Compensation is a Package - Look at the total cost.

Too often both doctor and staff forget the total cost of employment. The form accompanying this article shows you what to include when valuing staff benefit, bonuses and overtime.

Health insurance is costly. No one should take this benefit for granted. Whether or not you cost share with your employees let them know the cost of the coverage.

Next big item is the retirement savings account contribution. Some practices offer a 401k with a match; others offer this and a profit sharing plan to eligible staff. This is a benefit that can provide real value to long-term staff. Docworthy advisors can help set up solid plans.

Edit the form to conform with your compensation package.

If you don't offer health insurance or retirement plan contributions, your staff may expect higher salaries and rightfully so.

Other sometimes forgotten perks include paid for parking, which in cities and medical complexes areas can cost $20.00 a day. If an employer covers parking fees, it is a big bonus. Others, like my firm, pay for a portion of an employee's transit pass. This is a deduction for the firm, and a non-taxable benefit to the staff, saving some up to a $75.00 a month in after tax expenses or $900 a year. The government wants cars off the road.

Uniform allowances are another fringe benefit for staff that is worth reminding them about. Some practices pay for five uniforms and two pairs of shoes. A few practices launder uniforms for staff.

What about complimentary medical care and services? Treatments are an exceptional benefit offered by some practices. Plastic surgeons are motivated to have staff knowledgeable about the services offered and may offer complimentary or discounted injections or laser treatments or surgery worth thousands of dollars.

In preparing this form, many physicians are shocked when they see how much they've paid in overtime (OT). We suggest that you review the OT hours quarterly to avoid an annual surprise. All OT must be approved.

Understand the value of paid vacation. The nurse that's been with your practice for over 10 years probably qualified for a month's paid vacation.

If you don't show staff what the cost and the value of their benefits are, don't expect them to experience gratitude for your generosity. Here's an example: in one notable case, a few years back, a practice manager was making $70,000 a year. She had fully paid health insurance for herself and her son. The paid health insurance for the son was worth $4,200. On top of her three weeks paid vacation because of her five year tenure and eight paid holidays, she was paying herself overtime on average of 20 hours per month. She didn't have "anyone to help" so much of the OT was doing work that someone at a lower rate of pay could perform. And, she was complaining about her compensation. First, she didn't seem to grasp that if she had to pay her son's health insurance premium it would be with after tax dollars. Second, she was not eligible for overtime because she qualified as an exempt employee. Third, when compared to national statistics published by the Medical Group Management Association she was paid at the 90% for practices at the same revenue.