Diffenbaugh & Associates, Recruiters for Medical Professionals

Medical Employment Service
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The Caduceus--The symbol of the medical profession
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Sign-On Bonus
Signing bonuses for physicians entering new jobs

There is debate over the usage of such bargaining tools, however, it has proved useful in swaying on-the-fence candidates. Sign-on bonuses should not be adopted as policy and should not be offered to potential candidates without careful thought, consideration and consultation with partners and legal and tax professionals.

Points to Consider

1. Offer a Bonus Only When Necessary
A sign-on bonus may be beneficial if your practice or opportunity is deemed less desirable, as monetary rewards are sometimes more important to candidates than geography or practice opportunity description.
     

Bonus Points

2. Deploy Bonuses at a Strategic Moment
Bonuses should not be presented at the onset of recruitment efforts. You must first determine that you want to hire the individual candidate, and predict if they would be receptive to the offer. The sign-on bonus should be utilized, if necessary, to overcome candidate indecisiveness once the aforementioned criteria have been met.

3. Link the Bonus to a Deadline
Establish criteria for the bonus amount. Offer a set number for immediate commitment from the candidate and a lesser amount for commitment at a later date. It may also be wise to consider adopting a clause whereby the bonus is withdrawn from the offer at a certain date.

4. Create a Bonus
In the event that a bonus on top of the salary offer does not fit into your budget, allocate the bonus from the basic salary. For example, offer $10,000 immediately at the commitment from the candidate, and then provide the balance in customary installments once work has commenced.

      

Plus Points

5. Build in a Payback Clause
Construct a contract whereby you recover all or some of the bonus paid should the physician resign within a predetermined time period after being hired.

6. Get Everyone in Sync with your Strategy
Ensure that each member of the practice is aware of the availability and proper use of the bonus. Establish a structure for appropriate offers and coinciding timelines for presentation in the recruitment process. Offering the bonus prematurely can cost you negotiating leverage as well as money. Bear in mind that leverage is oftentimes more valuable than money when you are striving to recruit the perfect new associate. In all cases, when considering the implementation of sign-on bonuses into your recruitment practice, consult with knowledgeable business professionals, attorneys, accountants etc., to ensure that the bonus is maximizing your efforts and the growth of your practice.