Why Bonus Plans Work….

I’m often asked about incentives and bonuses for Dental Office employees.

Is there a consensus as to what works and what does not?

My thoughts are simple.

When we keep accurate records and measurements of trackable numbers, it makes logical sense to share the resulting improvements with those who helped achieve those improvements.

What gets measured gets improved upon.

And what gets improved upon gets rewarded.

And what gets rewarded gets repeated.


This is because the reverse of these three statements is a totally crazy and illogical place to be…

Why would anyone work harder for no reward?

It makes no sense. What incentive is there to improve?

If you’re going to be paid exactly the same no matter what the results, then of course this form of measurement, or lack thereof, will result in an application of minimal effort by those involved.

And to expect anything different is absolutely ludicrous.

And so, of course, if results that are measured then improve, it follows that things are better and therefore those responsible should be entitled to some celebration.

And it’s amazing when I look at Dental Offices that pay employees various bonuses, there’s an air of improved harmony within those offices compared to Dental Offices that do not pay bonuses.

Incentivisation works.

And failure to incentivise deflates.

One of my clients has several bonus systems applied to a host of measurements in her Dental Office.

What this means is that at most times there’s the opportunity for staff to be rewarded for improvement.

Bonuses in her office are paid on a wide range of parameters.

And I’ve never seen such a great bunch of motivated employees.

The bonuses create significant stake holding within the team.

Great bonus systems need to be achievable. A good bonus system needs to be a stretch, but not an impossibility. I like to think bonuses should be achievable at least twenty five to thirty three percent of the time, if not more.

So if we’re comparing on monthly figures, I’d like to set a target of last year’s collections plus fifteen to seventeen percent as a threshold for our bonus.

Achievable, and definitely worth rewarding.

If your office is collecting fifteen percent more than last year on a regular basis, then of course you wouldn’t mind rewarding those who helped with this improvement, would you?

And of course, on the flip side, when an unachievable bonus system exists, it tends to deflate the team more than not having any bonus system at all in place.

Paying bonuses is a great way of profit sharing with your key employees, and stakeholders.

It just makes so much sense.

And NOT paying bonuses makes no sense at all…


Have you read my book , How To Build The Dental Practice of Your Dreams [Without Killing Yourself!] In Less Than Sixty Days.

You can order your copy here: Click Link To Order


The Ultimate Patient Experience is a simple to build complete Customer Service system in itself that I developed that allowed me to create an extraordinary dental office in an ordinary Sydney suburb. If you’d like to know more, ask me about my free special report.

Email me at david@theupe.com

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