Dentaltown New Grad Edition 2016 - 36

2 3 4007 0 5 09 0 charges and other potential up-front incentives (such as extended "rentfree" periods). Find a brokerage that performs a lease occupancy cost analysis, which pinpoints the true cost of a lease by assessing: * the base rental rate * common-area expenses * maximums on annual operating expense escalators * free rent * tenant improvement contributions by the landlord * electrical capacity * the cost of any improvements required by the federal Americans with Disabilities Act, or zoning restrictions * additional costs associated with rentable (vs. usable) square feet. Negotiating with landlords is an art, and your lease and location can be long-term commitments. Understanding lease costs and terms are key elements of your financial analysis, and getting the deal right is critical to building a successful practice. 2 3 74 59 Hygienist Salaries Annual Median $68,551 10% $49,983 25% $58,832 75% $78,027 90% $86,656 HR-reported data for median salaries and salary ranges for U.S. dental hygienists, as of July 29, 2016. As reported on Salary.com. 36 NEW GRAD 2016 // dentaltown.com INVESTING IN EMPLOYEES A big step in building a new practice is hiring and training your team. You should view this crucial undertaking as an investment, not merely a cost. With this mindset, after finding the right team members, retention becomes a key priority. While it's natural to focus heavily on compensation levels, there are hidden costs associated with excessive employee turnover and HR lawsuits. Run a practice that is well above average in profitability, so you can pay for the right team. To find talent, there are several excellent dental-specific job sites such as Dentaltown.com and Dentalpost.net. Hire employees at market-competitive rates, but allow them to earn above-market pay after a reasonable period of demonstrated reliability and excellent performance. Why offer above-market compensation opportunities? In a study by the nonpartisan, nonprofit Center for American Progress,1 the median cost of turnover was 21 percent of an employee's annual salary. With median total compensation of $68,551 (salary and benefits) for a dental hygienist, the cost of turnover is $14,396, not to mention potential lost production.2 Avoid unwanted employee turnover, which is an enormous drain on profits and the new practice owner's time. Building the right team is a big investment. Therefore, it's critical to manage for peak performance and avoid the costs and distractions of legal employment complaints where the average cost settlements and legal fees range from one to two times the employee's annual salary. Implementing a human resources management system to maximize team performance and ensure compliance with employment laws is cheap insurance when building a practice that will provide a healthy lifelong income and http://www.Dentaltown.com http://www.Dentalpost.net http://www.Salary.com http://www.dentaltown.com

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