WHY OWN A PHARMACY? AM I BETTER OFF BEING AN EMPLOYEE?
- July 12, 2026
- 10:28 am
Why own a pharmacy? Am I better-off being an employee?
The UTS Community Pharmacy Barometer is an annual report collating research tracking the confidence, perceptions and opinions of pharmacy owners and employees in relation to impact of perceived future changes. The report published late last year provided many interesting observations and interpretations, including:
- Increased provision of professional services by pharmacies.
- Improved collaboration with doctors, aged care facilities and other health professionals.
- Signs of increased optimism by some owners, about the future of community pharmacy generally.
- However, employed pharmacists were often less optimistic, due to perceived increase in workload going forward.
- rend towards increase in hourly wage rates for employee pharmacists.
Over the last couple of years there has been an increased demand for pharmacy services such as vaccinations and also a need for deliveries to customers, putting a greater load on staff’s time. Some team members have also reported being uncomfortable dealing with frustrated customers in situations where certain stock have been in short supply and customers were frequently disappointed.
On the back of the challenges to community pharmacy (and businesses generally) due to Covid, many pharmacies have experienced ongoing difficulty in attracting, recruiting and retaining staff. Especially those pharmacies located regionally. Pharmacy owners have needed to manage staff rosters carefully (eg splitting into teams in case staff became unavailable due to illness) requiring extra staff numbers to cover the need. But with access to additional experienced staff limited, then existing owners and staff have had to work longer and harder to meet customer needs.
It also appears anecdotally that an increasing proportion of pharmacy students are choosing to work in hospitals as their career pathway, rather than explore community pharmacy. The perception of many students is that community pharmacy may be a more difficult or less satisfying choice, compared to working in a clinical environment. So if fewer students join community pharmacy, then the shortage of professional staff will not be resolved in the immediate future.
For those students who are choosing to become community pharmacists, or those pharmacists currently employed in community pharmacies, they also should consider the option of ownership. If the remuneration prospects of remaining as an employee appear promising in future due to scarce supply, is there sufficient enough incentive to become an owner (or partner)? For those pharmacists who love the engagement of working closely with customers in their local community and being part of a small team, what could be compelling motivators to take the next step? There are numerous other motivators for becoming an owner, but some of the most common include:
- Flexibility to organise both your business as well as personal life. This might be important when you have a young family to care for, or at the other end of your career when you would like to travel or take a sabbatical.
- Control to make all of the important decisions and have more influence your own destiny. It can be most satisfying to really be part of the community, grow a business and develop vision for the team.
- Contribution to the health of customers, providing meaningful employment to staff as well as earning an income from the business can be rewarding, on multiple levels.
- However, employed pharmacists were often less optimistic, due to perceived increase in workload going forward.
- Building an asset by improving the business turnover, profitability and overall performance can become a significant component of a pharmacists’ long term retirement planning.
Once a pharmacist has embraced community pharmacy ownership as their long-term career, I would also challenge them to also reflect carefully upon the business side. This should occur both before purchasing the business, and also as an ongoing exercise whilst being an owner. Every successful business requires astute planning to ensure confidence about the future. Thus, owners should regularly ask themselves these five questions:
- Methodology of business – Whilst you are working within ethical requirements of the profession, are you also deriving optimal profit?
- Perception of risk –How much financially is “on the line” in you personally supporting the business, and are you comfortable with this?
- Return for effort – Are you truly generating enough profit over and above a reasonable wage, to justify the risk? Or would you be better-off remaining as an employee?
- Opportunities – Could you take on a bit MORE risk, but generate rewards that could deliver attractive results? (eg borrowing to buy another pharmacy, purchase the premises)?
- How much is enough? – What is my target accumulated assets value by the time I retire, which should generate sufficient income for your lifestyle?
For the right person, community pharmacy can provide an extremely satisfying career. The combination of professional interactions, relationship building and remuneration can still be a compelling option. It also provides an additional entrepreneurial opportunities, should the pharmacist be attracted into ownership.
About The Author
Neil Featherstone
Senior Consultant
Pharmacy Advisory
Specialist
Neil works with pharmacy owners and businesses to improve performance, build value and achieve long-term success.
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