Materials: Rubric, Sample Review Sheet, Sample Rollout Memo
Compensation: Mindset and Method
Ratings Rubric
Use this 5-point system. Don't focus on the numbers in the conversation with the team member. 3 is good; no complaints. 5 is reserved for absolute superstars — it is very difficult to accomplish a 5. Here are the specific definitions:
The Review Process
The process of review should be short and painless. We are creating a culture that sees reviews as constructive. While the post-review interval is a natural time to discuss changes, the review meetings themselves are not the time for discipline.
The manager will make their assessment of each team member. Any questions that prevent a confident assessment are noted and answered in a <60min meeting with each department's mentor.
Any rating 3.0 or higher gets no comment besides the label, e.g., "Face to Face. Three. You are solid here." Below a three, give a short, neutral description of the issues and note that they'll be able to talk it out with their mentor at the next review.
Note that there is no "3, but." If you are torn between 2.9 and 3, make up your mind based on whether or not it is significant enough to reflect on the review.
The Meeting Itself
The review meeting is short — 10 minutes max. First, ask The 4 Questions and note the answers. Then run down their 4Blocks review. After this, proceed to the 5th criterion.
The 4 Questions
- In your own words, what does GP (or a growth mindset, or whatever umbrella term applies to your practice) mean to you?
- Tell me what insight you got from your last Forte/DISC/Kolbe (whatever personality inventories you use).
- What are your 4Blocks?
- Do you understand our compensation program?
The 4Blocks Review
These will be short, as described in more detail above.
The Fifth Criterion
Ask them if they have any questions. Based on their answers to the initial four questions and the questions they ask, write down your subjective score for the 5th Criterion and calculate their bonus.
Owner Evaluation
A summary of the whole staff's numbers and bonuses will be prepared and posted to Basecamp so the owners can see the team's status.
Sample Review Calculations
Mary T. Example, Assistant · 4Blocks: STF2
Base: $23/hr + Possible $5/hr step-up ($28/hr maximum)
Support: 5 · Treatment: 5 · F2F: 3.5 · Financial: 4.5
18/20 = 90% → $4.50/hr step-up
Dr. Bob T. Sample, DDS · 4Blocks: FCTD
F: 3.5 · C: 3 · T: 3.5 · D: 3.5 · 5th Criterion: 3
Total: 66% → Not tied to pay for docs, but used for a conversation about benchmarks, motivation, and the future.
Mary T. Sample, Level 3 Hygienist · 4Blocks: FCTD
Note: Hygiene's "base" is below 75% of market, but we still call it "base."
F: 3 Solid · C: 4 Leading · T: 2 Developing · D: 5 Top · 5th: 3
17/25 = 68% → Out of $10 step-up = $6.80
Production: $250/hr = $15/hr bonus
$31 + $15 + $6.80 = $52.80/hr
Sample Manager · Base: $60,000 · 4Blocks: FC3
F2F: 5 · Communication: 4 · Coaching: 4 · Command: 4 · 5th: 4
Production: 5% growth = $10k = $5k bonus this period
21/25 = 84% → $4,200 step-up = $700/mo for next 6 months
Total bonus this review period: $6,200
Hygiene Level Structure
Level 1: $23/hr base + Possible $5/hr 4Blocks step-up ($28/hr maximum). Same process as assistants, no production bonus.
Level 2: $20/hr base + Possible $15/hr production bonus + Possible $10/hr 4Blocks step-up ($45/hr maximum).
Level 3: $31/hr base + Possible $15/hr production bonus + Possible $10/hr 4Blocks step-up ($56/hr maximum).
Sample Compensation Review — Front Desk
Signed (Manager)
Print name and date
Sample Rollout Letter — Announcing the New Compensation Policy
Ladies and Gentlemen,
I'm so excited to be able to share with everyone the rollout of our new compensation program. This has been a process for us, because we wanted to make sure that everyone is included in the compensation when using the 4Blocks that are designed for your team.
Using your 4Blocks will always matter for two reasons:
- By implementing the 4Blocks in your day-to-day work, you will always be providing the best possible patient care — and that is the most important part of every job in the office.
- This will then affect your wages in the form of a "step-up bonus."
Here is what you need to know going forward:
- The review process will be the same for everyone — 10-minute reviews every two months.
- These reviews are for constructive feedback on your 4Blocks. They are not for discipline.
- You need to know your 4Blocks. Know them and understand their importance — they play a big role in your compensation.
- A Ratings Rubric will be used in your reviews, ranging from 0.0–1.9 (Non-Performer) to 5.0 (Top Performer).
- Every job has a "base wage" and a range. You will never go below the base wage, and you will always have the opportunity to step up with reviews.
- You have mentors to help you through this process, and they will help determine the rating used during reviews.
Some examples (no names attached, dollar figures are illustrative):
Base wage: $21.00 · Wage range: $21–$24 · Potential step-up: $5.00 (based on 4Blocks)
September 10-minute review covers July and August. Step-up paid as bonus on hours worked in July and August.
Base wage: $21.00 · Wage range: $21–$24 · Potential step-up based on 4Blocks and 75% production
September 10-minute review covers July and August. Step-up paid as bonus on hours worked in July and August.
We thought about this very thoroughly and know that you will all be pleased with the results of this new policy. We are very excited to give all of you the chance to increase your compensation by continuing to do the great job you've all been doing.
Sincerely,
<Manager Name>