Pediatric Compensation: What You Need to Know
by Danise A. Cooper, Senior Consultant, Cejka Search
A strong compensation plan lends itself to successful career development and increases earning power through perks and benefits. According to the 2006 Cejka Search and AMGA Physician Retention Survey, "seeking higher compensation" is ranked as one of the top reasons for leaving a practice.*
When searching for a new position, it is important to be assertive and pay careful attention to available options. Compensation plans can take many forms, impacting your overall salary. Understanding the difference between market-based and productivity-based compensation will provide you with clearer expectations.
Market-based compensation is a competitive salary and benefits package that an employer typically presents as their initial offer. However, an organization may switch to productivity-based compensation a year or two after hiring, in which you will be required to earn such benefits. Be sure to ask how the organization deals with an employee’s compensation plan over time.
Key points to keep in mind:
- Carefully weigh the advantages and disadvantages of flat vs. productivity salaries. The opportunity to capitalize on your productivity is not an option with a flat salary.
- Make sure the employer specifies whether or not you will be required to assume some of the risk or expenses of the practice.
- Ask what financial benefits are being offered in terms of income guarantees, income distribution and opportunities for practice buy-ins and partnerships.
- Remember that large metropolitan areas tend to have a high level of competition. As a result, compensation packages may be less than those of organizations in less populated cities.
- Consider the compensation being offered in terms of the practice opportunity and the location.
A solid compensation plan is an important element in ensuring your overall satisfaction with a particular organization. Ask questions and make sure their offer meets your needs and expectations.
*Source: The Cejka Search and AMGA 2006 Physician Retention Survey was completed by 92 members of the American Medical Group Association, and collectively employs more than 16,833 physicians.