It feels like asking for a first date.\u00a0 Feeling awkward, fearful of rejection, I tentatively sidle up to my target.\u00a0 \u201cHey, can I ask you something? What do you charge these days?\u201d<\/p>\n
In my experience, most locum veterinarians and technologists (RVT) set their rate this way.\u00a0 Or a wild guess.<\/p>\n
Some locums just pick a random amount and change it depending on the reactions from clinics.\u00a0 \u201cOh wow, we could never pay you that\u201d results in a lower rate. Or, \u201cReally? That\u2019s great, can we book you until kingdom come?\u201d results in a higher rate.<\/p>\n
When I first started offering locum tenens services in Calgary, I sat down with a calculator and a glass of wine.\u00a0 I compared a salaried, full time position to locum tenens fees, using a similar number of working days, factoring in all the known costs and liabilities.\u00a0 At the time, it worked out pretty evenly. Practice owners who hire locums might shake their fist at the screen in disagreement. What a locum tenens gets paid in one single shift cannot be compared to the take-home pay of a salaried employee for the same length of time.\u00a0 Vacation time, insurance \u2013 liability, health and disability, EI payments, CE cost and time off, the list goes on of what is invisibly rolled into an employee\u2019s salary. Additionally, the emotional and cognitive cost of jumping into a new practice and always being \u201cnew\u201d takes significantly more energy, for me, anyway.\u00a0 It\u2019s a unique skill to be a locum, and deserves fair compensation.<\/p>\n
Some veterinarians choose to set a daily rate instead of an hourly rate.\u00a0 When I started, I charged a full day rate (8 hours) and a half day rate (4 hours) with an overtime fee per hour.\u00a0 Now, I have tweaked the language so that I charge a regular hourly rate with a 6 hour minimum. My overtime fees (if I miss a lunch, or stay late) are 1.5 times higher than my regular rate.\u00a0 I hate missing lunch. If a clinic only needs me for a few hours in the afternoon, I still have to turn away a full day elsewhere. And I have to get out of my pajamas. Some locums are fine with charging an hourly rate for a few hours, so do what works for you.<\/p>\n
Other common conundrums include; travel time, accommodation, mileage fees, on-call fees, and overtime.\u00a0 I can tell you that from my 20 years as a locum, and coaching other locums, I have seen no consistency. The reason locums choose their lifestyle often has to do with the control they want over their schedule and bills, so there is no cookie cutter approach.<\/p>\n
I determine a kilometer radius I\u2019m willing to drive for \u201cfree\u201d, and outside of that I charge mileage on additional kilometers.\u00a0 In the past, I\u2019ve been paid a few ways for on-call work such as a base for overnight availability, plus either hourly rate or percentage of billing for any emergencies I had to attend.\u00a0 I require a hotel for an overnight stay, or a private Air BNB style. Avoid staying in the practice owner\u2019s house while they are away, unless you are very confident that it will be comfortable for you.\u00a0 I often hear horror stories of unsanitary living conditions, teenagers having parties, and weird rules.<\/p>\n
At the end of the day, setting your rate is just like any product or service.\u00a0 Determine what you think is fair market value, then see what the market can bear.\u00a0 Factor in your vacation and CE time, and time for managing your actual business. You are running a business, treat it that way.<\/p>\n
That might seem easier said than done.\u00a0 How do you start? Oxilia provides a very helpful tool that gives an average of the hourly rate for each area in the country.\u00a0 Locum rates in Moncton are much different than those in Vancouver, so this tool is a great way to make sure you are not completely out of line with industry averages.<\/p>\n
Using these suggestions and tools, you will find the right price for a win-win solution.\u00a0 One final caveat: If you have special skills, or you are confident that you provide high value services, or you are living in an expensive area and travelling, charge what you think is fair and reasonable.\u00a0 Even if it is higher than the average local rate. Your calendar will tell you the truth about what you are worth.<\/p>\n
For goodness\u2019 sake, whatever you do, keep good records.\u00a0 If you have ADHD (like me), or hate paperwork (like everyone on the planet), this can be a struggle.\u00a0 My philosophy for paperwork is the same as my general life philosophy; get help from an expert, use tools, be willing to pay them, and focus on what you do best.\u00a0 Isn\u2019t that what you want your clients to do?<\/p>\n
\u2013\u00a0 Free Apps to manage expenses are helpful.\u00a0 I use\u00a0WAVE<\/a>\u00a0Accounting because it\u2019s free. I can take photos of a bunch of receipts at a time, it reads what it can, and I edit the rest.\u00a0 Boom! Expense sheet for the year. You can also use a Cloud Folder like Google Drive or Evernote to take photos of receipts with a smartphone directly into relevant folders.<\/strong><\/p>\n \u2013\u00a0 Hire an accountant and\/or bookkeeper.\u00a0 Don\u2019t do this on April 1. Do it now. Get their advice on how to maximize deductions.<\/strong><\/p>\n \u2013\u00a0 Spend one day a month, or an hour a week, or whatever, on paperwork (factor this time in when setting hourly\/daily rate).<\/strong><\/p>\n \u2013 Make sure you meet criteria for self-employment.\u00a0 Check out the\u00a0\u00a0CRA website<\/a>\u00a0or ask your accountant or lawyer for more details.<\/strong><\/p>\n \u2013 Remit your GST and tax payments on time or face stiff penalties. Even better, just get your accountant to do it!<\/strong><\/p>\n \u2013 Deduct a portion of every cheque to put into a tax-free spending account or designated savings account for income tax time, and one for a vacation fund.<\/strong><\/p>\n \u2013\u00a0 Use Oxilia\u2019s accounting feature to create reports.\u00a0 Review these every few months.<\/strong><\/p>\n \u2013 Oxilia manages your invoicing, so that\u2019s one annoying job you don\u2019t have to do!\u00a0<\/strong><\/p>\n