Repercussions from the pandemic will continue for years like a spring rebounding back and forth.
There is a shortage of workers. Front staff, Hygienists, Assistants and even skilled Dentists. Emphasis on skilled, plenty of schlub dentists… but none of my readers here, we’re thrivers 😉
What I’m seeing in the macroeconomic scheme (fiscal money printing, asset appreciation, historically low interest rates) is causing ripples that are inundating our cottage dental industry.
Incentivizing not working will produce non-workers. Just like incentivizing in your office for same day procedures, will get you more same day procedures. The carrot is a much better motivator than the stick. And as much as I would love to use the stick on those who are ‘woke’ in today’s society, I’ll have to keep those sinister thoughts to myself.
We’re entering a great time in dentistry. People are flush with cash all of a sudden. Not able to spend on frivolous entertainment and fancy dinners, during the pandemic we actually saw an increase in base pay of 10-15% for a majority of US citizens. Savings went up. Priorities changed to self care and hygiene. I’m more conscious than ever and want to figure out if there’s facial hair growing behind her mask.
Now is one of the greatest times to be a dentist. But yet it’s the worst time to find great help in the office.
The pandemic lost a certain percentage of workers. Those who cannot risk getting a family member sick, or themselves will stay away from the workforce. Those who were already close to retirement, sayonara. Those who make more on unemployment benefits, good luck with receiving this sort of Universal Basic Income in perpetuity.
Prior to the pandemic, schools were having a tough time finding candidates to graduate through their programs. State mandates and dental boards who continue to make their licensing requirements ‘too progressive’ stand to constrict the possible supply to us dentists. We will be scavenging for any talent that is willing to work in our offices.
Money printing will always come back in retribution to our future. We’re already seeing it, a reported 4.2% consumer price index (central banks want it to hover around 2%) should already make you think. The Fed is hinting at increasing interest rates to control ‘transitory inflation’.
Just perusing on hiring ads, all you see is ‘Signing Bonus’ and starting pay scales that just might have rivaled my first year out of dental school in 2010.
You will need to let this story play out. Inflation I really do hope is transitory. We do not want hyperinflation and capital controls and sudden skyrocketing interest rates. Everyone loses in that environment unless you own assets, hard metals and deflationary goods.
Let’s hope we don’t get there. Thrive my friend and good luck with any new hiring.
Love,
Lam