison Avenue ad agency. After joining Cambridge as a speaker in the mid-1990s, Kevin went on to become Cambridge’s senior consultant and eventually CEO. Cambridge Dental Consultants is a full-service dental practice management company offering customized dental office manuals. Frustrated? High overhead? Schedule a chat with Kevin at