Why You Should Care About Retention in Your Veterinary Practice

1. Better Retention = Happier, Hardworking Employees

According to Gallup, companies with low engagement have turnover rates that are 18% to 43% higher than those with high engagement.

Engagement and retention are a self-feeding cycle. When you have high retention, employees form greater bonds with their coworkers, leading them to be happier and more engaged, leading to continued high retention.

2. Better Retention = Better Client Experience

The average business loses up to 20% of customers annually by failing to take care of customer relationships.

According to Forrester, companies with highly engaged employees score 81% higher in customer satisfaction than their competitors. New data shows combining employee experience with customer experience can increase revenue by up to 50%.

3. Better Retention = Reduced Costs

Frontiers in Veterinary Science estimated the economic cost of burnout in the veterinary profession:

  • For veterinarians: the median industry cost of burnout attributable to turnover is ~$928 million.
  • For technicians: the median industry cost of burnout attributable to turnover is ~$933 million.

That's almost $2 billion across the industry just to replace talent.

The Center for American Progress calculates the cost of turnover at 20% of annual salary for workers earning under $50,000, and as much as twice the annual salary for higher-paying roles like veterinarians.

How to Improve Veterinary Staff Retention

Three big components: Compensation, Togetherness, and Growth.

1. Excellent Compensation

According to WTW, 40% of employees would leave a job for a 5% pay increase.

What excellent compensation looks like:

"We work with compensation specialists to benchmark wages and ensure we stay competitive while contributing to improved pay practices across the industry. Packages include cash compensation, a profit-sharing bonus for all practice team employees, equity for veterinarians, and a full benefits package. Our doctors are not paid on production — this encourages collaboration and removes pressure to forgo time off."
Nicole McLeod, Head of Talent Acquisition, Small Door Veterinary

Cody Creelman, DVM, CEO & Founder, Fen Vet:

Fen Vet pays technicians starting at $30/hr and assistants/client care coordinators starting at $21/hr. Beyond wages:

  • 3 weeks vacation starting day one
  • 5+ sick days (with flexibility above that)
  • 100% health benefits coverage with no probation period
  • Unlimited continuing education for veterinary technologists (including travel and accommodations)
  • 5 pairs of FIGS scrubs and new shoes for every team member
  • The Unicorn Clause: A custom benefit written into each offer letter — tailored to the individual. Examples: always having hot chocolate on hand, first right of refusal on Frenchie appointments, the ability to invoke a "bubble tea day" for the whole team.

Best next steps for compensation:

  • Send an anonymous survey asking how your team feels about their current compensation
  • Use the Living Wage Calculator to benchmark against your area
  • Think creatively about non-wage benefits that reduce living costs or make work more enjoyable

2. Better Togetherness

To foster togetherness, focus on three aspects of culture: Recognition, Reward, and Connection.

"We provide each clinic with a quarterly engagement budget for team bonding activities, in-clinic grief counselors, and an extensive EAP. Company-wide, we hold a quarterly Town Hall bringing everyone together — clinic teams, virtual care team, and office staff — for business visibility, values recognition, and open dialogue. We also run an annual 'Care Team Week' celebrating veterinary assistants, technicians, and hosts with handwritten notes, catered lunches, in-clinic massages, and special merchandise."
Samantha Famous, VP of People, Modern Animal
"Galaxy Vets is employee-owned, cultivating an owner's mindset guided by shared values. We use the Traction management methodology to break down silos and create alignment. We have an Idea Portal where anyone can submit ideas — approved ideas go through a design thinking process, with the entire team involved in implementation."
Dr. Ivan Zakharenkov, CEO, Galaxy Vets

Best next steps for togetherness:

  • Start a monthly town hall (close the clinic; compensate employees for their time)
  • Create an anonymous feedback system or employee council
  • Find your team's niche and organize a quarterly non-work gathering around it

3. Personalized Team Development

One survey found 94% of employees would stay at their current employer if it invested in their long-term learning.

"Professional development is not one-size-fits-all. Conversations need to be customized and individualized. Management isn't always the right person for development — often they're a conduit connecting employees with others who are more appropriate. And growth may mean someone leaves the organization; management should not prevent or hinder that."
Christy Schwartz, Executive Director, Virginia Veterinary Specialists

Resources for non-medical CE and professional development:

Affinity organizations: PrideVMC, Black DVM Network, LatinxVMA, Multicultural VMA, WVLDI, AAVMP, and more.

Best next steps for development:

  • Sit down with each team member quarterly to set 2 professional and 1 personal goal
  • Establish a consistent cadence and hold yourself and your team accountable
  • Research non-medical CE and affinity groups; pay your team's membership fees

Poor retention hits your bottom line and your culture. The practices that win at retention are proactive, creative, and genuinely invested in their people — not just when someone announces they're leaving.