IS IT OK TO ASK FOR MORE MONEY? HOW?
“Money don’t get everything, it’s true—but what it don’t get, I can’t use” –The Flying Lizards
Although compensation is not the only important aspect of an employment agreement, it is the most important. The question that clients most frequently ask is, “SHOULD I ask for more money?” And the second question most frequently asked is “HOW do I ask for more money?” The answer requires consideration and depends on where the medical provider is in his/her career. Below are some tips about this important question.
First Job After Training
Your contract is an asset and may be your only asset. For the first job after training, compensation is the most important issue. It sets a baseline for your future. Accordingly, you want to do as well as possible not just on base compensation but on TOTAL compensation (which includes bonuses and benefits). However, the base guarantee remains critical, because it anchors your compensation package.
When you start a new job it will take time to ramp up. If you are being bonused on RVU performance, you will need time to see what your volume is like to know if and when you can switch to a full productivity compensation model. Having an RVU productivity bonus in addition to a base guarantee is most desirable and relatively low risk, especially if the base amount is attractive on its own.
Your attorney can advise you about how other parts of a contract affect your compensation, but the short answer is that you can and should ask for more money if you feel that your first offer is low. This is a reasonable question and will not offend the employer, but it does matter HOW you ask.
Here are two suggested ways to ask: 1) Is there room to increase the (base) compensation? or 2) Is there room to increase the (base) compensation to ____(a specific amount)? The tone of the request should be professional. Sometimes, but not always, it helps to add background to the question, such as whether you have another offer or whether there is data to support your request.
Also consider asking for other bonuses such as sign-on, relocation, retention and residency stipends. An experienced attorney can help you with the language for your request(s).
Further reading: How Far Should I Push to Negotiate My Employment Agreement?
Early Career
It is always a good practice to keep abreast of trends in your specialty, from both a clinical as well as a business perspective. What does your national association say about trends in compensation? As an example, our firm participated in a recent national meeting of the American College of Rheumatology that featured discussions about employment contract negotiations. A panel of physicians and an attorney discussed business issues in this specialty that were affecting compensation. It can be very helpful to hear experienced physicians speak about different phases of their career.
When you renew your contract or enter into a contract with a new employer, you will want to showcase how your experience will help the employer provide safe and high-quality service to patients. Specific examples are great. Additionally, examples of how you helped grow business for your employer are very valuable. Perhaps you can say that you helped increase patient volume and/or patient revenue by __ percent.
Think about how your accomplishments align with the compensation being offered and whether they can help you negotiate more. You should also consider whether ownership is something you want. When clearly spelled out as a real option in your employment agreement, it can meaningfully increase your compensation.
How to ask: Explain clearly to the employer how you helped increase quality, patient satisfaction, and volume in your current or last position. Give specific examples if possible. Then demonstrate how those examples would apply to the new employer’s practice and what the results could be.
Remember to do your homework about the new practice. Look at the website. Check the marketing. Be able to say that you looked and what you observed. You could say, “I looked at your website and wondered if you are doing any marketing to _____? I have experience with that and may be able to help.”
Further reading: Understand What You Wish For: Ownership Options As Part Of Your Employment Agreement Negotiations
Late Career
In late career, the focus is usually upon making the most money possible prior to retirement. “The most money possible” is not the same for everyone. It depends upon specialty, experience and, yes, the (younger) competition which is usually less expensive. It is common for employers, especially hospitals and health systems, to employ young physicians to protect longevity of a service line and lower cost. In our experience, this leads to late career clients examining what they want to do next. For example, do they want to take another job? Do they want to consult? Both of those options would require a new contract which must be crafted to support the end goal. Some of our clients have opted to retire with a negotiated agreement about exit strategy and compensation. In this scenario, prior work contributions to the organization play an important role.
How to ask: Understand that if you bring up retirement you need to be ready to be replaced. Most contracts have termination without cause provisions which would allow that to happen, so you’ll want to stay ahead of that and see what your opportunities may be. When you are ready, you can say, “I am thinking about making a change. I would like to talk with you about what that might look like for me and how I could contribute to the organization.”
Further reading: Give Me a Minute to Think: The Value of a Month Off
Do Men and Women Differ in Comfort Levels About Asking for Money?
Yes. In our experience, women are more hesitant to ask for more money, especially in the first job situation. They should not be. The discomfort (for anyone) can be managed by acknowledging the hesitancy and addressing it with practical ways to implement the “ask.” At all times, however, whether you are male or female, you should communicate to the employer that you are a team player so language and tone matter. Your attorney is there to assist.
Further reading: Women In Medicine And Employment Contract Negotiations: Turn On Your Power (Even If You Don’t Want To)
Malecki Brooks Ford Law Group, LLC is a women-owned healthcare law firm with over 30 years of experience representing individual healthcare providers. We have handled thousands of employment contract reviews and negotiations for new providers as well as for experienced providers who are changing jobs or looking toward retirement.
For further information contact:
Melinda Malecki