By Dr. Sylvie Stacy, Guest WriterI recently published the book 50 Unconventional Clinical Careers for Physicians, in collaboration with the American Association for Physician Leadership. In it, I describe a range of non-traditional career paths for doctors beyond our typical roles in hospitals or specialty practices. The book covers insights into a range of job opportunities that utilize our medical skills, training, and degrees in different ways.
In the book, I included details on salary and compensation whenever possible; however, the process of negotiating job offers was beyond the scope of the book. But this is a very important topic, and I wanted to write about it here. Specifically, this article is about discussing your compensation expectations with a recruiter or hiring manager.
For most of us, our compensation greatly impacts our career satisfaction. We need to be proactive about making sure we are compensated fairly and paid what we are worth. How you approach compensation discussions during the interview process can mean the difference between securing a well-compensated, fulfilling position and a position that leaves you feeling underpaid and overworked.
Underpayment can also lead to stress, feelings of being undervalued, and disengagement at work. Don’t let that happen to you.
The Dreaded Salary Expectations Question During a Job Interview
I’d like to zero in on one question that routinely gets asked during job interviews:
“What are your salary expectations?”
You have probably gotten this question before from a recruiter or a hiring manager. Chances are high that you didn't provide a direct answer to it. Most of us have, at some point, been advised to evade giving a specific answer to this question.
The common guidance we get is to respond as vaguely as possible. We're taught that we should hint that we believe we're deserving of an offer near the high end of the company's target range (whatever that target range may be). We're taught that we should tell recruiters we expect a salary “in line with industry standards.” And we're advised to shift the conversation away from salary and emphasize the importance of the “overall compensation package.”
We’re taught to say anything to avoid giving an actual number, anything to force the recruiter to say a target salary first.
This approach stems from the concern that revealing your salary expectation first will put you at a disadvantage. As a result, many healthcare professionals—regardless of their career stage or the job they are applying for—feel like they are in a pickle when faced with this question. There's a widespread discomfort in being the first to give an actual salary figure during an interview. Hence the various strategies we've learned to use to circumvent giving a straightforward response.
However, in my experience and based on my observations, being direct about your compensation expectations is more beneficial than skirting around the salary expectation question. This is true regardless of whether you’re a candidate for a full-time position, partnership in a practice, consulting work, moonlighting, or any other compensated role leveraging your skills, license, and medical experience.
Being forthcoming in your response to the salary expectation question can mean that you'll ultimately have a more productive discussion with the recruiter. A productive discussion clarifies your value and lays the groundwork for a higher earning potential.
More information here:
12 Negotiation Techniques You Need to Know
How to Share Your Compensation Expectations
Yes, I am advocating for directness and transparency in salary discussions—from both the recruiter and the candidate.
I am suggesting that, when asked, “What are your salary expectations?”, you provide a clear response that includes a specific number or range. This number could be an annual salary, an hourly rate, or a fee for a particular project or assignment.
You may not know what your salary expectations are when you begin a job search. Perhaps you are a resident who hasn’t had a “real” job as a physician yet. Or you may be transitioning between two very different types of work, such as coming back to full-time employment after a period of locums work or switching between a clinical and non-clinical job. These and other situations naturally make us feel uncertain about what our new compensation should be. The best way to address this is to do some investigation beforehand to develop an expectation (more on how to go about this below!).
If, even after doing your research, you can't state the exact figure or range you want for the role you're applying for, consider sharing your current earnings as a baseline (if you are applying for a similar role), explaining that you expect to earn at least that amount. You may also want to say that you expect to earn more in the new job. Cite a couple of reasons why this is, such as factors related to your experience and the market demand for doctors with your skillset and credentials.
Why You'll Come Out Ahead by Sharing Your Compensation Expectations
Why are you better off being direct in answering the salary expectation question? Here are the main things you can accomplish with this technique:
Begin Salary Negotiations in Your Favor
Failing to state your compensation expectations can lead to receiving an offer at the lower end of the employer's salary range. While negotiation is still possible when that happens, you start at a disadvantage. You have less negotiating power to get to the higher end of that range.
Gain Leverage in Your Negotiations
If you avoid directly answering the salary question and then the recruiter reveals the company’s target salary range, you lose some leverage to argue for a higher salary. You've essentially indicated that you have no specific expectations, making it difficult to justify why you should earn more than what they initially offer.
Set High Expectations
In most cases, you'll want your stated salary expectations to align with the higher end of the company's target range—or to slightly exceed it. When this happens, the employer is more likely to make an initial offer at the top of their range. This may limit upward negotiation of the base salary, but it opens doors for negotiating other benefits like CME allowances or paid time off.
Be Efficient with Your Precious Time
Being direct about your salary expectations can save you time. If your expectations far exceed what the employer is willing to pay, they'll let you know immediately. This allows you to withdraw your application and pursue more suitable opportunities. Otherwise, you could potentially go through multiple rounds of interviews before any actual numbers are shared, and you'll realize (after wasting all that time) that it was never going to work out.
Display Confidence
Directly and confidently stating your salary expectations conveys that you understand your worth and the value you’ll bring to the organization. When done tactfully, your assertiveness can positively influence the employer's perception of you as a candidate.
Advocate for Our Profession
Being forthright about salary expectations contributes to a broader benefit for the medical profession. It helps to ensure that doctors everywhere are adequately compensated and that our earnings reflect the astronomical and increasing costs of training, licensing, and maintaining professional certifications. This approach benefits both you and your colleagues by setting a positive precedent for compensation standards in the medical field.
A Note About Independent Contractor Work
A final benefit I'd like to touch on is specific to those applying for positions as an independent contractor or consultant. Independent contractors are in business for themselves and they control the financial aspects of their work (at least according to the IRS’s expectations for independent contractors).
Independent contractors get to set their own rates. Unfortunately, client companies often stretch the IRS's rules surrounding independent contractors by offering low rates for contracted physicians and sometimes dictating when and how the physician’s work is done. Don't fall victim to this. Tell your client what your rates are. If they say no, you can choose to negotiate or simply tell them you are not the right fit.
You help to establish your credibility as an expert by sharing what your expertise is worth.
More information here:
28 Things You Can Negotiate Besides Salary
Should I Feel Bad About Taking Time Off? Auntie Marge Explains It All
How to Come Up with Your Salary or Compensation Expectations
How do you arrive at a figure or range to provide in response to a recruiter’s question about your salary expectations? You need to take into consideration the factors and variables that impact the value of your work or services, as well as your own needs and career goals. Avoid declaring a number without any basis for it.
Here are a few sources of data to inform your response:
Your Current Compensation
Your current salary or consulting fee is often a good starting point. Adjust this figure based on differences between your present role and the new job. Consider variations in qualifications, experience requirements, certification and licensure needs, professional risk, stress levels, work-life balance, schedule flexibility, and the specialization or expertise that you’ll use in your responsibilities. The new role might demand more or less in any of these areas, impacting what compensation you should expect.
Physician Salary Surveys
Salary surveys can provide a benchmark, although they typically focus on common clinical specialties and full-time annual salaries for doctors. Hourly rates for consulting and compensation for non-traditional roles are harder to find in salary reports. Still, surveys by Doximity, Medscape, and MGMA can offer a rough idea of appropriate compensation. When possible, compare multiple surveys to get a broader perspective. You can find some of the latest numbers from Doximity and Medscape in WCI's annual physician salary post.
Salary Websites
Several large general career and job websites have accumulated substantial data that can offer relevant salary information for the role you're considering. These platforms can be a good starting point for gauging market rates for certain types of positions. The two that I have found to be most useful for medical professionals are Glassdoor and PayScale. These sites also enable you to view salary data for particular job titles within specific companies.
Search Firms
Headhunters know the current compensation and market trends within their recruitment areas. They also have access to internal and externally sourced datasets. Select a firm based on the specific type of job you are pursuing—such as a healthcare firm for clinical jobs, an executive search firm for leadership positions, or a life sciences firm for jobs in pharma. Many recruiters will be happy to have a general conversation with you, even if you aren’t interested in the specific roles they have been retained to fill.
Your Peers
One of the most valuable resources is your network of fellow physicians. By sharing compensation information, we can collectively ensure we're earning what we're worth. Get insights from colleagues at your current workplace, through medical specialty associations, local medical societies, or professional groups on platforms like Facebook or LinkedIn. Even anecdotal evidence from one or two peers can provide the confidence needed to state a precise salary expectation during an interview. While not scientific data or averages, the numbers you gather from these conversations can often paint a realistic picture of compensation trends in your subfield, your location, and the type of job you’re pursuing.
One More?
Despite taking a methodical approach to determining your salary expectation, the figure you come up with will probably be somewhat subjective. This is especially true for less conventional medical jobs, non-clinical jobs, and the expert-level consulting roles that physicians often take on as side gigs.
Additionally, the salary expectation you're asked to provide is personal. It depends on your own circumstances. The question from the recruiter isn't “What is the average salary for jobs just like this one in this location?” It is “What are YOUR salary expectations?” It is a question about what you—as an individual physician with your unique career path—expect to be compensated for a specific set of responsibilities. Being asked this question is your opportunity to define your value and expectations based on your assessment, not just market averages or industry standards.
A Few Risks and Caveats
Being open about your salary expectations has a lot of advantages, but there are a few small risks with directly answering recruiters’ questions about this topic.
One risk is the possibility of pricing yourself out of a job if your expectations significantly exceed the employer's budget. This risk is especially pertinent when you're dealing with a highly competitive role where the employer has numerous qualified candidates. In this situation, immediately stating a high salary expectation could prematurely disqualify you from consideration. To mitigate this, be prepared to justify your figure and be prepared to talk in detail about what you bring to the table that other candidates may lack.
Another possible risk involves giving a lower salary expectation than what the employer would have offered. You can avoid this by aiming toward the higher end of the range that emerged during your research. This leaves room for negotiation. If you're entering a new field or sector and are genuinely unsure about the appropriate compensation, giving a number right off the bat could undervalue your worth.
Finally, being too specific with your salary expectations might limit your ability to negotiate other benefits. A good strategy here is to provide a number but also express the importance of any benefits that are particularly important to you (such as having schedule flexibility or limited on-call responsibilities).
More information here:
Before You Decide to Leave Medicine, Ask Yourself These 5 Questions
Learn About the Most Fulfilling, Lucrative Ways to Use Your Medical Degree
This topic of salary expectations ties directly into the broader theme of fulfillment and satisfaction in our careers as physicians.
In my recent book, 50 Unconventional Clinical Careers for Physicians, I delve into how off-the-beaten-path careers can be a way for some doctors to avoid burnout and find satisfaction in their work. Many of the job options highlighted in the book don't have a standard, widely accepted salary range. Having no salary benchmark makes the ability to assertively share your salary expectations even more important.
My book provides all sorts of information about numerous roles that doctors might take beyond the traditional salaried, full-time positions or private practice partnerships. These include hourly paid side gigs, independent contractor engagements, consulting positions, and other atypical work arrangements. Understanding how to approach salary discussions for these jobs can have a big impact on what you end up earning and whether you feel fairly compensated.
I encourage you to explore all the diverse career options that are available to you as a highly trained, highly credentialed medical professional. A major goal of mine was to arm doctors with the knowledge to effectively find jobs that are a great fit for them. I want you to do everything in your power to get paid what you're truly worth in any career path that you choose.
Looking to increase your income or renegotiate an existing contract? Hop on over to the WCI physician contract review page, where you can find vetted lawyers and compare your contract to other docs.
What is your approach when somebody asks you about salary expectations? How has that worked out for you in the past? Are there other ways to approach this question?
