I believe it's important to evaluate each job you take through the lens of compensation, which includes two components: Fair Market Value (FMV) Salary/Pay and Fringe Benefits or Non-Salary Perks. If you're a W-2 employee, both components are built into your contract.

As an independent contractor, your FMV salary/pay is the primary focus, and you'll need to source your own fringe benefits. However, it's crucial to closely examine contract terms, which can range from work schedule/contracted hours, non-compete limitations, marketing restrictions, clinic and staff support, remote work, admin time, research, and medical education. These elements are critical to analyze in the contract/agreement.

For instance, I have an OB/GYN client with SimpliMD who was placed in an employment-lite structure with a hospital. The physician misunderstood his expected responsibilities to the new family medicine residency at the hospital. These responsibilities were somewhat veiled in the contract terms, and he ended up being the OB/GYN director of the residency, with residents in his clinic every day, and was responsible for managing and supporting them on the labor deck—all for no extra compensation. He adapted graciously, but it was a huge surprise and extra daily work when he started the new job.

One of the biggest mistakes doctors make is not hiring someone with professional experience to guide them on what FMV compensation should be, nor hiring someone to review their contract. Doctors often think they can do this themselves or want to save the less than $1,000 expense. My practical advice is to spend the money and use professionals like Contract Diagnostics to save yourself regrets and headaches.

Now let’s hear from Physicians On Fire with one of their recent posts that I thought was worthy of sharing with you.

Best Non-Salary Perks for Physicians

Author Nirav Shah, MD POF October 17, 2024

If money were everything regarding job prospects, some of the most labor-intensive careers would be the most sought-after.

But the truth is, there is a lot more to a job than just cashing in a fat paycheck. That also holds for physicians, who might be making some of the best figures in the country but still need additional benefits to make the struggle worthwhile.

Becoming a doctor is a complicated process, especially in the U.S. The salary is excellent compared to other professions, but most family physicians don’t make the same amount as a consultant. So, what makes it worth it to be a doctor at all?

After all the studying, medical school expenses, taking exams, and working in grueling residencies, you want something that justifies the life changes you had to make to adapt to it all.

A paycheck boost is the goal, yes, but quality of life changes also matter. It’s why the job market has become so competitive, with different institutions offering different things to ensure the talent is coming their way.

If you’re going to move across the country to work as a doctor, you might as well make it worth your while. But what kind of non-salary perks are we looking for here? What are some realistic expectations regarding bonus features for starting a new job?

The work-life balance is critical here, so let’s dive right in:

• Weighing salary and benefits

• What kind of perks doctors are bargaining for

• Why salary alone can’t sustain modern doctors

Why Offering Perks Is The New Trend

Signing bonuses and offering free commutes aren’t new inventions. Many industries have recruited employees by promising these additional benefits alongside competitive pay.

But as medicine has become more competitive, doctors have more bargaining power. Doctors well into their careers already have the financial bag secured, with better pay than ever. They are looking for these additional non-salary perks to help improve their quality of life.

The physician shortage has dented the market, leading to institutions trying to keep whatever doctors they have on hand rather than losing them in the rat race among employers. Physicians know their value now, so they know exactly what to ask for when signing up for a position offered.

However, those perks do depend upon the doctor and their individual needs. Not every doctor values the same things or has the same experiences. Some want benefits that make working easier, while others wish to have perks that help sustain a healthy work-life balance.

A big salary is merely the starting point. But it isn’t enough for doctors nowadays, who have worked hard for their careers. We need more motivation than a tiny bonus and a personalized mug at the end of the year.

Okay, But What Are These Benefits?

So, non-salary perks mean different things for physicians at various stages of their lives. Some young physicians just starting their careers can only ask for so many things. However, older, more experienced doctors can usually negotiate for better benefits for themselves.

Signing Bonuses

This is a basic one. Most hospitals and clinics offer a nice bonus upon signing with them to sweeten the deal. But how much depends on the position you’re being hired for, your level of expertise, and the budget your employers have stated.

Understand the Fine Print:

• Minimum RVU Requirements: Ensure that the RVU targets are achievable and aligned with your practice style.

• Clawback Provisions: If there’s a clawback clause, negotiate for a longer vesting period to minimize potential losses.

Flexible Schedule

It is another fairly straightforward perk that is desperately needed in these fast-paced times. Many physicians are gunning for four-day work weeks and better hours for their practice. Having a flexible schedule means you can better balance your work while maintaining a life outside of it.

Loan Repayment

If you are becoming a doctor in the U.S., chances are you have a bucket load of student loans to pay back. With medical school being the most expensive post-secondary education in the country, having an employer that helps with your loan repayments is something you should be on the lookout for, especially if you’re a fresh medical graduate.

Financial Aid In Furthering Studies

If you’re lucky enough to have paid off your student loans, but the trauma of it has left you hesitating to pursue further higher education. Don’t fret too much.

Some institutes offer to provide financial aid to their employees so they can attain post-graduate degrees. This works two ways because bumping your resume also improves your reputation.

Insurance Coverage

Hey, healthcare isn’t cheap, and neither is practicing it. So, if a hospital wants to hire you and also give you insurance benefits? That’s a great safety net to have around.

Most hospitals will add professional liability insurance to protect their doctors from losing their assets during malpractice lawsuits and ensure their loved ones are safe from repercussions.

Office Space And Staff

Who doesn’t want their team in their department? If you have the seniority, many hospitals will give doctors their designated work space alongside a capable staff team to help streamline their procedures.

Having a personal team means no long wait times between procedures and fewer interruptions from outside.

Commuting Options

Sometimes, it’s the fuel costs that get you. Commutes are among the most expensive in the U.S., with the average citizen spending 19% of their annual income on going to work alone.

So, if a medical institute is willing to cover those costs by providing you with a fuel allowance or a personal work vehicle service, that’s a great bonus!

Relocation Allowances

Rent was already on the rise this past decade, but it skyrocketed after the 2020 Pandemic. With people needing to increase their income by 36% to afford rent in 2024, an employer that is willing to accommodate your relocation is the name of the game.

Many hospitals also allocate separate living quarters for physicians they take on.

While it was more common in the past, particularly in rural or underserved areas where housing options might be limited, this practice is becoming less frequent today. Most hospitals now offer compensation packages that include competitive salaries and benefits, allowing physicians to find their own housing arrangements.

However, there are some exceptions such as rural hospitals in remote areas where these hospitals may offer housing as an incentive to attract physicians.

License To Practice Remotely

Medicine has gone digital to a large extent. And with it comes telemedicine, which allows doctors to practice remotely from the comfort of their homes. Usually, you need to pay to apply for a remote practicing license, but many hospitals would do the leg work for you instead.

Research Hours

Imagine being able to work while also working on other career projects such as research and development. Nowadays, many institutes offer their doctors the opportunity to clock in their research hours or brush up on their thesis during work hours.

This means that physicians can further their education while still having free time outside their employment.

Journal And Workshop Subscriptions

Journals and workshops often sound like traditional fare. However, subscribing to cutting-edge medical publications is never a bad idea.

Hospitals put their doctors on the subscription roster and pay for specific employee workshop training.

Salary Vs. Benefits: To Each Their Own

In the grand scheme, a bigger salary usually trumps any non-salary perks. After all, if you’re making enough money, you can easily access half the things we discussed.

However, it is helpful to negotiate these things when starting your career as a physician. With how grueling it has become to work as a doctor in the U.S., it’s best that you know your worth and ask for what you need from your employers.

And sometimes, that isn’t just how much you’ll be paid. Many can happily accept a lower paycheck if the nonsalary perks are more than accommodating. For others, the salary will make or break a job opportunity. So it’s imperative to gauge what you’re looking for when job hunting.

After all, job satisfaction is what leads to a long-term, successful career!