Alex Nottingham discusses declining team performance’s impact on bottom line, turnover costs, and training solutions.
Resources:
- Dental Practice Growth Webinar
- All-Star Live Dental Training Events
- Dental Coaching
- All-Star Online Training
About Alex Nottingham JD MBA
Alex is the CEO and Founder of All-Star Dental Academy®. He is a former Tony Robbins top coach and consultant, having worked with companies upwards of $100 million. His passion is to help others create personal wealth and make a positive impact on the people around them. Alex received his Juris Doctor (JD) and Master of Business Administration (MBA) from Florida International University.
Episode Transcript
Transcript performed by A.I. Please excuse the typos.
00:00
This is Dental All-Stars, where we bring you the best in dentistry on marketing, management, and training. Here’s your host, Alex Nottingham. Welcome to Dental All-Stars. And our topic is declining team performance. And why is this important? Well, it’s an overt hit to your bottom line. And that’s going to lead to disengagement and eventually turnover, because either the employee is going to leave because they lack the skills or the confidence.
00:29
or you’re going to let them go because their performance is not where they need to be, or you continue to keep them, which is even worse, and it’s that disengagement and lack of performance, and that’s the over-hit to the bottom line. Now, what happens when there is turnover is it’s very costly, and the conservative estimates for turnover is one to three times what the employee is paid annually. And so this is based on
00:58
Reports from Ben Erickson and Associates and gradstaff.org. Many studies out there support this. And partly of what goes into this is the cost of lost production. When you lose that employee, you’re losing that production, that efficiency, because you become more inefficient. You have overtime issues that you have to pay with other people. You have added stress. And there’s of course hiring costs, which are probably the least costly. It’s more the lack of
01:27
productivity, the morale and so on, that is tangible, that is going to cost you production and loss of revenue. So an easy way of demonstrating this situation, if you have one staff turnover per year, and this is an entry-level position of let’s say $30,000, this is as low as you’re probably going to go, that’s going to cost you $30,000 in the cost of replacing that employee for that turnover.
01:56
Now, if it’s more, if it’s a hygienist, you’re looking at 50, 60,000. If it’s a associate, it could be over 100, 200,000. So depending on the position, it can be very costly. So when turnover happens, which it will happen, this is a big issue. It’s been very difficult to find good employees. And because of this, over five years ago, we launched an All-Star Dental Academy, an All-Star Hiring Service. And it is one of the top hiring services for dentistry specific.
02:25
in the country, and we do it all. We help you craft the ad, we post it, we do the screenings, we do background checks, we do interviews, we do everything up to the live interview where they actually come to your office, and we even help you and give you some suggestions for onboarding and next steps. What we see in the research is if you’re not providing training opportunities for your team, there’s a three times more likelihood that they will leave. The American Dental Association has found
02:54
that an overwhelming majority of dentists report staff-related issues as their number one stressor in their practice. And typically when we think about it, how do we hire people? How do we train people? We just throw them into the fire and hope that they figure it out. It’s not a great idea. So most training is haphazard, it’s inconsistent, it’s not fun, results fade over time, and therefore you have greater turnover and we saw the cost of turnover. The solution is to train like the Fortune 500.
03:23
So I’d like to direct you to the webinar, allstardentalacademy.com/webinar. And in this webinar, we’ll talk about how to train like the Fortune 500, how to improve your phone skills, your reduced broken appointments, reduced turnover, some great training, complimentary, check out that webinar. And until next time, go out there and be an All-Star.
03:48
We hope you enjoyed this episode of Dental All-Stars. Visit us online at allstardentalacademy.com
