Balancing Pay Increases and Turnover Costs in Private Practices
A co-founder of BackPocket Talent notes that replacing an employee can cost 16% to 20% of that worker's salary. That expense may exceed what a timely retention bonus would cost. The article is aimed at helping private practice owners compare pay raises with turnover costs.
A co-founder of BackPocket Talent points out that replacing a worker can run 16% to 20% of that employee’s salary. That figure gives private practice owners a benchmark for weighing turnover against retention. A timely retention bonus may cost less than the replacement process. The article is aimed at helping practice owners compare pay raises with the broader expense of losing staff. This framing places compensation decisions within workforce stability, not just payroll.
Private practice owners and their employees could be affected if retention bonuses become a more common alternative to turnover. Workers may see pay or bonus decisions shaped by the cost of replacing them. Patients and communities may feel indirect effects if staffing stability changes access or continuity of care. The impact would likely depend on each practice’s finances and local labor market.