VMC, Inc. Newsletter

I was at a veterinary conference recently and that was probably the most common question I heard people asking each other. It seems everyone is a little scared and very cautious, and well we should be if you look around at other businesses in your area, read the newspaper or watch TV. The reality is that it seems most veterinary practices are doing pretty well. At the CVC East conference in Baltimore I asked every group I was presenting to how they were doing, was their gross up, down or about the same? Most people indicated their gross was up or the same. Only about 10% indicated their gross was down. Now this is not scientific, and maybe people are reluctant to share this information or be honest, but with clients that we are financially tracking, we see the same. They are doing as well as, if not better, than last year.

I will admit that there is not the growth in some practices that we have had in the past and we are having to work harder to maintain the growth, but holding our own is not bad in these economic times. It also seems (again not scientific) that the "strong" practices that promote quality, excellence and value to their clients and patients are doing well and those that were based on lower cost are feeling more of a pinch. If your practice is feeling an economic squeeze, I would suggest you go back to the basics. How are we servicing our clients? Review your customer service, full service approach, delivery of service and, most importantly, are clients understanding the value of that which you are providing? Don't reduce your prices but enhance your perception of value. Also an interesting note from my perspective, attendance at our VMC customer service meetings is up. It seems many practices understand that they must stand out from the crowd and provide not only an excellence in veterinary medical services but in customer service as well. Best wishes to you and your practice.

Mark Opperman
President, VMC Inc.

Let us hear from you - tell us what you'd like to see in future issues. You can contact us at vmc@vmc-inc.com

New COBRA Rules in Effect - Update
by Mark Opperman, CVPM

COBRA stands for Consolidated Omnibus Reconciliation Act of 1985. It is an act to help employees that leave their employment with paying for health insurance costs. COBRA generally covers health plans held by employers with 20 or more employees, however, many states have mini-COBRA laws that may also affect your practice.

To see if this law applies to you go to www.irs.gov or this site http://www.cobrahealth.com/statelawdirectory.htm, its got the state by state breakdown. Might want to use it.

The federal economic stimulus package President Obama signed into law earlier this year made changes to COBRA. Under the new law, employees who lose their jobs involuntarily and who wish to continue health insurance need to pay only 35 percent of the COBRA premium. The federal government will subsidize The remaining 65 percent of the COBRA premium for up to nine months. Employers and insurance companies are responsible for administering the subsidy, which means new recordkeeping duties for you. Here's is what you need to know:

You must accept the 35 percent payment by former employees as full payment, but you are entitled to a credit for the other 65 percent of the COBRA cost on your payroll tax return.
As an employer, you are responsible for maintaining supporting documentation to receive the payment credit. This includes copies of the declaration of the former employee's involuntary termination, the receipt for the employee's 35% payment and proof showing you paid the full premium to the insurance carrier.

For more information, contact the web sites listed above or talk to your accountant or insurance carrier. There have been many changes in employment laws as well as additions that affect small businesses such as ours and we will attempt to keep you advised of them as much as possible in our newsletters.

Avoiding Common HR Mistakes

by Sheila Grosdidier, BS, RVT

Most veterinary practices are small. The owners and team members are all working towards a common goal. In the midst of all this, the human resources side of the practice can be left behind in the dust until something goes wrong and the dust gets stirred up. Don't let that happen to your practice.

Have a system for hiring good employees - Update your job descriptions before you place an ad. This will help you to know what skills you are hiring for and gives the applicant a better understanding of the responsibilities and skills required for the position. Many candidates will have the skills needed for the position. Your goal is to determine which of these qualified candidates will be a good fit for your practice. Create a set of behavioral interview questions to help determine if this person will be a good fit with your practice. Don't hire quickly. Interview several candidates - your goal is to only hire "10" employees.

How Do You Address Performance Issues?

by Monica Dixon Perry, CVPM

A universal conversation that I hear among managers is their frustration with employees that have habitual performance issues. Whether it is chronic attendance/punctuality problems or an employee with a poor attitude - it is usually along these lines that managers can find a common topic of discussion. Although many efforts are taken to hire the right team member the first time, at some point managers are faced with an employee that is just not performing. It is very important that you hold employees accountable and responsible for their actions. More times than not, managers allow poor performers to remain a part of the team even though it is not in the best interest of the team. The primary reason for this occurrence is the fear of being short-staffed. You and your team deserve the best. Subjecting a team to someone that brings morale and team camaraderie down should be addressed sooner rather than later.

As a manager, you should address performance issues immediately. We have all had an employee that has had multiple verbal and written warnings. We keep them on the team far longer than we should have. Now is the time to move in a new direction. The goal is to get your employee on track for continued productive employment. VMC has a great tool to enable you to give these employees one last chance to set them up for success. This tool is the Performance Agreement. Click Here for a Performance Agreement example and MS Word template. Any manager who has kept an employee on the team beyond what would be considered acceptable according to your disciplinary action policy should use this document. Utilizing a performance agreement holds both the employee and management accountable. Most importantly, it spells out management's expectations and the consequences of not meeting those expectations within a specified period of time.

Difficult employees usually know their time has to come to an end. You are not only doing your practice a disservice by keeping them on the team, but the employee as well. Stop letting these employees be a problem. Turn a negative situation into a potentially positive one by using a performance agreement. If, after these efforts, you still have a problem employee, check with EEOC to make sure you are not violating any termination or employment laws in your state and then part ways with that employee. Your team will appreciate you doing your job. Your frustrations will be minimized and you will have liberated your problem employee and provided them with the opportunity to shine elsewhere!