I read the excellent Extreme Business blog by Chris ‘Coach’ Barrow.
Chris recently published his table of Key Performance Indicators (KPIs), which every dental practice should benchmark. We use these to benchmark our dental practices, too.
In his post on 27th February 2024, Chris highlighted how increasing wage costs in dentistry as a % of sales have risen to 25%-35% from 20%-25% in recent years.
As the costs of employing staff in the dental industry continue to rise, it has become a pressing issue for dental practices. With rising overhead expenses, dental practices face the difficult task of managing payroll expenses effectively.
Staff costs as a % KPI highlights the importance of dental practices to maintain existing profit levels for long-term viability, to review their financial approaches and identify:
- Potential efficiencies
- Price rises or
- Having to work more hours