Attract, Train and Compensate the Best Associates

Finding and keeping the right associate is not a matter of chance or luck. It's knowing what's important to prospective and existing employees and making the changes necessary to keep your practice moving forward.

1. Introduction

Finding and keeping the right associate is not the impossible task that many practice owners believe. It will, however, require changing historical ideas about compensation, time away from the practice, and ongoing training.

2. Discussion

Finding the Right Associate

Finding the right associate begins by attracting the right applicants. Here's how three practices found success using classified advertising, the services of a placement company, internal recruitment, and contact with area veterinary colleges.

Dr. Gordon is owner of a progressive, five-doctor practice in the northeast. The practice is well staffed and occupies a recently renovated facility. In June 2000, Dr. Gordon began a search for an experienced, sixth doctor. He ran classified advertisements in state and national journals and spread the word at state and national association meetings. By November, the position was still open.

"I believed we were offering an opportunity that would be attractive to any experienced doctor", says Dr. Gordon. "Yet, I'd been advertising for 6 mo and hadn't received much response. I was beginning to believe that classified advertising wasn't going to work for us".

Dr. Gordon's advertisement carried a few common mistakes. First, the advertisement was generic. It didn't provide enough information to differentiate the practice or the applicants. Second, it didn't include specifics regarding compensation and benefits, usually a sign to the reader that the compensation and benefits aren't anything special.

He agreed to rewrite the advertisement to emphasize the practice's medical philosophy and an attractive compensation package. He also asked his associates for their input. "Initially, we didn't realize that our advertisement should not only differentiate us from other practices, but should also be designed to attract applicants interested in our style of practice", says Dr. Gordon. "In rewriting the advertisement, we focused on three things that were very important to us: our emphasis on diagnostics, ongoing investment in new technologies, and emphasis on client education. We've spent years educating our clients on the importance of wellness and preventive care and wanted to attract doctors who would continue to "raise the bar" on our clients' expectations of services we do or could provide".

Regarding compensation, Dr. Gordon hadn't considered that a potential candidate would have to uproot his or her family and move to a new community to accept the position he was offering. Says Dr. Gordon, "When I thought about it that way, I realized I had to offer something more attractive than what a candidate could find in his or her backyard. I looked at starting salaries for experienced associates and designed a compensation package that was about 10% higher. I also included reimbursement for moving costs. I finally realized that if that's what the market requires, then I better get up-to-speed".

The changes worked. His new advertisement generated significantly more interest. With qualified applicants to choose from, Dr. Gordon hired Dr. MacDonald in March. "The benefits have far outweighed the higher cost", says Dr. Gordon. "It's made all the difference in our ability to give clients and patients our full attention, especially during busy season".

Dr. Meiner, owner of a one-doctor practice in a small, western community decided to try classified advertising to find a recent graduate for his practice. He also had few responses to his advertisement. His error: he was seeking a recent graduate, but his advertisement described a position that would be more appealing to an experienced associate. Only the compensation was in the recent-graduate range. His advertisement wasn't likely to draw the attention of either an experienced doctor or a recent graduate.

Dr. May, a classmate of Dr. Meiner who had recently hired a new graduate for her three-doctor practice, shared her experience with Dr. Meiner. "I learned the hard way", says Dr. May. "After having little response to our advertisements, I contacted several new graduates who had recently accepted positions to find out what swayed their decision. I learned that in addition to competitive compensation, current diagnostic equipment, and good facilities, for many the deciding factor was the practice's attitude regarding mentoring and ongoing training during the graduate's transition from university to practice". One graduate said, "In my opinion, practices with a strong commitment to training and mentoring have the greatest advantage when hiring recent graduates. Many of us start out with two fears: being left alone at the practice or on a farm call and being immediately expected to do surgeries rapidly". " I also think that recent graduates are in some ways smarter than we were. They realize that if a practice isn't adequately staffed, they (the associate) will be doing the work of a technician or barn assistant. And they know that you can't practice modern medicine with inadequate facilities and equipment".

With this information in hand, Dr. Meiner rewrote his advertisement. The words came easy. As a solo practitioner, he was looking forward to his role as a mentor and also to the new information a recent graduate would bring to his practice. His new advertisement attracted Dr. Peterson. "Dr. Meiner acknowledged and accepted my inexperience and hesitancy to be on my own at the beginning""", says Dr. Peterson.

One new recruitment approach could be a challenge if you are not in the market for an associate. Practice owners seeking qualified applicants are getting bolder about approaching doctors currently employed in other practices. While definitely a common occurrence in other service and product industries, to date, employee raiding has not been a major concern in independently owned practices. However, if progressive practices continue to lament the lack of qualified applicants and others continue to stick to historical ideas about compensation and benefits, this situation may rapidly change.

Says Dr. Walton, owner of a large general and referral practice, "We act as our own recruitment service. We keep track of desirable employees within our area and we seek them out when we are replacing or expanding".

Is this approach right for every practice? " No, I don't think so", says Dr. Walton. "Even though you can't hire someone away from a practice who is content, some of our colleagues aren't happy with us. You have to be willing to live with that. Also, if our approach becomes as common in the veterinary world as it is in almost every other industry, then it will likely mean even stronger competition for the right people".

Keeping the Right Associate

Now that you have found and hired your new associate, there are a few things to keep in mind if you want them to stay.

Promises Made

Keep the promises you made during the recruitment process. Enough said on this point.

Compensation Will Remain an Issue

Keep associate compensation competitive with the salaries in your area. Remember the time and cost involved in the recruitment process. Trying to save a few dollars by keeping your associate's pay at the low end could be costly in the long run.

If you need verification of just how costly this approach can be, look at recent challenges in hiring and keeping qualified employees at the staff level. Low unemployment and a more demanding labor market have boosted starting salaries, particularly in administrative and support positions. While salaries in Well-Managed Practices are increasing by 10%/yr, this increase has not necessarily been sufficient to attract applicants that meet the needs of today's progressive practice.

"As soon as we made the decision to pay the wages necessary to attract the caliber of people we needed, we faced a second challenge", says Dr. Turner, owner of a progressive practice in the south. "What should we do about the wages of experienced employees who may be earning less or the same as new hires?"

Practices have two choices and both result in increased costs. They can acknowledge that their wages are low and begin immediately to raise them, matching raises with objective measurements of skill and ability, or they can maintain their below-market wages and deal with the resulting employee turnover.

Employee turnover is costly for two reasons. First, you will have to offer current market rates to attract new applicants. Second, you will bear the cost and disruption of replacing an experienced employee with someone who will require training and supervision. The cost of employee turnover such as attracting and interviewing applicants, training new employees, and reduced productivity on the part of departing and new employees averages $16,000 per vacancy. In the long run, paying higher wages will be less costly and will allow you to keep your best, experienced people.

The same applies in setting associate compensation. If a gap could develop between salaries for new and long-term associates in your practice, start now to tie compensation increases to objective measurements of technical, personal, and management skills. If you delay, you may be looking for another new associate in the very near future.

Keep an Eye on the Future

Agree on a career path for each associate that spans the next 2 - 3 yr and update it each year during the associate's annual review. Include medical training and advancement, personal development, exposure to management, special projects, and compensation.

This accomplishes two things. First, it lets associates know that you are interested in their future. Second, it may give you the boost you need to update your strategic plan; you can't help plan your associate's future if you haven't planned your practice's future.

Finding and keeping the right associate is not a matter of chance or luck. It's knowing what's important to prospective and existing employees and making the changes necessary to keep your practice moving forward.