Annual Planning – To Add or Not to Add an Associate

With the holiday season in full swing and the end of the year approaching faster than ever, many practice owners utilize this time of year to put the finishing touches on their business plans and goals for the upcoming year. Perhaps one of the most important decisions any practice owner will make during annual planning is whether or not to add an associate to their practice.

Knowing if your practice is ready to hire an associate, however, is key to determining the success of any expansion. Here are some tips to follow when considering the addition of an associate to your practice, including good reasons to add and good reasons to wait:

Good Reasons to Add

It fits with your mission – If you offer a unique set of services to your target patient base, your production numbers are above industry norms, and you can easily add more patients by offering more capacity, it might be a good time to look at adding an associate.

It fits with your long-term strategy – We’ve written numerous articles over the years about having a clear picture of what you want your practice to look like and be like in five years, ten years, or when you are ready to transition out. If you don’t have a long-term objective, it’s important to develop one before hiring anyone. If you need some help, we’ve put together a great guide on preparing a business plan and organizing your objectives and goals: Grow Your Practice in the Upcoming Year with a Business Plan

A great opportunity presents itself –One of the best indicators it may be time to add an associate is if there is an underserved patient population in your community and you could fill a new associate’s schedule by catering to their needs.

You find an associate with the following three qualities –

1. His clinical philosophy is in sync with yours

2. Her personality fits well with yours and that of your office culture

3. Your long term goals align (i.e. she wants to buy an office in 5 years, you want to sell your office in 5 years)

If these three things align, just about all other issues can be worked out in time. If clinical philosophies, personalities, or long-term goals are not in line, however, don’t make the hire.

Complimentary Skills – If an associate loves working with pediatric patients or performing certain procedures that you routinely refer out, you may be able to add a complimentary revenue stream to your practice without adding patients.

You can afford to fail – Adding an associate is a calculated risk. Make absolutely sure that if an associate does not work out, it will not seriously jeopardize the long-term health of your practice. We’ve seen Optometrist/Ophthalmologists literally hand their practice over to a new associate on their first day so the owner could take an extended two month vacation or stop practicing altogether. This is a recipe for disaster, and often comes with costly consequences for the practice owner.

You are truly prepared – Make sure you have the operatories, systems, and staff to support a new associate before you make a hire. The reason that most associate relationships fail is because the practice simply wasn’t ready. There are plenty of great associate opportunities out there. Don’t lose a great associate because he or she lacks the equipment, staff, mentoring, or patients. Just because you need an associate does not mean your practice is ready for one.

Good Reasons to Wait

Your practice’s systems are inefficient – When was the last time you took a look at your practice’s internal efficiencies? Is your practice producing what comparably-sized practices are? If the answer is no, you may want to speak with a practice consultant so you can get the most out of your current system and team. Adding an associate will not fix your production issues, but will simply add to the inefficiency of your practice.

You want more time off – Many Optometrists/Ophthalmologists make the mistake of adding an associate simply because they want more time off. This reason is perfectly justifiable, but first you need to assess the financial impact of an associate taking over some or all of your current production.  If you can improve your quality of life by adding an associate to share your current workload and give you more free time, by all means do it. Just make sure you get with your CPA to ensure you truly understand the financial impact of such a decision.

You’ve just expanded or built a new office and want to “fill it up” – Just because a new building will accommodate two, three, four, or five associates and the accompanying support staff doesn’t mean you will immediately have patient demand to fill everyone’s schedule immediately. “If you build it, they will come” doesn’t always work when it comes to eye care, especially in the short term.

Your competitor just hired an associate – Can you hear your Mom saying “if all your friends jumped off a bridge, would you?” There is a lot of truth behind that old phraseology, as silly as it may seem. What might be right for a competitor’s practice and financial situation isn’t necessarily best for your own practice, and vice versa. Identifying and assessing your practice’s specific needs and goals will always warrant better results than simply trying to copy your competitor’s strategies.

Adding an associate is an important decision for any practice owner to make. With some careful thought and planning, though, the addition of the right team member to any practice can boost production levels and increase the overall profitability of the practice as a whole.

If you’re considering adding an associate, feel free to reach out to one of our experienced vision recruiters and let ETS find your next great associate for you!

Written by Mark Kennedy, President and Owner of ETS Dental, Vision, Tech-Ops, and Therapy. For more information, contact us and let ETS Vision find your next associate, partner, or buyer today! www.etsvision.com

The Future of Contract Staffing

Contract staffing, also known as temporary or contingent staffing, has long been a solution for employers to meet short-term or variable staffing needs, while providing candidates with the opportunity to gain seasonal work or work between permanent positions. Temporary employees are no longer viewed as just being lower-level, non-essential and less-committed workers. In fact, the recession of 2008 introduced many companies to the value of having contractors as a significant portion of their workforce.

As the job outlook improves, contract staffing remains as a viable, growing workforce solution for not only satisfying administrative needs, but also engaging senior-level staff, in a cost-effective manner for strategic, leadership expertise. Contract staffing is becoming such an integral part of the workforce that Staffing Industry Analysts predicts 50 percent of the workers at Fortune 100 companies will be contingent hires by 2020. While every employer's need for contract workers will vary, they will increasingly need to think about how to implement an effective recruitment strategy that provides the right mix of contingent and permanent workers to move their organization forward.

According to Staffing Industry Analysts' Temporary Staffing Trends, Development and Forecasts webinar, the U.S. temporary staffing market is projected to experience 5 percent growth in 2014 and 4 percent globally. "Our employment landscape is changing and it's clear that contract staffing is no longer being viewed as just a secondary or backup labor solution," says DD Graf, vice president of contract staffing for MRINetwork. "The focus is moving from using temporary workers to fill in for or replace permanent functions, to more of a strategic approach in which companies contemplate whether key initiatives will require temporary vs. permanent work."

Graf offers the following advice for implementing an effective contract staffing recruitment strategy:

Include discussions around the workforce mix in annual company-wide strategy sessions. Companies should be considering the contingent labor that will be required to drive the organization's strategy instead of waiting until demands become too much, or out of the scope of work performed by permanent staff. Simply put, consider if you have everyone needed on board to accomplish company goals.

Don't disregard contract talent as only short-term workers. While contract talent are frequently hired for project-based work or short-term, mission-critical initiatives, there is a large pool of highly-skilled, contract talent that is increasingly being hired for projects that last several months or even years. Many of these top performers also prefer contract staffing for the same reasons companies do: work flexibility and the ability to demonstrate expertise in a given area. Utilizing contingent workers in this manner, makes it advantageous for employers to solve temporary workforce needs in a more cost-effective and efficient manner.

Consider your industry and the variances in workflow that happen throughout the year. Industries that are highly susceptible to fluctuations in workflow are information technology, electronic patient records implementation, healthcare information technology and pharmaceutical/life sciences. Having variable staffing expenses will allow you to better control your costs.

Partner with a staffing company that has expertise as a single source solution provider for contract and permanent assignments. When bringing in the best talent is the goal, working with a staffing organization that understands your industry, has relationships with top candidates and has your company's best interest in mind, can provide you with the competitive edge to recruit the top performers in your market, whether on a permanent or contract basis. As entities that remain current on constantly changing contract labor regulations and handling payroll and other back offices responsibilities, staffing organizations take much of the risk out of contract staffing, while helping you implement effective recruitment strategies.

As we move towards the 2020 workforce, companies are becoming more quality-focused as opposed to work output-focused. Graf concludes, "This fundamental shift in the workplace is causing companies to dissect and redesign work responsibilities and even roles, creating a growing need for contract staffing."