How DSOs Are Solving the Dental Staffing Shortage
This article was written by the Planet DDS staff and originally published on DrBicuspid.com. This is the fourth article of a five-part series with DSO leaders at the Dykema Conference in 2024.
Higher pay, career advancement, and a better work environment have been the three biggest drivers of dentist and team member turnover and staffing shortages in 2024.
Dental leaders at this summer’s Dykema DSO conference share how employee expectations, combined with marketplace pressures, have led dental service organizations (DSOs) to adjust salaries, benefits, and perspectives to reduce staffing shortages.
Turnover at DSOs and Staffing Changes
Staffing changes have occurred at every level, including the top executives.
“Starting in January 2023, we saw a lot of restructuring and layoffs from some of the larger dental groups,” said Jon Fidler, CEO of Fidler & Associates, an executive search firm.
“Up until 2023, money was flowing well for the acquisition side due to favorable interest rates, doctors looking to transition, and more practices joining DSOs. In 2023, the rates skyrocketed, financing was tougher to get, and sellers became more timid because the multiples were lower.
“Dental groups that had primarily grown through M&A [mergers and acquisitions] had to shift and show same-store growth instead, which can take a different skill set. That led to leadership changes at a lot of companies. I think the bulk of layoffs have happened, but some groups are still tightening up,” said Fidler.
Who’s Looking to Change Dental Jobs
The number of dentists and team members looking for new jobs in 2024 is staggering.
“According to Dentalpost’s annual salary survey, 57% of dentists polled said they were looking for a new job before the end of 2024,” said Heidi Arndt, founder of Evolve Dental Advisors.
The survey also reported:
- 45% of all respondents were considering a job change in 2024
- 13.8% of owner-dentists planned to retire within three years
- 15% of hygienists planned to retire within three years
While associate dentists are primarily seeking career advancement, the other clinical team members and front office staff are leaving for higher pay, according to the survey.
“Generational differences are changing how companies communicate with their employees,” said Arndt. “Gen Z and Millennials want to be developed. Many of them grew up texting and they need to be taught interpersonal skills including soft skills, communication skills, and leadership skills.”
Check out what DSO leaders and dentists have to say about how to retain and attract your dental staff in this video from Dykema 2024:
7 Ways to Attract and Retain Dental Employees
At this year’s Dykema DSO conference, dental industry leaders shared some of the creative ways they’re attracting and retaining talented employees to avoid staffing shortages:
1. Invest in a higher hourly rate tradeoff.
Companies are finding that employees prefer a higher starting salary rather than robust retirement benefits. “One of the biggest things we found is that employees want their money now,” said Dr. Robin Reich, founder of Reich Dental Centers and a past president of the Georgia Dental Association. “So while we do still have a very good retirement benefit, it’s lessened so we’re able to pay more in wages.”
2. Hire from other industries.
Want to increase your case acceptance rate? Dental consultant Dee Fischer, CEO of Fischer Professional Group, recommends hiring jewelry store clerks, realtors, and other sales professionals for treatment coordinator positions. She says people who work in service industries such as hospitality often make great front-office employees, while bookkeepers, medical coders and auditors may excel at insurance billing and revenue cycle management.
3. Be flexible with dental job sharing.
“We have to be flexible. In fact, we have two hygienists who are expecting babies, and they’re going to come back and job-share, and they’re going to watch each other’s children,” said Dr. Reich.
4. Offer gas stipends for your dental team.
“We’re hearing from employees that they want innovative benefits like gas stipends,” said Teresa Williams, COO and CFO of Dental Express, a dental group with six affiliated locations in California.
5. Use dental staff referrals.
“Staffing has been a challenge since COVID,” said Dr. Hamid Barkhordar, co-president of Care Dentistry Group, a DSO with sixteen affiliated locations. “We’ve really worked on staff referrals and that’s helped us build our workforce.”
6. Consider dental hygiene temps.
According to the Dentalpost 2024 salary survey, one-third of hygienists plan to retire by 2030. Unfortunately, that means the hygiene shortage will remain a problem for years.
“With hygienists, we have found temp agencies help because a lot of hygienists like the freedom to pick up a shift when they want to. It’s not ideal, but it’s much better than nothing,” said Dr. Bradley Dykstra, founder of MI Smiles Dental Group, which has seven affiliated practices in Michigan.
“We’re looking at a whole plethora of areas to help with hygiene patient flow,” said Dr. AJ Acierno, president of clinical operations at Smile Brands, a DSO with almost 700 affiliated locations. “That could be assisted hygiene, temp staffing companies, going into high schools to get people interested in the profession.”
7. Enhance dental culture and job satisfaction.
At the Dykema DSO conference in July, Dr. Saam Zarrabi, CEO of Rodeo Dental & Orthodontics, and Jeff Adams, CEO of Risas Dental and Braces, showed how a positive company culture directly leads to greater job satisfaction and higher productivity.
“People want to work for a company that has a common purpose, that will invest in you, that has great leaders and is a place where you enjoy the people you work with,” said Adams. “That’s when people will go through brick walls for you.”
Improve Dental Staffing for Your Organization
There are signs that it will be easier to hire moving forward.
“We’re seeing a bit of a change because there have been layoffs,” said Dee Fischer. “For example, we put out an ad for a front desk position and got 121 applications. That was much higher than we had previously.”
“Recruit, recruit, recruit—and create a great experience for your team. That’s the best way to solve the staffing situation,” said Dr. Acierno.
