Money can be tight for dental practices, and making ends meet can feel like a juggling act. Hiring a new employee might seem out of reach, especially when you’re balancing other expenses. But at some point, adding a new team member becomes essential to keep things running smoothly.
Dental practice hiring affordability can be tricky when you’re unsure, right? With unpredictable patient revenue, committing to a new salary without a financial safety net feels risky.
In this article, we’ll walk you through different strategies to make hiring financially feasible. Yes, you can plan and afford that next hire without hoping for a miracle. Here are practical strategies to get you there.
Evaluate Your Staffing Needs
First, ask yourself: Do you really need another employee?
Clinics can get busy sometimes, and all your rescheduled patients seem to show up on the same day, making things chaotic. But then, there are those days when it’s calm and manageable. Knowing when it’s genuinely time to expand your team is key. Sometimes, those busy days happen only once or twice a month.
However, if your patient load is consistently high day in and day out, that’s probably your signal to consider hiring. Take a close look at your patient database: How many patients are you seeing daily? Can you manage them efficiently without help or with minimal assistance? If the answer leans toward no, hiring might be necessary.
On the flip side, if daily patient traffic is lower, think about hiring contractors who can step in as needed and get paid by the day or by the hour without having to provide other benefits or commitments. This option can be more budget-friendly, giving you help when needed without having a full-time staff member with little to do on slow days.
Understand the Costs of Hiring in 2024-2025
Hiring in today’s dental industry isn’t cheap. Dental hygienists, for example, are earning record-high salaries due to labor shortages. According to recent data, the average annual salary for a dental hygienist in the U.S. is now over $82,000, with some urban markets pushing well above $100,000. For dental assistants, the average hourly wage has climbed to over $40, depending on location, and front desk staff are often earning $18-$23 per hour.
While these numbers might seem intimidating, understanding them upfront helps you plan realistically. You’ll need to factor in not just wages but also benefits like health insurance, paid time off, and potential retirement contributions. These additional costs can add 20%-30% to the base salary.
If these figures feel overwhelming, don’t worry. There are ways to navigate these challenges without putting your practice at risk.
Adjust Your Fees
It’s easy to feel intimidated to charge higher fees.. You don’t want to compete for patients by undercutting your competition, you’re setting yourself up for trouble. Always keep in mind that right now, you’re a one-person team handling both the procedures and the administrative work. That’s why you need to set your rates to reflect not just your role as the dentist but as the clinic assistant too. Even if you’re the one doing the paperwork, price your services as if you had an assistant on board.
This approach is essential if you want to save up for that next employee. Offering lower fees won’t help you outshine your competition. Instead, it hurts your bottom line because you’re undercharging while handling everything solo. So, stick to charging standard and competitive rates to set your practice up for sustainable growth. Save up the extra until you can…
Secure at Least 6 Months’ Worth of Payroll
When you’re planning to hire an employee for your dental practice, thinking ahead is key. Unexpected situations can arise, so being prepared with a financial cushion can make all the difference. While no one hopes for a downturn, having that security ensures both your new hire and your practice are protected.
A good rule of thumb is to save up at least six months’ worth of payroll. For example, if you’re planning to pay a dental hygienist $7,000 a month, try to save up $42,000. Sure, that’s a big amount, but being overprepared is better than being caught off guard. If six months feels like too much, you can trim it down to five, four, or three months—just don’t go below three to keep some peace of mind.
Assess Your Financial Position
Saving up for a six-month payroll fund starts with understanding where you stand financially. To get a clear picture, you need to take a closer look at your receivables and payables.
- Speed up collections: Ensure patients pay promptly by invoicing them within 36 hours of their visit and encouraging upfront payments for new clients. This improves cash flow and reduces the risk of overdue accounts.
- Delay supplier payments strategically: Unless your suppliers offer early payment discounts, consider holding off payments until just before they’re due. This keeps more cash available for payroll and other critical expenses.
- Use business credit wisely: A business credit card or line of credit can extend your payment period, giving you flexibility while maintaining cash flow for hiring needs.
By tightening cash flow management, you’ll free up resources to build your payroll fund and make hiring less stressful.
Consider Financing if Additional Staff Is Crucial
Sometimes, you can’t wait to save up and need to hire immediately. In these cases, financing can be a smart solution. Whether it’s a small business loan or a line of credit, borrowing allows you to bring in help when you need it most.
However, be cautious: Financing comes with repayment obligations, so ensure your new hire directly contributes to practice growth. For example, a dental hygienist can enable you to see more patients daily, increasing revenue. If financing helps you bridge the gap while boosting income, it can be a worthwhile investment.
Get Expert Dental Practice Hiring Advice
Still not sure where to begin? At Core Advisors, we go beyond just crunching numbers. We help dentists tackle the tough questions around hiring, like:
- How do you know when adding a new team member will help or hurt your practice?
- Are your pricing strategies sustainable for covering labor and overhead costs?
- What key performance indicators (KPIs) should you track to decide if it’s time to hire?
Our team specializes in labor and overhead analysis, giving you a clear picture of your financial position. We’ll work with you to set achievable KPIs, so you can confidently make hiring decisions that align with your goals. Whether it’s improving cash flow, optimizing pricing, or planning for long-term growth, we’re here to support you every step of the way.
Schedule a discovery call today to see how Core Advisors can help your practice thrive.
Together, we’ll create a roadmap to make hiring your next employee a strategic move, not a financial gamble.
Until next time!
