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Are you struggling to grow your practice after hiring independent contractors? Is the W2 employee model more profitable? How does having 1099 employees hinder the development of a cohesive and team-oriented work environment?
In this podcast episode, Alison Pidgeon and Whitney Owens speak about W2 employees and the benefits this model offers your practice.
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Meet Alison Pidgeon
Alison Pidgeon, LPC is the owner of Move Forward Counseling, a group practice in Lancaster, PA and she runs a virtual assistant company, Move Forward Virtual Assistants.
Alison has been working with Practice of the Practice since 2016. She has helped over 70 therapist entrepreneurs start and grow their businesses, through mastermind groups and individual consulting.
In addition, she is a private practice consultant for Practice of the Practice.
Visit Alison’s website, listen to her podcast, or consult with Alison. Email her at alison@practiceofthepractice.com
Meet Whitney Owens
Whitney is a licensed professional counselor who owns a growing group practice in Savannah, Georgia. Along with a wealth of experience managing a practice, she also has an extensive history working in a variety of clinical and religious settings, allowing her to specialize in consulting for faith-based practices and those wanting to connect with religious organizations.
Whitney has learned how to start and grow a successful practice that adheres to her own faith and values. And as a private practice consultant, she has helped many clinicians do the same.
Visit her website and listen to her podcast here. Connect on Instagram or join the Faith in Practice Facebook group. Email her at whitney@practiceofthepractice.com
In This Podcast
- Some differences between 1099s and W2s
- It is okay if some therapists leave
- The profitability of having W2 employees
Some differences between 1099s and W2s
Many practices typically work with contractors and follow the 1099 model.
This model is attractive to practice owners because it looks like less work than the W2 model, although this is not necessarily the case.
- It is easier to grow your group practice with the W2 model because it is easier to retain your clinicians as W2 employees, helping you to grow your practice while maintaining a stream of income.
- Additionally, it is also easier to build a cohesive work-space community with W2 employees than it is with 1099s.
- You can hire more staff into your practice because you can offer them benefits and bonuses.
I just realized there was so much division on people having their stuff, their businesses, managing their own [work] time, that I wanted to bring further community, I wanted to share resources, and I wanted to do things for my employees. (Whitney Owens)
It is okay if some therapists leave
One big doubt that practice owners have about changing from 1099 to W2 is that their therapists will all leave and that they have to start from scratch.
However, remember that it is okay if some therapists leave because some genuinely do want to be independent contractors.
Ultimately what happens is then the people you can attract [are part] of a larger volume [that can] work for you because you [can] offer [them] W2 employment, and that outweighs the initial drop off of a couple of therapists. (Alison Pidgeon)
Remember, the therapists who want to be W2 employees outweigh the number of therapists who seek independent work.
This also helps you to build a space where people want to be W2 employees, aiding in creating a holistic work environment.
The profitability of having W2 employees
You do not have to have a full offer package for your W2 employees right off the bat. You can start by paying them by the hour, and that’s that.
As you grow, you can pay them salaries, add benefits and bonuses, and more.
Check with the laws in your state and discuss these changes with your attorney to make sure you are on track.
There was a lot going on with the transition and I was like, “I can’t even think about starting a 401K plan right now, let’s just wait until next year, and then we’ll start that”. That’s what we did, and it was fine. (Alison Pidgeon)
Useful Links mentioned in this episode:
- Use promo code ‘JOE’ to get three free months to try out TherapyNotes, no strings attached!
- Free Webinar 3rd May: How to Delegate in Your Practice while Working Less and Making More
- Group Practice Boss
- Visit Alison’s website, listen to her podcast, or consult with Alison
- Email Alison at alison@practiceofthepractice.com
- Visit Whitney’s website and listen to her podcast here
- Connect on Instagram or join the Faith in Practice Facebook group
- Email her at whitney@practiceofthepractice.com
Check out these additional resources:
- Delegation Tips for Group Practice Bosses with Whitney Owens and Alison Pidgeon | PoP 703
- Apply to work together
- Next Level Practice – next cohort opens in March 2022
- Sign up for Next Level Practice — Cohort Open!
- Events – click on the event’s dropdown
- Sign up to join the free webinars and events here
- Podcast Launch School
- Practice of the Practice Podcast Network
- Free resources to help you start, grow, and scale
- Apply to work with us — decision-making matrix for your next steps
Meet Joe Sanok
Joe Sanok helps counselors to create thriving practices that are the envy of other counselors. He has helped counselors to grow their businesses by 50-500% and is proud of all the private practice owners that are growing their income, influence, and impact on the world. Click here to explore consulting with Joe.
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