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Episode 441

A Bonus System That Works!

by Gary Takacs | June 24, 2020

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In this week’s Thriving Dentist Show, Gary Takacs talks about his most favorite system of achieving consecutive growth in his Life Smiles Practice, which is having a proper bonus system/compensation scheme that works. 

This episode will help you understand the importance of having a properly functioning bonus system that will help the entire team work together towards a common goal with much enthusiasm and commitment.

These are the guidelines for a proper bonus system.

  1. It has to be a win-win system
  2. It must be simple to understand
  3. It needs to be as immediate as possible
  4. It has to have a measurable goal
GRAB BAG BONUS FREEBIE

Gary Takacs shares in detail the fun methods of the bonus systems that he has implemented in his practice and how it has impacted the growth of his dental practice.

4 categories of Bonus schemes he explains in detail are: 

  1. Starter Bonus
  2. Individual Bonus
  3. Fun Bonus
  4. Team Bonus

The bonus system is one of the critical keys to success that has allowed him to attract and keep the best team members.

When you put a measurable bonus system in place that is achievable, it gives them a sense of satisfaction and accomplishment.

ASK GARY SEGMENT

This week Gary answers the following questions: 

  1. How do I know if my practice can afford to add a bonus system?
  2. Gary, should there be a waiting period for new team members before they are included in a bonus?
  3. I have heard you talk about the idea of providing a bonus to drive a particular KPI in the practice, can you please provide some more examples of KPIs to consider for this type of bonus system?
  4. Do you recommend sticking to a bonus system for a long period of time or should I mix it up now and again?

Do you have a question you would like Gary to answer in the next episode’s Q&A Segment? Ask Gary now!

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Tune in to the podcast to learn how a well-designed bonus system aligns the goals of the owner, doctor, and the team.

Learn the most successful bonus schemes that he would advise you to implement in your practice starting today in taking another step towards success!

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TIMESTAMPS

  • >>0:26 – Introduction for today’s episode
  • >>0:48 – Announcement on MBA July Workshop
  • >>1:54 – Announcement on Personalized Virtual coaching 
  • >>3:04 – Naren’s introduction to today’s episode
  • >>4:00 – How Gary has been a fan of incentive compensation systems or bonus systems since he entered this profession in 1980.
  • >>4:43 – We want to have a system in place, where the better the practice does, the better all of our team members do. 
  • >>8:02 – How Gary introduced a bonus system to one of his clients and why he became resistant.
  • >>8:55 – Money may not be the number one motivator for your team, because you’ve got really good team members who have really good value systems. 
  • >>10:52 – A well-designed bonus system does is that it aligns the goals of the owner and the team.
  • >>11:58 – 4 Guidelines for a proper Bonus system
  • >>12:10 – 1st Guideline
  • >>13:07 – 2nd Guideline 
  • >>14:00 – 3rd Guideline
  • >>14:16 – How Gary worked with one of his clients and his spouse joined the practice several years ago
  • >>15:58 – 4th Guideline
  • >>17:13 – a recap of the 4 guidelines
  • >>17:45 – 1st type of Bonus system – ‘’Starter Bonus’’
  • >>18:36 – Example for a starter bonus
  • >>18:49 – Importance of Google reviews
  • >>21:19 – Another concept of a bonus
  • >>23:03 – If they get double the results, then they get double the bonus
  • >>24:07 – 2nd bonus category – ‘’Team Bonus’’ 
  • >>27:00 – Reason why some of these bonuses fail
  • >>27:42 – What if somebody’s not contributing to this team bonus setting?
  • >>29:01 – 3rd category – “An individual bonus system” (what Gary has implemented in his practice)
  • >>29:22 – Example for the individual bonus category 
  • >>32:20 – 4th category – ‘’Fun bonus’’
  • >>33:02 – What is a Grab bag bonus?
  • >>34:23 – Recap of the 4 bonus categories
  • >>37:37 – Q&A segment
  • >>38:13 – How do I know if my practice can afford to add a bonus system?
  • >>38:47 – It doesn’t make sense to do a bonus if there’s no budget for it.
  • >>39:41 – The bonus is paid from that extra revenue, right?
  • >>40:42 – Don’t even think about putting together a bonus until you get there 
  • >>42:24 – Q2: should there be a waiting period for new team members before they are included in a bonus?
  • >>43:59 – Q3: Can you give us more examples of KPIs to consider for this type of a bonus system?
  • >>46:06- Our hygienists & Assistants are the drivers behind adult orthodontics.
  • >>48:28 – Total accounts receivable in a dental practice.
  • >>49:42- Q4: Do you recommend sticking to a bonus system for a long period, or should I mix it up now and again?
  • >>52:42 – How to share about the bonus system with your team
  • >>55:53 – It’s an important part of our success in embracing this concept, and helping our team members become compensated very well for their performance
  • >>57:33 – About the personalized Virtual coaching
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Podcast Assistance by Jodey Smith, Rodecaster Expert Category: Thriving Dentist Show