This article originally appeared in the Spring 2026 issue of EquiManagement. Sign up here for a FREE subscription to EquiManagement’s quarterly digital or print magazine and any special issues.
During the Business News Hour at the 2025 American Association of Equine Practitioners’ Convention, Christine Staten, DVM, MBA, outlined a system of tiers to simplify wage decisions, as well as encourage and reward employee growth. Her use of a tiered approach grew out of frustration with traditional pay structures that failed to recognize, reward, and retain high-performing team members.
Tiered Compensation Structure
“The foundation of an effective, performance-based compensation system is a tiered structure that creates clear advancement pathways for each position within the practice,” she said. This approach requires thoughtful work to establish three to five skill levels for each role within the practice. Roles include positions such as receptionist, technician, and assistant, she said. Each level must have defined performance expectations, skill requirements, and compensation ranges.
A four-tiered system might comprise Entry Level, Competent Performer, Advanced Practitioner, and Expert/Lead, Staten suggested. Progression through each tier would represent a 15-20% increase in compensation, with any cost-of-living adjustments being made uniformly across the tiers. At Staten’s practice, if nonveterinarian payroll costs drop below 20% of total gross revenue, the tier rates increase. They give out no other bonuses or end-of-year gifts but provide free child care for employees’ children. In addition, “each employee is given $250 annually to spend on whatever will make them happy,” she said.
Performance Metrics
The performance metrics in Staten’s system include skills in several areas: technical, knowledge, professional behaviors, and operational contributions. To assess movement between tiers, she uses a system of logs, skill tests, observation, and evaluation. Each tier has an associated time frame limiting how soon an employee can move to the next tier, which at her practice varies from 3-12 months.
Final Thoughts
After implementing this program in her own practice, Staten said she observed enhanced motivation and engagement as well as increased quality of care. Team members actively pursued advancement up the tiers, and employee retention increased. By having control of their own path, they also had increased job satisfaction. In closing, she said performance-based compensation builds high-performing teams that maximize practice success.
Related Reading
- How To Have a Conversation About Compensation and Benefits in Equine Practice
- Equine Veterinary Sustainability: Explaining Compensation Packages to New Hires
- The Business of Practice: Compensation for Equine Veterinary Associates
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