November 10, 2017:
From the Founder: As I wrapped a complicated and successful re-negotiation of a 1099 contract in the past weeks, I am reminded how important the role of relationship can be in your outcomes.
I side gig. It’s a big part of my plan for financial independence. Although there are many who think I’m crazy for putting in the hours that I do, I think you’re crazy for not side gigging. Especially while you are young and relatively brimming with energy. I actually posted about this at medical success central this week.
Over time, I have gained experience and reputation as a part-time contracted physician, I’ve started to negotiate my own 1099 positions and contracts and have stopped using agencies. Since this is a relatively innovative approach, it’s been a learning experience. The hardest part has been determining fair market value.
When I first negotiated the contract in question about 18 months ago, I thought I had a good handle on market value based on practice patterns in other regions of the country. I made the mistake of not having the better knowledge of market conditions, but thinking I did. I then opened with an anchor number that was too low and ending up signing a contract that was fair, but not favorable. As the position matured and my knowledge of the market became more granular, I realized my mistake and decided to approach it at my next contract.
Here’s the “problem”. I really, really liked working with this organization. The staff and doctors are top notch and friendly. The quality of the work is world-class. The actual working conditions are just great. There was no way that I wanted to compromise this great job, but at the same time I needed a fair market compensation.
So, with this in mind, I focused on the relationship. I worked as hard as I could and never said “no”. I built solid working relationships and delivered the highest quality care. Professionalism and being a team player was my core value and I walked the walk.
When it came time to renegotiate I approached the other party as part of the same team. I avoided all hard tactics, instead focusing on fair market value and my role on the team in the future. I also tried my best to emphasize the value I added and the bases of power. I brought to the organization in terms of legitimacy, expertise, referential, and relational power. Of course, I had a BATNA, but I really hoped that I would not need to look elsewhere.
In the end, I was able to increase my compensation by a little over 35% and am very satisfied overall. I probably could have pushed even harder, but in some negotiations the relationship is just as important as the other elements of the final agreement. I’ll post about the role of relationship in negotiation in the future. In the meanwhile, don’t make the mistake I did – know your market value going in! It’s your single most important number.
WHAT AN HONOR!
Every month White Coat Investor recommends (about) ten articles from across the web…
We MADE #3 on his top Pick for the month of October…. How to avoid medical job interview mistakes.
I hope you enjoy our posts from this week. Our Fall November 17/18th seminar is closed to new registrants. Don’t worry, though! We have you covered! Just contact us and we can set up a completely individualized and customized workshop for one afternoon, a full-day, or two full days. We’ll be happy to accommodate individuals or whole groups… Just let us know what works best for you.
Our Latest Blogs…check them out!
Your market value report will get you about 85% of the way to a great deal on your physician salary. The remaining 15% will require some leg work.
That LASER pointer might as well be a sleep-ray when it comes to engaging your audience.
Great public speakers use story telling techniques to connect with their audience.
You want your appearance and performance to reflect positively and not take away from your message.
How you feel about your physician career now will probably change dramatically as you get older. Will your financial plan keep up?
Your “brand” as a physician will set you apart from other candidates.