Compensation & Contract Negotiation
Key Questions To Ask About Compensation
Some how-to books on job interviewing advise you never to bring up money. Baloney. If you're interested in the job, you're entitled to know what it pays, as well as other details that affect your economic future. The time to raise the issue is toward the end of your first full day of interviewing, if the interviewer hasn't raised it himself. Here's what to ask: How much will you pay the first year? There's no need to dance around this question. Once the time has come to talk money, be straightforward. What's the compensation plan? Remuneration can take many forms. You may be offered a flat salary. Or a salary and benefits. Or a salary, benefits, and bonus if you hit certain performance targets. Or instead of a salary, you may be offered an income guarantee. It works just like a salary, but it lasts for a limited time, usually one year. After that, you're on your own, with your compensation tied entirely to your productivity. If, during that first year, your collections exceed your guarantee, you'll earn more. But if they fall short, you don't have to pay back the difference. If you leave the job early, however, you may have to repay the money in full. An interest-free loan, paid to you like a salary, is another possibility, particularly with a small group or non-profit hospital. If your collections are less than the loan, you must repay the difference. But you won't be at risk for overhead-the employer will cover your expenses. Still, you could have a substantial shortfall at year-end. How is income shared? If part of the group's income is divided equally among the doctors, ask how big the pool is and who's eligible to participate. In one 45-doctor primary-care group, 50 percent of income was divided only among shareholders, and 50 percent according to individual production. Because physicians joining the practice didn't become shareholders for five years, they participated in only 50 percent of its income. Ask how money is allocated for the full range of services you'd be expected to perform and delegate. If you're an allergist, for example, would you be paid for injections. Some employers don't pay, even though services incident to yours may bring in 50 percent of your revenue. Some employers give partial credit of 25 or 50 percent. |
In this Article
Page One
|
Copyright 2004 The Resource
Company |
