3.24.17 Issue #785 info@mckenziemgmt.com 1-877-777-6151 Forward This Newsletter

Belle DuCharme, CDPMA
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Is Outsourcing Human Resources Right for your Practice?
By Belle DuCharme, CDPMA

As the CEO of a solo or small group practice, it is challenging to balance time, energy and knowledge to manage every aspect of the business. Hiring the right people and delegating tasks that you no longer want to do can feel like negotiating a minefield barefoot.

Are you spending too much time on the hiring process because turnover has become a revolving door in your office? For some practices, it is akin to a hamster on a wheel. We know that hiring by “feelings” or “instinct” can give false readings. Have you ever asked yourself what your hiring retention rate is? What position has the most turnover and why? Divide the number of employees who left during a period by the total number of employees at the end of that period to get the percentage. Some sources in the industry state that 85% or higher is considered a healthy employee retention rate.

Dental practices, large or small, face HR challenges that come along with hiring the right team, creating and maintaining a company culture, and complying with ever-changing laws and regulations. HR requirements for small dental practices include abiding by all applicable regulations and maintaining an appealing and competitive office culture.

Outsourcing all or even part of the HR duties is viewed by many dentists as an expense that is not necessary. This is true if you have 15 or less employees, but I have witnessed chaos ensue when the Office Manager is continually trying to find and train staff while keeping the practice (or practices) productive and profitable at the same time. 

The demands of staffing range from finding coverage for the dental assistant whose child woke up sick this morning, to the dental hygienist who wants to take a two-week vacation and now must reappoint 16 pre-scheduled patients. Some duties of the Office Manager that cannot be outsourced should be weighed against those that can to achieve practice harmony and profitability.

Four Facts to Consider for your HR Department

1. Follow Employment Regulations Law
Dentists and their managers must be educated in the laws that affect their practice both by state and federal law.

2. Ensure that Employee Files are Orderly and Private
Keep employee files organized and confidential, especially sensitive private information like medical records, payroll records and personal leave requests. Be compliant in the keeping of I-9 forms and documentation, resumes, the job listing that the employee responded to, written job applications, performance reviews and comments about any disciplinary issues.

3. Paychecks on Time
Consistent payroll systems must be in place to ensure paychecks on a consistent basis, at the same time each period. Track hours electronically so there is accuracy and less drama about who was there and when. Timesheets can help keep track of vacations and sick time, and there are several management programs online or within the practice software program to help you stay organized.

4. Have an Employee Policy Manual
Make sure your policy manual is prepared by an expert who knows your state laws, or draw one up and have your attorney review it for compliance to state laws. An employee manual explains a dental practice's policies and procedures, and communicates expectations to employees. It also helps protect the practice in the event of a dispute.

A full service Human Resources management company may be too much as far as the costs, but consider outsourcing some of the time-consuming parts of the process that require professional protocol.

Some human resource duties to outsource and save money:
1. Payroll Company – calculates each employee’s salary by hours and benefits and pays taxes on time
2. Staffing/Recruiting Company – for temporary and permanent hires
3. Professional Employee Policy Manual

One of the main reasons to outsource HR functions is the potential cost savings it can bring. Many small businesses only need HR to help ensure they are being compliant, while larger businesses will need HR to support full functions of the business.

Want to learn more about managing the human resource department of your practice? Call McKenzie Management today and schedule a business training course.

If you would like more information on McKenzie Management’sTraining Programs  to improve the performance of your team, email training@mckenziemgmt.com

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