Home Forums Discussions General Discussion Calculate bonuses for Staff - Formula/My Uncle Sam

With the help of AC, My Uncle Sam is giving 18K to office.

With holiday season coming up, I am thinking of giving bonuses to my staff. Some meaningful amount, not those obscene Wallstreet kind.

Does any AC user have any tips/Formula based on work contribution to office to calculate bonuses for staff?

Thanks.

Whatever amount you feel comfortable with and does not hurt your wallet will be appreciated by your staff.
Grenville

We do 1-2% of gross annual salary, with the % based on the physicians & office managers judgement of that staff members contribution to the practice goals.

In the abstract, I know this sounds easy. But, in the actual practice it's not.

John, what do you do if you have two employees both making $12.00 an hour. Forgetting the percentage rule above, say you give one a bonus of $300 and the other a bonus of $200.

1. Do you make it well known to all that they are not to discuss their bonus amount?
2. If they do (and they likely will), do you do anything about that?
3. Which brings up the real issue, how do you handle the resentment that will ultimately occur?

Our staff is used to differential awards. Several times a year we have non-monetary staff appreciation awards (time off, event tickets, gas cards), with one or more staff members recognized at an office meeting for some extra effort. We recognized staff this year for making holiday decorations for the office, for organizing the office CPR recert session, and even a front office staffer making a smooth transition to a new bank without wasting physician time.

I know that they discuss what they take home. I am ready for it at their periodic review and let them know what they can do as a goal to get an increase.

Perhaps office staff does discuss the size of their bonuses; if they do, I would also expect that they have discussed their base pay. So I would doubt that a differential in bonus size would create significant animosity since they already know where they stand.
We typically give bonuses as extra days or an extra week of salary. The latter works out to about 2% of a year's pay.

Kudos to Joseph and others who share the MU wealth.

Thanks John and Jon,

I think that is a little different.

Our newest MA makes less than our MA with a year of experience who, in turn, makes less than our CMA who is certified (they all know there is a dollar raise for being certified -- yet most don't -- crazy) who knows that she will make less than the biller. They all know that.

Now, our annual session with staff to over their performance and give raises is different and can cause friction.

We almost always give the same bonuses based on part-time vs full-time.

While from management's perspective, it makes perfect sense to give a larger bonus to an employee who is working harder, giving less to an employee who thinks they are working just as hard causes ill feelings. It just does.

What we will do is give bonuses throughout the year to employees who have performed exemplary, but they are asked to keep this confidential especially if they wish to get more bonuses.

Our bonus policy is based mostly the recommendation of our office manager, who started as an MA long ago, and over time has gotten certified as an X-ray tech and lab technologist as well. Her approach is that anyone can reach any non-MD position in the office by working hard and getting extra skills that benefit the practice. When issues of pay arise, she gives the complainer a goal that will allow them to reach the next step. As Bert says, most of them don't bother, but at least the ground rules are in place.

I haven't seen any resentment or jealousy about bonuses, because we go to great lengths to make sure they are specific and targeted, the differences in $ are not vast, and no one walks away empty handed. Someone we wouldn't give a bonus to is usually asked to leave.

Bonuses? Who in the H can give bonuses???

We pay such a pathetic salary in Florida that you need to pay a bonus so the staff can afford gas.

So 2% of gross for bonuses, or for each bonus? If the practices brings in 600,000 per year, would you have 12000 to each employee or split it up among them?

So what % of the MU $ are people using as a bonus pool for the staff?

No, 1-2% of their gross salary (ie: $40k/year = $400-800 bonus).

What if you gave them 0.25% of the gross each year: then they would have incentive to make the company more profitable.

I am wondering how many of you pay bimonthly vs monthly. Also, do you use a payroll service, or do it yourself with programs such as QuickBooks Online Payroll. I also wonder how many small practices provide health insurance, 401k, etc. Maybe this needs its own thread...

We bonus our office mgr by gross receipts, figuring she is better able to direct resources. The staff bonuses are adjustable by how they meet goals set for them. We have always paid every 2 weeks, but no strong reason for this. Some of our younger employees (who burn through $$$ fast) tell us they appreciate getting the money spread out. We use Paychex, who does our payroll and 401k. Just easier, not less expensive. Rules on 401k's are especially complex, so you have to be careful. we have always paid our full time employees' health insurance. It seemed contradictory not to do so...

I am still trying to make up my mind on how much bonus to give. I am thinking 2-4% of salary. This would be like an extra paycheck for the year. I'm also still debating whether to give a differential based on time with the company and performance. Raises are already tied in to performance, so the base salary reflects performance to some extent. I am wondering what others out there do who have not weighed in on the discussion...