D-1_Negotiate

From Residency to Reality

Your Future Practice: Options & Opportunities AAFP Practice Management Teaching Tools, Series I Session D-1

Practice Options

 How

to Negotiate an Employment Contract Tricks,

Traps, & Techniques

Becoming an Effective Negotiator

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Note: Negotiating 101 is not a required course in most U.S. medical schools.

Before You Negotiate  Who

are the decision-makers?

 What

background information have they given you?

 What

are their key interests in negotiation?

Before You Negotiate 

What additional information could you legitimately obtain from outside sources?

Opening the Negotiations  Defining

your interests and their interests  Finding areas of mutual interest  Affirming key principles and values to be honored in the negotiations  Agreeing on the negotiating process (who, what, when, where, and how)

The Middle Game: In the Heat of Negotiations

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Stick to your negotiating principles Be collaborative, but watch out for your own interests (they’ll watch out for their own). If the variables are shifting, keep your eye on the bottom line.

The Middle Game: In the Heat of Negotiations Key Concepts: Principles

& Priorities Anchors & Targets Upper & Lower Limits BATNA & “walk-away”

The Middle Game: In the Heat of Negotiations Don’t

Do 

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 

Select your opening bid carefully (modestly high, but not outrageous) Bring written materials to support your position (MGMA income surveys) Know your “walk-away” (BATNA) position Have alternative or competing offers in mind

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 

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Don’t talk more than you listen. Don’t legitimize a bad offer with a counter-offer. Don’t give out your best and final offer prematurely. Don’t make an ultimatum. Don’t burn any bridges -you may negotiate with these folks again someday.

The Middle Game: In the Heat of Negotiations

Monitor Your Emotions: Angry

or Frustrated? Too Eager? Insecure?

The End Game: Coming to Closure  ABC

-- always be closing

 What

further information could I provide to help you make your decision?  When will the board ( search committee, etc.) meet to make their final decision?  When should I tell my spouse (partner, friends, other potential employers) that we will be able to come to a final decision?

The End Game: Coming to Closure NBD -- never be desperate.  Make your initial commitment conditional. 





(the contract looks okay to me, but I just need to run it by my lawyer, accountant, spouse, mentor, etc.)

Keep your “walk-away” options open until both parties have signed the contract. 

Otherwise you’ve lost your bargaining power -- you have no option but to accept any last-minute changes they demand.

Negotiating Tricks & Traps

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Ambiguous Authority 

I’m sure my partners will be happy to cover for you when your baby’s born.

Adapted from “Getting to Yes: Negotiating Agreement without Giving In” (Authors, Roger Fisher and William Ury)

Negotiating Tricks & Traps

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Watch out for last-minute deal changes 

(one little thing -- we had to go with the 5-mile no-compete clause after all; that’s not a real problem, is it?)

Adapted from “Getting to Yes: Negotiating Agreement without Giving In” (Authors, Roger Fisher and William Ury)

Negotiating Tricks & Traps

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Dubious Intentions 

After two years you can buy into the practice -- I’ll be retiring soon, and this will all be yours!

Adapted from “Getting to Yes: Negotiating Agreement without Giving In” (Authors, Roger Fisher and William Ury)

Negotiating Tricks & Traps

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Phony Facts 

Even without a guarantee you’ll make $200,000 in your first year -- EASY!

Adapted from “Getting to Yes: Negotiating Agreement without Giving In” (Authors, Roger Fisher and William Ury)

Negotiating Tricks & Traps

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Good Guy / Bad Guy 

I’d offer you more, but my partner is pretty conservative; Let’s just get you here and once he gets comfortable with you we can re-look at things.

Adapted from “Getting to Yes: Negotiating Agreement without Giving In” (Authors, Roger Fisher and William Ury)

Negotiating Tricks & Traps

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Less than full disclosure 

Once this new kid gets here we can offer evening and Saturday hours and open that satellite clinic we’ve been thinking about.

Adapted from “Getting to Yes: Negotiating Agreement without Giving In” (Authors, Roger Fisher and William Ury)

Negotiating Tricks & Traps 

Dubious Delays 

Since you’re asking for more than our standard salary I’ll have to take it to the PHO board -- they meet again in June. When did you say you want to start work?

Adapted from “Getting to Yes: Negotiating Agreement without Giving In” (Authors, Roger Fisher and William Ury)

Negotiating Tricks & Traps 

The Standard Contract Everybody signs it!  If we changed it for you, we’d have to change it for all the doctors.  Gee, nobody ever questioned it before.  You don’t need a lawyer.  Don’t you trust us? 

Adapted from “Getting to Yes: Negotiating Agreement without Giving In” (Authors, Roger Fisher and William Ury)

Final thoughts

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Remember -- it’s not just about money.   

Did you get the job you wanted? Are these the colleagues you want to work with? Did you maintain your personal values and priorities?