When we are analyzing the health of a practice, the first thing we look at is the big picture of the Practice Performance. That is, we look at how much revenue is brought in on a monthly basis, how many patients are seen, how many doctor days were available, resulting in how much profit. It is amazing how much information we can glean by looking at this information on a monthly basis and by comparing it month over month and year over year.

 

From this overview, we can get a sense of trends happening in the office and start to dig deeper.

For instance, if we see the number of patients increase but revenue decrease, we know that the practice is working harder not smarter. We will then assess the number of patients being seen each day. In a full scope, primary care practice, seeing too many patients often translates into less revenue – there is a direct correlation. Staffing is also considered. If we are understaffed, it is possible that we are not able to offer as much assistance to each and every patient, which would also negatively impact the amount of revenue generated by the practice.

If we notice that the number of doctor days available in the clinic is less than the previous year, we will confirm that this was anticipated – either because of vacation or because an associate left the practice. This change often has the biggest impact on staff incentives. If the staff incentive has been set up to incentivize based on growth, the staff is unlikely to meet the goals in this scenario. This is one of the reason’s that we recommend that incentive programs be based on number of doctor days rather than straight practice growth.

If we find the doctor days are going up and revenue and number of patients is remaining fairly stable, we might suspect that we need to increase our marketing efforts. Digging deeper into the patient numbers and evaluating which efforts are the most successful would be our next logical step.

As with any business, there are ebbs and flows in an optometric practice business. Having access to data that will easily show you the pulse of your practice will help guide your business as you experience these constant changes.

KELLY HRYCUSKO

is the co-founder and managing partner of Simple Innovative Management Ideas (SIMI) Inc. and expert Practice Management contributor for Optik magazine. She can be reached at info@simiinc.com.


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We were talking to a potential client the other day who said that he did not think his business was worth much. He never imagined that he’d sell it for a profit. We asked what his annual sales are, what his net income is and whether he had thought about establishing a transition plan. He said that his kids had planned to take over the business, but instead moved on to other professions in technology and software and felt that his “old-fashioned” business system wasn’t right for them.

We inquired further. I asked whether he had a loyal, repeat client list. We asked if he had a continuing revenue stream. We asked if he had ever thought of selling to his employees. Perhaps one of his competitors might be interested?

He was stubborn and proud. He paid nothing for the company because he started it on a bootstrap budget more than 50 years ago. He never borrowed from the bank throughout his career. He sacrificed on food, cars, the house he lived in and never overspent, living well within his means. His business was founded on sweat equity.

As we conversed, he began to reveal more and more, especially after we asked about his client list. He proudly confirmed that he had a very vibrant list: a steady, loyal clientele that had served him well for many years. We asked again about his annual revenue, which he was reluctant to reveal. We respected his reluctance to disclose his financials; as we are brokers, he must have thought we were just trying to get a business listing.

We talked more about his industry and where it was in terms of growth or decline. Eventually he related that he’s in a high-growth industry, something he knew all along yet had never exploited to its full potential. He admitted that he did not want to buy the equipment, hire more staff and move toward computerization to upgrade to the necessary technology— namely, do the things that would allow him to face his new competitors. He readily acknowledged that, while his long-term clients remained loyal to him, lately some had concerns about his slow delivery and service. They never complained about his quality nor his price, only about not getting his goods fast enough.

He further admitted that he was slow but he was good. In fact, he said, “I’m the best” and we believed him. So, what do you do? What would you do—buy his business? Is his business likely to fail because of the competition? Should he upgrade?

There are at least two mindsets on this, depending on whether we’re discussing a business or an optometric practice. One would believe this business is an easy picking to compete against. The other thinks of buying this business and doubling the revenue.

As a broker and appraiser these are the types of insights that present themselves when meeting with business or practice owners. The hidden value of the business is often uncovered with minimal effort. Practitioners or entrepreneurs regularly want to tell their stories and confide their trials, tribulations and triumphs over the years. One thing they’re not able or likely to do is tell a potential buyer how much business they left on the table. They might humble-brag about it and say, “If somebody younger or more competitive takes over, they will do better than me.” This revelation is left to the third party acting for the seller, and that’s where a broker comes in.

The truth is, every business or practice has untapped potential and hidden revenue. You can ethically exploit it yourself or a buyer can. Your call.

TIMOTHY BROWN

is Chief Executive Office of ROI Corporation Canada’s national professional practice and brokerage firm.

Jackie Joachim, COO ROI Corp

JACKIE JOACHIM

Jackie has 30 years of experience in the industry as a former banker and now the Chief Operating Officer of ROI Corporation. Please contact her at Jackie.joachim@roicorp.com or 1-844-764-2020.


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The cornerstone of a superior, profitable practice is the productivity of a staff that is focused on patients and practice issues each work day. I am a part-time associate in a two-doctor, four-employee practice, We Are Eyes, in Boca Raton, Fla., and our practice works hard to keep our employees productive and focused on patient care.

Here are key ways to boost productivity, and some of the distractions that could damage productivity–and what to do to emphasize the positive use of tools like smartphones and tablets, while decreasing the chances of these things becoming distractions.

MAKE THE MOST OF YOUR EHR

Electronic health records are designed and intended to make a practice more productive, but most doctors find themselves less productive at first. Practices that transition from paper to EHR find that it changes the way employees communicate with each other.

Doctors find themselves spending more time entering data and less time with patients at the beginning. And if they choose to delegate the data entry to an employee, again, that is less time that the employee has to do other tasks.

But once the transition period is over, and the practice has worked out all the initial EHR kinks, a good system can make the doctor and support staff more productive. An EHR system can allow for patient data to be shared more easily between multiple physicians and between physician and support staff.

An EHR can also eliminate medical errors that occur from poor physician handwriting. The days of the optician filling a spectacle prescription with -3.25 when it should have been a -3.75 are less common with EHR.

EMPHASIZE TEAM WORK

I believe that the best way to enhance productivity is with teamwork. One team member cannot be successful without the help of everyone else. And no team member fails alone either. For example, if an optician has a really big sale, but the insurance was not billed properly, and the patient was not notified that the glasses were ready in a timely manner, the patient is likely to be upset and not return. But if everyone does their part, the success is shared and everyone benefits, not just the optician.

HOLD REGULAR STAFF MEETINGS & EMPOWER EMPLOYEES

Holding regular staff meetings are critical for overall productivity. But just like anything else, many employees will consider too many meetings a waste of time. The key is to have meetings with a clear goal and keep employees engaged. Sometimes my employees get tired of hearing me say the same things over and over again. So, I often allow someone else to run the staff meeting.

For example, give a technician the opportunity to educate the entire staff about the features and benefits of a diagnostic technology. Let the technician research glaucoma and the importance of visual fields testing and OCT. Have them work with insurance billers and understand the appropriate coding involved. Allow them to present the case of a patient who is being treated, and how it affects their lives. The goal is to have the entire staff take pride and personal responsibility for the work they do. They will be more productive as a team if they know it is making a difference in a patient’s life.

IDENTIFY PRODUCTIVITY CHALLENGES

The most common challenges to staff productivity are socializing with co-workers, online activities, texting, personal phone calls and social media. When employees waste time, it also looks unprofessional to patients. If left unchecked, the poor habits of a single employee can eventually spread to other employees. Before you know it, you have a problem with office morale, high employee turnover and major headaches for management. If managers are constantly forced to babysit employees, they can become overwhelmed and less productive themselves.

Before solutions to productivity killers can be established, it is important to understand why employees are wasting time. According to Salary.com’s Wasting Time at Work Survey, 35 percent of employees waste time because they don’t feel challenged. Other reasons for wasting time are lack of incentive to work harder, lack of job satisfaction and just being bored with work.

FIND SOLUTIONS

A key solution to productivity killers is starting with good habits from day one. When a new employee is hired, they should have a crystal clear understanding of their office policies and their manager’s expectations. And a new employee should understand on day one what the consequences of poor behavior are. In addition to understanding what their job description is, a new employee should also know how they affect the entire team. When an employee knows that they are part of a team and that their performance affects the entire office, it is easier for them to see the value in what they are doing and feel a sense of purpose.

But what does an employer do with that long-time employee who won’t stop texting? Or the employee who clocks in on time and spends 20 minutes drinking coffee and socializing? The key here lies in the manager. Managers need to lead by example. If a manager is constantly socializing and doing personal activities themselves, there is no hope of controlling the rest of the staff. Then, it is critical to set, communicate and remind employees of expectations. If your staff knows that their performance is valued, being measured consistently, and that there are specific consequences, they are more likely to be constructive and less likely to waste time.

MONITOR PERSONAL DEVICE IN OFFICE

Smartphones at work can hurt your practice with wasted time–or be used as tools to improve the patient experience.

It seems like everyone is addicted to their cell phones. And when a practice owner or manager sees productivity being killed by smartphones, the knee jerk response is to confiscate everyone’s phones. Lock them up in a drawer. Forbid employees from checking their phones while they are on the clock. Inevitably, the argument will come from the employee who needs their phone to communicate with family members in the event of an emergency. Many employees may feel more anxious and distracted if they feel unconnected. How does an employer balance and respect an employee’s private life with their work life?

An optician in Dr. Nguyen’s office checks his smartphone while working on a patient order. Dr. Nguyen says mobile devices like smartphones can be distractions, or they can help staff better serve patients, providing an easy way to look up information or additional products to order.

Each office has to establish their individual policy. Each practice owner has to be comfortable with their own decision. And whatever a practice owner decides to do, chances are, they will make some employees upset. But if you create a policy in writing, make it plainly known to all employees. Make the consequences known clearly as well. If you choose to be hard line and lock up all personal devices during work hours, then be consistent with all employees, no exceptions. But then consider allowing an employee to give family members the ability to call them on a landline in the event of an emergency.

Personally, I use my smartphone to look up information, market the office and communicate with patients regularly. It would be impossible to ban smartphone use in my office. But I have a strict rule that employees cannot have their cell phones out while they are with patients. Devices need to be in their pocket or in the desk drawer, not on the top of the desk where patients can see them. When patients are in the office, taking care of them is the priority. I know I cannot watch all the employees every minute of the day. I believe in the honor system, and I believe in strict consequences if they are caught with their phones out when they are with a patient.

TURN PERSONAL DEVICE USE INTO A POSITIVE

Even with all your efforts, there may be that one employee who cannot go more than a few minutes without checking their phone. There is always that one employee who distracts others with stories about their evening plans or their kids. These are the employees who make great advertisers and marketers for your office. These employees know more about social media than practice owners typically do. This is an opportunity to turn productivity killers into productivity helpers. If you have an employee who is an expert at Facebook, Instagram, Twitter, SnapChat and Pintrest, make them your social media guru. Give them a set amount of time each day to use their social media skills to market your office. Be sure to set specific limits and check on their productivity.

MANAGE YOUR OFFICE’S INTERNET USEAGE

If you don’t already have your internet filtered for employee workstations, go immediately to your server and block specific web sites. There is no reason an employee should be able to access dating and unsavory web sites at the office. Blocking other social media sites from workstations may sound extreme, but it can eliminate problems before they start. The only caveat is to be sure not to block any social media networks, like Facebook, related to the marketing work your employees do.

GUIDE AMOUNT OF TIME SPENT ON STAFF-PATIENT SMALL TALK

Another source of wasting time is personal conversations between staff and patient. We all want our patients to feel at home in our office, and to feel that we know them on a personal level, but a conversation that goes too long will affect productivity, especially if other patients are waiting. Employees should be trained to be friendly and attentive, but to know when to politely end a conversation with a patient.

For example, if an optician is extremely detail-oriented and takes pride in the fact that they really get to know the patient, patients will love them and request their services regularly. But if each simple encounter takes over an hour, take that optician aside and let them know how valuable they are, and how you and your patients appreciate the job they do. But make it a goal to politely finish a conversation and move on so other patients don’t have to wait.

THUY-LAN NGUYEN, OD

Thuy-Lan Nguyen, OD, teaches at Nova Southeastern University College of Optometry and works part time as an associate at We Are Eyes in Boca Raton, Fla. To contact her: TLNGUYEN@nova.edu


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What hiring trends are emerging in 2019?  The 3.8 million members of  Alignable.com, the largest social media network of small businesses in North America, have identified three key trends from surveying nearly 6000 small business members. Do these themes sound familiar?

Trend 1: Hiring surges are predicted among many small businesses in the U.S. and Canada for the rest of 2019. 

According to the survey results, 33% of small business people polled want to hire even more people than they had planned in early 2019. However, 59% of those hiring say it’s a growing struggle; finding the right people is a huge problem.

In Canada, New Brunswick and Saskatchewan businesses anticipate being the most active recruiters while Manitoba trails the pack.  (see table below )

Trend 2: Small business owners who are hiring are having a tough time filling their open positions.

Getting a good number of quality candidates a problem?  You are not alone. Unemployment levels remain low and are getting lower.  The June 2019 unemployment rate nation wide fell below 5% in June and the trend is down.

Trend 3: Despite the heightened demand for help, thousands of Alignable members 50+ are still struggling to secure full-time or even part-time positions, pointing to blatant ageism.

Tim Brennan, Chief Visionary Officer of Eyeployment.com said the Ageism called out in this survey doesn’t surprise him, noting, “one of the most obvious visual discriminations is age and it’s a weak predictor of behaviour”. Employers may perceive that older candidates may want higher pay and employers do not necessarily value the experience and mentorship attributes an older employee might bring to the team.

Brennan’s hiring technology provides the ability to “meet the candidate before you see them”, which reduces all forms of visual bias and improves your odds of getting talent stars for your business and avoiding the passengers.

Brennan advises, it always better to get the best person possible rather than “settle” for someone who walks in your door and looks the part particularly in a tight labour market.  Making a hiring mistake gets amplified under such market conditions.

 % of Small Businesses that plan to hire more than initially planned in 2019. 

NB – 60%

SK – 40%

BC – 31%

AB – 25%

QC – 25%

NS — 25%

ON – 24%

MB – 20%

Source:
https://www.alignable.com/forum/hiring-expected-to-escalate-among-33-of-smbs-for-the-rest-of-2019


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Trump’s tariff tweet on August 1st brought the temporary trade war truce with China to an abrupt end by indicating the US administration’s intent to levy 10% tariffs effective September 1 on $300 billion of Chinese goods imported into the US. These new tariffs, if implemented, will impact virtually all spectacle frames, sunglasses, lenses and other optical goods entering USA directly from China, or indirectly through third-party countries including Canada.

While the industry’s representative trade group, The Vision Council, had lobbied hard to exempt optical goods from the threatened tariffs, it appears unlikely that optical goods will be spared.

In an August 1 email to members, The Vision Council acknowledged that it is unlikely that optical goods will be removed from the tariff hit list and advised members to “plan accordingly”.

China has indicated they will respond in kind if the tariffs go into effect September 1, but many analysts suggest that China is “slow playing” the trade tiff in order to “wait out” this administration until the 2020 US election is concluded.

Impact on Canada?
While Chinese goods imported directly to Canada are not impacted, many products destined to Canadian ECPs warehoused in US facilities will be subject to the tariffs. US importers will need to decide if they absorb the tariffs at the expense of profits or try to pass them on to their customers through increased prices. There have been reports from other industries that temporary “tariff surcharges” will be applied, similar to fuel surcharges applied by shipping services firms such as ICS, FedEx and UPS.  Resultant price increases will most certainly ripple through the supply chain and increase both wholesale and retail prices.

Canadian based retailers and distributors importing and warehousing in Canada will not be directly impacted. In fact, some Canadian Optical distributors see opportunity in the continuing trade clash.

Retailers and suppliers reliant upon supply chains with US facilities will be adversely impacted providing a potential advantage to Canadian distributors, though it may be temporary.

Look for the September Issue of Optik Magazine which delves into the Canadian optical market impact of the USA-China trade war.

 

Related Article:  2nd Annual Canadian Frame Study Reveals Opportunities and Threats

 


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There is a resource reference in the summer issue of Profitable Practice magazine entitled A Startup’s Secret Weapon: Retirees by Liz Brody. Recent U.S. Bureau of Labor Statistics reveals that people 65 and older lead the way as the fastest growing segment of the American labor force. For the most part, these people have exited their former jobs and careers for retirement. Many, it seems, want more than a sunny beach, an afternoon nap or satisfying round of golf. They are not ready to go quietly into retirement and believe they have much to share given their previous experiences.

As a consequence, there are a number of companies today (YourEncore, Empowered Age, Patina Solutions, Work At Home Vintage Experts etc.) that are staffed with these “retirees” who bring expertise from a wide variety of business jobs and careers. They act as consultants as characterized by Liz Brody “who have been there and done that”. Their clients are often young millennial-aged entrepreneurs with startup business problems. These young gurus often face a business impasse they can’t seem to bypass and are stymied. While they are often superb risk takers and decision makers, they realize they need help and that more brain power and another pair of eyes is required to get them mobile again.

All entrepreneurs try to invent a new product, service or process or at least apply an innovation to an existing one. In doing so, they are repeating a journey that many others have taken before them—a few successfully and the many who got hung-up along the way. Health care practitioners are constantly searching for new and better ways to deliver health care service. Many find a successful track of operation either by perseverance or by enlisting the aid of others.

The above scenario got me thinking about my own company, which my father started and eventually sold to me. Recently my dad and the company received recognition for 45 years of distinguished service to the practice sales industry. In my case, he was always there in the background giving me the wisdom of his experience. In addition, the company had—and still has—a number of senior associates (retired dentists for the most part) who left dentistry to start a new career in practice sales. This core of elders was invaluable to the growth of our company and allowed us to be successful by avoiding many of the impasses all businesses face.

To my mind, no matter what business or health care practice you are in, it is wise to seek out the advice and ideas of both the young and old. Health care graduates today are schooled in the latest procedures and technologies and bring a contagious enthusiasm and a refreshing willingness to share with and learn from their older peers.

TIMOTHY BROWN

is Chief Executive Office of ROI Corporation Canada’s national professional practice and brokerage firm.


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In today’s world, every optometric practice needs to have a website. While there was a time a health care practitioner could hang out a single or put an ad in the phone book and patients would find them, that has changed. Now we rely on online searches to find a business or health care provider.

In Canada, there is a 60/40 for online searches for a business. 60% of people who do a search online have a specific business name in mind before they even search (via word of mouth, a returning client, etc.). 40% of people have a need for a business or service and do not have a name in mind. They don’t even know you exist.

For that 40% of customers who don’t know you, you should be laser-focused on two things:

  1. Getting your business found where and when they’re looking, and creating ads that entice them to engage with your business.
  2. Post. Click. Conversion.These are the results that let you know how effectively you have engaged your intended audience.

For the first point, Google Adwords and Facebook ads are the most effective. These are the ads that will pop up and be displayed to the consumer when what they are searching for matches the ad and the key words you have created and paid for.

Post Click Conversion is the measure of how well your website explains what you will do for them. It evaluates how well the information on your website is meeting the needs and interest of the audience reading it.

The trick is to try displaying information in different ways in order to find what will resonate with your audience. Ask questions of your audience and encourage them to contact you. Put your phone number, contact form, and email address everywhere. Then use the results of your post click conversion analytics to evaluate what is working and what is not. If you have pages of medical information that no one is clicking into, maybe this information is irrelevant on your website. Conversely, if you find that your patients are spending a great deal of time reviewing the brand names that you carry, you may want to consider adding more information to that page.

If you truly own the responsibility of finding out what happens when people visit your website, you will have a lot more success marketing your business.

ERIC HARBOTTLE

With 15+ years of marketing experience, owner of Addison Marketing Solutions and co-founder of MarketingforOptometry.com Canada’s newest marketing agency option for Optometrists, Eric Harbottle knows what it takes to succeed in a robust and confusion digital world.

Coming from a strong background working and consulting with some of Canada’s largest marketing agencies to offering SMB solutions at the ground level with his boutique agency, Eric is able to understand the needs of every level of client with unique optimism and an experienced view as a business owner himself targeting KPI’s and goals to help every client achieve success.


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As a small business, overhead costs are just a part of doing business. While many of your overhead costs are fixed costs that don’t vary much year to year, it is still important to analyze these costs periodically.

Overhead costs include things like rent, utilities, office supplies and software maintenance. As a guide, aim to spend no more than 8% of your Gross Revenue on Overhead Costs.

How long has it been since you reviewed what you are currently spending on office supplies? You will be surprised how much you spend on this. Track it to see how much you spend. This category includes everything from pens and paper to snacks and refreshments. Ultimately, we want you to continue to offer all the extras that create your unique patient experience. We are just suggesting that you take the time to price shop your options. For many of these items, there is a bulk buying opportunity.  Creating lists and buying in bulk can save the office quite a bit of money versus buying ad hoc.

Sometimes “just in time” supplies can save you money too, depending on the situation.  At home, we have signed up for an ink service.  The printer is connected to WIFI.  When we are starting to get low on ink, a message is sent to the company to send out ink.   We are limited to the number of prints we can do per month (300) but if we don’t use them all, they carry over to the next month.  This ensures that we always have ink when we need it and saves me from impulse purchases at the store!

The Little Things Can Add Up.

Another way to save money in Overhead Costs is to retrofit your office lighting. For many offices, cabinet lights are on all day long and use a lot of energy. Consider replacing the GU19 bulbs in the cabinets with the LED version or LED strip lighting.  Replace your florescent bulbs in your grid ceiling with LED flat panels. This could save you between 50-75% of electricity costs used on lighting and will generate no heat. These bulbs are also less maintenance. They can last 50,000 hours (10 years) without any maintenance. The cost to do this has come down significantly so that is it almost equivalent to what we used to pay for traditional bulbs.

For some offices that provide cell phones to their employees, shopping cell phone plans can present another opportunity to save. There are bundles that will allow employees to share the data you are paying for.

We get used to using the same things but it is possible that there are better priced options. Often there is some down time over the summer as doctors take vacation. This could be a good summer project for staff with extra time on their hands.

KELLY HRYCUSKO

is the co-founder and managing partner of Simple Innovative Management Ideas (SIMI) Inc. and expert Practice Management contributor for Optik magazine. She can be reached at info@simiinc.com.


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The normal attrition rate in an optometric practice is 13%. Patients move away, pass away or sometimes choose a new office. We advise our clients to aim for a 20% new patient rate to replace this loss and to continue to grow their practice.

There are a number of ways to attract new patients. The most common are word of mouth (WOM), referrals from other doctors, the location appeal of the practice, social media referrals, memberships to community organizations and Google searches.

Which method is the most effective for your office?   

If you aren’t already, put a process into place with the staff to ensure that you record where every new patient heard about your office and track this information every month.

Depending on your strategy, the sources can vary. For instance, if you have set up a medical practice, you are more likely to see doctor referral as your main source for new patients. If you are in an area catering to young professionals and families, you are more likely to see Google at the top of the referral sources.

Pushing the analysis a little further, we are also curious to see which referral source is the most profitable in each office. Again, there is going to be a correlation between the strategy and this result.

When you are clear about your strategy, it drives all other decisions to ensure you are offering all the products and services that the patient is expecting from the practice.

Tracking Can Optimize your Expenses

As many EMRs don’t easily allow this analysis, it is likely that a manual process is required, but it’s worth the effort.

Using a spreadsheet, record where all new patients heard about the practice and how much they spend at the office, including all services and products.  At the end of the month, sort by referral source and get an average RPP (revenue per patient) for each referral source.

We recently did this exercise in an office where we putting a lot of resources towards Google adwords. Interestingly, the analysis came back that the office’s most profitable patients were from WOM.

What does that mean?

First, we revisited their strategy. They have a long history in their community and their patients have a lot of trust in them. The people that they refer are their friends and family, who likely have similar expectations of loyalty and trust in their practitioners. Perhaps this is why they more readily accept the recommendations of the office and opt into their services and purchase their products.

With this information, we know that we need to spend more time and energy on encouraging more WOM referrals. Marketing efforts may include activities such as email blasts with “loyalty” coupons for referrals. We may let every patient know that we would be happy to see their friends and families as patients too.

This is such an exciting time for your business. There is so much information available to help guide your decisions. Tracking and analyzing your new patient information will take the guess work out of where to spend your time and money in marketing.

KELLY HRYCUSKO

is the co-founder and managing partner of Simple Innovative Management Ideas (SIMI) Inc. and expert Practice Management contributor for Optik magazine. She can be reached at info@simiinc.com.


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If there’s one situation that’s guaranteed to make practice owners and managers break out in a sweat, it’s an open position that goes unfilled for too long.

The pressure to fill open jobs quickly is real, and with good reason; the costs of empty positions are very real too:

  • Uncertainty for patients and customers
  • Increased workload for other employees
  • Reduced revenue
  • Lost productivity
  • Poor employee morale

The best way to mitigate the damage is to get your team back up to full speed by recruiting new staff as quickly as possible, right? Wrong!

Hiring in a hurry may seem like a good idea, but in fact will likely bruise your bottom line even more.

The High Cost of Bad Hires

Unfilled positions are costly, but bad hires are even more expensive in the long run.

With increasing pressure to fill vacancies, it’s tempting to fall into the trap of believing that somebody – anybody – is better than nobody. In most cases, however, a “panic hire” only serves to make a bad situation worse.

In the rush to hire a warm body, shortcuts such as interviewing too quickly, not screening applicants carefully, and failure to assess the candidate’s “fit” with the job and your office culture are common, and costly mistakes.

A U.S. Department of Labour study found the cost of the wrong hire can be as much as 30% of the employee’s first-year earnings. Can your practice afford that financial hit?

Bad hires inevitably result in high employee turnover. Turnover is costly.

A study from Inc. Magazine pegs the average turnover cost for a minimum wage job at $3,200; for managers and higher-level staff the costs increase significantly:

  • Entry level: 35-50% of annual salary
  • Mid-level: 150% of annual salary
  • High-level: 400% of annual salary

Take Time to Hire Right the First Time

As tempting as it may be to fill a vacancy as quickly as possible, a bad hire is more costly than having no hire.

Take the time and use all the resources available to ensure you fill the position with a candidate who not only is qualified, but is the right fit for the job.

It’s easier than you think! Web-based platforms like Eyeployment.com can help reduce the workload and take the guesswork out of the hiring process for businesses both large and small.

By screening candidates both on your criteria, and on their potential fit with the job, these tools help you identify which applicants have the skills, values, work ethic and personality traits most likely to lead to success in your position.

Eyeployment.com even creates customized interview guides for each candidate, ensuring you focus on the right questions that will help you make the best decisions.

Bottom line – don’t panic! Hiring in a hurry is no way to find the best fit for your job vacancy.

Focus on what really matters – employee fit – and you’ll be glad you took the time to hire well.

JAN G. VAN DER HOOP

Jan is the co-founder and president of Fit First Technologies, a company that applies its predictive analytics to the task of matching people to roles. Those algorithms drive platforms such as TalentSorter, FitFirstJobs and Eyeployment.com, which are relied upon by organizations to screen high volumes of candidates for “fit” in their open positions.


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