Contract Negotiations: How to Negotiate Like a Boss

OVERVIEW

Chris Reilly, MD, and Stacey Frisch, MD, MS-HPED, discuss effective strategies and key considerations for EM physicians during contract negotiations, with insights on preparation, priorities, and potential pitfalls.

TAKE-HOME POINTS

• Preparation: Practice in advance and clearly define your priorities (eg, geographic location, work-life balance, compensation, work environment, opportunities for professional advancement and mentorship).
• Understanding Employer Needs: Know what the employer values and how your skills can benefit them.
• Non-Monetary Negotiables: Consider negotiating for position titles, roles, bonus structures, working hours, and duties beyond clinical work.
• Self-Promotion and Special Skills: Highlight any unique skills or specialties you have and explain how they can benefit the potential employer.
• Negotiation Tactics: Discussing negotiation face-to-face if possible; Being transparent about your priorities and what you wish to negotiate; Gathering information on what past employees have been able to negotiate.
• Understanding Employment Terms: Difference between W-2 and 1099 employment statuses:
• W-2: Steady salary with employer-handled taxes and benefits.
• 1099: Higher pay with self-managed taxes and benefits without job security and paid leave.
• Responding to Job Offers: Evaluating multiple job offers using your priority list; not committing to an offer until you are sure; asking for more time if needed.
• Red Flags in Contracts: Watch out for high sign-on bonuses with repayment clauses, incomplete malpractice coverage, broad non-compete clauses, and vague termination clauses.

Resources

1. Voss C, Raz T. (2017). Never split the difference. Random House Business Books
2. Harvard Law School. The Program on Negotiation. Available at https://www.pon.harvard.edu/tag/contract-negotiation/