Why Your Bonus Structure Loses Good People

Why Your Bonus Structure Loses Good People

You pay RDH #1 $55K salary plus 3% production bonus. You pay her what you promised, but she still leaves after 18 months.

Why? Because bonuses based on production align her incentives with busy seasons, not stability. October's production bonus is great. August's isn't. She watches the bonus fluctuate and sees: "My income isn't reliable. I should find somewhere that is."

Top retention practices use different mechanics:

- Annual bonuses based on practice profit (she wins when business wins).

- Tiered salary increases for tenure (year 1: $55K, year 2: $57K, year 3: $60K).

- Sign-on bonuses for 24+ month commitments ($2K at hire, $2K at 2-year mark).

- Production bonuses capped at 2-3% (nice to have, not the draw).

Losing a solid hygienist costs $15K+ to hire and train a replacement. Your cheapest hire is keeping the one you have. Structure bonuses to reward stability, not just production spikes.