Without a doubt, the most critical issue we hear in pharmacy at present is staffing. Many teams are feeling significant pressure from not only being short staffed, but also the added effort required to handle Covid vaccinations etc. Whilst the Covid vaccination rates are starting to show signs of slowing down, there is still a high demand from the public at the moment. This is at a time when staffing resources are much more limited than previously, leading to an array of problems.
Firstly, being short on staff is forcing owners to do longer hours. I have had many conversations with owners who are doing excessive hours, 60+, 70+, even 100+ hours per week. And that is being sustained week after week, month after month. I certainly have been concerned about the ongoing impact of this on the physical and mental health on owners. Owners also then go into survival mode and are losing touch with some aspects of pharmacy business management. Simply, because they have no choice.
This is also happening at a time in which there are significant staffing shortages. So, it’s not as though owners can simply go out to hire more people. Not only are pharmacists in severe short supply, but also pharmacy assistants. It’s a significant problem.
Secondly, this is also putting pressure on the teams. They have been sustaining the pressure for a long time too. The pharmacy team being on the front line in a community facing role, there is also the issue of Covid exposure. There are not many other industries who have faced this threat. So, teams are stressed. They are also doing long hours and copping abuse from certain elements of society, simply for doing their job and trying to look after the community.
The other problem is pay. People will ultimately want more to be rewarded for the stress and pressure. No one wants to remain on the same wage forever. I spoke to a pharmacist who hasn’t had a pay rise in years. Pharmacist hourly rates are now increasing, which is a good thing. They are worth every cent.
All of these issues build up and result in a couple of problems. Unless the owner does something to address this, the store culture starts to suffer. That is a terrible thing for a pharmacy to experience. It is one thing in my experience that you can feel. If the culture is wrong, you can feel it. If the culture is good, you can also feel it. Address it and address it quickly.
So, how do you manage this difficult situation?
Staffing Structures
Focus on the staffing structure that ideally suits the business and enables the business to service the customers at the highest levels. Organisational Charts are vital here. It is important to note, this is a roles-based exercise. You must identify the roles first that the business needs, then who needs to fulfill them. In smaller businesses, individuals will fulfil multiple roles. As the business grows, the individual roles become more specialised. This is a vital step that every pharmacy needs to do and have in place.
Click here if you want a copy of the Peak Strategies standard organisational chart for pharmacy that we use in our Pharmacy Mastermind program.
Store Culture
As any business owner would know, the team culture is everything. The culture and atmosphere in your store needs to be constantly cultivated and grown. That culture is what keeps your team together, reduces staff turnover, but also is what binds your customers to your store. I have often said this, you can feel the culture of a store as soon as you walk into it. I have walked into some stores and is just feels happy, welcoming, and vibrant. Others I have walked into, the place just feels grumpy, and you feel like you are going to get yelled at. It’s awful. Keeping your team together is vital for a pharmacy. That relationship between your team and your community is so important. Whilst $ pay is important, the culture and values of the business is even more so.
set & manage kpi’s
Set rostering, wage budgets and manage your KPI’s. Depending on the type of pharmacy you are running your wages to gross profit (including health services) ratio should be between 35% and 40%. Discount style pharmacies will be different. Also, if you have nursing homes it may be higher. It’s a good idea to keep track of this ratio and set wages budgets accordingly. Keep in mind here though. This ratio comprises two factors. The wages spend and Gross Profit. Your ratio may be too high either because the wages are too high, or because your gross profit is too low. Set you organisation chart, and staffing structures, define your wages budget in terms of $ and hours then manage it carefully.
UPSKILLING & Training
Focus on team skills and career development. Continued training and development of your team, particularly your key people, is very important for workplace culture. People want to progress; they want to learn, and they want to feel like they are progressing. It’s unrealistic to think your team will hang around forever. No one does. But we can at least ensure they leave in a better state than when they came to us. If your team grow, so does your business. This culture of development also keeps your team together longer.
FOSTER THE TALENT
The best pharmacy owners I know have a keen eye for talent. They make sure that talent is cultured, grown and supported. They will become your store managers, pharmacy managers, retail managers, and hopefully partners. They will help you grow your business. Identify the best and grow them accordingly. But find opportunities for them as well.
RECRUIT THE RIGHT VALUES
Skills you can train, personality you can’t. The art of recruitment is difficult at the best of times. There is no way you can accurately determine whether the person you are interviewing is the right person for the business from a few PDF pages and an hour or two worth of conversation. Focus on the personality first. Find the person that will fit your culture and share the same values. Don’t be afraid to pay more for the best. They will add to and grow your business. However, be careful of those that want more $, yet don’t want to work for it, have no loyalty and don’t match the culture or performance expectations. It’s not easy. I know we don’t always get it right, but when we do its magic.
HIGHER WAGES
Its natural and expected that your team will want a pay and performance review. That is part of the natural evolution of your team. This also breeds opportunity. With more $ comes more expectation. You are happy to pay, but you want your pound of flesh as well. You love your team, but you are running a business as well. What more responsibility can they undertake in their role? What responsibilities can you hand down to your team, to free you up to concentrate of other areas that will grow your business more. This is a great opportunity for you.
Overall, don’t be too focused on your own profitability. If done right, everyone should benefit from a growing, solid profitable business. Pay your team well, but you are running a business and your business should be profitable and financially secure as well. You have debts to pay, food to put on the table and an asset to grow. I don’t think there is any argument that pharmacists are worth more than what they are getting paid. I think we also agree the model needs to change in order for pharmacists to be paid more and for the pharmacy business to remain financially secure. I think the industry really needs this. Alternate models need to be developed for the benefit of community pharmacy.
In our Mastermind meetings these are topics which are consistently discussed. Every pharmacy is facing these issues in its own unique ways. If you think your pharmacy could benefit from one on one strategy sessions covering all aspects of the business, book a FREE consultation below.
