“Show me the money!” If this classic line from the movie Jerry Maguire reflects your approach to the physician contract negotiation process, you’re not alone. Physicians are in high demand, and thus, most expect employers to do exactly this when extending offers--show them the money! However, contracts are far more nuanced than any six-figure number might suggest. In a recent webinar for the American College of Occupational and Environmental Medicine, Jackson Physician Search’s Senior Director of Recruitment Jeff Foster shared his thoughts on the OEM physician contract negotiation process. He offered tips for OEM physicians who may be entering this final stage of the OEM physician job search.
A number of factors will influence an Occupational Medicine physician’s contract--the practice setting, the location, and the physician’s level of experience, among other things, but the principles of a physician contract negotiation remain the same, starting with going into the negotiation process with a clear goal. What is it that they want out of the negotiation and what is most important? Physicians should also be clear on their best alternative to the negotiated agreement (commonly known as BATNA). That is, if they walk away from the negotiation, what is their best alternative? A strong BATNA gives physicians more leverage in the negotiation. Lastly, physicians must be ready to deal with objections. So, after they ask for what they want, how do they respond to objections? Keep reading for Jeff’s advice on defining your goal, knowing your BATNA, and responding to objections.
1. Defining Your OEM Physician Contract Goal
It’s one thing to say, “I want to make $250,000,” but the target salary should be based on market data. So, first, Jeff stresses the importance of coming prepared. OEM physicians should do compensation research and know their value in the marketplace. They should have a clear goal in mind, but also know where they are willing to compromise. This means understanding the various aspects of a contract. Negotiations don’t begin and end with the salary. There are recruitment incentives, productivity bonuses, health benefits, retirement contributions, paid time-off, schedule flexibility, non-compete clauses, and more. All of these things may be potential “asks” or “trade-offs” in the negotiating process.
2. BATNA -- Know Your Best Alternative
“BATNA” refers to each party’s best alternative if they walk away from the negotiation. In contract discussions between physicians and healthcare organizations, the physician often has the stronger BATNA due to the broader physician shortage. Of course, the severity of the shortage in a given location and specialty will influence the strength of the BATNA, but generally, there are more OEM physician jobs than there are physicians to fill them. Starting the process over isn’t ideal for either party, but the one who can more easily find a similar alternative has more leverage. One look at OEM Explore, the map-based career exploration tool from ACOEM, reveals an abundance of opportunities for OEM physicians, meaning your leverage is strong.
That’s not to say the organization you are negotiating with may not be talking to another candidate as a potential alternative. Knowing whether or not they have a back-up may influence how hard of a line you hold in the negotiating table. So, it’s not only important to establish your own BATNA, but you should aim to understand the other party’s BATNA as well.
3. Objectivity and Objections in the Physician Contract Negotiation
Jeff warns physicians against asking for subjects (“better compensation,” “more flexibility”) and instead advises them to ask for objects ($10,000 more signing bonus, administrative work from home day once a week). He emphasizes that physicians can ask for whatever they want, as long as it’s within reason -- and they have the data to back it up.
It is unlikely the employer will be able to say “yes” to everything, but sometimes they do! In those rare cases, you can’t go back and ask for more. More often, the employer will say “no” to certain things or come back with an offer that’s close but still not quite everything you want. How do you handle those objections?
This is where your research pays off. Be ready to present the national median for occupational medicine physicians and a metric for factoring in years of experience. Have documentation that shows how much time off or schedule flexibility OEM physicians at other organizations have. This research will help you make your case, however, the best market data you can provide is another offer.
Even if you’ve made your case well, there may be things the employer simply can’t do--for a variety of reasons. Try to see where they are coming from and try to find an alternative that they can provide. If they can’t offer a higher salary, perhaps you ask for more PTO or a remote day once a week or month. The important part is to convey your understanding of their position and propose fair, realistic alternatives until both parties reach common ground.
Negotiating an OEM physician contract is a nuanced process that encompasses far more than thephysician salary. Understanding your goals, knowing your BATNA, and preparing to handle objections with concrete data are crucial steps. The job market for OEM physicians offers significant leverage due to high demand, but effective negotiation requires more than just recognizing this advantage. It demands thorough preparation, clear communication, and strategic flexibility. By following Jeff Foster's expert advice and approaching the negotiation with a well-defined strategy, OEM physicians can secure contracts that not only meet their financial expectations but also align with their professional and personal goals.
If you are seeking a new OEM physician job, the ACOEM career center, OEM | Explore, provides the latest job search technology, allowing you to view practices in your preferred area and filter by industries served. Learn more