Money matters. While various studies indicate that physicians increasingly value work-life balance, cultural alignment, and a sense of purpose, compensation remains at the top of physicians’ job search priorities. Thus, it seems logical that compensation discussions are a critical part of the recruitment process, yet many hiring organizations continue to discuss physician compensation in vague generalities, and candidates still hesitate to ask for the details they need to make an informed decision.
Compensation conversations with physicians should feel less like a polite formality and more like a startup pitching a venture capital group. A startup does not win support by offering a vague promise. It wins by showing the details of the business model, the numbers behind it, and evidence that the projections are real. Hiring organizations need that same mindset. If you expect a candidate to invest their time with your group, you’ll need to show precisely how the projected compensation is calculated. That includes what factors led to the projection (patients per day, RVUs, etc), why it is achievable (other physicians with similar stats and earnings), and what supports are in place to make it happen (current patient wait times, how new leads are distributed, etc.).
This level of transparency is a must in the current recruitment market. When salary structure, productivity expectations, and earning potential feel vague, candidates hesitate. When everything is clear and grounded in real numbers, they lean in. Recruiters who make transparency a core part of their recruitment process reach the finish line faster and with stronger long-term matches.
Five Questions to Cover in Your Physician Compensation “Pitch”
Here are five questions to answer fully when pitching the physician compensation package.
1. Which Factors Influence Projected Earnings?
A written compensation model is helpful, but most physicians need a detailed conversation to understand it. Plans can be complex. The variables can feel abstract. RVUs, conversion factors, quality bonuses, thresholds, and non-clinical duties all influence what the candidate will actually earn.
Take the time to give a thorough presentation. Break the plan down into simple parts. Show how earnings change over time. Explain how the organization supports physicians during the ramp period. Walk through real examples using sample calculations. Present the math rather than assuming candidates will infer it.
The goal is for the candidate to leave the conversation understanding not only the structure but what life looks like under that structure. When the model feels predictable, even a lower base or a ramped approach becomes far more acceptable.
2. How Much Do Real Physicians Earn?
Every candidate wants to know what physicians in the group actually earn. Not the estimates. Not a wide range meant to cover every scenario. They want the truth about what physicians in the practice earn and how many patients they see to earn it.
Organizations should be prepared to present candidates with anonymized productivity and earnings data. Sharing individual RVUs alongside annual compensation helps candidates see the path ahead. Even better, it shows you have nothing to hide. When a candidate sees that the numbers match the story you are telling them, confidence naturally rises.
Recruiters sometimes worry that providing this level of detail creates risk. In reality, it protects the organization. It sets the right expectations. It filters out candidates who might have unrealistic assumptions. It also signals that you respect the candidate’s need for clarity, which carries weight in a competitive market.
3. What Support Is Available for New Hires?
All physicians need a ramp-up period to become familiar with practice protocols and build their patient base. This is why a salary guarantee is essential in those first years, but of course, they want to achieve their highest potential earnings as soon as possible. So, what assurances and supports are available to get them to this goal?
Once again, transparency is key. Share details on how long patients are currently waiting for appointments and how new patient leads are distributed to demonstrate that the volume is there. Also, be clear about the administrative support available to them so they know they can focus their time on patients rather than on administrative burdens.
4. Why Is There a Significant Gap Between the Salary Guarantee and Projected Earnings?
One point of confusion during this process is the difference between the guaranteed base salary and the projected total compensation. Many organizations set the base well below expected earnings to reduce risk. While the logic is understandable, it leads candidates to question whether those projected earnings are realistic.
This is where hiring managers need a clear explanation. Walk the candidate through the reason for the gap. Show how productivity quickly closes it. Use the anonymized data to illustrate the typical timeline. Detail the support the practice provides during the first year. Make the story consistent and credible.
If the gap is wide, consider whether the base should be increased as a sign of confidence in the practice’s ability to support the new physician. Even a modest increase can help the candidate feel valued rather than pressured. It signals that the organization believes in its own projections.
5. What Recruitment Incentives Are Available?
Not every candidate values incentives in the same way. One physician may prioritize loan support. Another may need short-term housing assistance while relocating. Some appreciate a one-time payout that eases transition costs. Others respond better to a retention package that rewards stability.
Building flexibility into your recruitment incentives helps you meet candidates where they are. You still control the overall value of the package, but the format can shift to match personal circumstances. This creates goodwill and reduces friction during negotiation. It also keeps the conversation focused on fit rather than frustration.
Flexibility should never feel like improvisation. Have a clear menu of incentive options and know which combinations leadership will approve. The goal is to show that your organization is committed to making the transition workable, not that you are inventing solutions on the fly.
Transparency Builds Trust; Trust Drives Decisions
Physicians enter the recruitment process with caution. They have heard too many stories of inflated projections or vague compensation promises. When you counter that with real numbers, consistent explanations, and honest dialogue, you stand apart from other organizations.
Transparency does not weaken your negotiating position. It strengthens your ability to close. It also reduces turnover because the candidate knows exactly what to expect. When compensation is clear, the candidate can focus on the practice culture, the team, and the mission. When compensation is unclear, everything else becomes secondary.
Physician recruitment is a relationship-driven process, and relationships thrive when expectations are clear. By giving candidates a complete picture of what they can expect to earn, supported by the compensation details of physicians currently on staff, you create a recruitment experience rooted in trust. That trust becomes the foundation of a long-lasting match, which, of course, is the outcome every organization aims for.
If you are hiring physicians, you must be prepared to have honest conversations about physician compensation. The recruitment team at Jackson Physician Search can help you create and present a unique compensation package that meets or exceeds candidates’ expectations. Contact us today to learn more.
About Neal Waters
Neal Waters brings more than 18 years of experience in retained physician search to his role as Regional Vice President of Recruiting for Jackson Physician Search. He completed his undergraduate studies and played football at Auburn University, where he earned his Bachelor’s degree in Marketing. Neal loves physician recruitment and has an extreme passion for bringing healthcare to communities that need it while improving physicians’ career opportunities and quality of life.
