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PRACTICE MANAGER SALARY & BONUS SURVEY 2009

To celebrate another successful year in partnership with First Practice Management, our selected insurance partners Towergate MIA are proud sponsors again for the 2009 FPM Practice Managers' Salary Survey. Towergate MIA have continued to work with FPM to provide FPM Members with high quality service and special Member benefits for surgery, locum and home insurance. For quotations or more specialist advice about the range of services they offer, call 0800 013 7777 quoting your FPM usernumber. Alternatively, email fpm.mia@towergate.co.uk, or visit their brand new website at www.towergatemia.co.uk and click on Affinities. The advisors at Towergate MIA will be very happy to help you.

Introduction to the survey

Our survey of Practice Managers' salaries in the UK took place in June and July 2009; we received over 1350 responses (a small increase on the 2008 survey) representing over 15% of the Practice Managers in the UK. The results are analysed by Region as well as nationally, and cover basic salary and bonus.

Methodology

All averages, numbers etc. are calculated directly from source data – there are no “averages of averages”, therefore “total” lines are actual averages for the region or category, and are not averages or additions of the data lines above. Similarly, all data used relating to previous years for comparison is derived from source.

Some other points about the methodology

• Responses are linked to counties based on postcode
• Counties are grouped into broad geographical “Regions” for analysis only
• County groups within regions are based on proximity
• In some of the bonus boxes the figure “nil” is entered – this means that there were no declared bonuses in that category
• Where “NAS” is used that is because there were not enough responses in that category or location to ensure that we could protect the anonymity of Managers.

Percentage changes since last year's survey

This year Basic Salary shows a percentage average rise in pay of 2.77%, compared to 1.98% in 2008. The largest rises were in the smaller practices where a 3.72% growth is illustrated, with the largest practices of >11000 patients showing a growth rate of less then 1%. In general though there is still a positive trend upwards in basic salary.

Bonus payments show a general decline in the average amounts paid, and this reduction has escalated year on year since the first year of the survey in 2005, a reflection on the squeeze on practice income each year due to rising costs, and the resultant importance of QOF and other performance money has in meeting day to day running expenses, rather than the provision of incentive payments.This year 925 managers (68%) of managers did not receive a bonus, an increase of 13% over 2007, which was also an increase of 23% from 2006, again illustrating the downward trend in bonus awards.

Regional summaries

Scotland/NI average basic salaries and overall incomes (basic + bonus) are the lowest overall in the index at £32300 and £32702 respectively, narrowly beating Wales. 73% of managers were not paid a bonus

North average basic salaries and overall incomes (basic + bonus) were £35362 and £36026 respectively. 63% of managers were not paid a bonus

South West average basic salaries and overall incomes (basic + bonus) were £36333 and £36710 respectively. 73% of managers were not paid a bonus

Greater London, along with the East region, shows the greatest overall percentage reductions in the levels of bonus paid this year, although in the past levels have been amongst the highest. The level of bonus payments in the >14000 category is the exception and a reflection of the levels paid to those managers - all respondents had substantial bonuses of which one was 20k. Average basic salaries and overall incomes (basic + bonus) were £39643 and £40550 respectively. 63% of managers were not paid a bonus. Overall, Greater London managers are paid the highest on average in the UK, with 49% earning more than £40,000 in total last year - up on the 45% reported in 2008

South East is the third highest paid region on average. South East average basic salaries and overall incomes (basic + bonus) were £37756 and £38388 respectively. 68% of managers were not paid a bonus

East region is the second-highest paid region in the UK after Greater London. East region average basic salaries and overall incomes (basic + bonus) were £39130 and £39713 respectively. 72% of managers were not paid a bonus

Midlands region average basic salaries and overall incomes (basic + bonus) were £36102 and £36640 respectively. 70% of managers were not paid a bonus

Wales is the second-lowest paid region overall on average, marginally above Scotland. Welsh region average basic salaries and overall incomes (basic + bonus) were £32360 and £32782 respectively. 74% of managers were not paid a bonus

Summary:

• Managers' incomes rise 2.13% from last year, although the level of bonuses paid has reduced by 23.30%
• Average Manager's total income is now £36925 compared to last year's £36155. The 2007 figure was £35635
• The average total manager's income for the smallest practice size (<5000) is £30919 (2008 - £29875)
• The average total manager's income for the largest practice size (>14000) is £44969 (2008 - £44678)
• Average bonus was down by over 26% to £579 from £785 in 2008, and from £951 in 2007
• The most common bonus paid was £1000 - the same as the last two years (67 managers) followed by £2000 (38 managers) and then £500 (30 managers)

Responsibilities of the post of 'Practice Manager'

There is of course the hugely vexed question of the responsibilities a post carries, which has the title “Practice Manager”. We know responsibilities range widely. While it was suggested to us that we should first agree and define the responsibilities, we concluded that this was simply not possible for our purposes, and so we simply based the results on responses from those who carried the title “Practice Manager” or similar.

Go to the survey

UK Practice Manager salary survey designed and collated by David Stephen (IT) Design for First Practice Management; July 2009