What is an acceptable raise?

[rt7898]

Hello everyone,

I am a family medicine PA, with 4 years of experience, and have been working for a small, underserved, private practice in S.California. I am currently earning $48.50/hr, work 40hrs/wk, and see an avg of 18pts/d. They provide me with a SPEP IRA, 3wks PTO, health insurance, malpractice insurance, but no CME. My SP has been giving me a raise every year (5-10%) and my annual review is coming up. I looked at the AAPA salary report and noticed that I am being SEVERELY underpaid and would like to ask for a raise that is closer to the 50% percentile (which varies from hourly to salary, $65/hr and $120K/yr). I have realized that I made a huge negotiation mistake when I was hired by accepting such a low salary. My question is, should I even bother to ask for a 20% raise at this point or should I just try to look for a higher paying job? I am prepared to bring up the AAPA report to back up such a high request, but I already have a feeling he is going to low ball me and I will appear greedy knowing that my responsibilities and demand have not changed. 

[anewconvert]

It sounds like you are making the practice a ton of money at minimal cost. 

 

You have four four years of experience in the field, start quietly putting your resume out there and see what the market is paying. The AAPA report is nice to bring along, but other offers are a stronger bargaining tool  

 

I’m a little more than one year out of school in general surgery, in a lower COL area of the country, with better benefits, and we make essentially the same salary. To say you are underpaid is putting it nicely. 

[mgriffiths]

One question to answer is what the practice environment like?  Sometimes not working in a h*!! hole is worth something...doesn't necessarily mean it's $20k worth it though.

The other question is if you have been receiving 5-10% annual raises, how long until you reach the 50th percentile?  You currently make ~$100k.  A 10% raise brings you to $110k, and another 10% raise brings you to $121k.  That is 2 years until you are at today's 50th percentile (I know I'm making assumptions on the annual raise).  Salaries aren't increasing that rapidly right now to cause that 50th percentile number to change drastically in 2 years.  Of course it sounds like you have been underpaid for the last 4 years, but that can't be changed.  To bring that up in my experience comes across as petty and inappropriate.  So, is it worth it to request a massive 20% raise all at once or to simply push for a bit higher raise than is offered by your employer to gradually bring you up to average salary over time?  Only you can answer that.

In my experience, if you bring up other job opportunities you have to truly be ready to WALK.  It can't just be hypothetical.  Also, you often only get to make that kind of "threat" once.  Plus, you have to consider how responsive your employer will be.  I tried asking for a raise at my 1 year employment anniversary this last summer and was shot down harsh...nothing about my employment relationship was ever the same.  Everything has been nitpicked and I've been called a liar several times (when facts clearly show the contrary).  For the first year I was completely left alone by management and I enjoyed my job.  The result is that I am in the process of moving and have two weeks left before my resignation date.  It's a good change, but my current job was not "bad" before I requested a raise.  Of course my boss shouldn't be petty and unprofessional, but that was the beginning of the end.  I sort of created it, but was ready for the worst.  If you broach this topic, you have to be ready to accept the worst as well.

[mgriffiths]

3 hours ago, anewconvert said:

It sounds like you are making the practice a ton of money at minimal cost. 

This is the reality of being a PA.  I ALWAYS bring this up when talking with a potential future PA.  The bottom line is that in primary care we often do exactly the same work as the MD/DO for SIGNIFICANTLY less pay.  To become a PA means to accept this reality.  Is it right?  Maybe, maybe not...but currently "it is what it is," and I don't expect it to change.  What percentage of MD/DO salary should we be paid?  Again, I don't know, but one fact is that PA school is shorter and on average much less expensive than MD/DO school - and we don't have to do a residency (although some are pushing for that change).  The trade off is a smaller salary that is still FAR above normal in this country.

[anewconvert]

3 hours ago, mgriffiths said:

This is the reality of being a PA.  I ALWAYS bring this up when talking with a potential future PA.  The bottom line is that in primary care we often do exactly the same work as the MD/DO for SIGNIFICANTLY less pay.  To become a PA means to accept this reality.  Is it right?  Maybe, maybe not...but currently "it is what it is," and I don't expect it to change.  What percentage of MD/DO salary should we be paid?  Again, I don't know, but one fact is that PA school is shorter and on average much less expensive than MD/DO school - and we don't have to do a residency (although some are pushing for that change).  The trade off is a smaller salary that is still FAR above normal in this country.

Right... but then there is getting paid well under market value

[PAtoB]

S. California at that rate ... I feel compelled to ask you how long have you lived in California or what you know or don't know about how working in cali. I've never lived there and I know what my minimum would be if I did.

[rt7898]

For anybody that is interested in an update: I decided not ask for a raise. I have accepted a job offer with better benefits and I will get paid $63/hr. Thank you all for your input and wish me luck!

[AbeTheBabe]

$65 an hour at 2080 hours a year is $135K, not $120K. You would be clearing $120K at $58/hour so with 5-10% raises you'd be there in 2 years.