Like many business skills, negotiation is not sufficiently taught to most veterinary students or veterinarians looking for new career opportunities. Perhaps veterinarians are intimidated or simply naïve. In my hiring experience, very few veterinarians have countered my initial contract offer. When my veterinarian career started, I took what was offered too!
Step 1: Understand that Negotiating Creates Value
To help remove the fear of negotiating, don’t look at it as a win or lose scenario. Negotiation is about CREATING value! The more value we create when building a contract offer, the more there is to go around. When we negotiate a contract, too much attention goes to the salary alone. If we focus only on the salary, we are not creating value in the negotiation. I say “we” in this scenario because negotiation is not an “us against them.” In a negotiation, both parties want the same outcome: having you as a team member of the organization! How can both parties create the most value to make each other happy?
Step 2: Identify What Adds Value to Your Career
Many factors can be thrown into contracts that help create value. Topics such as continuing education and vacation time are the standard that we discuss, but why stop there? There are more topics to be considered that can help create even more value for the veterinarian and the employer alike. Many more topics of discussion are becoming standard in contract negotiations such as sign-on bonuses, mentorship opportunities, and non-compete clauses. I’ve shared my thoughts on these three components:
- Sign-On Bonuses We see these all over job postings nowadays. They are designed to catch the eye. I mean who wouldn’t look at a job posting that offered a $250,000 sign on bonus?! However, they are designed just to do that: catch your eye. While so many companies are offering these massive sign-on bonuses, have you ever read the fine print of these? I won’t dive deep into this topic today, but I view these as nothing more than golden handcuffs. I’m taking equity over sign-on bonus any day.
- Mentorship Personally, I feel strongly about including mentorship into your negotiations if you are new veterinarian. Entering your first job post-graduation is intimidating and ensuring that you have someone who has your back is crucial. Setting clear guidelines for mentorship is crucial to success. Don’t be afraid to lay this out in your contract. Whether that is having a dedicated mentor within the walls of the hospital, having designated CE opportunities, or having access to the outside mentorship services that are available. Whatever avenue you decide on, ensure that it is written into your contract. It will keep your employer accountable and make sure that you get the training you need to succeed!
- Non-Compete Clauses If you’re a veterinarian on LinkedIn, you have heard of my friend, Paul Diaz. Paul is an advocate for veterinarians and #endthenoncompete. I’ve never heard someone speak so passionately about this subject, so please take a listen to what he has to say in this podcast when you have time because I can’t do it justice here in this post. Bottom line; think about this before signing a contract. Think about what you would do if you decided this hospital is not the right fit for you. Would you be willing to work 20+ miles away if you left? Don’t be afraid to discuss this!
Step 3: Communicate Your Desire for Equity
Now let’s dive into my passion and what I discuss at every interview: EQUITY! When hiring a new veterinarian, I want them to know that I am committed to them and their career development. I am also committed to them making an excellent living because every veterinarian deserves this. It’s easy to ask for a higher salary or a greater production bonus, but the fact is that neither of these asks equates to the value that equity in the practice brings. Once you obtain equity in a practice, this is value that keeps being returned to you for all your hard work in building the practice! This is not a one-time gift like a sign-on bonus: it is something that keeps on giving and the more you help grow the practice, the more you earn! It also gives you, the veterinarian, ownership in what you are helping to build.
When is the right time to ask for equity or a path to equity?
- NOW! I don’t care if it is your first job after graduation, letting your potential employer know that you are seeking eventual equity in a practice is an excellent way to create new value in a contract negotiation. It can create value for you as you will be able to build wealth, but it can also benefit your employer as it can ensure another person is committed to the health and success of the business. Offering equity becomes a win-win for both parties (i.e. value creation). Now, let me be clear, I don’t expect any employer to give you immediate equity when entering contract negotiations on your first job, but set guidelines and timeline expectations on how and when these conversations will happen given you find that the relationship will work. I have had this conversation with new graduates and students many times and it is usually an eye-opening experience because they never thought becoming a partner so early in their career was possible.
How an equity conversation is viewed from the hospital owner and new graduate
- Example scenario: A new graduate comes into an interview and asks me (the owner in this scenario) about obtaining eventual equity in my practice. This person has my attention! You know they not only have their best interest in mind, but also your best interest in mind. They are committed to the hospital and want to see it grow. I’m very interested in hiring them. As an entrepreneur, I am always looking for new projects and new ways to grow personally and professionally. I always train my successor so I can continue to grow. Having that next owner/partner/medical director waiting in the wings allows me to pursue my next endeavor. Don’t be afraid to seek out these individuals and don’t hesitate to bring up the question yourself. The equity conversation goes a long way to showing these veterinarians that you value their future success and helps to develop the next generation of veterinarian business owners and leaders.
After reading this, I hope that you have a better understanding of why negotiating is so important, especially now. As well as an outline of what should be included in your offer. If you’d like help with negotiating or even coaching on how to have these conversations, contact us True Vet Potential to learn more about to transform your veterinary career.
A special shout out goes to Paul Diaz on his launch of OfferFirst, a new disruptive recruiting service designed for veterinarians. Paul was open to my suggestion of implementing a recruiting question targeting those seeking ownership or partnership and I intend to harness this technology to identify these types of individuals. Check out OfferFirst or reach out to me at True Vet Potential to learn more about how to transform your veterinary career!