The Testing Psychologist Podcast 536. Paying Well Without Sinking the Ship
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Today, I walk through four compensation models that work for testing and therapy practices – percentage split (fee-for-service), salary + production bonus, salary + profit share, and flat hourly – plus when each model makes sense. I break down the math behind forecasting (capacity, reimbursement, payroll taxes, PTO, benefits), show where owners get into trouble (overpaying early, ignoring utilization, fuzzy admin time), and share a step-by-step rollout plan with transparency practices that improve retention and engagement. You’ll leave with clear guardrails to pay people well without sinking the ship.
Main Topics
- Why compensation causes the most stress for owners and how it became confusing (00:00)
- Percentage split (fee-for-service): ranges, pros/cons, when it fits (02:23)
- Salary + production bonus: structure, turnover impact, transparency keys (04:24)
- Salary + profit share: culture/retention upside and owner transparency (06:51)
- Flat hourly per billed hour: predictability vs. reimbursement risk (09:18)
- Forecasting the math: eval capacity → revenue → sustainable pay (11:40)
- Aligning pay with values: quality, timeliness, client satisfaction (16:30)
- Pitfalls and guardrails: utilization, admin caps, COL raises, communication cadence (18:55)
Cool Things Mentioned
- The Testing Psychologist mastermind groups and business consulting
- Reverb: the premier AI-powered report-writing platform for testing psychologists
- APA Work in America Report (context on workplace stress): www.apa.org/pubs/reports/work-in-america/2024/2024-work-in-america-report.pdf [American Psychological Association]
- BLS Occupational Outlook—Psychologists (national wage benchmarks): www.bls.gov/ooh/life-physical-and-social-science/psychologists.htm [Bureau of Labor Statistics]
- BLS Occupational Employment & Wages—May 2024 (wage tables): www.bls.gov/news.release/pdf/ocwage.pdf [Bureau of Labor Statistics]
- Pay transparency and business outcomes (SHRM research summary): www.shrm.org/topics-tools/news/inclusion-diversity/shrm-research-pay-transparency-improves-business-outcomes-close-wage-gap [SHRM]
- Profit sharing & retention (PayScale brief): www.payscale.com/compensation-trends/new-research-finds-profit-sharing-increases-employee-retention-and-engagement [Payscale]
- WorldatWork Pay Transparency Study (policy approaches): worldatwork.org/research/pay-transparency-study [WorldatWork]
Featured Resources
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About Dr. Jeremy Sharp
I’m a licensed psychologist and Clinical Director at the Colorado Center for Assessment & Counseling, a private practice that I founded in 2009 and have grown to over 20 clinicians. I earned my undergraduate degree in Experimental Psychology from the University of South Carolina before getting my Master’s and PhD in Counseling Psychology from Colorado State University. These days, I specialize in psychological and neuropsychological evaluation with kids and adolescents.
As the host of the Testing Psychologist Podcast, I provide private practice consulting for psychologists and other mental health professionals who want to start or grow psychological testing services in their practices. I live in Fort Collins, Colorado with my wife (also a therapist) and two young kids.
Ready to grow your testing services? Click below to schedule a complimentary 30-minute pre-consulting call!