The Incentive Gamble

Have you ever told someone to “Just do it already”? Parents sometimes say it when telling children to finish their homework. However, what if you were talking to your veterinary team? Does telling someone to “Just do it already” garner positive results, or does it risk disengagement, demotivation and subpar performance? While direct commands are appropriate for achieving short-term compliance (especially in emergencies), ignoring a person’s need for purpose, recognition and reward fails to inspire commitment or enthusiasm.

Incentivizing your team members through financial rewards, recognition, career growth opportunities and meaningful work can foster a sense of ownership and motivation that drives productivity and better results. When team members see tangible benefits or feel valued for their efforts, they are more likely to put in extra effort, contributing to a more positive and high-performing workplace culture.

An effective employee incentive program can boost motivation, improve performance and enhance job satisfaction, leading to a more engaged and productive team. Financial rewards, professional development opportunities and non-monetary incentives, such as extra paid time off or public recognition, can encourage employees to go above and beyond in patient care, client interactions and teamwork. Additionally, well-structured incentives drive key business goals, such as more patient visits, higher client satisfaction and improved operational efficiency.

According to Trisha Jones, a consultant, customer development specialist at Elanco and certified veterinary practice manager, “Incentive plans empowered my teams to take ownership and align with goals for the practice’s success.

“The team would offer excellent patient care and customer service as a true team, recognizing that each individual played an essential role in the hospital’s functionality,” she said. “It motivated the team to implement change and personal growth while creating a culture where they felt valued.”

When team members feel valued and see a direct connection between their efforts and the rewards they receive, they become more invested in the practice’s success. This leads to better overall clinic performance and a stronger team dynamic.

The caveat is that incentive programs might fail to produce positive results in the absence of well-defined, measurable objectives and consistent execution.

“Incentive plans need to be designed for the set of circumstances and the individuals,” said Dr. Charlotte Lacroix, a veterinarian, attorney and the founder of Veterinary Business Advisors Inc. “They fail because they are not specifically tailored. Each employee is motivated by different things; you can’t make them generic. Motivators include time, money, flexibility and equity. They work when they have been thought out and tailored to the specific situation. They also need to be documented properly to solidify the commitment of all involved.”

Failing to evaluate and adjust the program over time can render it ineffective as employee needs and clinic goals evolve. A successful incentive campaign requires transparency, inclusivity and ongoing refinement.

With all this in mind, you need a standard operating procedure to ensure a successful incentive program. An SOP is a detailed, step-by-step document that outlines how to perform a specific process or task consistently and efficiently.

Step 1: Clarify the Purpose and Scope

An incentive plan should motivate team members while aligning with the hospital’s goals. This key point begins with the purpose or objectives. Will the plan address team engagement, retention or performance? Is it seeking to improve patient care, client satisfaction or revenue production? Who falls under the scope of the SOP — all team members or a small group of employees?

An SOP that aims to “Schedule more repeat patient visits” falls under “Just do it already” and might not produce the desired result. A better alternative could be, “This SOP applies to every team member involved in scheduling patients. It provides a structured process for the team to efficiently schedule additional patient visits and communicate with clients to enhance patient care, improve productivity and increase revenue while ensuring that patients receive the timely care they need.”

Notice the “why.” You don’t want a blind “Do it or else.” You desire a higher purpose. (We know that purpose helps with buy-in.) Lest you feel awkward writing a purpose and scope, turn to ChatGPT or another AI chatbot for ideas.

Step 2: Gather Information

Investigating the incentives is essential, especially if you have a multigenerational team and want to ensure that everyone values the rewards. Be sure to consider monetary bonuses, non-monetary prizes and recognition-based incentives. Conducting a team survey about what motivates them can go a long way in providing ideas for incentives.

Examples include extra cash, commission-based pay, profit-sharing, extra paid time off, flexible scheduling, personal wellness programs, special lunches, team outings, peer recognition, progressive responsibilities when someone takes on a stretch assignment, and continuing education support.

Some may be structured based on the participants, as shown below.

VETERINARIANS

Examples: Production-based bonus measured by revenue generated from exams, procedures and product sales; client-satisfaction bonuses based on surveys or online reviews; and extra paid time off for maintaining high-quality patient care and teamwork.

Attorney Edward J. Guiducci of the firm Guiducci & Guiducci suggests offering stay bonuses to encourage associate veterinarians to remain at the practice in anticipation of a sale. In this case, the associate might want equity in the practice, but the owner doesn’t want to give up any.

Instead, the owner could offer a percentage of the profit upon the practice’s sale. The payoff encourages the veterinarian to sign an employment agreement with the buyer. The associate may also receive additional annual payouts for staying for an extended period. 

NURSE TECHNICIANS

Examples: Skill-based raises for new certifications or skills, bonuses for acquiring skills in high-value procedures, and cash when team-based revenue goals are met.

CLIENT SERVICE REPRESENTATIVES

Examples: Monetary rewards for every wellness plan enrollment, monthly bonuses for maintaining a high percentage of positive client feedback, cash for reactivating lapsed patients, and rewards for attendance and punctuality.

KENNEL ATTENDANTS

Examples: A monthly bonus for keeping a clean, well-managed kennel, rewards for bringing in new boarding or day care clients, and extra pay for picking up shifts during peak times.

The other part of the information gathering involves knowing your practice’s history and numbers. For example, if the incentive plan is geared toward increasing patient visits, the team needs to understand how they have performed in the past and the new goals.

Elanco’s Jones offered examples of incentives that worked well with her teams. Sharing data was part of the standard operating procedure.

“We would incentivize labs as a percentage of revenue by determining a particular profit center or lab test we wanted to grow, devise the SOP, train the team, and create equitable incentive plans,” she said. “Another plan involved payroll as a percentage of revenue. We created a commission-based or ProSal incentive. The budget was 18% of revenue. The team worked together for scheduling, reduced overtime, and knew that each $1 they brought in went into the payroll pot, where anything under 18% was split amongst the team.”

Not collecting the proper data is like bowling without pins. In other words, just throw the ball and cheer as it rolls down the alley.

Camala C. Bailey, an accountant and certified valuation analyst at CPA 4 Vets, understands the importance of looking at the data. She worked with a veterinary practice that offered a monthly bonus based on whether it achieved a 10% increase in gross revenue compared to the same month in the prior year.

“They were achieving their goal and giving bonuses, but despite the growth, they were losing money,” Bailey said. “They only focused on generating revenue, but once they looked at inventory costs and overtime, they got a better idea about the bottom line.”

Having the data helps when the time comes to review the results and make adjustments.

Step 3: Structure the SOP

Again, begin with the purpose and scope. A few ideas for purpose are to increase revenue, improve client retention, enhance patient care, make scheduling more efficient, enroll more patients in wellness plans, attract and retain employees, become more accountable, grow patient visits, and earn better client satisfaction scores.

Heed the advice offered by practice consultant and former Today’s Veterinary Business columnist Leslie A. Mamalis.

“The parameters must be crystal clear: Put the team in charge of monitoring the progress toward the goal and give them the resources to calculate or count the final tallies,” she said. “Although incentives are for anyone on the team, excluding the doctors and manager is best with some incentive plans. Finally, don’t change the rules once the plan is underway. If you overlooked something, modify it at the end of the first month. If you switch things up sooner, the team loses trust in you and the plan.”

The rest of the SOP should include the individuals responsible for implementing, monitoring and participating in the plan, as well as defining any abbreviations used in the document and detailing the performance targets and incentives.

Using the same template for other SOPs ensures consistency and helps avoid errors or omissions.

Step 4: Write the SOP and Get it Approved

A key step here is to have all the I’s dotted and the T’s crossed. Put the document in writing and get the practice owner to approve it. All the time you spend getting creative with the incentives and setting goals will not matter if the ultimate decision maker doesn’t approve the SOP or, worse, the business’s financials cannot sustain the plan. Add another layer to the approval stage by running the SOP past your accountant and lawyer to make sure you don’t forget anything.

Then, it’s time to roll out the incentive program to your team.

Step 5: Implement Training

Start by holding an informational meeting in which the plan’s details, such as eligibility criteria, performance targets and the reward structure, are clearly explained. Provide examples of how the team’s performance will be tracked and the rewards calculated. Allow time for questions to clarify any doubts.

Here are a few more tips:

• Keep the rollout transparent and straightforward: Team members should know exactly how to earn rewards.
• Hold regular check-ins: Schedule monthly meetings to review the progress.
• Use visual aids: Whiteboards, leaderboards or digital dashboards will help maintain the team’s motivation.
• Adjust as needed: Get employee feedback and tweak the incentives as necessary.

Step 6: Review and Update

You won’t know if your incentive plan is successful unless you follow through to the end — be that at the end of the week, month or quarter. This is where all the data gathering, all the time spent tracking and monitoring, and the final payoff come to fruition. Did the campaign plan produce the desired results?

If the incentive plan underperformed, review the key metrics to determine where it fell short, gather feedback from team members to understand their perspectives and identify hurdles, check to see if the rewards are meaningful, modify the plan, and clearly explain the revisions to everyone.

If the plan succeeds, recognize and celebrate the achievements and promptly distribute the rewards. Gather feedback, too, and keep the motivation going by building on the positives. Alternatively, you might decide to refine the program or create a new one based on a different goal.

You can’t achieve buy-in by ordering your team to “Just do it already,” such as schedule more patients or be nicer to clients. You won’t have to bark orders to get results if you have a team-friendly incentive plan.

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PRESENTS FOR YOUR PRESENCE

The employee scheduling platform Sling recommends an incentive program designed to reduce worker callouts. The rewards are:

• $150 for one month of perfect attendance
• $350 for three months of perfect attendance
• $500 for six months of perfect attendance
• $1,000 for one year of perfect attendance

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