Dr. Lopez in one of his office’s exam rooms. Dr. Lopez says it’s important to know how to happily seal the deal with prospective associates.
Hiring an associate optometrist for practice growth
By Christopher Lopez, OD
August 14, 2024
One of the most pivotal steps for practice owners seeking to grow their businesses is hiring an associate optometrist.
Whether the reasoning is to increase patient volume, expand services, or begin an exit strategy, finding the perfect OD requires a strategic approach.
Here are key takeaways from many consulting conversations with associates and practice owners on how to best hire an associate:
Define Expectations
Clearly define what you expect of an associate in a new position. Thorough communication from the start can help avoid headaches later on.
- Will they:
- provide specialty services?
- participate in after-hours coverage?
- be involved in staff training?
- work weekends?
- See a high patient volume?
Room for Growth
Some optometrists favor a position in which they simply clock in and clock out. This is not bad; it is simply a preference on how to view life and a career. On the other hand, plenty of hard-working ODs are hungry for growth.
They work toward achieving fellowship credentials or take on operational responsibilities in an office. It is crucial for practice owners to understand which of their associates are fired up about growing their skills.
Moreover, employers should facilitate leadership and growth offerings. If not, astute employees can become bored or find new opportunities that will feed their appetite.
* A note on ownership – I know it is in vogue to say that younger ODs don’t want anything to do with practice ownership.
However, the same could be said for most generations of optometrists that came before us. The fact is, most ODs will not become practice owners – and that’s OK.
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Additionally, Generation Z and Millenials are putting a greater emphasis on work-life balance and believe that life should not revolve around work. Put all of this together to understand the chasm that exists in the optometry ownership discourse.
In my opinion, private practice is strong. I see this on a weekly basis in my recruiting work matching eager ODs with practice owners seeking to exit on their own terms.
If you think younger ODs don’t want practice ownership, you’re looking in the wrong place!
Utilize Different Channels
Finding an optometrist can be highly difficult – just ask any of our rural area colleagues. It would behoove employers to cast a wide net during their hiring search.
There are many (not inexpensive) optometry job boards available. Indeed and LinkedIn remain popular for many colleagues whom I consult with. In addition, the schools of optometry and organizations like Vision Source also have job boards. Connect with industry reps and put feelers out with your professional network to invite potential applicants to your opportunity.
Certain employers engage an agency focused on recruiting, which is a nebulous industry. Some recruiting companies require an upfront deposit, do not thoroughly screen candidates and charge up to tens of thousands of dollars for a single associate OD placement.
However, a connected recruiter with integrity may potentially lead to a quicker hire. If a productive associate can generate $65,000-$100,000 per month and a recruiter can save you six months in a hiring search – well, that service more than pays for itself!
* PRO TIP: PLEASE state the compensation when creating a job listing. Job seekers are turned off by phrases such as “competitive salary” or “ salary commensurate with experience.”
Offer Competitive Compensation
A competitive compensation package is vital in attracting (and retaining) talent. In the past few years that I have engaged in consulting work, I have already seen associate optometrist wages creeping higher, which is frustrating for owners who have seen little-to-no increases in vision plan exam reimbursement in recent memory.
At the end of the day, one of the many hats that practice owners must wear includes navigating paying employees fairly while trying to improve office profitability.
There are multiple ways to pay an associate OD, and it can vary based on setting. For example, pay in a sublease or ophthalmology location will likely be structured differently than a private optometry practice because certain settings generate practice revenue in different manners.
The four most common compensation models for traditional optometry settings are:
- Base salary: The associate is paid a flat salary. This model is simple, but the potential downside is that there is no (financial) benefit for an associate OD to generate more revenue.
- Straight production: Many production ranges have been introduced. In hundreds of consulting sessions with practice owners and associates nationwide, the most narrow production pay range encountered is 15-17 percent. This is based on what a practice actually collects, not bills out. For example, an OD who generates $1 million in revenue would receive $150,000-$170,000. Generally, benefits are in addition to these wages. Variations of this structure exist.
Associates may earn higher income by increasing their production. However, most associates with this structure do not receive PTO or paid holidays, and (un)paid vacation often leads to more stress given an eventual reduction in their future paycheck.
- Hybrid: An associate receives a base salary and a bonus incentive which can be structured in a variety of ways. For example, an OD who generated $800,000/year and is set to receive 15 percent of collections above $700,000/year would receive a $15,000 bonus. It can be tricky knowing where to set the threshold and what percentage would be appropriate.
Alternatively, an employer could pay an associate a base salary and then a bonus equating to a small percentage of their overall collections. This is my preference and a more straightforward approach.
* NOTE: Bonuses are usually paid out on a quarterly basis. Some employers opt for a monthly, biannual or annual bonus payment timeline.
- Either/or: The last common compensation strategy is what I call the either/or model. Essentially, an associate would be paid a base salary or a percentage of production, whichever is higher. If the percentage of production is not higher than the base wage, no bonus is paid out. If the OD outproduces their base salary, a “true up” is paid out – preferably on a quarterly basis.
For example, 16 percent of an associate’s quarterly production was $45,000 and they have a quarterly base salary of $35,000 – so the $10,000 difference would be paid out following the end of the quarter.
Hiring the right associate optometrist is a critical step for practice owners aiming to improve their business and lives. By utilizing the above tips, practice owners can build a strong team to take their practice to the next level and ensure long-term success.
Keep an eye out for more related articles from me in the future on hiring associates, as we’re barely touching the tip of the iceberg.
Left to be discussed are the biggest upsides and downsides to hiring an OD, how employer/employee relationships turn sour, and the MOST important item to consider when bringing on an associate. Stay tuned!
Christopher Lopez, OD, is a practicing optometrist and Career Director at ODs on Finance. To contact him: christopher.lopez.2013@gmail.com
