Design of a compensation system for dental practice.

The compensation system has an impact on the performance of employees in a dental practice. A comprehensive system includes many aspects in addition to the pay that employees receive. This paper explores issues related to the design and implementation of compensation systems in dentistry. Major considerations are the role of pay as a motivator of employees, decisions affecting pay equity of employees, the impact of wage and hour laws on pay decisions, the relationship of performance appraisal to potential pay increases, the use of bonus and incentive plans, and incorporation of fringe benefits into a compensation system.