When it comes to recruiting physicians, perhaps nothing matters more than physician compensation. In the 2023 early-career physician survey by MGMA and Jackson Physician Search, compensation was the number one factor influencing first job searches. Other studies confirm that compensation remains a top factor in job satisfaction for physicians of all ages, leading us to the same conclusion: money matters.
That’s not to say that physician compensation is the only thing that matters. Certainly, physicians care about work-life balance, organizational culture, practice governance, growth opportunities, and more. However, in order to catch their eyes initially, you need to advertise an impressive six-figure number in the headline of a job ad. You must then be able to demonstrate to candidates how this level of compensation is possible beyond the period of guaranteed physician salary. Physicians — especially those coming out of training — need transparency about compensation in order to make an informed decision. If healthcare leaders want to win over candidates, they must anticipate compensation questions and address concerns throughout the recruitment process. To execute this effectively, healthcare organizations must do the following:
1. Identify a Competitive and Realistic Physician Compensation Range
As Regional Vice President of Recruitment for Jackson Physician Search, one of the first things I do when I enter a new partnership is help the organization identify an appropriate compensation range for the role in question. This involves evaluating what physicians in the same position at your organization have earned historically and what the current market is paying those same types of physicians. Industry reports such as those from MGMA are helpful, but feedback from physicians in the current market provides the most insight. A comprehensive analysis of physician compensation data should reveal what the organization is capable of in terms of compensation, as well as its limitations. This means we’re prepared to go to market with an attractive physician salary number and know what’s possible for the right candidate should we need to negotiate. This clarity allows the process to keep moving forward during that critical negotiation period without delay.
2. Advertise Physician Income Potential
It is often human nature to play our cards to our chests — holding back an impressive hand until the moment is right. This is not an ideal strategy in physician recruitment because compensation is typically the first way physicians filter their searches. With so many opportunities available to them, physician salary is an easy way to narrow their options. Sometimes, clients are afraid to advertise big numbers — they fear it may attract candidates who only care about money, or perhaps they don’t want to lock themselves into a number before they know it’s the right candidate. I remind these clients that 1) pursuing a well-paid opportunity doesn’t mean a candidate only cares about compensation, and 2) the numbers advertised — whether a physician salary guarantee, income potential, or signing bonus — are not part of a formal offer. The figures listed in the job ad indicate what you are willing to do for the right candidate, and while they should be genuine — no one likes a bait and switch — they create no obligation.
Once you have piqued candidates’ interests with the physician salary or signing bonus, you can share the details of your amazing culture, work-life balance, and career development opportunities. The compensation conversation continues, but now you can talk about much more.
3. Be Transparent About Physician Compensation
Be prepared to explain the details of the physician compensation model used at your organization — especially if that candidate is a resident. Physicians often leave training with little to no understanding of the various physician compensation models, and they don’t always know what they don’t know. Anticipate their questions such as:
- What happens after my period of guaranteed salary is over? Share with them the earnings of other physicians in the group and explain how the group will support the new physician as they ramp up to similar levels of productivity.
- What about recruitment incentives? Prepare to share the details of how signing bonuses, loan repayment, and/or moving expenses will be paid. If the signing bonus is tied to retention, be sure the physician understands if and how much will be paid back should they leave before that period is over.
- What will my compensation look like five years from now? Make sure physicians understand how the patient volume supports the salary guarantee and how they might grow their practice to earn even more over the years. This is especially important if you are competing with another (bigger) offer. Show them how, over time, they can earn more with your group through partnership, investment opportunities, or a fast track to leadership.
Physicians care about compensation, but this doesn’t mean the organization with the biggest physician salary always wins. How you advertise and then discuss physician compensation plays a critical role in how candidates understand their potential with your organization. First, organizations must conduct a market analysis to identify a competitive compensation range and look at internal factors to determine what is possible. Then, they must put an eye-catching number — whether the earning potential, signing bonus, or other incentive — in the job ad to attract candidates. Finally, when talking with candidates, hiring organizations must be transparent about what physicians at the group are currently earning and explain how they plan to support a new physician to the same level.
By removing ambiguity and addressing compensation concerns head-on, healthcare organizations will gain an advantage in the physician recruitment process. Not only will this help them win over candidates, but it ensures the candidates they sign have a clear understanding of what they can expect to earn at their new organization from day one and into the future.
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 career opportunities and quality of life for physicians.
