Mira Johnson
CPA, CVPM, MBA
Practice Smarter columnist Mira Johnson is the managing partner with JF Bell Group, a business consulting firm that helps start-ups and practice owners launch, manage and grow the veterinary practice of their dreams. To learn more, visit cpasforveterinarians.com
Read Articles Written by Mira Johnson
Have you ever wondered what your employees encounter before they arrive at work? Some people wake up early, make breakfast, go to the gym and drop off their kids at school while on the way to work. Some mornings go smoothly, while others include a flat tire, a sick child or an alarm that accidentally went to snooze mode. Irrespective of what life dealt them, your team is clocked in and ready to see patients, answer phone calls and hopefully get home for dinner on time.
But now, think about what motivates your team members to return tomorrow. What drives them to stay engaged, give their best and grow with your veterinary practice? A passion for animals is a powerful force, but it’s not the only one. A work culture that recognizes and rewards effort, fosters growth and aligns personal goals with the hospital’s mission can make all the difference. That’s where incentive programs come in — not just as financial perks but also as strategic tools to inspire commitment, boost morale and elevate performance across the team.
A rewards-based incentive program encourages employees to achieve specific actions or behaviors. The rewards may be monetary or nonmonetary. An incentive program designed appropriately and thoughtfully promotes the desired results and improves team members’ personal and professional growth. Think win-win.
7 Steps
Here’s how to launch incentives.
- Define your goals: Identify what you want to improve or reinforce. For example, too many clients might cancel their appointments or not show up. Your goals should follow SMART rules, meaning they are specific, measurable, achievable, realistic and time-bound. Determine the target and share the starting point. For example, “In July, we had 40 no-calls and no-shows. Our goal is to lower it to 15 in August.”
- Create a scorecard: Your tracking tool might not require a spreadsheet. It could look like a thermometer or a bingo card. Update the staff regularly — daily, weekly or monthly is OK. Display the progress in the breakroom or another place visible to the team. If you use an online communication platform, showcase updates there, too. Keep everyone engaged with countdowns and celebrate small achievements toward the goal.
- Choose the incentive: The options are limitless. Everyone likes extra money, but lunch, recognition or an extra day off can go a long way. Realizing the program’s cost and return on investment is important. For example, you want monthly patient visits to increase by 10. You promise the crew an extra $100 each if the goal is achieved in July. If your average client ticket is $250, 10 more appointments will generate $2,500. If you have 10 team members, the attained goal will cost you $1,000 (plus payroll tax). If you have 25, the cost is $2,500, but it might make sense, considering you expect the additional visits to continue after the incentive program concludes.
- Let everyone strategize: You might be surprised how many team members propose solutions. To solve the no-call/no-show issue, assess your client reminder system. Do you text pet owners? Does someone call them? Can you send an additional reminder? Be open-minded to ideas.
- Set the criteria: For example, employees who have worked at your practice for at least 90 days are eligible for a bonus. You will pay them within four weeks, and the employee must still be working at that point. A no-call or no-show occurs when the client does not call to reschedule the appointment or fails to arrive. The goal is achieved if the number of no-calls and no-shows is 15 or lower in August.
- Keep it simple: The more complex the goal, the harder it is to understand. For example, keeping no-calls and no-shows at 15 or below for three consecutive months is a complex goal. If the target isn’t met in the first month, some team members might not put much effort into the initiative during the second and third months.
- Reward and repeat: Evaluate what worked and discard what didn’t.
Keeping Score
Start small and simple. The first reward might be a coffeehouse drink or catered lunch. Meanwhile, ensure the goals are meaningful to the staff and tied to a scorecard divided into departments or just the entire team. The problem with a team approach is some people might have little influence in achieving objectives, which can create resentment in employees doing the work.
Here are examples of scorecard targets tied to job roles:
Doctors
- Average number of patients seen
- Average client transaction
- Number of invoices
- Transactions per hour
Technicians
- Number of lab tests performed
- Percentage of completed follow-up calls
- Feline patients on preventive care products
- Canine patients on preventive care products
Receptionists
- Average number of forward-booked appointments
- Calls converted to appointments
- Percentage of answered calls
- Percentage of clients contacted whose pets were overdue for vaccines
Entire Team
- Percentage of staff calling out sick without coverage
- Percentage of completed follow-up calls
- Client retention rates
- Number of online reviews
- Number of positive online reviews
- Client compliance with preventive care plans
- Number of appointments
- Decrease in no-call and no-show appointments
- Monthly revenue
- Fewer expired products
- Increased sales of preventives
- Completion of continuing education courses or certifications
- Number of cross-trained staff members
The Lighter Side
Not all goals have to be serious. Depending on your practice’s culture, you might have bingo cards on which some fields help get people out of their comfort zone. For example:
- “Madeline answered the phone.”
- “John scheduled a client appointment.”
Some bingo card boxes are likely to be checked off, such as:
- “Someone is crying.”
- “The client couldn’t catch the cat.”
- “The anal gland expression went wrong.”
What motivates one team member might not spur others. Don’t get discouraged. An incentive program can boost team morale, leading to higher engagement and job satisfaction, exceptional patient care and client service, improved employee retention, and a better clinic reputation. Recognizing and rewarding employees fosters a positive workplace culture, making the practice an attractive place to work and grow.
WHAT’S TAXABLE
According to the IRS’ Employer’s Tax Guide, posted at bit.ly/3E9Z2hQ, supplemental wages include, but aren’t limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, reported tips, retroactive pay increases and payments for nondeductible moving expenses.
