Base Salary (AKA Minimum Guarantee) for Associate Dentists

Over the past ten years, base salaries for General Dentists seeking associateships have become more commonplace in response to an increasingly competitive dental job market. Several factors have played into this change, including the ever-growing level of student debt and increased presence of Dental Service Organizations (DSOs) in the industry. From a practice owner’s perspective, the practice can use the guaranteed minimum to say “we have the patients and potential production available – can you produce?” As such, there is a perceived financial security with a base salary.
Below are some common ways we’ve seen dental practices pay base premiums to its associates.

Common Ways Dental Practices Pay Base Minimums

  1. Daily/Monthly Draw on future commission : This structure is, by far, the most common method in dentistry. The practice will pay the associate dentist a fixed amount that will be deducted out of the associate’s future commission.
    1. Pro : the associate has greater security at the beginning because there is a cash flow.
    2. Con : if the associate does not produce/collect enough the practice cannot recoup the draw if the employment is terminated by either side.
    3. Most common example : $500 to $600 per day ($10,000 to $12,000 per month).
  2. Salary + bonus : This structure offers both sides more of a win/win at the early part of the relationship. The practice and associate agree to a set salary that is paid regardless of the associate’s production. The bonus is a carrot for achieving a higher level of production.
    1. Pro : Practice can pay based on what it expects associate will/should produce while offering a bonus if goal/expectations are exceeded.
    2. Con : Such as the draw, if the associate is underperforming the practice will lose money on the arrangement.
    3. Example : $10,000 month; Associate can bonus by being paid 15% of collections on anything exceeding $35,000 per month. Calculate monthly or quarterly.
  3. Salary only : As simple as it sounds. The Associate is paid a base salary. In most cases, a practice does this because it realizes there needs to be a lot of growth in the practice overall. It is more of an investment in the associate and potential of the practice. In many cases a practice and associate will agree at a future time to convert from salary to commission in order for the associate to be incentivized on their production.
    1. Pro : Great for a new grad that receives mentorship from a senior doctor. Allows the practice to secure an associate without making unrealistic claims to what an associate can earn on a commission plan.
    2. Con : if you don’t have an associate who sees the big picture, you can have an associate who doesn’t strive to grow in this position due to the lack of incentives, thus making a bonus option a great addition to the salary.
    3. Example : $120,000 per year.

Why should you offer a base minimum?

  • Excellent way for practice to back up their claims of available production and income potential
  • Offers initial short term security to associate by providing a minimum cash flow
  • Helps while production and patient base is built up by associate
  • Competition for talented dentists
  • Security for your practice by limiting associate turnover

News/Insights

Salary Negotiations for Dentists Offers/Contracts/Compensation

Salary Negotiations for Dentists

Aug 29, 2023

When going into salary negotiations for a new position, it’s natural to feel intimidated. Some simple preparation will help you negotiate with confidence and a sense of fair...

The Contract Series: Part 3 – Before You Sign Offers/Contracts/Compensation

The Contract Series: Part 3 – Before You Sign

May 13, 2021

You’ve interviewed. You’ve negotiated. You’re ready to sign. Almost. There are still a few details to confirm.  The first, and perhaps most obvious, step you should ta...

The Contract Series: Part 2 – Reviewing the Terms Offers/Contracts/Compensation

The Contract Series: Part 2 – Reviewing the Terms

Apr 20, 2021

You’ve been offered a contract. In many cases, the initial contract is a standard document with some wiggle room. Remember, you’ll have to live with the conditions of this...

The Contract Series: Part 1 – Preparing For Negotiations Offers/Contracts/Compensation

The Contract Series: Part 1 – Preparing For Negotiations

Apr 13, 2021

 You’re in discussions with an employer for a position that looks like a great fit, and it looks like you’ll be offered a contract. However, one of the most critical aspe...

How to Turn Down a Job Offer Professionally Interviewing

How to Turn Down a Job Offer Professionally

Sep 23, 2020

In 2020, landing a position with an independent dental practice can be a challenge, particularly in the wake of a worldwide pandemic. In recent months, however, we've seen a s...

Associate Contracts: What to Look For in Your Next Contract Offers/Contracts/Compensation

Associate Contracts: What to Look For in Your Next Contract

May 13, 2020

A manila envelope appears on your desk with your new contract. It’s all there in black and white—the terms, salary, perks, and expectations. While an employment contract ...

Base Salary vs Actual Compensation Offers/Contracts/Compensation

Base Salary vs Actual Compensation

Dec 11, 2019

Not all salaries are created equal. All too often, we find that job seekers will overlook a potentially rewarding opportunity solely because the base salary offered is lower t...

What to Do When an Associate Doesn’t Want to Renew Their Contract Offers/Contracts/Compensation

What to Do When an Associate Doesn’t Want to Renew Their Contract

Aug 20, 2019

Maybe the contract renewal has been with the associate for a while and you’re hearing radio silence. Maybe they’ve told you they have no interest in renewing. Either way, ...

Are You Ready to Be a Partner? Offers/Contracts/Compensation

Are You Ready to Be a Partner?

Jun 3, 2019

There comes a time at every practice when taking on an additional partner makes good business sense. Partners, unlike associates, are part owners of a practice. Practice owner...

Do’s, Don’ts and Red Flags of Contract Negotiations Offers/Contracts/Compensation

Do’s, Don’ts and Red Flags of Contract Negotiations

Mar 29, 2019

Spring is in the air, and we are approaching the season of contract negotiations. A pool of fresh-faced graduates means dental positions around the nation will soon be in flu...