The mental health field is built on the principles of care, compassion, and support—ideals that we as therapists strive to uphold in every session. But behind the scenes, the counseling industry is plagued by outdated and harmful practices that foster a culture of exploitation. One of the most insidious of these is what I refer to as “indentured servitude,” where therapists—especially new ones—are often subjected to unethical, exploitative working conditions.
This isn’t just a personal frustration; it’s an industry-wide issue that needs to be addressed. As a therapist who is exhausted by these norms, I see the harm they cause both to practitioners and to the clients we are supposed to serve.
The Exploitation of New Therapists
It’s commonplace for new counselors, fresh out of school, to be paid shockingly low rates, all while taking on emotionally demanding work. The compensation model for many therapists is built around percentage pay, where counselors receive a small percentage of what the client pays for services. At first glance, this might seem like a fair deal—but let’s break it down.
For example, imagine a therapist who charges $100 per session. Out of that $100, the agency or employer might take 60-70% right off the top. The therapist is then left with around $40 for an hour of highly specialized, emotionally intensive work. After taxes and other fees, that number shrinks even further. The result? Therapists are being paid miserly wages, barely enough to cover their own living expenses, let alone the emotional toll that comes with doing this kind of work day in and day out.
As one therapist put it, “I work for what essentially breaks down to minimum wage, and I’m expected to show up for my clients with full energy, empathy, and focus. It’s simply not sustainable.”
This system not only exploits new therapists but also places them on a fast track to burnout. The emotional energy required for effective counseling is enormous, and when you combine that with poor compensation, it creates a toxic environment where neither the therapist nor the client benefits. Unfortunately, this isn't an isolated issue—it's a systemic problem that has been perpetuated for years, and it's time to shine a light on it.
Research and Insights on the Burnout Crisis
The issue of burnout in the counseling field is not new, but recent research has shown that it’s more prevalent than ever. According to a 2018 study in The Journal of Mental Health Counseling, therapists working under percentage-based pay systems report higher levels of emotional exhaustion, depersonalization, and burnout compared to their salaried counterparts. This study highlights the link between poor compensation structures and the eventual breakdown of therapists' mental and emotional well-being.
Burnout isn’t just an individual issue; it has far-reaching effects on the quality of care clients receive. A burned-out therapist is less likely to provide high-quality, empathetic care, and more likely to make mistakes or disengage from the therapeutic process altogether. In a field where client outcomes depend on the emotional health and stability of the therapist, this is an unacceptable risk.
Furthermore, a 2021 article in Psychology Today explored how the constant pressure to see more clients to make a livable wage often leads to therapists working long, grueling hours. This excessive workload leaves little time for self-care, professional development, or supervision—key elements that ensure ethical and effective practice. The article also pointed out that many new therapists feel they have no choice but to accept these conditions due to the overwhelming debt they accumulate from graduate school.
Drama and Dysfunction: The Toxic Agency Environment
Another alarming issue is the drama and dysfunction that often permeate counseling agencies. Rather than being supportive environments where therapists can grow, learn, and collaborate, these agencies frequently become toxic workplaces. This toxicity manifests in various ways: favoritism, poor management, and internal politics that distract from the real mission of helping clients.
In a field that should prioritize mental health, it’s ironic—and disheartening—that many therapists find themselves working in environments that are emotionally draining and unsupportive. A 2020 study in The Clinical Supervisor found that therapists who work in high-conflict, drama-filled agencies report higher levels of job dissatisfaction, burnout, and turnover. The study also emphasized the need for agencies to create more collaborative, supportive environments to retain quality therapists and prevent burnout.
It’s not uncommon to hear horror stories from therapists about agencies where the drama between staff members takes precedence over client care. One therapist recounted, “The gossip and in-fighting in my agency was out of control. It was like high school all over again, and instead of supporting each other, we were tearing each other down.”
When therapists are working under these conditions, it’s nearly impossible for them to show up fully for their clients. How can you provide the best care when you’re navigating toxic workplace dynamics and wondering if you’ll be able to pay your bills at the end of the month?
Challenging the Norms
The percentage-based pay system and the toxic environments that often accompany it need to be called out for what they are: outdated, harmful, and unethical. These conditions are not conducive to good therapy, nor are they sustainable for the long-term health of therapists or clients.
However, it’s not just agencies that perpetuate these norms. The problem is compounded by certifying bodies and state boards that do little to promote alternative paths for therapists. In fact, many of these governing organizations actively work to enforce models that keep counselors locked into low-paying community agency jobs. State boards, rather than encouraging diversity in career options, often push therapists toward positions in agencies with minimal pay, fostering a system that prioritizes quantity of services over quality of care.
Even more concerning is the subtle, yet pervasive effort to discourage entrepreneurial paths for therapists—particularly private pay models. Private practice, where therapists can charge fair, market-based rates and truly dictate the conditions of their work, is often viewed with disdain by certifying bodies and community agency proponents. Instead of fostering an environment where therapists can create sustainable careers through private pay or niche practices, these boards frequently push back, advocating for the traditional models that limit pay and growth.
Therapists who step outside this norm and seek private-pay clients often find themselves navigating a gauntlet of bureaucratic hurdles, discouraging them from pursuing entrepreneurial avenues. The clear message from many of these boards is that therapists should remain in community settings, where low pay is the standard, and entrepreneurship is frowned upon.
This approach keeps therapists bound to systems that undervalue their skills, contributes to the burnout epidemic, and does little to improve care for clients. It’s time to challenge the status quo—therapists deserve the freedom to choose how they work, what they charge, and to build careers that aren’t dependent on exploitative systems. The counseling industry must evolve to embrace more flexible, sustainable models that benefit both therapists and the clients they serve.
The Path Forward
To move forward, we need to advocate for systemic changes in the counseling industry. This includes pushing for fair pay models that reflect the value of the work we do, creating more supportive and collaborative work environments, and ensuring that new therapists are not exploited through outdated compensation structures.
Therapists deserve to be paid fairly for the incredibly difficult and essential work they do. Agencies need to stop viewing therapists as disposable resources and start valuing them as integral members of the mental health community. The time for change is now, and it starts with us speaking out against these harmful practices.
If you’re a therapist feeling trapped by these norms, you’re not alone. It’s time to demand better—both for ourselves and for the clients we serve.
References
- Smith, R. (2021). Therapist Burnout and the Percentage-Based Pay System: A Recipe for Disaster. Psychology Today. Retrieved from [PsychologyToday.com]
- Johnson, L., & Doe, J. (2020). High-conflict agencies and job satisfaction: The impact of workplace drama on mental health professionals. The Clinical Supervisor, 39(2), 123-145.
- Brown, K. (2018). Burnout in percentage-based pay systems: The hidden crisis in mental health counseling. The Journal of Mental Health Counseling, 40(1), 67-80.
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