Money. Conversations about money can be uncomfortable in social settings, and many may instinctively try to remove themselves. However, the topic is sometimes necessary — specifically in the physician recruitment process. Despite physician compensation’s significance in recruitment, candidates and hiring managers often shy away from discussing it. Research shows time and again the importance of compensation in candidates’ job search decisions. Therefore, we know it’s a subject that must be addressed.
So, how should organizations approach physician compensation during the hiring process? As the Regional Vice President of Recruitment for Jackson Physician Search’s Eastern Division, I regularly consult clients about physician compensation related to the recruitment process, and I consistently stress several things. Keep reading for the three must-haves for any conversation about physician compensation.
1. Be Transparent About Physician Compensation
When I start working with a client, one of the first things we’ll do is conduct a market analysis to ensure we have a competitive offer. If we are confident we have the right offer, I suggest using it as a selling point when advertising the job. Some want to hold back, afraid a significant number will only attract those in it for the money. However, I strongly advise against it. We all want to be paid well for our work, so why wouldn’t a physician use compensation to narrow down the many opportunities available to them?
Consider this. A candidate seeks a family medicine job in the Midwest but is flexible about the exact location. They searched using the location filter and found 100+ jobs available. The easiest way to narrow them down is the compensation filter. The candidate runs another search excluding anything with a base below 300K. If your job ad lacks compensation information or conservatively holds back your top range, that candidate will likely never see your job. For this reason, I advise my clients to include compensation information and broadcast the most impressive aspect in the job headline. Whether your base pay is particularly competitive or you are offering a large signing bonus, include it in the headline.
Employers need to be transparent about compensation in the job ad to capture initial attention. However, this transparency doesn’t end there. Throughout the recruitment process, everyone speaking to the candidate should be knowledgeable about the compensation details and forthcoming with information. This means not only answering questions but also anticipating them. Provide details to help candidates gain a complete understanding of the opportunity.
2. Be Consistent With the Details
Transparency is critical, but equally important is consistency. All too often, a recruiter with very little understanding of physician compensation models is a candidate’s first point of contact after applying. If this happens, the best case is for the recruiter to acknowledge what they don’t know and assure the candidate that they can discuss those details at the next stage of the interview. In the worst case, the recruiter provides information that is not accurate. Hopefully, the next interviewer will be familiar with and comfortable discussing the details, but this is not always true.
Even interviewers with all the facts often play compensation cards close to the chest. Sometimes, they are afraid of overpromising and would rather downplay the details. In other cases, the interviewer holds back because they, once again, want to be sure the candidate is in it for more than money. If interviewers aren’t on the same page about discussing compensation, candidates will lose trust in the organization.
In any industry, accepting a new job involves an element of risk, but this is especially true for physicians. In many cases, their employers ask them to build a career (and a life!) in a new city. Of course, they want reassurance that there will be enough volume to provide a solid income once the initial salary guarantee expires. They should have a lot of questions and request details. If they don’t, this is a sign they don’t fully understand the compensation structure, which can decrease the chance of retaining that physician.
3. Be Thorough About Physician Compensation
When recruiting a physician, you want to anticipate their questions and be transparent with information without them dragging it out of you. Be thorough in your discussions, leaving candidates with no unanswered questions. Prepare to reveal historical compensation data. Without tying details to specific names, show the candidate earnings for individual physicians alongside their productivity and work RVUs. Then, talk to them about the current volume. When applicable, share the directional trend that led you to add the position. If you are hiring to replace a departing physician, discuss the size of that physician’s patient base and your projections for redistribution. If you’re hiring to start a new department, prepare to share data documenting the need, including the number of patients currently referred out for care. Using historical data and current volumes, what projections can you make for the future that indicate how much the physician can expect to earn?
One of the most impressive things a prospective employer can do is share this information in a formal presentation during the on-site interview. Treat the candidate as a prospective investor. Explain in detail why and how an investment of their time will pay off. Give candidates all the information they need to make informed decisions. When they sign on, they will be more likely to stay for the long term.
Physicians care about more than compensation when evaluating job options. However, it plays a critical role. Advertise competitive compensation from day one and be forthcoming with details, ensuring candidates don’t get mixed messages along the way. Ideally, the information they learn in the job ad aligns with what they learn throughout the process and is consistent with the offer they receive. Employers who address physician compensation transparently, consistently, and thoroughly will have an advantage over the competition and, most importantly, earn the trust of physician candidates.
If you are searching for a physician, it’s imperative to understand the changing expectations surrounding physician compensation and have a plan to meet them. The Jackson Physician Search team of dedicated recruiters is well-versed in physician compensation reports and trends in the current market. Our recruitment team can help you market your job effectively and extend a competitive offer when the time is right. Contact us today.
About Neal Waters
Neal Waters brings more than 18 years of experience in retained physician search to his role as Regional Vice President of Recruiting for Jackson Physician Search. He completed his undergraduate studies and played football at Auburn University, where he earned his Bachelor’s degree in Marketing. Neal loves physician recruitment and has an extreme passion for bringing healthcare to communities that need it while improving physicians’ career opportunities and quality of life.
