DSOs will have to take additional factors into consideration when recruiting in an increasingly competitive market, according to Barry Lyon, DDS.
Dr. Lyon is a chief dental officer for the division of orthodontics and pediatric dentistry at Sarasota, Fla.-based DSO Dental Care Alliance. He recently spoke with Becker's about how DSOs can continue to recruit providers amid increased competition.
Editor's note: This Q&A is part of a weekly series featuring Dr. Lyon focused on topics in the dental industry and DSO field. This response was lightly edited for clarity and length.
Question: What are DSOs doing to recruit and hire providers in a highly competitive market?
Dr. Barry Lyon: According to the American Dental Association, 13% percent of dentists in the United States are affiliated with DSOs and 23% of dentists who graduated from dental school within the last ten years are affiliated with DSOs. At the same time, the DSO market is expected to grow significantly. According to Precedence Research, the market size of DSOs is expected to grow from $145.5 billion in 2022 to $196.2 billion in 2027. Clearly, hiring providers is expected to become even more competitive over the next few years. What do the talent acquisition teams of DSOs employ when recruiting providers, knowing it’s a seller’s market?
Ten to 15 years ago, the level of sophistication for recruiting teams was pretty basic: place ads and hire providers. Today, because of increased competition, DSOs need to think out of the box and, instead of waiting for candidates to come to them, the DSO goes to the candidates. Recruiters visit dental students before graduation and the annual meetings of specialty organizations are well-attended by recruiting teams. Dinners, continuing education courses and office visits are all a part of the team’s approach.
Compensation, along with signing and retention bonuses, relocation and continuing education allowances, and health and retirement benefit packages are obviously important to candidates. However, intangibles play a role as well. Great Places to Work reports millennials, the largest generation currently in the workforce, has additional needs. They want a job where the work has meaning and their voices are heard. Further, at least as important as pay is a work-life balance and support. Unless DSOs recognize it’s not all about the money to their new hires, retention rates will suffer, and hiring will continue to be challenging.