Staff turnover: What it costs in dollars and cents

Optometric Management,  May 2000  by Schwartz, Carol A,  McCabe, Nancy L

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Preventative measures

The best way to avoid the costs of replacing staff is obvious - keep your valued staffers satisfied. (See "Preventing Loss is Easier" below.) Most employees leave because of bad management, not money. Don't worry about retention as much as basic management. Employees need to feel that they're adequately trained to do their current jobs. They need to feel appreciated and that they're part of the team. This will give you and them reasonable optimism for the future.

What's called for is frequent training and the opportunity for advancement, however small the pay increment may be. The AMA/Ernst & Young study found that employees are more interested in advancing their skills than fattening their checkbooks.

"The incentives that help employees improve their skills consistently rank higher than immediate financial rewards," explained Eric R. Greenberg, AMA director of management studies in a recent white paper "Retaining Employees: A Top Concern."

Other often-overlooked keys to keeping employees include:

> frequent and sincere recognition

> flexible work schedules

> advanced training

> benefits, including (believe it or not) membership to health clubs, 401K or Keogh plans, childcare assistance, matching charitable contributions and paid time off for Volunteer Optometric Service to Humanity (VOSH) trips or other charitable endeavors. These are in addition to the standard benefits of insurance, vacation, sick time and uniform allowance.

It's all in the presentation

How you present your benefits package makes a huge difference in how the employee values it. Instead of saying to new hires, "We offer full insurance," consider saying, "We'll pay $175 per month for your health insurance package, which includes . . . " Knowing how much you're paying on their behalf is an indication of their value to your practice.

Another way to keep your employees motivated is to pay for continuing education seminars and classes. These opportunities keep them challenged and have real bottom-line returns by creating better-trained employees and greater office efficiency.

Why not a salary survey?

Salaries in our high-employment market are very volatile. A salary increase of 33% or larger in your area may put you in the unenviable position of competing with the local Burger Giant. If you conduct a salary survey, make sure it's current. And take into consideration comparable, if not identical, positions. Your telephone receptionist could easily work any place that has phone access, and your chairside assistant could find a place in any healthcare setting, as long as she knows how to take automated blood pressure/pulse readings and good case histories.

Either you or your office manager should take time to monitor local hiring levels - pay no attention to the national averages. The going wage in Silicone Valley is quite different than that in Woods Hollow. The important thing is that you're competitive in your market and offer job advancement or at least satisfaction factors. Check competitive compensation at least semi-annually to be sure you're still "in the game." The best way to conduct a survey is to call practitioners in your area and ask what they're paying for similar positions. Be sure to do some checking outside of optometric practices too, asking your local podiatrists, dentists or physicians what they're paying their staffers.