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The Hidden Costs for Optometry Practices of Unpaid Time Off

People waiting in line to check in at Dr. Sorrenson's office. She says that employees taking unpaid time off can adversely affect office efficiency and the patient experience.

People waiting in line to check in at Dr. Sorrenson’s office. She says that employees taking unpaid time off can adversely affect office efficiency and the patient experience.

Unpaid time off in optometric practices

By Laurie Sorrenson, OD, FAAO

Oct. 2, 2024

As a business owner in the optometric field, there are many challenges we face when managing our practices—keeping track of finances, maintaining the highest level of patient care and fostering a positive work environment.

One of the lesser-talked-about issues is the impact of unpaid time off on a practice. This affects almost every optometric practice eventually!

When we hire an employee, the assumption is that they will work full-time, adhering to specific hours and days. This planning isn’t arbitrary; it’s critical for the smooth operation of the business.

We base staffing decisions on patient flow, demand and the necessary coverage to ensure that every part of the practice functions efficiently. Every hour of the day is accounted for, and the paid time off (PTO) we offer is a part of that calculation. We already know that employees will take time off, so we plan for it accordingly as much as possible.

What happens when an employee exceeds their PTO and starts taking unpaid time off?

At first glance, it might seem like this doesn’t cost the business much.

After all, if the employee isn’t being paid, what’s the harm?  I thought this way about it when I was a fresh business owner, but the reality is that unpaid time off can create ripple effects that end up costing far more than it appears.

The Disruption of Scheduling and Workload

When an employee misses work beyond their allotted PTO, the rest of the team is left scrambling to cover the gaps. This can lead to overburdened staff, reduced efficiency and even compromised patient care.

For businesses that run lean, every absence matters. A missing team member means someone else has to step in, and that creates a strain that I believe no amount of unpaid leave can compensate.

Financial Costs Aren’t Always Obvious

While the absent employee may not be drawing a paycheck, the financial implications for the business still exist. An understaffed office may lead to delayed patient appointments, rushed exams, or even errors. This can result in lost revenue, dissatisfied patients and potentially negative reviews, all of which harm the bottom line.

Additionally, usually not every team member can do the same job as the person who is missing. Training another team member to take over those responsibilities on short notice can be costly in both time and productivity.

The Impact on Office Morale and Culture

Beyond the financial and operational costs, there’s the issue of office morale. When one employee frequently takes unpaid time off, it places an unfair burden on their colleagues. Over time, this can lead to resentment and feelings of inequity among staff members.

Your employees begin to feel that they are doing more than their fair share, and this imbalance can breed a toxic work environment. I have seen this happen in my own practice, unfortunately.

A damaged office culture takes time and effort to rebuild.

 Preventing Unpaid Time Off from Becoming a Problem

So, how do we address this issue? The key is to plan and communicate. When hiring, make sure employees understand the PTO policy, and be clear about the impact of exceeding it.

Regularly check in with employees about their schedules and workloads. If someone is consistently taking unpaid time off, it’s important to understand why and address the root cause.

For example, is an employee dealing with a chronic health issue that needs accommodation? Are they struggling with work-life balance? Identifying the reason behind excessive unpaid time off allows you to provide support while maintaining the integrity of your practice’s operations.

Informing the employee of the consequences of missing work when PTO has not been accrued needs to happen. It could be: “If you miss another day with no PTO accrued, you will no longer be able to work here.” Or it could be: “if you miss another day with no PTO accrued, you will be moved to part-time status and lose your full-time benefits like PTO, paid holidays and health insurance.”

Protect Your Business and Your Team

Unpaid time off may seem like a minor issue, but it really can have significant ramifications for your practice. As optometric business owners, we need to ensure that we have systems in place to minimize the disruption caused by excessive absenteeism.

By maintaining open communication, being consistent and being clear about expectations and consequences, we can keep our practices adequately staffed and running better at all times.

What is your unpaid time-off policy? Maybe consider revisiting your policy and making sure it is clear and communicated well to your whole team.

Laurie Sorrenson, OD, FAAO, is president of Lakeline Vision Source in Cedar Park, Texas, and the Professional Editor of Review of Optometric Business (ROB). To contact her: lsorrenson@gmail.com.

 

 

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