Are these compensations strategies "just part of business" or would you walk and consider this unfair treatment?
Our clinic is offering some changes in compensation. In Canada.
It used to be everyone gets an hourly pay - which matched nicely what the average PT in my province makes. Whether you have a client or not, you get hourly. Now relative to what clients pay and the overall income of the clinic, our hourly is probably about 40ish% (35-45%) of fee for service, but it's not a bad wage and it gives some security as you are guaranteed the pay even if the clinic is dead that week e.g. march break.
Now the owner is offering a switch to fee for service at 50% so basically you get 50% of what the client pays for the sessions, but you only get paid if you have a client. So if you are busy (a couple people have been here a long time and are very busy), you will come out superior to your hourly wage, but again in a dead week or anything reduces client volume (flu season, new virus outbreak making people nervous to come in etc) you lose, but most PTs know that if you are established and help out with marketing yourself/retaining clients then you do well. From owner perspective, they also don't want to pay hourly anymore as many PTs are just not completely busy - for which I blame them right back since they hired too many staff without looking at the numbers.
We have a choice as PTs that we have 4 weeks to decide - and can revisit at each yearly manager meeting.
(1) Stay hourly, this is not going to increase, same hourly, historically clinic has not been keeping up with inflation. But pros are that you are guaranteed those hours and pay even if you have 1 client come through the door.
(2) Switch to 50% split - if busy you make much more money, for those of us who have built some caseload/reputation this is an incentive to stay with the company, stay loyal, keep working hard to make clients happy and to retain them and to establish more word of mouth referrals.
The KICKER
- i am friends with one admin person outside of work, not best friends, but we live in the same region and we've ran into each other at the gym and chat more than I do with anyone else. basically they told me that after the switch the desk is to fill up hourly staff completely first, don't book new referrals for fee for service staff (unless client specifically asks for a PT by name) until hourly is filled - the reason is hourly is costing the clinic and if they're not busy they're draining the clinic money, and fee split is going to be taking more clinic earnings as well. This is unknown to the PTs obviously not advertised by the manager, but from a business perspective makes sense, however is like a slap in the face to those who are loyal who have built up reputations and caseloads.
Would you leave?