How to build a dental team bonus system that actually motivates
Key Highlights
- Team-based bonuses foster collaboration and reduce resentment compared to individual incentives.
- Fair compensation practices, including signing and longevity bonuses, prevent jealousy and promote morale.
- Recognizing and celebrating team achievements enhances motivation and strengthens office culture.
- Over-compensating new hires without adjusting team pay can lead to negative attitudes and decreased motivation.
- Bonuses should be achievable and tied to clear goals to motivate staff without creating unrealistic expectations.
The concepts of motivation, leadership and inspiration have been part of managing people for hundreds of years. There was a time when the main approach was fear of termination that was held over the heads of employees who didn’t perform. We are now in an era where people can change jobs almost instantly and there’s a general shortage in the dental profession of available and trained team members.
Many dentists tolerate unacceptable behaviors and attitudes because they are afraid of being able to find a suitable replacement. The real question should not be how to scare people or retain people that should not be retained, but how far you can take your team?
Understanding dental team motivation
One of the main problems with motivating team members is that each has very different motivations. Although it would be ideal if you knew what motivated each team member and could act accordingly, it does not work that way.
Dentists simply do not have time, nor do their office managers, to properly assess what motivates each individual and set up an individual incentive plan. This is why bonus systems are generally successful. The bonus should be set for the entire team to create a sense of teamwork.
Common mistakes in dental team bonus systems
Mistakes are frequently made in the design of bonus systems. Some favor certain team members, which causes both resentment and an uneven level of motivation. The team members who think they can get a bonus will go for it, and the others could care less.
In addition, you have to assume that whatever you do financially for any single team member will become known to all. Once people know that you have favored one team member with a bonus, or even that a team member has earned a bonus. They will have tremendous resentment.
Why team-based bonuses work
When Levin Group designs a bonus system, we recommend it be team-based. The goal is set, and if it is achieved, everyone gets the bonus prorated for part-time. Everyone participates equally.
Although different team members have different capabilities of contributing to the achievement of a bonus, the idea of everyone pitching in, having great attitudes, delivering excellent customer service and doing their jobs is still appealing. Everyone participates and everyone wins.
How to reward individual dental team members
This means that if you want to individually reward team members, you should do it on an individual basis within their compensation structure. There is no secret that some people make more than others. This is fine when you compare different jobs such as an office manager versus a dental assistant. It is also fine even within the same job title if it is based on experience level or certification.
However, if you over-compensate a new person to have them accept the job, the rest of your team will find out and if that person is newer or less experienced, there will be resentment if that person‘s compensation is higher. Once again, the downward spiral takes over.
Instead, hire the new person and offer them a longevity bonus or a signing bonus to take the job that is not part of their compensation. This way it does not become “public information“ in the office that you are simply paying them more.
If you have to over-compensate new hires, you need to bring the rest of your team up to that level or eventually it will cause resentment, negative attitudes and bad feelings. You don’t want good intentions to demotivate the rest of your team.
Using bonuses to improve dental team retention
Although everything is not always about money, dental team members have significant expenses in an economically challenging world. If they do not feel that they can financially live their lifestyles based on their compensation, they will begin to look elsewhere.
Here’s where a bonus can help. The opportunity to achieve a bonus (and it must be achievable or it becomes a negative factor) gives them a chance to increase compensation on a periodic basis. When they do achieve a bonus people feel great, it is motivating and exciting and everyone is appreciative.
Celebrate team bonus achievements
And one final note. When your team achieves a bonus, celebrate it. Go out for lunch, have champagne, do something. Make it more than just a check. Make it a thank you.
Editor's note: This article originally appeared in The Bottom Line with Dental Economics, the newsletter that will elevate your inbox with practical and innovative practice management and clinical content from experts across the field. Subscribe here.
About the Author
Roger P. Levin, DDS, CEO and Founder of Levin Group
Roger has worked with more than 30,000 practices to increase production. A recognized expert on dental practice management and marketing, he has written 67 books and more than 4,000 articles, and regularly presents seminars in the US and around the world. To contact Dr. Levin or to join the 40,000 dental professionals who receive his Practice Production Tip of the Day, visit levingroup.com or email [email protected].

