Discover How To Negotiate Your Salary As A New PA Grad
Discover How To Negotiate Your Salary As A New PA Grad
Here you will discover how to negotiate your salary as new grad. Negotiating salary and contracts can be a daunting task, especially for new graduates who are unfamiliar with the process.
It is important to know what to ask for and how to negotiate effectively. While discussing salary may be uncomfortable, it is crucial to ensure that you receive a fair compensation package.
However, it is equally important to understand the terms and conditions of your contract beyond just salary and benefits.
As a new PA grad, I was initially intimidated by the negotiation process, but I realized that there was more to it than just income and 401k. I had to research and understand the specific terms and conditions of the contract.
Seeking advice from someone who is knowledgeable in finance and negotiation can also be helpful.
Remember, with the right mindset and preparation, you can successfully negotiate a contract that meets your needs and sets you up for success.
The Art of Timing in Salary Discussions
When it comes to the initial phase interview, it’s crucial to avoid discussing salary. Instead, focus on showcasing your experience and what you can bring to the position.
If the employer feels that you’re a great fit, they’ll likely bring up the topic of salary. However, if it’s mentioned too early in the conversation, it’s important to steer the discussion back to your qualifications.
You can say something like: “I’m confident we can discuss salary later in the process. Right now, I want to make sure that I’m the right fit for you, and that you’re the right fit for me.”
Remember, gathering all the necessary information about the position is key before discussing salary.
By doing so, you’ll be able to negotiate a fair salary that reflects your skills and experience.
So, stay focused, be confident, and let your qualifications speak for themselves.
Research Salary For Job Positions
Knowing the average salary for a position is crucial to ensure you are being paid fairly. If the salary is not posted online, it is essential to conduct research on job search websites like Indeed or AAPA.
AAPA provides the average salary for each field, which can be a valuable resource. Moreover, the salary may vary depending on the state due to the difference in the cost of living.
Therefore, it is imperative to be aware of the average salary for your position and location to negotiate a fair salary.
What Affects Your Salary Negotiations
When negotiating a salary as a new graduate, it is important to keep in mind various factors that add to your overall compensation package. These factors include the cost of commuting, such as gas, tolls, parking fees, or mass transit, and the time it takes to travel to work.
Additionally, sick days, vacation days, continuing education expenses (CME), 401K, bonuses, and malpractice insurance should also be considered when determining your salary.
Ignoring these factors can result in a lower overall compensation package, which can have a significant impact on your financial well-being. Therefore, it is essential to carefully evaluate your needs and expectations and negotiate accordingly.
Calculating Your Salary:
Calculating Commute Costs
Here’s a guide on how to calculate the additional cost of your daily commute to your salary:
Let’s say you have been offered a salary of $90,000 per year in a metropolitan area, but keep in mind that this is just an example and the median pay is $120,000.
First, determine your hourly rate by dividing your annual salary by the number of weeks in a year (52), and then dividing that number by the number of hours in a week (40).
For example, $90,000 ÷ 52 weeks = $1730.76 per week, and $1730.76 ÷ 40 hours = $43.26 per hour.
Now, let’s factor in your daily commute. If you commute for one hour each way, five days a week, your daily commute time adds up to two hours.
To calculate the daily cost of your commute, multiply your hourly rate by the number of hours you spend commuting each day ($43.26 x 2 = $86.52).
Next, multiply your daily cost by the number of days you work in a week (5) to get your weekly cost ($86.52 x 5 = $432.60).
To find out your monthly cost, multiply your weekly cost by the number of weeks in a month (4) ($432.60 x 4 = $1730.40).
Finally, to calculate your yearly cost, multiply your monthly cost by the number of months you work in a year (12) ($1730.40 x 12 = $20,764.80).
Parking And Public Transportation Costs
Let’s say parking costs $25 per day. To calculate the monthly rate, multiply the parking rate by the number of days you will commute in a month.
For example, if you commute five days a week for four weeks, the monthly rate would be $25 x 20 days = $500.
To calculate the yearly cost, multiply the monthly rate by the total number of months in a year, which is 12. So, the yearly parking cost would be $500 x 12 = $6000.
If you choose to use MTA instead, the daily cost is $3. The monthly rate would be $3 x 20 days = $60. The yearly cost for MTA would be $60 x 12 = $720.
If you choose to take tolls, the daily cost is $17. The monthly rate would be $17 x 20 days = $340. The yearly cost for tolls would be $340 x 12 = $4080.
To calculate the total cost of your commute to work, add the time it takes to commute plus the cost of parking and tolls, which equals $30844.80.
- Time ($20,764.80) + Parking ($6,000) + Toll ($4,080) = $30,844.80
Alternatively, you can choose to take MTA which would be $21484.80.
- Time ($20,764.80) + MTA ($720) $21484.80)
Please note that your salary of $90,000 will be taxed at roughly 20%. This means you will be taxed $18,000, leaving you with a yearly pay of $72,000.
After considering the cost of your commute, your take-home pay yearly would be $41,155.20 if you choose to park or use tolls, and $50,515.20 if you choose to use MTA.
This translates to a bi-weekly pay of $1582.89 or a monthly pay of $3165.78 if you choose to park or use tolls.
- Take Home Pay Yearly after commuter cost (Parking & Tolls):
- $72,000 – $30,844.80 = $41,155.20 (Every 2 weeks’ pay = $1582.89 or monthly or $3165.78)
Alternatively, if you choose to use MTA, you will have a bi-weekly pay of $1942.89 or a monthly pay of $3885.60.
- Take Home Pay Yearly after commuter cost (Public Transportation):
- $72,000 – $21,484.80 = $50,515.20 (Every 2 weeks’ pay = $1942.89 or monthly $3885.60
You may be saying to yourself…WTF!!! Yes, that’s your take-home pay after taxes. Yes, you still have to pay your school loans, rent or mortgage, car insurance, car note, groceries, and personal expenses (whateva that is to you).
Considering those factors when negotiating salary would be best because you want those costs covered within your annual salary. So, it would help if you had a salary of about $111,484.80 to $120,844.80.
That may seem like a lot to ask for, but you must consider that range when negotiating your salary. This amount can be offset if you have other perks available with the job, such as 401K, paid CME and license, medical insurance, malpractice coverage, and sick/PTO.
401K/403B
As a new graduate, you may not be thinking about retirement, but it’s essential to start planning early. If your job offers a 401K or 403B plan, that’s great because you can save for retirement and lower your tax bracket, which will benefit your take-home pay.
For instance, if your job provides a matching contribution of 4%, you can contribute up to 20% of your income pre-tax, before the government takes its share. This means that 20% of your income will go into a retirement fund managed by Fidelity or Vanguard, as determined by your employer.
If you use the above example, every paycheck will be pre-taxed at 20%, resulting in a lower tax bracket and lower taxes. As a new grad you may not be able to contribute 20% because you have loans to pay. Even if you can’t contribute 20% initially, at least match the percentage your job offers.
For instance, if your job offers 4%, contribute 4% of your income, which will give you a total of 8% of your income towards retirement. It’s always better to start small and gradually increase your contributions over time. This percentage is pre-taxed every pay period (aka when you get paid.)
As a person of color, you may not have had discussions about saving for retirement with your family. However, it’s essential to start planning early because pensions are no longer common, and our parents’ way of thinking may not be suitable for current times.
To make your path to retirement easier, I recommend reading two books: Smart Women Finish Rich by David Bach and I Will Teach You To Be Rich by Ramit Smith. You can also follow Tiffany the Budgetnista on Instagram and listen to her podcast, Brown Ambition with Mandi.
In summary, having access to a 401K/403B plan can help you save money for your future and make retirement planning easier.
CME Reimbursement
CME stands for Continuing Medical Education. Most companies provide an annual CME allowance of approximately $1500 to $2000 per year, which means more money in your pocket.
For instance, if a company pays $90,000 per year, then with an additional CME allowance of $1500 to $2000, your total compensation could range from $91,500 to $92,000 per year.
It is important to maintain your CME credits every two years to renew licenses, medical memberships, DEA, and CDS.
The cost of CMEs can be between $1500 to $2000, especially if you attend conferences or subscribe to journals.
If your job does not provide a CME reimbursement, you can use it as a bargaining tool during salary negotiations to increase your annual salary.
Medical Insurance
Many hospitals and clinics offer their employees medical insurance coverage, which is deducted from their paychecks every two weeks. The type of plan chosen is typically based on the individual’s or family’s healthcare needs.
If the employer pays for the medical coverage, this is an additional cost for them, which can amount to an additional $12,000 per year for the employee.
For instance, if an employee earns an annual salary of $90,000 and their employer covers their medical insurance, their effective annual salary would be $102,000 since they do not have to pay for the coverage out of pocket.
Bonuses
If a job offers bonuses, there are some questions you should ask. Firstly, you should find out how the bonuses are determined.
Are they based on productivity, such as the number of patients seen per hour, or are they determined by the business profit?
Secondly, you should ask how often the bonuses are disbursed. Do they get paid quarterly, annually, or twice a year?
If your employer provides bonuses, it is important to remember that it is additional pay from the employer. You can add that amount to your annual salary to determine the increase from the base pay.
For example, if you make $90,000 yearly and receive bonuses of $3,000 annually, then your annual salary would be $93,000.
Medical Malpractice Insurance
It’s typical for your employer to provide malpractice insurance coverage. However, if they don’t, then it’s important that you purchase your own insurance. This type of insurance will protect you in case a patient ever sues you.
While the coverage provided by your employer can offer you protection, it’s important to remember that they are primarily looking out for the interests of the organization.
By purchasing your own insurance, you will have an insurer that is looking out for your interests.
If you decide to obtain your own coverage, you can leverage this as a negotiation point for adding the cost of the insurance to your annual salary since your employer is not providing it.
Paid Time Off (PTO)
It’s important to understand the concept of Paid Time Off (PTO), which includes both sick days and vacation. Some employers combine these days into a single PTO bucket, while others keep them separate.
The total number of PTO days you receive is based on the number of hours you work every day, and there’s usually a maximum number of hours you can earn each year. If you don’t use them, you’ll lose them.
Here are three different PTO packages you might be offered:
Package 1:
– Sick Days: 5 days
– Vacation Days: 21 days
Package 2:
– PTO: 27 days (includes sick and vacation days)
Package 3:
– PTO: You can accumulate a maximum of 150 hours based on an 8-hour workday. You can continuously re-accumulate these hours.
It’s worth noting that vacation days can often be negotiated.
If you’re offered Package 1 and you feel like you need more vacation time, it’s worth trying to negotiate for it, especially if your pay is on the lower side.
Empowering Your Career: AAPA's Expert Guidance
In conclusion, remember that your salary is a negotiable aspect of your career journey, and there’s absolutely no need to shy away from discussing it with your employer.
Drawing from my personal experience, I’ve utilized AAPA’s contract negotiation consultant to scrutinize contracts and navigate salary discussions. She let me if the contract is reasonable and has room for negotiation, or if it is a complete NO GO.
If you find yourself navigating the complexities of contract negotiation and could use some expert guidance, look no further.
AAPA offers a contract negotiation consultant ready to review your contract and provide insights into what can be negotiated. You will be charged a fee for the consultant to review your contract and changes to be made to the contract. The cost of this invaluable service varies based on your specific needs.
To tap into this resource, simply head to the AAPA website, navigate to Career Central, and select the Career Services option. Empower yourself with the tools and knowledge you need to embark on this negotiation with confidence.
Your career deserves it!
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