Should Your Practice Pay Salary Only, or Salary Plus Commission?
Choosing the right compensation structure is a crucial decision. Let's explore the pros and cons of salary-only versus salary plus commission models, especially for Customer Sales Managers (CSMs) and Patient Care Coordinators (PCCs).
The Facts: What Do the Numbers Say?
- 70% of CSMs have commission as part of their pay.
- 62% of CSMs/PCCs earn 15-20% of their salary from commission.
- Just 35% of businesses are keen on increasing commission in compensation plans (likely due to fear of staff turnover).
- Under 51% of CSMs/PCCs come from a sales background, potentially impacting their approach and results.
What These Statistics Suggest
- Sales professionals often expect and rely on commission for a significant portion of their income.
- Many CSMs/PCCs prefer less commission-focused models, some even shifting towards customer service roles to avoid sales pressure.
Is Your Practice Suffering from Complacency?
If sales are down, employee engagement is low, and profits are dwindling, consider these questions:
- Does a high base salary with minimal performance expectations foster complacency?
- Are sales goals clear and tied to rewards, making the practice profitable for everyone?
- Does your team understand the direct impact of their performance on the practice's success?
Motivation Matters: Consider Rebalancing Salary and Commission
- Set Clear Goals: Individualized goals for leads, consultations, and sales conversions are crucial. Factors like experience, department, and average service costs must inform these goals.
- Analyze Performance: Are you getting the best from your high-salaried staff? Could more commission drive better results?
- Assess Your Marketing: Are you generating enough quality leads and actively using social media? Does your team have the right follow-up skills?
Transitioning to a Performance-Driven Model
Before making changes, thoroughly understand your team's dynamics:
- The Right Mix: Could a 70/30 salary-to-commission model boost your practice?
- Incentivize Excellence: Make it fun! Contests, prizes, and a strong commission program can significantly increase motivation and sales.
- Identify Your All-Stars: Who thrives under pressure? A balanced model could reveal your go-getters and help those who prefer less sales pressure to adjust their roles.
- Commission structures directly impact business success.
- Balancing salary with clear sales expectations is vital for CSMs/PCCs.
- Every team member is a profit center.
- Regularly assessing performance and marketing strategies is essential for growth.
A Win-Win Solution Focus on the health of your practice as a whole, and you'll find a model that leads to a happy team, thriving business, and satisfied patients.
We're Here to Help! Unsure where to begin? Let's discuss your practice's needs. We specialize in medical marketing! Schedule an assessment: call (407) 702-4408 or email us at info@smsdrs.com .
