In the bustling world of veterinary practices, where compassion for pets meets the demands of business, one often overlooked aspect is the true cost of employee overtime. It's a topic frequently brushed aside or oversimplified, with many believing the additional hourly wages are the sole expense incurred. However, delving deeper reveals a complex web of hidden costs that can significantly affect a practice’s bottom line and the well-being of its staff and patients. The fallacy of hourly rates in veterinary medicine When questioned about how much a specific employee earns or “costs” the business, veterinary practice managers or owners frequently respond with something along the lines of, "Their hourly rate is $25, so they cost me $25 an hour.” But that view fails to capture the full picture. Beyond the question of base wages lies a myriad of additional expenses—from taxes and benefits to training and turnover—all of which contribute to the true cost of an employee. Understanding the true cost of veterinary employees To understand the real cost of a veterinary team member, you must consider the following factors: Overtime premiums — Overtime isn't only a matter of paying the base wage for extra hours. Federal and state laws often mandate overtime premiums, which can be as much as 1.5 times the regular rate. This additional expense can quickly add up, especially in practices where overtime is common. Burnout and diminished productivity — While it may seem easier to rely on overtime hours to meet business demands instead of seeking additional help, the long-term effects on employees can include burnout, fatigue, and decreased morale, which can lead to decreased productivity, increased errors, and higher turnover rates, not to mention serious mental health effects for your team members. Training and onboarding — Every new employee represents an investment in training and onboarding. When existing staff are stretched thin with overtime, the time and resources available for training diminish, potentially compromising the quality of care and increasing the likelihood of mistakes. Health care costs — Overtime doesn’t only tax the mind; it can also take a toll on physical health. Increased stress, irregular schedules, and inadequate rest can contribute to a host of health issues, ultimately driving up healthcare costs for employees and employers. Turnover and recruitment — The veterinary industry is no stranger to turnover, but excessive overtime can exacerbate the problem. Employees who feel overworked and undervalued are more likely to seek opportunities elsewhere, leading to increased recruitment and onboarding costs for a practice. Confronting the truth about overtime for veterinary professionals It's easy to fall into the trap of believing that overtime is a cost-effective solution to staffing shortages. However, as veterinary professionals, we must confront reality head-on and acknowledge the true burden of overtime. This means taking the time to calculate the full cost of employee hours, including direct and indirect expenses, and weighing them against the benefits of a well-rested, motivated workforce. How to manage the true costs of overtime What can veterinary practice managers do to mitigate the hidden costs of overtime? Here are a few strategies to consider: Evaluate workload and staffing levels — Take a critical look at workload distribution and staffing levels to identify areas of inefficiency or over-reliance on overtime. Invest in staff development — Make training and professional development opportunities a priority to ensure employees have the skills and support they need to thrive. Implement flexible scheduling — Explore alternatives to traditional scheduling models, such as flexible hours or compressed workweeks, to accommodate fluctuating demand without resorting to excessive overtime. Promote work-life balance — Encourage a culture of work-life balance by offering benefits such as paid time off, wellness programs, and employee assistance services. Communicate transparently — Foster open communication with staff about workload expectations, overtime policies, and the importance of self-care. In the fast-paced world of veterinary medicine, the true cost of employee overtime can often be overshadowed by immediate staffing needs and budget constraints. However, by taking a holistic view of employee expenses and acknowledging the hidden costs of overtime, practice managers can make more informed decisions that balance both financial sustainability and employee wellbeing. To discuss how overtime can wrack up considerable costs you may not realize, give our Veterinary System Services team a call. We’ll guide you through the pros and cons of bringing relief staff on board and provide a cost comparison in terms of finances, patient and client care, and employee wellbeing.

Veterinary inventory isn’t flashy or exciting for most veterinary professionals, and when it’s going well, the team is unlikely to think about it. However, when inventory systems don’t work, the entire clinic suffers. Stockouts frustrate team members, overstocking wastes money and space, and inventory managers become easily overwhelmed. If this sounds like your veterinary hospital, an overhaul of your inventory systems could help you get back on track. Veterinary System Services offers inventory consulting that transforms clinics and relieves stress on overworked team members. To illustrate how a few key changes can lead to significant improvements in cost control, space usage, and staff morale, here is the story of a clinic in Lone Tree, Colorado, that partnered with VSS to overcome its inventory challenges. The problem Clinic leadership contacted the VSS inventory consulting team after hiring a new team member who had previously used our service. Like many hospitals, their approach to veterinary inventory management wasn’t working for them. The practice spent more than 23% of its revenue on the cost of goods sold (COGS). The practice owner, Dr. Smith, wanted to see this number come down and had tried some tips they had heard about, with no success. Inventory management fell to Sara, a senior technician. Sara preferred working with patients, but she was reluctantly saddled with inventory responsibilities. For her, the job was thankless, and it clearly caused her mental distress. The team was constantly frustrated about stockouts, and Dr. Smith was unhappy with spending. Although they had plenty of storage space, including an entire basement food room, they never seemed to have what they needed. The solution After evaluating the practice’s veterinary inventory management systems, our recommendations included: Conducting a complete count of existing stock Using practice management software to track inventory Setting reorder points based on actual usage Transitioning food sales to an online platform Discontinuing retail extras, such as leashes, toys, and collars Some of the associate veterinarians were reluctant to give up in-house food sales, and Dr. Smith was concerned about losing revenue from retail items. Jane, the practice manager, worried about the disruption to business that a full inventory count would cause. It took some time, but the team overcame these hesitations and made the recommended changes. The results A year after our consultation with the Colorado clinic, we checked in on their progress. On arrival, we were greeted with Sara’s smile; she looked like an entirely different person with a weight lifted from her shoulders. She told us that costs were down, stockouts now rarely occurred, and that she finally got to spend more time with patients and less time putting out inventory fires. During a tour of the hospital, we saw that the retail section had been reduced to a few handmade specialty items that clients couldn’t get elsewhere, and most of the space was dedicated to a streamlined display of prescription diet starter bags. A new controlled substances cabinet, the first in a planned series of organizational solutions, was in place. As recommended, the hospital moved food sales online, which freed up the basement food storage room for a cat boarding area that generated monthly revenue. The team streamlined inventory so much that one of the stock closets had been transformed into a new exam room, creating further revenue opportunities. Overall, the practice decreased COGS by nearly 10 percentage points, an impressive feat for any hospital. Lessons learned Changes to veterinary inventory can be difficult to implement. Teams get stuck in inefficient patterns and feel too overwhelmed to institute change. But this real-life story is proof that impactful change is possible, and it doesn’t have to disrupt operations or tax already overworked team members. The changes this clinic made allowed a reluctant inventory manager to offload some of her duties and return to what she loved: caring for patients. Plus, the practice became more profitable, more efficient, and a better place to work. Contact us to learn more about VSS inventory consulting , medical-grade laundry , relief staffing, and placement services that help veterinary practices spend less and stress less.