Avoid nightmare staff and build a portfolio for success (part two)

Your staff…

Three years ago, almost to the day, I said this about hiring young physios … (29/10/20).

I was referring to top performers.

What I term the top draft picks from their cohorts.

I was referring to the Nick Daicos’ of the AFL world.

What followed was 3 fold:

1. International borders stayed closed to new immigration for another 18 months
2. Substantial money flowed through the economy post job keeper creating huge demand for all aspects of the service sector
3. Record LOW UNEMPLOYMENT.

High demand / low supply

A sellers market for employees (in this analogy your potential staff are selling you their services).

I must say, I never paid anyone 90K.

But the point was that I was willing to if the right person came along.

I wasn’t desperate to hire.

But I had a clear goal in mind.

I needed high quality staff as I wanted to step out of practicing.

Something I was more than willing to pay overs’ for.

And I had a firm deadline.

January 1st 2021.

Last week, I wrote this about new staff

This isn’t a backflip on my part – or maybe it is, call it what you want 😉

It’s 3 years later and the entire macroeconomic cycle has flipped.

1. Unemployment is rising.
2. Demand for services is falling.
3. The floodgates of immigration are open.

The phenomenon we are about to see is called regression toward the mean.

Right now you can hire an international applicant at base wages.

New grads no longer command extraordinary salaries.

This generation, much like the youth who entered the workforce post GFC, will be lucky to have jobs.

Let alone careers.

And if what you are offering is a career… rather than a job.

Then all you need is to offer award rates.

I’m not that old…

I only started in private practice 11 years ago.

The year was 2012. back then we were paid as contractors.

We didn’t have:

1. Superannuation.
2. Sick leave.
3. Annual leave.
4. Long service leave.
5. Mental health days.

It was simple – no patients, no money.

Eleven years later it’s not unreasonable to be paid award wages in your first 3 months.

Especially when they have risen so sharply.

The award rate for a full time physio who works Monday to Friday is $65,344.81 (inclusive of super).

I’m happy to grant anyone a 10% buffer on this.

Which takes us to $71,878.40 (inclusive of super).

If you are offering long term contracts to graduates for more than this number.

You are overpaying!

The caveat is if your clinic charges closer to ($300 per hour).

But I know you don’t, because if you did you wouldn’t be reading this- you’d be in Hawaii right now.

Profits

Physio clinics struggle with profit for 3 reasons.

1. Not enough high quality patients
2. Undercharging
3. Overpaying staff

Too much exposure can damage your skin

Exposure: another word from the investment world.

Exposure in the context of payroll is what you are locking yourself in to pay your staff, regardless.

Regardless of whether it rains or whether the sun comes out.

You are going to have to come up with $$$$ this Thursday.

And like the sun itself, financial exposure is what causes your wrinkles and grey hair.

I love new graduates…

I love young physio’s.

I almost exclusively hired graduates.

They are the future of our profession.

The greatest joy you can have as an owner is watching someone prosper under your leadership.

And even better if they can go on to lead others within your team.

Can you feel the but coming???

But…

There is a harsh reality and we all know it.

When you hire a grad, you are hiring a low skills team member.

You are offering your patients an opportunity to be treated by someone who has literally never seen a patient before.

It’s not about what they offer day 1.

It’s an investment.

Like planting a tree.

You need good soil, sunshine, water and time…
Lots of time...
And before you know it… they start to sprout.

It’s also important to find quality graduates. 

Poor quality grads will consume all of your resources. 
They also take 'nutrients' and space away from healthier staff too. 
The last thing you want is to pour all of that (time) water and fertilizer onto barren soil.

This is where the garden meets the footpath.

You have to learn to sell a message.

Sell a narrative.

And here is mine.

Do you want a job or a career?

There are two options available in the health sector right now.

1. A job at a McDonalds clinic, Aged care or NDIS provider; which probably pays 50% better – but will have you looking for your next uni degree in <2 years.
2. A career with an experienced small business owner who has been in the game for a long time which sets you on a trajectory for success.

If you are serious about hiring, you need to stop trying to compete in the ‘job’ market.

Focus all of that energy on career physios.

People that come to work and inspire you to be better too.

Stop overpaying… please, just STOP.

Anyone you manage to snag from market one (job) into your clinic is going to be a headache come next September.

Literally, the research shows that around the 9 month mark is where most grads find they hit their wall.

The journey to the top of the mountain suddenly unveils itself as substantially longer than what they planned for.

And their results don’t match up with where they want to get to.

And the worst part is they blame you.

The first thing people do when they are unhappy at work is ask for MORE money.

It’s simple psychology… if I ask for more money and get rejected, I can quit and make it about the pay.

Rather than confront my inability to – grow a caseload, engage effectively with my patients and establish myself as a private therapist.

Imagine, you’ve paid overs for a junior staff member.

They’re underperforming chronically.

And now, 9 months later – they also want more money.

Meanwhile…

You have sunk cost bias.

And you throw good money after bad.

Only to continue to lose money.

First they drain their annual leave.
Then they drain their sick leave.
They take days off here and there just to mess with you...
And finally, they take YOUR patients with them to their next role.

Compete in a market of one

Recruiting is marketing.

It’s marketing your clinic to attract new staff, and getting them to sign on to YOUR offer.

So make it a good one, offer what others’ can’t.

YOUR experience and expertise.

YOUR track record for training physios

(OR if you don’t have this, make a commitment to become the best at this in your area and start now!).

And most importantly, YOUR TIME…

Offer your time

The single most valuable resource you have.

The one thing nobody else can offer.

The one thing that THEY actually want.

Someone who looks after them.
Someone who is committed to their journey.
Someone who will do anything they possibly can to ensure they succeed.

Create a gold standard new graduate program and your clinic will be bulletproof.

Sorry… not sorry.

And here’s the final reality check.

If you overpay your graduate staff and have this written into long term contracts (remember the 3 mistakes practice owners make?).

It is VERY DIFFICULT to help you to become more profitable…

Unless they quit.

And we can start over again next October.

PS. I’ve started a private Facebook group where I share my insights and more!