Following our bulletin earlier this year, the
nationwide survey of practice manager salaries has now been
completed and shows that basic pay rose by 3.19 per cent in 2011,
with bonuses also increasing – for the first time in five years –
by 13.62 per cent. According to the Practice Manager Salary Survey,
undertaken by independent practice management information portal,
First Practice
Management, in partnership with medical and dental insurance
specialists Towergate MIA, the average manager’s income is now
£39,060, compared to £37,800 in 2010.
The Salary Index uses comprehensive salary, bonus and
geographical data analysis from the responses of more than 1100
managers across the UK. The survey shows that location and practice
size leads to substantial differences in pay. As would be expected,
Greater London remains the top-paying region of the UK, with
average total earnings of £43,580, and nearly 71 per cent of
managers earning £40,000 or over. The South East region follows
closely behind recording an average total income for its managers
of £41,000.
Scotland and Northern Ireland region is the lowest paying area
with average total earnings at £33,125. This region also has the
highest number of small practices in the UK amongst the survey
respondents, with 41 per cent of the practices which responded
having less than 5,000 patients. Indeed, for smaller practices
(<5,000 patients) the average manager’s income is now £32,235
(2010 - £31,570), and for the very largest practices (>14,000
patients) the average is £46,770 (2010 - £46,710), showing little
change from last year.
The biggest change in this year’s survey results is the increase
in bonus payments. Until this year, bonuses had been steadily
declining since 2007, however this year shows an increase of 13.62
per cent over 2010. First Practice Management believes that much of
this rise can be explained by some managers receiving a bonus
payment rather than a pay increase, as the compound effect of a
salary rise over future years is avoided.*
Steve Morris, general manager at First Practice Management,
commented: “Although the data showed that average practice manager
salaries increased in 2010/11, a significant number of managers
reported zero pay-rises for themselves and for their staff. Some
have indicated that this is the third or fourth year of a pay
freeze while many practices are reporting differential rises for
lower paid staff and zero rise for higher earners being a common
theme.
“There is evidence that some practices are cutting back on their
staff either through redundancies or via natural wastage, and that
they are looking at other ways to save costs, such as revising
staff sick pay schemes, enforcing reductions in contractual working
hours, or reducing holiday entitlements. It seems likely that the
increasing changes in general practice over the next few years
coupled with uncertainty over funding is likely to see more
cost-saving measures bite as practices seek to balance their
budgets”.
Managers as Partners
Last year was the first time the Practice Manager Salary Survey
included an overview of the income of Managers as Partners in their
practices. From the responses received then, less than 3 per cent
of Managers had Partner status. This year the percentage shows a
slight increase to just over 3.5 per cent.
Total average earnings by those managers with Partner status is
£53,695, substantially higher than for non-partner responders, and
at a level up by 11 per cent from last year. For the largest
practices (>14,000 patients) the average manager / partner
income is circa £60,000. compared to non-partner manager income of
£46,770.
Jason Brown, Head of Sales at Towergate MIA, commented: “The
annual Practice Manager Salary Survey enables us to see how the
general practice sector is faring at a time when there is much
focus on cost savings in the NHS, but living costs escalate. This
year’s results show that taken as a whole salaries are continuing
to rise at a low level, however when you look closer it is clear
that public sector cuts are having an impact with many practices
reporting no pay rises.”
Read more about the Practice Managers Survey in
Pulse,
FPM and the
Dental Practice Managers Association.