Optometric Management Tip of the Week

Management Tip #21

Employee Compensation Summary

Sponsored by: ACUVUE®

There's More to Extended Wear Success Than Higher Oxygen

Many patients are interested in "extended wear" contact lenses for the convenience of 24-hour-a-day wear. However, debate continues over how to achieve complication-free extended wear. Adequate oxygen transmissibility is certainly an important factor but is it enough? For instance, the incidence of giant papillary conjunctivitis requiring treatment intervention reported for lotrafilcon A silicone hydrogel contact lenses (CIBA Vision Focus® Night & Day™) in the lens' FDA submission for 30-day extended wear approval was over four times greater (3.88% vs. 0.81%; p < 0.001) than for the study control, etafilcon A contact lenses (ACUVUE® Brand) replaced after one-week of extended wear. There is more to successful extended wear than just higher oxygen transmissibility. ACUVUE® Brand and ACUVUE® 2 Brand continue to be the extended wear market leaders.

Employers everywhere will agree, employee fringe benefits carry a very high cost. In addition to wages or base salary, there are many additional expenses incurred by employers. I'm well aware of this, because I see the bills and I see the total cost of staff compensation on my financial statement - but I realized years ago that my staff members were generally unaware of the real value of the perks we provide.

To gently educate our staff, I devised an employee compensation form, which we distribute at the end of the calendar year with the employee's W-2 wage and tax form. This form lists every employment expense incurred for the individual during the year. We either keep our own records of these items or our CPA provides them. Eye care benefits, for example, are tracked by each employee filling out an "employee usual and customary fee slip" whenever they receive free eye care or buy optical materials at cost.

I've provided my form below as a sample. Determine if you provide some additional benefits - and remove the line completely if you don't provide a listed benefit.

You'll notice that some of the items listed are not really benefits - but are government mandated payments - such as social security matching and unemployment insurance. I list them anyway because this is an educational piece and I consider those payments part of the employee's true compensation.

The TOTAL COMPENSATION value tells the staff that they are actually earning much more than they thought. For hourly employees, we recalculate their effective hourly pay rate based on this total compensation dollar amount.

Employee Compensation Summary

Employee Name____________________________ Date______________

Period covered on this summary ___________________________________

Wages paid (Vacation and paid holidays included here)	_____________
Profit sharing / 401K contribution	_____________
Health insurance premiums	_____________
Eye care benefits	_____________
Uniforms	_____________
Continuing education fees	_____________
Social Security matching	_____________
Workers compensation	_____________
Unemployment insurance	_____________
Miscellaneous	_____________
Total compensation	_____________
Total number of hours worked	_____________
Effective hourly rate	_____________

Best wishes for continued success,

Neil B. Gailmard, OD, MBA, FAAO
Editor, Optometric Management Tip of the Week

Send questions and comments to neil@gailmard.com.

Dr. Gailmard offers consulting services to eye care professionals; information is available at www.gailmardconsulting.com

If you are having technical difficulties with this newsletter, please email tiphelp@optometric.com.

Did you miss some of the previous Tips? Check the archive section on the OM web site at www.optometric.com.

Please take a moment to visit our sponsor:

Please Note: The views expressed in Management Tip of the Week do not necessarily reflect those of the sponsor.

If you would no longer like to receive e-mail from us, please use the following Web Address to have your e-mail address removed from our list: Removal Request | View our Privacy Policy
Wolters Kluwer Pharma Solutions VisionCare Group | 323 Norristown Road, Suite 200, Ambler, PA 19002 | 215-646-8700