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Production Share Earnings program

The Production Share Earnings Program© (PSE) is used by Optometric business owners to provide a competitive employee salary without putting the cash flow of the practice at risk. Employees are concerned with their earnings but they care more, often times, for the patient. It has been encouraging to see how assistants come together to practice prevention because they are caring for the patient and able to earn more by doing so. Many employees would keep quiet when their earning potential did not provide a way and begin looking for another position with opportunities for advancement.  Of they are a part of a team with vision and earning potential, you win!

LA Consultants understands the position of these fine people who serve your patients. Programs such as the Production Share Earnings© Program and the LA Career Path© encourage employees to become career minded and understand what they must do to grow professionally and the compensation behind it. An Optometic Patient Care Team knows when they work together they win together through the PSE. I believe every employee enjoys the security of their base salary, their paycheck, but no one really likes a ceiling over their earning potential. Why should any of us have one? 

Understanding the PSE 

  1.  What is a bonus program? An incentive program? 
    a.  A bonus is controlled by a giver.It is usually recognition of successful performance. 
    b  .An incentive is controlled by a giver. Incentive is a carrot to encourage a person to perform at a certain level.
  2. Is this a bonus or an incentive program? 
    a.  No, the PSE is an Earnings program that is controlled by the team.Earnings are paid based on hours worked within the month not including overtime hours.
  3. What is the floor and why is it so important? 
    a.  The PSE floor is adjusted annually and is responsible for covering the budget's fixed expenses and cost of goods while maintaining cash flow and protecting the doctor's predetermined net profit.
  4. Why is the floor less than last year’s month end collections in many cases? 
    a.  Above average growth is what we all desire.To continue experiencing increased production we must always care for the number one asset of the practice…your staff.By setting the floor too high, a team becomes depressed and believes they will be unable to produce additional income.This attitude stifles their willingness to perform and produce above average patient care and service. 
    b.  The floor also builds in an automatic pay raise as long as they are able to achieve what they produced the previous year since the floor is normally less than that number.This helps control payroll costs.
  5. What would cause the floor to be adjusted within the year? 
    a.  Hiring of additional employees that were not considered in the budget. 
    b.  Purchase of revenue producing equipment not considered in the budget.
  6. Why is cost of goods included in this program? 
    a.  The purchasing of frames, lenses, contact lenses and supplements are not directly in control of the business owner. 
    b.  By setting a cost of goods budget by percentage, the purchaser understands how much they can spend so they are in a position to make good buying decisions. 
    c.  Stay in budget by controlling cost
  7. Why is production per staff hour important? 
    a.  Formula: PSE floor or last year's total collections, which ever is greater divided by projected annual staff salary including vacation and personal days. 
    b.  Protects the budget and positions the practice for growth 
    c.  Help to control payroll costs 
    d.  Deterrent to overstaffing, and brings awareness to future hiring needs.
  8. Why is the program based on planned / unplanned absentees and/or tardies? 
    a.  Planned absents allow the team to adjust their routine so they can continue to deliver excellent patient care. 
    b.  Keeps the team member aware of how important they are to the team 
    c.  Holds the team member accountable for lack of time management
  9. Why does the program disqualify members on probation? 
    a.  There must be a consequence to poor work ethics and/or poor teamwork behaviors.
  10. What is the goal so high? Why is the goal important? 
    a.  The goal is 15% or higher from last year’s net revenue. 
    b.  The goal must not be easy to achieve.Its goal is to encourage growth, teamwork and to stretch the team’s ability to produce. 
    c.  The results of achieving goal: Pride, Success, Self Confidence, Recognition of the Importance of Teamwork, and the Desire to Do It Again. 

    Do you need help creating a simple budget with PSE program?  Click Here!