Variable Compensation Models: A Better Way to Recruit, Retain & Motivate Therapists
How do you compensate therapists in a way that supports productivity, retention, recruitment, autonomy, and practice profitability?
In this episode of the Private Practice Owners Club, Nathan Shields sits down with Jason Wanold, VP of Prompt Compensation and former co-founder of Onus One, to revisit variable compensation models and discuss what Jason has learned from years of helping practices implement them.
They break down how variable compensation works, why it shouldn't be treated like a bonus or incentive program, and how practices can create compensation structures that give therapists more autonomy and control while still protecting the financial health of the practice.
In this episode, you'll learn:
- What variable compensation actually means
- The difference between base pay and variable pay
- Why variable compensation is different from bonuses and incentives
- Why units-based compensation can work better than visit-based models
- How to frame compensation changes so therapists understand the purpose
- How to protect quality of care while using variable compensation
- The KPIs that can improve under these models
- Why you can't simply “bonus your way” into better behaviors
- How variable compensation can create more autonomy and flexibility for therapists
- The biggest concerns owners have when introducing these models
- The most common concerns therapists have about changing compensation
- How historical data can reduce fear and uncertainty
- Why practices should consider a 6–12 month transition period
- How compensation models can improve recruitment and retention
- Why standardizing compensation plans can create more transparency
- How therapists can create a path to earning more within the same practice
- Why owners should use financial projections and historical data before implementing a model
- The biggest mistakes practices make when rolling out variable compensation
One of the biggest takeaways from this conversation is that compensation doesn't have to be a battle between what the therapist wants and what the practice can afford. With the right structure, data, transparency, and implementation strategy, it can become a true win-win.
The goal isn't simply to pay therapists more. It's to create a compensation model that rewards contribution, gives providers autonomy, supports quality care, and strengthens the practice.
Want to talk about how we can help you with your PT business, or have a question you want to ask? Book a call with Nathan - https://calendly.com/ptoclub/discoverycall
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