Performance-based pay gains traction beyond veterinarian production
Bottom line
EquiManagement’s latest Business of Practice podcast spotlights how Christine Staten, DVM, MBA, built a performance-based compensation system at her mixed animal practice, shifting away from what she described as inconsistent, ad hoc wage decisions. In the August 18, 2026, episode, Staten said she created a transparent, skills-based tier structure for team members, with each level tied to soft skills, hard skills, and knowledge benchmarks. Staff began at the lowest tier for the new system but did not lose their existing pay, and advancement was paced so employees generally stay at a level for a set period before moving up. Related EquiManagement coverage earlier this year said Staten’s framework uses three to five levels per role, with compensation increases of roughly 15% to 20% between tiers, and assessments based on logs, testing, observation, and evaluation. (equimanagement.com)
Why it matters: For veterinary professionals, the story lands at a moment when production-linked compensation is already common, especially for associates and new graduates. AVMA-reported data highlighted by the National Association of Federal Veterinarians show that 56% of associate veterinarians were paid under a base-plus-production model in 2024, and 70% of new graduates entering clinical practice reported ProSal compensation. Staten’s approach is notable because it adapts performance-based pay beyond doctors, tying raises for support staff to clearly defined skills, behaviors, and operational contributions rather than tenure or informal negotiation alone. That could make compensation conversations more transparent, while also helping practices connect pay, retention, motivation, and quality of care. (members.nafv.org)
What to watch: Expect more discussion around whether veterinary practices expand performance-based compensation from veterinarian production models into team-wide, skills-based career ladders, and how they balance incentives with collaboration and trust. (members.nafv.org)
Performance-based compensation is getting a fresh look in veterinary medicine, and not just for associates paid on production. In a new EquiManagement Business of Practice podcast published August 18, 2026, Christine Staten, DVM, MBA, said she implemented a transparent, skills-based pay structure at her mixed animal practice after concluding that compensation decisions had become inconsistent and difficult to defend. Her answer was a tiered system that gives employees a clearer path to advancement and ties raises to demonstrated competencies instead of informal, case-by-case decisions. (equimanagement.com)
The idea builds on Staten’s earlier presentation at the 2025 American Association of Equine Practitioners Convention, where she outlined “Simplify Raises and Promotions: Performance-Based Compensation for Equine Practice Teams.” EquiManagement’s April 24, 2026, coverage of that session said the system grew out of frustration with traditional pay approaches that did not consistently recognize or retain high-performing team members. AAEP’s program listings confirm Staten presented on the topic in the business and practice culture track, suggesting the concept has been circulating as part of a broader workforce and retention conversation in equine and mixed practice. (equimanagement.com)
In the podcast, Staten said each tier in her model includes soft skills, hard skills, and knowledge expectations. EquiManagement reported that hard skills can include tasks such as placing IV catheters or completing medical math, while soft skills may be assessed through observation or role play. In the earlier article, Staten said practices should define three to five levels for each role, such as receptionist, technician, or assistant, with explicit performance expectations and compensation ranges. She suggested a four-tier progression from entry level to expert or lead, with raises of about 15% to 20% between levels. At her practice, movement between tiers is measured through logs, skill tests, observation, and evaluation, with minimum time frames before another advancement. (equimanagement.com)
One notable detail is that Staten’s model appears designed for the whole hospital team, not only veterinarians whose pay is easier to tie directly to revenue production. In the podcast and in a separate interview, she framed the system as a response to inequities created when raises depended too much on manager discretion or who asked most effectively. In that interview, she described years of work to build the framework and said it ultimately helped attract and retain the kinds of employees the practice wanted. EquiManagement also reported that after implementation, Staten observed stronger motivation, better engagement, higher retention, and improved quality of care. (thewholeveterinarian.com)
That message intersects with a larger compensation shift already underway in veterinary medicine. AVMA data highlighted in a 2025 compensation trends piece show that ProSal, or base salary plus production, has become the dominant pay model for associates, accounting for 56% of associate veterinarian compensation in 2024. The same report said 70% of new graduates entering clinical practice expected to be paid that way. AVMA’s career guidance notes that compensation structures vary widely and that production-based systems can increase earning potential, but they also require clear definitions around what counts toward production, how thresholds are set, and whether negative accrual or clawback provisions apply. (members.nafv.org)
Why it matters: For veterinary professionals, Staten’s approach is less about importing ProSal to every role and more about formalizing advancement in a way that employees can see and trust. That matters in a labor market where recruiting and retention remain tightly linked to compensation, career development, and workplace culture. A transparent skills ladder may help practices reward growth among technicians, assistants, and client service staff without relying on uneven annual reviews or reactive raise decisions. It also gives managers a framework to align compensation with operational goals, training, and medical quality, not just revenue. At the same time, the broader debate around performance-linked pay has not gone away: industry guidance warns that poorly designed incentive systems can increase stress, create confusion, or undermine teamwork if the rules are opaque or if compensation is tied too tightly to factors outside an employee’s control. (equimanagement.com)
There’s also a financial management angle. In EquiManagement’s April coverage, Staten said her practice adjusts tier rates when nonveterinarian payroll drops below 20% of gross revenue, linking compensation decisions to business performance while avoiding one-off bonuses or holiday gifts. That suggests a more structured way to share gains with staff, though it also requires disciplined tracking, documented competencies, and manager time to test and coach employees through the system. For smaller practices, that administrative lift may be the biggest barrier to adoption, even if the model is appealing in principle. (equimanagement.com)
What to watch: The next question is whether more practices, especially in equine, mixed animal, and independent settings, turn these ideas into formal team-wide compensation ladders, and whether veterinary associations or consultants begin offering more standardized templates, benchmarks, or guardrails for implementing them. (equimanagement.com)