• Hero Banner
  • ACVCACVC
  • DVM 360
  • Fetch DVM 360Fetch DVM 360
DVM 360
dvm360 | Veterinary News, Veterinarian Insights, Medicine, Pet Care
dvm360 | Veterinary News, Veterinarian Insights, Medicine, Pet Care
By Role
AssociatesOwnersPractice ManagerStudentsTechnicians
Subscriptions
dvm360 Newsletterdvm360 Magazine
News
All News
Association
Breaking News
Education
Equine
FDA
Law & Ethics
Market Trends
Medical
Products
Recalls
Regulatory
Digital Media
dvm360 LIVE!™
Expert Interviews
The Vet Blast Podcast
Medical World News
Pet Connections
The Dilemma Live
Vet Perspectives™
Weekly Newscast
dvm360 Insights™
Publications
All Publications
dvm360
Firstline
Supplements
Top Recommended Veterinary Products
Vetted
Clinical
All Clinical
Anesthesia
Animal Welfare
Behavior
Cardiology
CBD in Pets
Dentistry
Dermatology
Diabetes
Emergency & Critical Care
Endocrinology
Equine Medicine
Exotic Animal Medicine
Feline Medicine
Gastroenterology
Imaging
Infectious Diseases
Integrative Medicine
Nutrition
Oncology
Ophthalmology
Orthopedics
Pain Management
Parasitology
Pharmacy
Surgery
Toxicology
Urology & Nephrology
Virtual Care
Business
All Business
Business & Personal Finance
Buying or Selling a Practice
Hospital Design
Leadership & Personal Growth
Personnel Management
Practice Finances
Practice Operations
Technology
Wellbeing & Lifestyle
Continuing Education
Conferences
Live Conferences
Conference News
Conference Proceedings
Resources
CBD in Pets
Contests
Veterinary Heroes
Partners
Spotlight Series
Team Meeting in a Box
Toolkit
Top Recommended Veterinary Products
Vet to Vet
  • Contact Us
  • Fetch DVM360 Conference
  • Terms and Conditions
  • Privacy
  • Do Not Sell My Information
  • About Us

© 2023 MJH Life Sciences and dvm360 | Veterinary News, Veterinarian Insights, Medicine, Pet Care. All rights reserved.

Advertisement
By Role
  • Associates
  • Owners
  • Practice Manager
  • Students
  • Technicians
Subscriptions
  • dvm360 Newsletter
  • dvm360 Magazine
  • Contact Us
  • Fetch DVM360 Conference
  • Terms and Conditions
  • Privacy
  • Do Not Sell My Information
  • About Us
  • MJHLS Brand Logo

© 2023 MJH Life Sciences™ and dvm360 | Veterinary News, Veterinarian Insights, Medicine, Pet Care. All rights reserved.

What to do with an overcompensated employee

April 1, 2011
Bob Levoy

What to do with an overcompensated employee

The overcompensated employee is more common than most veterinarians care to admit. This scenario often presents itself when a good employee has been on the job for so long that a simple compounding of reasonable yearly raises has given him or her an unreasonably high salary. The employee expects an annual cost-of-living raise, but from your perspective, her compensation has become excessive.

You can solve this problem in part by giving smaller raises and by using tax-free fringe benefits in lieu of raises. This arrangement benefits the practice, since there are no federal or state income taxes or matching payroll taxes on the value of tax-free fringe benefits, says John McGill, MBA, JD, CPA, a tax attorney in Charlotte, N.C. Retirement plan contributions aren't required on the value of these benefits either.

Advertisement

But once you reach the point of overcompensation, you have a business decision to make: Should you continue to overpay the team member or risk losing her if you fail to grant another raise? Consider this: If you were to lose this team member, could she get another job at an equal salary? If the answer is no, then she's probably overpaid, in which case she'll probably stay with the practice even if she's not offered a raise. And if she does decide to leave, is this really a negative in the long run?

Veterinary Economics Editorial Advisory Board member Bob Levoy is the author of 222 Secrets of Hiring, Managing, and Retaining Great Employees in Healthcare Practices (Jones and Bartlett, 2007).

Related Content:

BusinessBusiness & Personal FinancePersonnel Management
CityVet names new chief strategy officer
CityVet names new chief strategy officer
Hannah Pet Hospital names new CEO
Hannah Pet Hospital names new CEO
CityVet Celina opens in Prosper, Texas
CityVet Celina opens in Prosper, Texas

Advertisement

Latest News

Enhanced pet health and wellness app now available

Advice on dog and cat seasonal allergies with air quality threats

News wrap-up: Keeping pets safe from wildfire smoke, and other veterinary news

Morris Animal Foundation celebrates 75th anniversary

View More Latest News
Advertisement