Due to a highly competitive dental hygienist hiring market, dental practices are trying to stay relevant by offering higher wages and benefits to highly sought-after candidates. While there are different types of employment arrangements, a well-structured dental hygienist employment agreement is often the best option, as it mitigates risks around compensation, performance, and employee retention.
In this article, we will explain why a strong dental hygienist contract not only helps define the working relationship from the get-go, but also protects the dental practice from financial exposure. As you will see in our real-life example, a properly drafted employment agreement can save money, even if the hygienist decides to leave, thereby minimizing the financial damage the business must incur.
It's no longer sufficient to offer competitive salaries - to attract skilled professionals, dental practices often need to offer lucrative sign-on bonuses. While highly effective for recruitment, the sign-on bonus agreement can place a significant burden on the employer if the employee leaves shortly after joining.
But a well-drafted dental hygienist employment contract will help reduce this risk by outlining repayment obligations.
The "clawback provisions" are integral to defending the employer's position. These provisions are intended to reduce the risk that follows a significant financial investment the business makes in recruiting, onboarding, and granting the sign-on bonus.
With clawback provisions, employers can recover bonus payments if an employee leaves before the prescribed period expires. These employee payment clauses are usually tied to performance or tenure and are intended to protect dental practices from abrupt departures.
But not all clawback provisions are legal and enforceable. That's why it's important to work with a qualified dentist contract lawyer who will draft the provisions and safeguards into all agreements, ensuring full legal compliance and mitigating risks.
Recently, a client of ours operating in Missouri faced a challenge when hiring a new hygienist. To secure the highly sought-after candidate, the dental practice offered attractive incentives, including a sign-on bonus, as outlined in the written employment agreement.
Despite the initial investment and onboarding, the hygienist was terminated after a few months. Still, because we drafted an agreement with clear repayment terms, the employer was able to recover most of their investment.
Without a properly structured dental hygiene agreement, the practice would have suffered the full financial loss. For that reason, it is very important to clearly document the incentive structure in all agreements before employment begins.
While in our case the hygienist was terminated, these types of clauses have a preventive purpose too - employees will be reluctant to leave early if they know they will owe the employer the sign-on bonus, or any other amount that was stipulated in the contract (usually license and training fees, if the employer is covering the costs).
A well-structured dental hygienist employment agreement can protect your practice and reduce hiring risk in a volatile job market. Clearly outlining compensation, bonuses, and clawback clauses will reduce turnover risk and safeguard the financial incentives you offer to attract top talent.
For those reasons, legal protection should never be an afterthought - taking proactive steps to mitigate potential financial losses will also prevent costly disputes and avoid unnecessary turmoil.
Contact Finn Legal today, and we will review or draft your agreement to ensure your hiring practices are fully secure and enforceable.
