How to Negotiate a Physician Salary
When reviewing and negotiating your employment contract, compensation will usually be at or near the top of your priority list. You’ve worked hard to become a physician, and you should be paid fairly for the work you continue to do. Unfortunately, many employment contracts do not offer a fair compensation package out of the box, so you may need to do some negotiating.
Know what’s fair.
Before you consider negotiating for a higher salary, you must know whether negotiation is even necessary. When approaching any contract negotiations, it’s important to remember that you are only looking for fair terms. No one wants to be undercompensated, but you also do not want to ask for a salary that is way above average for a family physician in your location.
Start by consulting data on average physician salaries so you know what a typical level of pay should be for your job. Currently, the data source most widely referenced by employers is the Medical Group Management Association’s (MGMA’s) annual compensation report, which physicians can also access for a fee. Keep in mind, however, that even when employers use MGMA data to decide what compensation to offer you, that doesn’t mean they will always offer a salary that is at or above the average, so it's important to check the data yourself.
The AAFP is building a career benchmark dashboard that will allow members to compare salary, benefits, job satisfaction, and more to give family physicians the knowledge to fuel powerful negotiations. Contribute your data to this project—anonymously, of course—now through November 10, 2023.
Make the ask.
Once you’ve seen the average numbers for your specialty and location, you’ll know where your current or potential compensation stands. If your salary is below the average, it’s completely reasonable to ask for an increase that closes the gap.
Over the course of your contract, and certainly over your career, even relatively small differences in salary can add up to millions of dollars. Negotiating for a fair salary early on will set you up to earn more in the long run, especially when raises are percentage based.
Even when it seems like you are asking for a lot, remember that you’re basing your request on the same data your employer used to make their offer. They will also know when they are underpaying you, so it should come as no surprise when you ask for fair compensation.
Consult an attorney.
Negotiating your salary and other parts of an employment contract can be overwhelming, even if you use some of the tips mentioned here. As a physician, you know that learning how make a diagnosis or perform a procedure is one thing, but actually putting that knowledge into practice is another.
Luckily, there are attorneys who specialize in physician employment, and they have the expertise necessary to give you personalized advice on contract negotiations. If you are unsure how to interpret some of the compensation data, nervous about asking for a pay increase, or just want someone to negotiate on your behalf, an experienced attorney can help. They may have even negotiated with your employer in the past, providing invaluable insights into how your negotiations should play out.
Salary Negotiation Support
The AAFP has partnered with Resolve to provide you all the data, insights, and expertise you need to successfully negotiate your salary and other contract terms. Gain access to MGMA data at a substantially discounted rate and connect with a specialized attorney who will guide you through the entire contract review and negotiation process. Utilize free tools like Resolve’s contract scorecard and rData, a collection of salary data derived from physician contracts Resolve has reviewed. Explore the free benefits immediately, or use the code AAFP10 to receive a 10% discount on any paid services.