IT’S TIME TO CREATE A STAFF INCENTIVE PLAN THAT LEADS TO DESIRED OUTCOMES

Action Steps

✓ Set clear expectations

✓ Involve the team

✓ Track/measured results

✓ Change the incentive plan (if necessary)

STAFF BONUSES and incentive programs tend to get mixed results. I consider a successful staff incentive program one that leads to desired outcomes and gets employees to perform at a higher level. The following are a few checklist items to create an incentive program that gets results.

SET CLEAR EXPECTATIONS

“If we grow by 10% this quarter, the staff gets a bonus.” Some variation of that is a typical example of a staff bonus implemented by many practices. The first question I would ask is, “Does each employee know specifically what is expected of him or her?” If not, it’s less likely you will get the behavior change mentioned above. I frequently hear from practice owners who say they implemented a bonus program and saw no change in staff performance. To get behavior change, you need to translate broad goals into concrete behaviors. For example, if you plan to increase sales of photochromic lenses in your practice, one behavior might be that the optician briefly demonstrates to each patient the benefits of lenses that darken in the sunlight and lighten indoors.

INVOLVE THE TEAM

People tend to respond more positively to change and new initiatives when they are involved in the process. If the goal is to grow revenues by 10%, meet with your team members to get their ideas on how to reach this goal. People generally like to see their own ideas succeed.

In the book, Why Employees Don’t Do What They’re Supposed To and What You Can Do About It, business consultant and author Ferdinand F. Fournies writes that not clarifying expectations and not involving employees in decisions are two of the top reasons employees don’t do what they’re supposed to do.

TRACK/MEASURE RESULTS

In the words of Peter Drucker, “If you can’t measure it, you can’t improve it.” Track and measure concrete data that serves as a scoreboard for success. Vague and ambiguous goals like “work faster” or “provide better customer service” leave a lot of room for misinterpretation. “Increase multiple pair sales from 5% to 10%,” does not. I also suggest keeping a scoreboard somewhere visible, such as a break room, to keep employees continually focused on the goals and progress made.

CHANGE THE PLAN

One of the risks of an incentive program is the bonus or incentive becoming an entitlement. This is where the incentive no longer leads to improved performance, but the employees now expect it as part of their normal pay. To avoid this, you could change the incentive every quarter. This gives you the freedom to change or discontinue the program if it’s not working. OM

DR. VARGO serves as Optometric Practice Management Consultant for IDOC. A published author and speaker with more than 15 years clinical experience, he is now a full-time consultant advising O.D.s in all areas of practice management and optometric office operations.