Rewarding longevity
My associate is receiving about $90,000 a year in compensation. She has requested a salary of $100,000 because she's been with me for eight years and she says her longevity is worth something. Is there a formula for a longevity bonus?
My associate is receiving about $90,000 a year in compensation. She has requested a salary of $100,000 because she's been with me for eight years and she says her longevity is worth something. Is there a formula for a longevity bonus?
"I wouldn't increase her percentage," says Mark Opperman, CVPM, a consultant with VMC Inc. in Evergreen, Colo. In fact, the longer an associate is employed at a practice, the more productive she should become because her competency and efficiency increase. Plus, if you increase your fee schedule every year, Opperman says, you're automatically increasing your associate's production, too.
Mark Opperman
Opperman suggests rewarding longevity with enhanced benefits. Consider offering long-term associates more paid time off, more CE days or compensation for CE, a better work schedule, and so on. The bottom line? "If your associate wants to make $100,000, she should," Opperman says, "but it'll be because she's more productive and deserves it, not because she's been with you for eight years."
