I have just arrived back in Australia following an incredible seminar tour of Canada – 8 events in 10 days from one side of the country to the other – what a blast.
In each and every one of my Canadian events I was asked the same question – and it is a question I get at events in every country I speak in:
“Should I get my therapy team to work as Contractors or as Employees of my business“.
It is such a hot issue – in every country – so it is worth comment.
As a business consultant – advising health business owners on how to maximize their business profits and success – I personally prefer an employee model.
My business management style is heavily systems and protocol based – so I have found my clients and I have more success getting employees to follow our systems – compared to contractors.
That being said – you can still enforce protocol completion in contractors but it needs to be clearly stated in the contractor agreement.
I have also personally found that employees are more heavily (emotionally) invested in the success of your health business.
Compared to a contractor – paid on a straight % of gross rate – who feels more like a hired gun essentially running their own business from inside your facility.
There is much more to the “Contractor Vs Employee” argument than I have presented here – including a legal aspect – I will cover in another email – so you need to do your research on this and make an informed decision.
Be aware – depending on the country you are in – the Contractor V’s Employee decision is often a legal decision – not an accounting decision – so get the right advice.
It is also worth appreciating the impact this decision can make on your bottom lines.
I personally work with a high profile Podiatrist – who went from a % of gross contractor model – where she was paying over 50% of gross to her contractors.
To an hourly rate employee model – where her therapist wage as a % of gross is now in the mid to low 20’s.
Now I understand to make this change requires a good labour supply – so enough therapists looking for work – to make this model a success.
However – if she can do it – so can you.
Make sure you understand the legal issues impacted by your decision – but also the problems having non compliant team members can mean to your business.
If you want to know the real facts about Contractor V’s Employee business models ( especially as they relate to Australian business law) make sure you get a copy of my latest DVD.
“The Truth about Contractor versus Employee Relationships What All Health Business Owners MUST Know” with myself and contractor expert Neil Fairley.
You can get a copy by clicking on the link below or visiting www.healthbusinessprofits.com and clicking on the “DVD Store” – it is DVD Nine in my business series.
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